NRG Energy to acquire natural gas assets from LS Power in a $ 12 million agreement

NRG Energy has entered a definitive agreement to acquire natural gas generation facilities of Power Equity Advisors and a portfolio of commercial and industrial virtual platforms (C&A and VPP).

The transaction includes a cash agreement and common actions with a value of about $ 12 million. This agreement is willing to double NRG generation capacity.

The business value of the transaction includes $ 6.4 million in cash consideration, $ 2.8 million in consideration of shares at PWER, $ 3.2 million of net debt assumed and approximately $ 400 million of the net value of the tax benefits generated by the transaction.

The Power will have about 11% of the pro -pending pro -form shares and has agreed to a six -month blocking period on its net equity of NRG’s common actions.

Assets include 18 natural gas facilities in nine states, for a total of 13GW. The acquisition also includes CPOWER, a C&A and VPP platform, improving the presence of NRGs in deregulated energy markets.

NRG provides for an increase in annual growth rate composed for action -adjusted benefits up to at least 14%, up to the current goal of 10%.

In addition, NRG plans to return approximately $ 9.1 million to shareholders by repurchase and sharing dividends over the next five years.

The acquisition of these NRG assets, irreplicable and high quality, will transform their generation fleet and improve their capacity to serve customers in the northeastern markets and Texas.

NRG works to maintain a strong balance and hopes to achieve its proportion of objective leverage within 24-36 months after closing.

The acquisition is expected to end in the first quarter of 2026 (Q1 2026), subject to regulatory approvals. The Power will retain about 10GW of electricity generation capacity and its Power Grid platform, which includes more than 780 miles of high voltage transmission lines.

The President and CEO of NRG said: “The transaction is economically convincing, as it strengthens our credit profile and NRG’s growth rate, while also supporting continuous capital returns.

NRG advisers for the transaction include Citi and Goldman Sachs, with a committed funding provided by Citi and Goldman Sachs Bank USA. Power financial advisers include Evercore, JP Morgan and Morgan Stanley, with Milbank and Willkie Farr and Gallagher as legal lawyer.