EX-99.6 10 tm267426d2_ex99-6.htm EXHIBIT 99.6

 

EXHIBIT 99.6

 

UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma combined financial information is presented by NRG Energy, Inc. (“NRG” or the “Company”) to illustrate the estimated effects of the acquisition of a portfolio of natural gas-fired and dual fuel facilities, and CPower, a leading demand response platform, from LS Power (the “LS Power Portfolio”), (“the Acquisition”), and certain other related transactions and adjustments described below (collectively, the “Transactions Accounting Adjustments”).

 

Acquisition of LS Power Portfolio

 

On January 30, 2026, NRG completed the acquisition of the LS Power Portfolio, pursuant to the Purchase and Sale Agreement (the “Purchase Agreement”) dated as of May 12, 2025 by and among the Company, NRG East Generation Holdings LLC, NRG Texas LLC, NRG Demand Response Holdings LLC, NRG Gas Development Company, LLC (all of which are subsidiaries of the Company) and Lightning Power Holdings, LLC, Thunder Generation, LLC, CCS Power Holdings, LLC and Linebacker Power Development Funding, LLC (all of which were affiliates of LS Power Equity Advisors, LLC). Pursuant to the Purchase Agreement, NRG acquired all of the issued and outstanding equity interests of Lightning Power, LLC (“Lightning”)1, Linebacker Power Holdings, LLC (“Linebacker”)2, CCS Intermediate HoldCo, LLC (“CCS”)3 and Jack County Power Development, LLC (“JCPD”)4. The LS Power Portfolio includes 18 natural gas-fired and dual fuel facilities totaling approximately 13 GW of capacity, located across nine states, as well as 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.

 

Subject to the terms and conditions of the Purchase Agreement, the purchase price for the transaction consists of 24,250,000 shares of common stock of the Company, par value of $0.01 per share (the “Stock Consideration”), and $6.4 billion plus preliminary working capital and certain other adjustments of $0.5 billion in cash (the “Cash Consideration”). As part of the transaction, NRG also assumed approximately $3.2 billion of debt.

 

In connection with the Purchase Agreement, NRG entered into a commitment letter for a 364-day Senior Secured Bridge Facility (the “Bridge Facility”) in a principal amount not to exceed $4.4 billion for the purposes of paying a portion of the Cash Consideration for the acquisition and paying fees and expenses in connection with the acquisition. The Bridge Facility was terminated on October 8, 2025, subsequent to obtaining permanent financing.

 

Pro Forma Financial Information

 

The unaudited pro forma combined balance sheet as of December 31, 2025 combines the historical consolidated balance sheet of NRG and the historical balance sheets of the LS Power acquired entities (as listed below) after giving effect to the acquisition of the LS Power Portfolio and the related transactions, as if they had occurred on December 31, 2025. The unaudited pro forma combined statement of operations for the year ended December 31, 2025 combines the historical consolidated statement of operations of NRG and the historical statements of operations of the LS Power acquired entities (as listed below), after giving effect to the Transactions Accounting Adjustments, as if they had occurred on January 1, 2025. We refer to these unaudited pro forma combined balance sheet and unaudited pro forma combined statement of operations as the “pro forma financial information”.

 

 

1 The pro forma financial information for Lightning was prepared using the financial statements of Lightning Power, LLC for the year ended December 31, 2025 and for the period August 9, 2024 to December 31, 2024. The period from January 1, 2024 to August 8, 2024 is included in the financial statements of Fund III Projects (as defined below) and Gridiron Intermediate Holdings, LLC (“Gridiron”). The “Fund III Projects” are comprised of the operations and assets held by Granite Generation, LLC, Helix Gen Funding, LLC, Ocean State Power LLC, and Rise Light & Power, LLC.

2 Linebacker Power Holdings, LLC (one of the acquired entities) owns Linebacker Power Funding, LLC. The pro forma financial information was prepared using the available audited and unaudited financial statements of Linebacker Power Funding, LLC. Differences between the two entities include affiliate billings and certain incremental general and administrative costs and are immaterial to the pro forma information.

3 CCS Intermediate Holdco, LLC (one of the acquired entities) owns CCS Power Finance Co, LLC (“CPower”). The pro forma financial information was prepared using the available audited and unaudited financial statements of CPower. Differences between the two entities include immaterial affiliate billings and certain immaterial incremental general and administrative costs. Removal of intercompany note of $16.5 million between the two entities and its related impact on the pro forma information is included in the pro forma Transactions Accounting Adjustments.

4 The pro forma financial information does not include the estimated effects from the acquisition of Jack County Power Development, LLC, as audited and unaudited financial statements for that entity are not available and the effects of that entity are immaterial to the pro forma information.

