09:13 AM EDT, 05/12/2025 (MT Newswires) -- NRG Energy ( NRG ) on Monday agreed to acquire a portfolio of power assets from LS Power Equity Advisors in a cash-and-stock deal valued at about $12 billion, as the company aims to bolster its generation capacity.

The portfolio includes 18 natural gas generation facilities across nine states, totaling roughly 13 gigawatts. In addition, NRG will acquire CPower, a commercial and industrial virtual power plant with about 6 gigawatts of capacity.

The transaction consideration is comprised of $6.4 billion in cash, 24.3 million shares of NRG Energy ( NRG ) worth about $2.8 billion, and $3.2 billion of debt. The company expects to realize net present value tax benefits of roughly $400 million from the deal.

The deal, which requires approval from the Federal Energy Regulatory Commission and the New York State Public Service Commission, is expected to be completed in the first quarter of 2026.

NRG expects the acquisition to double its generation capacity to 25 gigawatts and expand its presence in the Northeast and Texas. The transaction is estimated to be immediately accretive to NRG's adjusted earnings on a per-share basis.

"This acquisition transforms NRG's generation fleet and broadens our customized product offerings," Chief Executive Larry Coben said in a joint statement. "The transaction is financially compelling as it strengthens our credit profile and turbocharges NRG's growth rate, while also supporting continued robust capital returns."

NRG raised its long-term adjusted EPS compounded annual growth rate outlook to at least 14% from at least 10%, excluding "upside" opportunities such as data centers or increased pricing from tightening markets.

LS Power, an energy infrastructure investment firm, is anticipated to own about 11% of NRG's pro forma shares. The company will also retain around 10 gigawatts of electric generation capacity across natural gas, renewables, and energy storage projects, as well as its LS Power Grid platform.

"This transaction is a significant milestone for our firm and investors," LS Power CEO Paul Segal said. "LS Power will continue to invest in and develop secure and reliable energy infrastructure across the US."

In a separate statement, NRG reported adjusted EPS of $2.62 for the first quarter, up from $1.43 the year before. Five analysts polled by FactSet expected $1.75. Revenue advanced to $8.59 billion from $7.43 billion, while two analysts forecast $7.92 billion. The company maintained its full-year 2025 adjusted EPS outlook range of $6.75 to $7.75, while the Street is looking for $7.47.