NRG Energy Expands Texas Power Capacity With 738-MW Acquisition

NRG Energy NRG announced that it has entered into a definitive agreement to acquire six power generation facilities from Texas-based Rockland Capital, LLC, adding 738 megawatts (MW) of modern, flexible natural gas-fired capacity to its portfolio.

An Insight Into NRG’s Agreement

The acquisition is subject to Hart-Scott-Rodino regulatory approval and is expected to close in the second quarter of 2025.

NRG Energy is acquiring these assets for $560 million or $760 per kilowatt, significantly below the cost of new construction. The acquisition is earnings-accretive and will be primarily funded through corporate debt, with no impact on the company's stated capital allocation plan.

This acquisition includes one combined-cycle unit and five peaker units, further strengthening NRG Energy’s position in the rapidly growing market.

This acquisition strengthens NRG Energy’s position as one of Texas' top generators. Expanding the company’s natural gas generation portfolio with modern, flexible assets enhances its integrated platform as Texas experiences record electricity growth driven by electrification, onshoring, population growth, and data centers while creating long-term value for its shareholders.

Other Companies’ Focus on Clean Energy

Along with NRG Energy, other companies like Constellation Energy Corporation CEG, Dominion Energy D and Duke Energy DUK are also focused on expanding their clean power generation through organic and inorganic initiatives.

In January 2025, Constellation Energy and Calpine Corp. announced that they have entered into a definitive agreement under which CEG will acquire Calpine in a cash and stock transaction valued at an equity purchase price of nearly $16.4 billion. CEG and Calpine will have nearly 60 gigawatts (GW) of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration and battery storage. The combined company’s footprint will span the continental United States and include a significantly expanded presence in Texas.

CEG’s long-term (three to five years) earnings growth rate is 12.46%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) implies a year-over-year improvement of 8.2%.

Dominion Energy’s long-term objective is to add more battery storage, solar, hydro and wind (offshore and onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years. Organic projects and acquired assets will further expand the company’s clean energy portfolio.

D’s long-term earnings growth rate is 13.59%. The Zacks Consensus Estimate for 2025 EPS implies year-over-year growth of 22%.

Duke Energy aims to bring 2.7 GW of battery storage into service by 2031 and 1.2 GW of onshore wind into service by 2033. These solid renewable capacity maximization plans should enable the company to further expand its footprint in clean power generation.

DUK’s long-term earnings growth rate is 6.33%. The Zacks Consensus Estimate for 2025 EPS implies a year-over-year increase of 7.1%.

NRG’s Stock Price Performance

In the past six months, shares of NRG Energy have risen 14.5% against the industry’s 2.8% decline.

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NRG’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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NRG Energy, Inc. (NRG): Free Stock Analysis Report
 
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