 

1

 

 

The pro forma financial information has been prepared by NRG for illustrative and informational purposes only, in accordance with Regulation S-X Article 11, Pro Forma Financial Information. The pro forma financial information is based on the Transactions Accounting Adjustments and assumptions and is not necessarily indicative of what NRG’s consolidated statement of operations or consolidated balance sheet actually would have been had the Transactions Accounting Adjustments been completed as of the dates indicated, or what they will be for any future periods. The pro forma financial information does not purport to project the future financial position or operating results of NRG following the completion of the Acquisition and the related transactions. The pro forma financial information does not reflect any revenue enhancements, cost savings, operating synergies or restructuring costs that may be achievable or incurred prospectively in connection with the Acquisition and the related transactions.

 

The pro forma financial information for the acquisition of the LS Power Portfolio has been prepared using the acquisition method of accounting under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) with NRG being the accounting acquirer in the acquisition. The purchase price will be allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the acquisition date, and any excess value of the consideration transferred over the net assets will be recognized as goodwill. The Company has made a preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the assumed acquisition date based on NRG’s preliminary valuation of the tangible and intangible assets acquired and liabilities assumed using information currently available. Differences between these preliminary estimates, which were made solely for the purpose of this pro forma financial information, and the final acquisition accounting will occur and these differences could have a material impact on the accompanying pro forma financial information.

 

The purchase price for the acquisition of the LS Power Portfolio consists of Cash Consideration of $6.4 billion plus preliminary working capital and certain other adjustments of $0.5 billion, and Stock Consideration of 24,250,000 shares of common stock of the Company, par value of $0.01 per share.

 

The pro forma financial information gives effect to the following sources of funds to satisfy the Cash Consideration:

 

·proceeds of $3.6 billion from unsecured corporate debt, net of issuance costs, issued in October 2025;

 

·proceeds of $743 million from secured corporate debt, net of issuance costs, issued in October 2025 ; and

 

·proceeds of $2.5 billion from the Company’s Revolving Credit Facility, drawn in January 2026.

 

The pro forma financial information should be read in conjunction with the accompanying explanatory notes. In addition, the pro forma financial information is derived from and should be read in conjunction with the following historical financial statements and the related notes of NRG and the LS Power acquired entities as listed below:

 

NRG Financial Statements:

 

·audited consolidated financial statements of NRG as of and for the fiscal year ended December 31, 2025 and the related notes included in NRG’s Annual Report on Form 10-K for the year ended December 31, 2025 filed on February 24, 2026;

 

LS Power Acquired Entities’ Financial Statements:

 

·audited consolidated financial statements of Lightning Power, LLC and its subsidiaries for the year ended December 31, 2025 and for the period August 9, 2024 to December 31, 2024 and the related notes, which are included as Exhibit 99.1 to this current Report on Form 8-K;

 

·audited consolidated financial statements of Linebacker Power Funding, LLC and subsidiaries as of December 31, 2025 and 2024, and the related notes, which are included as Exhibit 99.4 to this current Report on Form 8-K

 

·audited consolidated financial statements of CCS Power Finance Co, LLC as of and for the fiscal year ended December 31, 2025 and 2024 and the related notes, which are included as Exhibit 99.5 to this current Report on Form 8-K;

 

2

 

 

NRG ENERGY, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED BALANCE SHEET

AS OF DECEMBER 31, 2025

 

   Historical   Transaction Accounting         
       LS Power Portfolio   Adjustments         
(In millions)  NRG   Lightning as
Reclassified
(Note 3)
   Linebacker
as
Reclassified
(Note 4)
   CPower as
Reclassified
(Note 5)
   Acquisition
Accounting
Adjustments
   Financing
Transactions
Adjustments
   Notes  Pro Forma
Combined
 
ASSETS                                
Current Assets                                        
Cash and cash equivalents   $4,708    $   $   $129   $(6,851)  $2,494   7(a)   $480 
Funds deposited by counterparties    260                             260 
Restricted cash    30     99    50                    179 
Accounts receivable, net    4,065     88    13    27    (52)      7(b)    4,141 
Inventory    461     129    38                    628 
Derivative instruments    2,189     538    31                    2,758 
Cash collateral paid in support of energy risk management activities    365                             365 
Prepayments and other current assets    1,069     80    10    3                1,162 
Total current assets    13,147     934    142    159    (6,903)   2,494        9,973 
Property, plant and equipment, net    3,632     6,422    670    10    4,508            15,242 
Other Assets                                        
Equity investments in affiliates    16                             16 
Operating lease right-of-use assets, net    130     26        2                158 
Goodwill    5,017     128        127    1,601       7(c)    6,873 
Customer relationships, net    1,203                 250       7(d)    1,453 
Other intangible assets, net    1,106     30        101    (41)      7(d)    1,196 
Derivative instruments    1,568     336    12                    1,916 
Deferred income taxes    1,843                             1,843 
Other non-current assets    1,478     8        2                1,488 
Total other assets    12,361     528    12    232    1,810            14,943 
Total Assets   $29,140    $7,884   $824   $401   $(585)  $2,494       $40,158 
                    
LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER’S EQUITY                   
                    
Current Liabilities                                        
Current portion of long-term debt and finance leases   $31    $8   $   $86   $(77)  $2,494   7(e)   $2,542 
Current portion of operating lease liabilities    35     1        1                37 
Accounts payable    2,834     69    6    1    (52)      7(b)    2,858 
Derivative instruments    2,257     566    24                    2,847 
Cash collateral received in support of energy risk management activities    260                             260 
Deferred revenue current    748     7                        755 
Accrued expenses and other current liabilities    1,864     172    22    130    49       7(f)    2,237 
Total current liabilities   $8,029    $823   $52   $218   $(80)  $2,494       $11,536 

 

3

 

 

NRG ENERGY, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED BALANCE SHEET

AS OF DECEMBER 31, 2025 (Continued)

 

   Historical   Transaction Accounting          
       LS Power Portfolio   Adjustments          
(In millions)  NRG   Lightning as
Reclassified
(Note 3)
   Linebacker
as
Reclassified
(Note 4)
   CPower as
Reclassified
(Note 5)
   Acquisition
Accounting
Adjustments
   Financing
Transactions
Adjustments
   Notes   Pro Forma
Combined
 
Other Liabilities                               
Long-term debt and finance leases   $16,412   $3,165   $603   $   $(449)  $   7(e)   $19,731 
Non-current operating lease liabilities    144    26        1                171 
Derivative instruments    1,103    363    23                    1,489 
Deferred income taxes    15            18    3       7(g)    36 
Deferred revenue non-current    895                              895 
Other non-current liabilities    861    77    2                    940 
Debt due to related parties                17    (17)      7(h)     
Accrued liabilities due to related parties                3    (3)      7(h)     
Total other liabilities    19,430    3,631    628    39    (466)           23,262 
Total Liabilities    27,459    4,454    680    257    (546)   2,494        34,798 
Stockholders' Equity/ Member’s Equity                                       
Preferred stock    650                            650 
Common stock    2                            2 
Additional paid-in-capital    215                3,728       7(i)    3,943 
Retained earnings    1,982                (49)      7(j)    1,933 
Treasury stock, at cost    (1,087)                           (1,087)
Accumulated other comprehensive loss   (81)                           (81)
Member’s equity        3,430    144    144    (3,718)      7(k)     
Total Stockholders' Equity/ Member’s Equity    1,681    3,430    144    144    (39)           5,360 
Total Liabilities and Stockholders' Equity/Member’s Equity   $29,140   $7,884   $824   $401   $(585)  $2,494       $40,158 

 

4

 

  

NRG ENERGY, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

   Historical   Transactions Accounting          
       LS Power Portfolio   Adjustments          
(In millions, except per share
amounts)
  NRG   Lightning as
Reclassified
(Note 3)
   Linebacker
as
Reclassified
(Note 4)
   CPower as
Reclassified
(Note 5)
   Acquisition
Accounting
Adjustments
   Financing
Transactions
Adjustments
   Notes   Pro Forma
Combined
 
Revenue                               
Revenue   $30,713   $2,115   $510   $247   $(114)  $   8(a)   $33,471 
Operating Costs and Expenses                                       
Cost of operations (excluding depreciation and amortization shown below)    24,761    1,299    388    156    (232)      8(a)    26,372 
Depreciation and amortization    1,406    335    25    23    77       8(b)    1,866 
Selling, general and administrative costs    2,602    55    6    53    (1)      8(a)    2,715 
Acquisition-related transaction and integration costs    74            1    49       8(c)    124 
Total operating costs and expenses    28,843    1,689    419    233    (107)           31,077 
Loss on sale of assets    (25)                           (25)
Operating Income/(Loss)    1,845    426    91    14    (7)           2,369 
Other Income/(Expense)                                       
Equity in earnings of unconsolidated affiliates    11                            11 
Impairment losses on investments    (39)                             (39)
Other income, net    68    23    1                    92 
Loss on debt extinguishment    (10)                           (10)
Interest expense    (741)   (241)   (29)   (12)   55    (303)  8(d)    (1,271)
Total other expense, net    (711)   (218)   (28)   (12)   55    (303)       (1,217)
Income/(Loss) Before Income Taxes    1,134    208    63    2    48    (303)       1,152 
Income tax expense/(benefit)    270        2        12    (75)  8(e)    209 
Net Income/(Loss)    864    208    61    2    36    (228)       943 
Less: Cumulative dividends attributable to Series A Preferred Stock    67                            67 
Net Income/(Loss) Available for Common Shareholders   $797   $208   $61   $2   $36   $(228)      $876 
Income per Share                                       
Weighted average number of common shares outstanding — basic    195                   24        8(f)    219 
Income per weighted average common share — basic   $4.09                                $4.00 
Weighted average number of common shares outstanding — diluted    199                   24        8(f)    223 
Income per weighted average common share — diluted   $4.01                                $3.93 

 

5

 

 

NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

 

Note 1. Basis of Pro Forma Presentation

 

The pro forma financial information for the Acquisition has been prepared using the acquisition method of accounting under U.S. GAAP, in accordance with ASC 805, and is derived from the audited and unaudited historical financial statements of NRG and the acquired entities.

