NRG Energy Surges Nearly 10% After $4 Billion Gas Asset Sale to LS Power and Strong Q3 Beat

NRG Energy announced a definitive agreement to sell six natural gas generation assets totaling 4.9 gigawatts to LS Power for $4 billion in cash, a price representing an implied 2027 valuation multiple of 8.0x EV/Adjusted EBITDA. The company said the deal will allow it to sharply reduce debt and return capital to shareholders, with $2 billion in additional debt reduction planned at closing, followed by $1 billion in further debt reduction, $1 billion in share buybacks, and an 8% dividend increase in 2027.

The asset sale came alongside a strong third-quarter earnings report. NRG posted GAAP net income of $561 million and basic GAAP earnings per share of $2.59, with GAAP cash provided by operating activities of $1.097 billion. On a non-GAAP basis, adjusted EPS came in at $4.68, beating consensus estimates by $1.65, while revenue of $9.47 billion topped expectations by $180 million, a 40.63% positive surprise. The company reaffirmed its 2026 financial guidance and initiated 2027 guidance alongside the results.

NRG shares jumped as much as 4.8% in premarket trading and finished the session up approximately 9.81%, outperforming the broader market on a day when the S&P 500 itself gained more than 2%. The company also disclosed it is in talks to expand its dedicated data center power pipeline beyond its current 1.2 gigawatt position, a business the company says shifts risk to customers and supports grid stability.