US Power Firm NRG Energy Signs Agreement to Sell Six Gas Plants to LS Power for $4 Billion to Fund Buybacks and Debt Reduction
US power provider NRG Energy announced a definitive agreement to sell six natural gas generation assets to LS Power for $4 billion in cash. The deal, expected to close in Q2 2027, will support a $3 billion share repurchase program and $3 billion in debt reduction, optimizing capital allocation.
NRG Energy, Inc. (NYSE: NRG) announced on November 9, 2026, via an SEC Form 8-K filing, that it has entered into a definitive agreement to sell six natural gas-fired generation assets to an affiliate of LS Power. The purchase price is $4 billion in cash, subject to customary working capital and other closing adjustments. The transaction implies a 2027 EV/Adjusted EBITDA multiple of 8.0x.
The assets represent 4.9 gigawatts (GW) of generation capacity across the New York Independent System Operator (NYISO), ISO New England (ISO-NE), and Electric Reliability Council of Texas (ERCOT). Specific plants include Ravenswood, Ocean State Power, Wallingford, Jack County, Johnson County, and R.W. Miller. Upon completion, NRG will own and operate 20 GW of generation capacity nationwide, down from approximately 25 GW, with 10 GW each in ERCOT and PJM.
Robert Gaudette, President and CEO of NRG, stated that the transaction unlocks substantial value while maintaining a robust generation footprint. Proceeds will support NRG's 2027 pro forma capital allocation plan, including $3 billion in share repurchases across 2026 and 2027, with incremental buybacks expected to begin before the end of Q4 2026. Additionally, NRG plans an extra $2 billion in debt reduction upon closing, bringing total planned 2027 debt reduction to $3 billion to maintain current leverage profiles. Remaining proceeds are reserved for contracted growth investments or further debt reduction.
The sale is targeted to close in the second quarter of 2027, subject to customary conditions and regulatory approvals, including Hart-Scott-Rodino (HSR), Federal Energy Regulatory Commission (FERC), and New York State Public Service Commission (NYSPSC). Barclays serves as lead financial advisor, and White & Case LLP acts as legal counsel.