- NRG Energy has agreed to purchase Stream Energy's retail electricity and gas business, a move that will add more than 600,000 residential customer equivalents and expand NRG's market share in Texas, Pennsylvania and other markets.
- The $300 million all-cash deal is expected to close in the third quarter of this year, though it will require approval from Georgia regulators and the Federal Energy Regulatory Commission, and is subject to other requirements.
- The deal to purchase Stream continues NRG's plan to exit electricity generation and shift its focus to retail sales. Last year, the company acquired XOOM Energy, which served over 300,000 residential customer equivalents.
NRG Energy is continuing to execute a plan to expand its retail business, with announced acquisitions adding almost 1 million customer equivalents to its service (each represents annual consumption of 1,000 therms of gas or 10,000 kWh of electricity).
The acquisition "represents another step in perfecting our integrated business model," NRG President and CEO Mauricio Gutierrez said in a statement.
Stream Energy serves customers in nine states and the District of Columbia and will help NRG accelerate its growth in those markets while also enhancing its "multi-brand strategy," the company said.
The deal is expected to contribute $65 million in annual EBITDA, according to the company, and "when combined with NRG’s generation assets, will enable NRG to deliver even greater value to customers and shareholders."
NRG currently serves more than 3 million residential and commercial customers.
The company launched a plan to streamline and transform its business in 2016, and two years ago launched a three-year transformation plan that includes billions in asset sales and a 60% debt reduction goal.
In September, NRG completed the sale of its renewables platform, which officials say marked a "critical" step in the company's reorganization. That deal contributed $1.3 billion in cash proceeds and removed $6.7 billion of debt from NRG's balance sheet.