 

The unaudited pro forma combined balance sheet as of December 31, 2025 combines the historical consolidated balance sheet of NRG and the historical balance sheets of the LS Power acquired entities (as listed above) after giving effect to the acquisition of the LS Power Portfolio and the related transactions, as if they had occurred on December 31, 2025. The unaudited pro forma combined statement of operations for the year ended December 31, 2025 combines the historical consolidated statement of operations of NRG and the historical statements of operations of the LS Power acquired entities (as listed above), after giving effect to the Transactions Accounting Adjustments, as if they had occurred on January 1, 2025.

 

The pro forma financial information has been prepared by NRG for illustrative and informational purposes only in accordance of Article 11. The pro forma financial information is based on the Transactions Accounting Adjustments and assumptions and is not necessarily indicative of what NRG’s consolidated statement of operations or consolidated balance sheet actually would have been had the Transactions Accounting Adjustments been completed as of the dates indicated, or what they will be for any future periods. The pro forma financial information does not purport to project the future financial position or operating results of NRG following the completion of the Acquisition. The pro forma financial information does not reflect any revenue enhancements, cost savings, operating synergies or restructuring costs that may be achievable or incurred prospectively in connection with the Acquisition and related transactions.

 

The acquisition method of accounting requires an acquirer to recognize and measure in its financial statements the identifiable assets acquired and the liabilities assumed at fair value at the acquisition date. The determination of fair value used in the Transactions Accounting Adjustments is preliminary and based on management’s best estimates considering currently available information and certain assumptions that management believes are reasonable under the circumstances. The purchase price allocation presented is dependent upon certain valuations and other analyses that have not yet been finalized. The actual amounts eventually recorded for purchase accounting, including the identifiable intangibles and goodwill may differ materially from the information presented and could be materially impacted by changing fair value measurements caused by the volatility in the current market environment.

 

Under ASC 805, acquisition-related transactions costs are not included as a component of the consideration transferred and are expensed in the period in which the costs are incurred. Total costs related to the Acquisition are estimated to be $81 million, of which $32 million were recorded in the historical Consolidated Statement of Operations of NRG for the year ended December 31, 2025 and estimated costs of $49 million were accrued in the pro forma combined financial statements. Acquisition costs include primarily due diligence, valuation, legal and filing fees, professional and other consulting fees.

 

During the preparation of the unaudited pro forma combined financial information, management performed a preliminary analysis of the acquired entities financial information to identify differences in accounting policies as compared to those of NRG. Except as noted below, at this time NRG is not aware of any material differences in the accounting policies followed by NRG and those used by the acquired entities in preparing its consolidated financial statements that would have a material impact on the pro forma financial information.

 

6

 

 

During the preparation of the unaudited pro forma combined financial information, management identified that LS Power acquired entities elected to expense all maintenance costs to costs of operations in the period incurred, which is different than NRG’s policy to capitalize a portion of maintenance costs that extend the life of an asset and depreciate over the expected period of benefit. The Company recorded pro forma adjustments aiming to align the recognition of the major maintenance costs of the LS Power entities based on information currently available (see Note 8(a,b)). When additional information is available and additional analysis is performed, the Company may adjust such amounts and may identify other policy differences.

 

Note 2. Preliminary Purchase Price and Related Financing

 

The purchase price for the acquisition of the LS Power Portfolio consists of Stock Consideration of 24,250,000 shares of common stock of the Company, par value of $0.01 per share, and Cash Consideration of $6.4 billion plus preliminary working capital and certain other adjustments of $0.5 billion.

 

The pro forma financial information gives effect to the following sources of funds to satisfy the Cash Consideration:

 

·proceeds of $2.376 billion from issuance of $2.4 billion Senior Unsecured Notes due 2036 at 6.000% interest rate, net of issuance costs;

 

·proceeds of $1.238 billion from issuance of $1.250 billion Senior Unsecured Notes due 2034 at 5.750% interest rate, net of issuance costs;

 

·proceeds of $619 million from issuance of $625 million Senior Secured First Lien Notes due 2030 at 4.734% interest rate, net of issuance costs;

 

·partial proceeds of $124 million from issuance of $625 million Senior Secured First Lien Notes due 2035 at interest rate of 5.407%, net of issuance costs; and

 

·proceeds of approximately $2.494 billion from the Company’s Revolving Credit Facility.

