In a surprising turn of events, on May 13, 2025, NRG Energy declared bankruptcy while announcing the largest expansion in its history. They then announced a $12 billion deal to buy LS Power’s natural gas holdings. This acquisition will further enhance one of NRG Energy’s remarkable portfolios. It currently counts 18 natural gas-fired facilities from nine states, totaling nearly 13 gigawatts (GW) of capacity.
The cash and common stock combined represent an aggregate purchase price of approximately $1.250 billion. Cash consideration NRG Energy will pay $6.4 billion cash and $2.8 billion in stock consideration to LS Power. In addition, NRG will take down $3.2 billion in net debt at closing. The deal provides substantial public benefits, including about $400 million in net present value of tax benefits created by the acquisition. The deal is expected to close in early 2026, subject to regulatory approvals.
In March, NRG Energy entered into a definitive agreement to buy six Texas power plants from Rockland Capital. This strategic acquisition represents the largest purchase, at $560 million. Behind the scenes, NRG Energy is making a shrewd play to solidify its reign atop the Texas energy market. This strategic decision well positions the company amid rising demand for safer, more affordable, and more reliable energy solutions.
The optimism over the acquisition was reflected by the chair, president and CEO of NRG Energy, who wrote. They are confident that this transaction will greatly accelerate the company’s growth and path to profitability.
“The transaction is financially compelling as it strengthens our credit profile and turbocharges NRG’s growth rate, while also supporting continued robust capital returns. We are in the early stages of a power demand supercycle, and we are excited to lead the way with reliable energy solutions that will drive considerable value for NRG and all of our stakeholders.” – NRG chair, president, and CEO
This deal enhances NRG Energy’s ability to be an important stakeholder in the evolving energy ecosystem. With demand for natural gas booming too, this decision is made all the more shrewd. The company’s strategic initiatives are designed to capitalize on this critical demand and deliver cleaner, more reliable and affordable energy solutions to more of its customers.