NRG Energy Acquires $12B Gas Portfolio from LS Power, Eyes Rising U.S. Power Demand
Houston-based NRG Energy bolsters its generation capacity with a major acquisition, targeting surging electricity needs.
ENERGY ⚡️FEATURED
Houston, TX — On May 12, 2025, NRG Energy announced a $12 billion acquisition of gas-fired power generation facilities from LS Power Equity Advisors, doubling its capacity to meet growing U.S. electricity demand.
The Details:
Deal Scope: The portfolio includes 18 natural gas-fired facilities across nine states, totaling 13GW, boosting NRG’s capacity to 25GW in key markets like Texas and the Northeast.
Demand Surge: CEO Larry Coben noted a “power demand supercycle,” driven by AI, crypto data centers, and rising home and business consumption.
Financials: The deal involves $6.4B in cash, $2.8B in stock, and $3.2B in assumed debt, with LS Power taking an 11% stake in NRG.
Earnings Boost: NRG expects a 14% annual earnings growth rate, up from 10%, following the acquisition set to close in Q1 2026.
Why It Matters:
This acquisition positions NRG to lead in meeting U.S. energy needs, especially in Texas, while enhancing grid reliability. NRG’s strategic buy signals confidence in Texas’s energy future amid a national power boom.