 

Note 3. Reclassification Adjustments — Lightning

 

During the preparation of the unaudited pro forma combined financial statements, management performed a preliminary analysis of the Lightning financial information to identify differences in Lightning financial statement presentation as compared to the presentation of NRG. The below reclassification adjustments represent NRG’s best estimates based upon the information currently available to NRG. The reclassification adjustments are subject to change once more detailed information is available and additional analysis is performed.

 

7

 

 

Balance Sheet Reclassifications

 

Lightning

Audited Consolidated Balance Sheet

As of December 31, 2025

 

(In millions)                 
Presentation in Historical Financial
Statements
  Presentation in Unaudited Pro Forma
Combined Financial Statements
  Lightning
Before
Reclassification
   Reclassification     Lightning as
Reclassified
 
Assets                     
Restricted cash   Restricted cash   $99   $     $99 
Accounts receivable   Accounts receivable, net    88          88 
Inventory   Inventory    129          129 
Prepaid expenses   Prepayments and other current assets    29    51  (a)   80 
Assets from risk management activities   Derivative instruments    538          538 
Deposits       26    (26 )(a)    
Other current assets       25    (25 )(a)    
Property, plant, and equipment, net   Property, plant and equipment, net    6,422          6,422 
Intangible assets, net   Other intangible assets, net    30          30 
Assets from risk management activities, long term   Derivative instruments    336          336 
Operating lease right-of-use assets, net   Operating lease right-of-use assets, net    26          26 
Goodwill   Goodwill    128          128 
Other noncurrent assets   Other non-current assets    8          8 
Total Assets      $7,884   $     $7,884 
Liabilities                 
Current portion of long-term debt   Current portion of long-term debt and finance leases   $8   $     $8 
Operating lease liabilities (short-term)   Current portion of operating lease liabilities    1          1 
Accounts payable and accrued expenses   Accounts payable    167    (98 )(b)   69 
Liabilities from risk management activities   Derivative instruments    566          566 
Deferred revenue   Deferred revenue current    7          7 
Other current liabilities   Accrued expenses and other current liabilities    74    98  (b)   172 
Long term debt   Long-term debt and finance leases    3,165          3,165 
Liabilities from risk management activities, long term   Derivative instruments    363          363 
Asset retirement obligations       74    (74 )(c)    
Operating lease liabilities (long-term)   Non-current operating lease liabilities    26          26 
Other long term liabilities   Other non-current liabilities    3    74  (c)   77 
Stockholders’ Equity/Member’s Equity                     
Member’s equity   Member’s equity    3,430          3,430 
Total Liabilities and Stockholders' Equity/Member’s Equity      $7,884   $     $7,884 

 

(a) Reclassification from Deposits and Other current assets to Prepayments and other current assets

(b) Reclassification from Accounts payable and accrued expenses to Accrued expenses and other current liabilities

(c) Reclassification from Asset retirement obligations to Other non-current liabilities

 

8

 

 

 

Statement of Operations Reclassifications

 

Lightning

Audited Consolidated Statement of Operations

For the Year Ended December 31, 2025

 

(In millions)   
Presentation in Historical Financial
Statements
  Presentation in Unaudited Pro Forma
Combined Financial Statements
  Lightning
Before
Reclassification
   Reclassification     Lightning as
Reclassified
 
Total revenues   Revenue   $2,115   $     $2,115 
Fuel and transportation   Cost of operations (excluding depreciation and amortization shown below)    871    428  (a)   1,299 
Loss on risk management activities       101    (101 )(a)    
Operating and maintenance       322    (322 )(a)    
Depreciation   Depreciation and amortization    335          335 
General and administrative   Selling, general and administrative costs    55          55 
Accretion       5    (5 )(a)    
Other gain (loss), net   Other income/(expense), net    18    5  (b)   23 
Interest expense, net   Interest expense    (236)   (5 )(b)   (241)
Net Income      $208   $     $208 

 

(a) Reclassification from Loss of risk management activities, Operating and maintenance, and Accretion to Cost of operations

(b) Reclassification of interest income from Interest expense, net to Other income, net

 

Note 4. Reclassification Adjustments — Linebacker

 

During the preparation of the unaudited pro forma combined financial statements, management performed a preliminary analysis of the Linebacker financial information to identify differences in Linebacker’s financial statement presentation as compared to the presentation of NRG. The below reclassification adjustments represent NRG’s best estimates based upon the information currently available to NRG. The reclassification adjustments are subject to change once more detailed information is available and additional analysis is performed.

