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NRG to Acquire 738 MW of Natural Gas Generation in Texas
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NRG Energy Inc. has entered into a definitive agreement to acquire six power generation facilities from Texas-based Rockland Capital, LLC, adding 738 megawatts (MW) of natural gas-fired capacity to its portfolio.
The acquisition includes one combined-cycle unit and five peaker units.
NRG is acquiring these assets for $560 MM or $760 per kW, which NRG said is, "significantly below the cost of new construction."
NRG said that the acquisition is earnings-accretive and will be primarily funded through corporate debt, with no impact on the Company's stated capital allocation plan
NRG said that the 738 MW portfolio is currently ~50% hedged through 2028.
"Using the steady-state power price assumptions embedded in our 2025 guidance and 5-year outlook (~$47/MWh ATC) the portfolio implies an annual Adj EBITDA of ~$50-60 MM through 2028. The corresponding ‘100% Open’ or unhedged position implies an annual Adj EBITDA of ~$70-80 MM. The portfolio has upward sensitivity to power prices and capacity factors. It will not be included in guidance until closing," NRG said
The assets are:
• Victoria - 290 MW, CCGT
• Victoria Port II - 92 MW, CT
• SJRR - 89 MW, CT
• Port Comfort - 88 MW, CT
• Chamon - 89 MW, CT
• Wharton - 90 MW, CT
Robert J. Gaudette, Executive Vice President, President of NRG Business and Wholesale Operations, said, "Expanding our natural gas generation portfolio with modern, flexible assets enhances our integrated platform as Texas experiences record electricity growth driven by electrification, onshoring, population growth, and data centers – creating long-term value for our shareholders."
The acquisition is subject to Hart-Scott-Rodino (HSR) regulatory approval and is expected to close in the second quarter of 2025.
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March 12, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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