NRG Announces First-ever Dividend and Acquisition of GenOn

The combined company will have an enterprise value of $18 billion, according to the press release announcing the deal, and will be the largest merchant power generator in the US with 47,000 megawatts of capacity.

NRG noted that second quarter adjusted EBITDA will be about $530 million in the second quarter for that company alone, and that full-year EBITDA will be $1.825-$2 billion with free cash flow of $800 million to $1 billion.

The company also offered pro forma guidance for 2013 and 2014. Adjusted EBITDA for 2013 is estimated at $2.535-$2.735 billion and in 2014 at $2.63-$2.83 billion.

Also on Sunday morning, NRG announced that it pay a $0.09/share quarterly dividend on August 15th to shareholders of record as of August 1st. This is the company’s first ever dividend.

Shares of GenOn are up 25.3% at $2.28 in a 52-week range of $1.24-$4.10. Shares of NRG are up 8.1% at $19.51 in a 52-week range of $14.29-$25.66.

Paul Ausick