 

9

 

 

Balance Sheet Reclassifications

 

Linebacker

Audited Consolidated Balance Sheet

As of December 31, 2025

 

(In millions)                 
Presentation in Historical Financial
Statements
  Presentation in Unaudited Pro Forma
Combined Financial Statements
  Linebacker
Before
Reclassification
   Reclassification     Linebacker as
Reclassified
 
Assets                     
Restricted cash   Restricted cash   $50   $     $50 
Accounts receivable   Accounts receivable, net    13          13 
Inventory   Inventory    38          38 
Prepaid expenses   Prepayments and other current assets    7    3  (a)   10 
Assets from risk management activities   Derivative instruments    31          31 
Other current assets       3    (3 )(a)    
Property, plant, and equipment, net   Property, plant and equipment, net    670          670 
Assets from risk management activities, long term   Derivative instruments    12          12 
Total Assets      $824   $     $824 
                     
Liabilities                     
Accounts payable and accrued expenses   Accounts payable   $28   $(22 )(b)  $6 
   Accrued expenses and other current liabilities        22  (b)   22 
Liabilities from risk management activities   Derivative instruments    24          24 
Long term debt   Long-term debt and finance leases    603          603 
Liabilities from risk management activities, long term   Derivative instruments    23          23 
Asset retirement obligations   Other non-current liabilities    2          2 
Stockholders’ Equity/ Members Equity                     
Member’s equity   Member’s equity    144           144 
Total Liabilities and Stockholders' Equity/Member’s Equity      $824   $     $824 

 

(a) Reclassification from Other current assets to Prepayments and other current assets

(b) Reclassification from Accounts payable and accrued expenses to Accrued expenses and other current liabilities

 

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Statement of Operations Reclassifications

 

Linebacker

Audited Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2025

 

(In millions)   
Presentation in Historical Financial
Statements
  Presentation in Unaudited Pro Forma
Combined Financial Statements
  Linebacker
Before
Reclassification
   Reclassification     Linebacker as
Reclassified
 
Total revenues   Revenue   $510   $     $510 
Fuel and transportation   Cost of operations (excluding depreciation and amortization shown below)    250    138  (a)   388 
Loss on risk management activities       21    (21 )(a)    
Operating and maintenance       117    (117 )(a)    
Depreciation   Depreciation and amortization    25          25 
General and administrative   Selling, general and administrative costs    6          6 
   Other income, net        1  (b)   1 
Interest expense, net   Interest expense    (28)   (1 )(b)   (29)
Income tax expense   Income tax expense/(benefit)    2          2 
Net Income      $61   $     $61 

 

(a) Reclassification from Loss on risk management activities and Operating and maintenance to Cost of operations

(b) Reclassification of interest income from Interest expense, net to Other income, net

 

Note 5. Reclassification Adjustments — CPower

 

During the preparation of the unaudited pro forma combined financial statements, management performed a preliminary analysis of the CPower financial information to identify differences in CPower’s financial statement presentation as compared to the presentation of NRG. The below reclassification adjustments represent NRG’s best estimates based upon the information currently available to NRG. The reclassification adjustments are subject to change once more detailed information is available and additional analysis is performed.

 

11

 

 

Balance Sheet Reclassifications

 

CPower

Audited Consolidated Balance Sheet

As of December 31, 2025

 

(In millions)                 
Presentation in Historical Financial
Statements
  Presentation in Unaudited Pro Forma
Combined Financial Statements
  CPower
Before
Reclassification
   Reclassification     CPower as
Reclassified
 
Assets                     
Cash and cash equivalents   Cash and cash equivalents   $129   $     $129 
Trade accounts receivable, net   Accounts receivable, net    13    14  (a)   27 
Unbilled accounts receivable       14    (14 )(a)    
Other current assets   Prepayments and other current assets    3          3 
Property and equipment, net   Property, plant and equipment, net    10          10 
Intangible assets, net   Other intangible assets, net    101          101 
Goodwill   Goodwill    127          127 
Lease Right of Use Asset   Operating lease right-of-use assets, net    2          2 
Other assets   Other non-current assets    2          2 
Total Assets      $401   $     $401 
                     
Liabilities                     
Trade accounts payable   Accounts payable   $1   $     $1 
Accrued customer payments   Accrued expenses and other current liabilities    117    13  (b)   130 
Accrued payroll, benefits, and other       5    (5 )(b)    
Debt - short term   Current portion of long-term debt and finance leases    86          86 
Lease liability - short term   Current portion of operating lease liabilities    1          1 
Other current liabilities       8    (8 )(b)    
Debt due to related parties   Debt due to related parties    17          17 
Accrued liabilities due to related parties   Accrued liabilities due to related parties    3          3 
Deferred tax liabilities   Deferred income taxes    18          18 
Lease Liability - long term   Non-current operating lease liabilities    1          1 
Stockholders’ Equity/Members’ Equity                     
Members’ equity   Member’s equity    144          144 
Total Liabilities and Stockholders' Equity/Members’ Equity      $401   $     $401 

 

(a) Reclassification from Unbilled accounts receivable to Accounts receivable, net

