NRG Announces $1.75 Billion Asset Sale

Source: www.gulfoilandgas.com 6/1/2023, Location: North America

NRG Energy, Inc. (NRG) announced that it has entered into a definitive agreement to sell its 44% equity interest in South Texas Project Electric Generating Station (STP) to Constellation Energy for a purchase price of $1.75 billion, subject to customary purchase price adjustments. The purchase price represents an implied valuation multiple of 11.7x EV/EBITDA and 17.5x Free Cash Flow.

“Today’s announcement is the continuation of our strategy to optimize our portfolio while creating significant shareholder value,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. "The work on this transaction over the last several months will release significant capital to be deployed at value—accelerating and upsizing our current share repurchase program while achieving our balance sheet targets.”

The transaction is targeted to close by the end of 2023, subject to regulatory approvals by the United States Nuclear Regulatory Commission, Hart-Scott-Rodino, and the Public Utility Commission of Texas. Upon closing, the sale exceeds the previously disclosed 2023 asset sale target of $500 million. The sale is expected to be leverage neutral with net cash proceeds, after $500 million of deleveraging, to be used primarily for share repurchases.

STP is a 2,645 MW nuclear facility located about 90 miles southwest of Houston in Bay City, Texas. NRG’s current 44% interest represents approximately 1,100 MWs of output.

Barclays Capital Inc. and Morgan Stanley & Co. LLC are serving as NRG’s financial advisors, and McGuireWoods LLP is serving as legal counsel.

Share Repurchase Update

On May 31, 2023, the NRG Board of Directors authorized $650 million in share repurchases to be initiated following the closing of the STP sale. This authorization, when combined with the approximately $350 million remaining under the existing share repurchase program, brings the total amount of share repurchases to be completed to $1 billion.

NRG reiterates its expectation to achieve its investment grade 2.50x to 2.75x corporate net debt to adjusted EBITDA credit metrics by late 2025 or 2026.

NRG to Host 2023 Investor Day

NRG plans to host its 2023 Investor Day on Thursday, June 22, 2023, at 9:00 am Eastern Time. A live webcast of the event, including presentation materials, will be posted on NRG’s website at www.nrg.com under the ‘investors’ section. The event will be archived on the site for those unable to listen in real-time.


Canada >>  9/29/2023 - Lithium Royalty Corp. is disclosing that LRC has proposed a non-binding all-cash offer to the Board of Directors (the “Board”) of TNR Gold Corp. (“TNR...
Angola >>  9/28/2023 - TotalEnergies EP Angola Block 20 has finalized the sale to PETRONAS ANGOLA E&P LTD (PAEPL), a company belonging to the PETRONAS group of companies, of...

France >>  9/28/2023 - TotalEnergies has finalized the acquisition of France’s agrivoltaics leader Ombrea.

Ombrea was founded in 2016. It has built ten sites and ...

Malaysia >>  9/28/2023 - Rex International Holding Limited (the “Company” or “Rex” and together with its subsidiaries, the “Group”) has received the following queries from th...

Tanzania >>  9/28/2023 - Scirocco Energy plc ("Scirocco Energy" or "the Company") Scirocco Energy, the AIM investing company targeting attractive assets within...
Mexico >>  9/27/2023 - Talos Energy Inc. and its Mexican subsidiary ("Talos Mexico") announced the closing of the sale of a 49.9% interest in Talos Mexico to Zamajal, S. A. ...




Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.