NRG Energy offloads $4B of gas plants to LS Power, stock jumps 6.4%

NRG Energy has agreed to hand LS Power six power-generation assets with a combined 4.9 gigawatts of capacity, in a $4 billion all-cash deal the company announced Monday alongside its quarterly results. LS Power is buying the natural gas-fired plants, according to The Wall Street Journal. The sale is expected to close in the second quarter of 2027, subject to Hart-Scott-Rodino and other standard regulatory clearances.

CEO Robert Gaudette framed the move as a payout play. 'Today's announcement is about returning more to our shareholders and supporting future growth investments,' he said, according to The Wall Street Journal. NRG said the cash will feed its 2027 capital allocation plan, extra share repurchases, debt reduction and room to redeploy capital into higher-return bets, plus a higher annual common dividend.

Once the deal is done, NRG will own and operate 20 gigawatts of generation capacity. Barclays is serving as lead financial adviser on the transaction, and NRG said it will talk through the details on its earnings conference call.

The market's early verdict was positive: NRG stock rose 6.4% to $93.96 in premarket trading Monday.

The sale landed next to a strong quarter. NRG posted third-quarter net income of $561 million, up from $152 million a year earlier, with adjusted earnings of $4.68 a share versus $2.78 in the year-earlier period. The company also issued 2027 guidance of $8.05 to $10.05 in adjusted earnings a share, a range that excludes the expected effects of the LS Power sale.