(b) Reclassification from Accrued payroll, benefits, and other and Other current liabilities to Accrued expenses and other current liabilities

 

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Statement of Operations Reclassifications

 

CPower

Audited Consolidated Statement of Operations

For the Year Ended December 31, 2025

 

(In millions)   
Presentation in Historical Financial
Statements
  Presentation in Unaudited Pro Forma
Combined Financial Statements
  CPower
Before
Reclassification
   Reclassification     CPower as Reclassified 
Revenue   Revenue  $247   $     $247 
Cost of revenue   Cost of operations (excluding depreciation and amortization shown below)    156          156 
Amortization & depreciation   Depreciation and amortization    23          23 
General & administrative   Selling, general and administrative costs    14    39  (a)   53 
Compensation       39    (39 )(a)    
Transaction & other expenses   Acquisition-related transaction and integration costs .    1          1 
Interest expense   Interest expense    (12)         (12)
Net Income      $2   $     $2 

 

(a) Reclassification from Compensation to Selling, general and administrative costs

 

Note 6. Preliminary Calculation of Estimated Consideration and Preliminary Purchase Price Allocation

 

Estimated Consideration

 

The Company completed the acquisition of the LS Power Portfolio on January 30, 2026. The below is reflected in the Acquisition Accounting Adjustments in the unaudited pro forma combined balance sheet as of December 31, 2025.

 

The total consideration was calculated as follows:

 

   (In millions) 
Cash Consideration (inclusive of preliminary working capital and certain other adjustments of $479 million)   $6,851 
Stock Consideration: 24,250,000 common shares of NRG, par value $0.01 per share, based on NRG closing share price of $153.72 on January 29, 2026   3,728 
Total Preliminary Consideration  $10,579 

 

Preliminary Purchase Price Allocation

 

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at fair value on the acquisition date. The Acquisition Accounting Adjustments included herein are preliminary and based on estimates of the fair value and useful lives of the assets acquired and liabilities assumed and have been prepared to illustrate the estimated effect of the acquisition.

 

13

 

 

The table below represents an initial allocation of the consideration to tangible and intangible assets to be acquired and liabilities to be assumed based on preliminary estimated fair values as of December 31, 2025:

 

   (In millions) 
Current assets   $1,235 
Property, plant and equipment    11,610 
Other non-current assets    386 
Current liabilities    (1,016)
Long-term debt and finance leases    (3,319)
Non-current liabilities    (513)
Identifiable intangible assets attributable to LS Power Portfolio    340 
Goodwill    1,856 
Total Preliminary Consideration   $10,579 

 

The preliminary fair value of the identifiable intangible assets of $340 million, which includes customer relationships, technology related assets, trade names and contracts, will be amortized over the estimated useful life. The estimated weighted average useful life is approximately 12 years. The preliminary useful lives of the intangible assets were determined based on the expected pattern of the economic benefit. The expected amortization for the five years following the Acquisition is currently estimated to be $37 million per year. Goodwill represents the excess of the preliminary consideration over the estimated fair value of the underlying net assets acquired. Goodwill will not be amortized but instead will be reviewed for impairments at least annually, absent any indicators for impairment. Goodwill is attributable to the planned growth and synergies expected to be achieved from combining the operation of LS Power acquired entities with NRG’s existing business. The goodwill recorded is expected to be deductible for tax purposes.

 

The final purchase price allocation depends on certain valuations and other studies that have not yet been completed. The final determination of the purchase price allocation will be based on the net assets acquired as of the acquisition date and will depend on a number of factors, which cannot be predicted with any certainty at this time. The purchase price allocation may change materially based on receipt of more detailed information. Accordingly, the pro forma purchase price allocation is preliminary and is subject to further adjustments as additional information becomes available and as additional analyses and final valuations are completed. There can be no assurance that these additional analyses and final valuations will not result in significant changes to the estimates of fair value set forth above.

 

Note 7. Adjustments to Unaudited Pro Forma Combined Balance Sheet

 

The Transactions Accounting Adjustments reflected in the unaudited pro forma combined balance sheet are detailed below:

 

(a) Reflects draw from the Company’s Revolver Credit Facility on January 2026, and cash outflow to complete the acquisition of the LS Power Portfolio as detailed below:

 

   (In millions) 
Net cash received from financing transactions     
Proceeds from Revolving Credit Facility   $2,494 
Total Financing Transactions Adjustments   $2,494 
Preliminary Cash Consideration     
Use of proceeds from financing transactions, net of issuance costs   $(6,851)
Acquisition Accounting Adjustments   $(6,851)

 

(b) Reflects the elimination of $52 million of accounts receivable and $52 million of accounts payable, representing receivables and payables between NRG and LS Power acquired entities.

