NRG ENERGY, INC. files 10-Q: quarterly report (10-Q)
Texas Energy Fund (TEF)
The Company achieved commercial operations at its first project, the 415 MW T.H. Wharton facility, in May 2026.
Acquisition of LSP Portfolio
On January 30, 2026, NRG completed the acquisition of the LSP Portfolio from LS Power. The acquisition doubles NRG’s generation capacity with the addition of 18 natural gas-fired and dual fuel facilities totaling approximately 13 GW. In addition, NRG acquired CPower, a leading demand response platform, which operates in all the country’s deregulated energy markets and has more than 2,000 commercial and industrial customers. The consideration consisted of 24.25 million shares of NRG common stock and $6.4 billion in cash, plus preliminary working capital and certain other adjustments of $483 million. The Company funded the cash consideration using a portion of the net proceeds of $4.4 billion from the 5.750% 2034 Senior Notes, the 2036 Senior Notes, Senior Secured First Lien Notes, due 2030 and the Senior Secured First Lien Notes, due 2035 and proceeds of $2.5 billion from the Company’s Revolving Credit Facility. For further discussion, see Note 4, Acquisitions.
Capital Allocation
During the six months ended June 30, 2026, the Company completed $921 million of share repurchases at an average price of $156.52 per share. Through July 31, 2026, an additional $14 million of share repurchases were executed at an average price of $136.23 per share. See Note 9, Changes in Capital Structure for additional discussion.
In the first quarter of 2026, NRG increased the annual common stock dividend to $1.90 from $1.76 per share, representing an 8% increase from 2025. The Company targets an annual dividend growth rate of 7-9% per share in subsequent years.
Term Loan B Incurrence
On April 28, 2026, the Company issued $2.1 billion in aggregate principal amount of the New Unsecured Notes. The New Unsecured Notes are senior unsecured obligations of the Company and are guaranteed by its wholly-owned U.S. subsidiaries that guarantee the loans under the Senior Credit Facility. For further discussion, see Note 7, Long-term Debt and Finance Leases.
On April 28, 2026, the Company also issued $500 million aggregate principal amount of the New 2031 Notes. The New 2031 Notes are senior secured obligations of the Company and are guaranteed by its wholly-owned U.S. subsidiaries that guarantee the loans under the Senior Credit Facility. For further discussion, see Note 7, Long-term Debt and Finance Leases.
Bilateral Letter of Credit Facilities
Lightning Notes and Lightning Tender Offer and Redemption
On the Acquisition Closing Date, Lightning remained the issuer of the Lightning 2032 Notes issued pursuant to the Lightning Indenture, by and among Lightning, Lightning’s subsidiaries that are guarantors from time to time party thereto, and the Lightning Notes Trustee.
During the second quarter of 2026, Lightning completed the Tender Offer and Redemption. For further discussion, see Note 7, Long-term Debt and Finance Leases .
Trends Affecting Results of Operations and Future Business Performance
The Company’s trends are described in the Company’s 2025 Form 10-K in Item 7, M anagement’s Discussion and Analysis of Financial Condition and Results of Operations - Business Environment, except for the update below:
Geopolitical Developments — The ongoing geopolitical conflicts, including hostilities with Iran and conflicts in the Middle East, have contributed to elevated and volatile oil prices and could, over time, put upward pressure on U.S. natural gas. Prolonged market volatility could result in increased collateral requirements and heighten counterparty credit exposure under NRG’s hedging arrangements.
Changes in Accounting Standards
See Note 2, Summary of Significant Accounting Policies , for a discussion of recent accounting developments.