NRG Announces Asset Acquisitions

NRG Energy, Inc. NRG entered a definitive agreement with one of The Blackstone Group, L.P. BX affiliates to purchase 3,884 MW of Dynergy, Inc. DYN assets in California and Maine for $1.36B ($351/kW), according to Ladenburg Thalmann. Ladenburg also reports that in a separate transaction, NRG agreed to acquire Cottonwood Generating Station, a 1,279 MW natural gas fueled plant in the Entergy zone of east Texas from Kelson Limited Partnership for $525M ($410/kW). Both acquisitions are expected to close by year end and are subject to approval by FERC, DOE (Hart-Scott Rondino). Ladenburg reiterates its Buy rating and $26 price target. NRG Energy, Inc. closed yesterday at $21.95.