 

(c) Reflects the removal of historical goodwill of LS Power acquired entities of $255 million and recognition of preliminary goodwill of $1,856 million representing the excess of preliminary purchase price over the estimated fair value of the acquired assets and liabilities, identifiable intangible assets and related deferred income taxes.

 

(d) Reflects the removal of historical intangible assets of LS Power acquired entities of $131 million and recognition of preliminary estimated identifiable intangible assets of $340 million.

 

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(e) The table below reflects the Transactions Accounting Adjustments to Current portion of long-term debt and finance leases and Long-term debt and finance leases:

 

(In millions)  Acquisition Accounting
Adjustments
   Financing Transactions
Adjustments
 
Borrowing under the Company’s Revolving Credit Facility (to fund the acquisition of the LS Power Portfolio)   $   $2,494 
Removal of CPower’s debt as NRG is not assuming that debt    (86)    
Removal of Lightning’s unamortized deferred financing costs as a result of purchase accounting    9     
Total adjustments to Current portion of long-term debt and finance leases   $(77)  $2,494 
Removal of Linebacker’s debt as NRG is not assuming that debt   $(603)  $ 
Removal of Lightning’s unamortized deferred financing costs as a result of purchase accounting    46     
Adjustment to record assumed outstanding debt at fair value as a result of purchase accounting    108     
Total adjustments to Long-term debt and finance leases   $(449)  $ 

 

(f) Reflects the accrual of $49 million of expected acquisition costs that are not yet recorded in NRG balance sheet as of December 31, 2025.

 

(g) Reflects $3 million of long-term deferred tax liabilities recorded as a result of the acquisitions accounting.

 

(h) Reflects elimination of the intercompany note payable and related accrued interest included in the CCS Power Finance Co, LLC historical balances payable to CCS Intermediate Holdco, LLC.

 

(i) Adjustment to reflect the issuance of 24,250,000 common shares of NRG, par value of $0.01 per share, based on NRG closing share price of $153.72 on January 29, 2026 as part of the Stock Consideration.

 

(j) Adjustments to Retained earnings include:

 

   (In millions) 
Acquisition Accounting Adjustments:     
Accrual of expected acquisition costs   $(49)

 

(k) Reflects the removal of LS Power acquired entities historical Member’s equity.

 

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Note 8. Adjustments to Unaudited Pro Forma Statements of Operations

 

The Transactions Accounting Adjustments reflected in the unaudited pro forma combined statement of operations are detailed below:

 

(a) Adjustments to Revenue, Cost of operations and Selling, general and administrative costs include:

 

(In millions)  For the Year ended
December 31, 2025
 
Acquisition Accounting Adjustments:     
Adjustments to Revenue     
Eliminate transactions between NRG and LS Power acquired entities   $(114)
Adjustments to Costs of operations     
Eliminate transactions between NRG and LS Power acquired entities   $(113)
Adjustments to align the capitalization of certain maintenance costs    (119)
Total adjustments to Costs of operations   $(232)
Adjustments to Selling, general and administrative costs     
Eliminate transactions between NRG and LS Power acquired entities   $(1)

 

(b) Adjustments to Depreciation and amortization expense include:

 

(In millions)  For the Year ended
December 31, 2025
 
Reversal of historical depreciation expense    (365)
Reversal of historical amortization of intangible assets    (18)
Recognition of depreciation expense based on the estimated fair value and estimated useful life of property, plant and equipment    411 
Recognition of amortization expense based on the estimated fair value and estimated useful life of intangible assets    37 
Adjustments to align the capitalization of certain maintenance costs    12 
Acquisition Accounting Adjustments   $77 

 

(c) Reflects $49 million of expected acquisition costs recorded in the unaudited pro forma combined statement of operations for the year ended December 31, 2025, in addition to the $32 million that are already included in NRG’s historical consolidated statement of operations.

 

(d) Adjustments to Interest expense include:

 

(In millions)  For the Year
ended December 31, 2025
 
Reversal of historical Linebacker and CPower interest expense (unassumed debt)   $41 
Amortization of the difference between the fair value and the carrying value of LS Power assumed debt    14 
Total Acquisition Accounting Adjustments   $55 
Adjustment to reflect incremental interest expense assuming all sources of funds to fund the cash consideration occurred January, 1, 2025    (303)
Financing Transactions Adjustments   $(303)

 

(e) Reflects income tax effect of the Transactions Accounting Adjustments based on a combined estimated tax rate of 24.59% for all periods presented.

 

(f) Reflects the impact of the issuance of 24,250,000 Common Stock of NRG for the stock consideration portion of the LS Power Portfolio acquisition, on the calculation of the pro forma combined basic and diluted income per share. As the acquisition is being reflected as if it had occurred on January 1, 2025, the calculation of weighted average shares outstanding for basic and diluted pro forma combined income per share assumes the shares issued in connection with the acquisition have been outstanding for the entire year.

 

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