NRG Energy Inc (NYSE:NRG) stock surged 5.92% in pre-market trading on Monday following a series of positive announcements, including a major acquisition and better-than-expected first-quarter earnings.

The power company revealed plans to acquire LS Power's portfolio of natural gas generation facilities and power plant platform in a cash-and-stock deal valued at approximately $12 billion. This strategic move will double NRG's generation capacity and expand its footprint across nine states. The acquisition includes 18 natural gas-fired facilities and CPower, LS Power's commercial and industrial virtual power plant platform. NRG CEO Larry Coben stated that the deal would strengthen the company's credit profile and growth rates.

Adding to the positive sentiment, NRG Energy reported impressive first-quarter 2025 results. The company posted adjusted earnings per share of $2.68, significantly beating the analyst consensus estimate of $1.49. Quarterly revenue also exceeded expectations, coming in at $8.59 billion compared to the estimated $7.83 billion. Furthermore, NRG provided optimistic guidance for the full year 2025, projecting adjusted EPS in the range of $6.75 to $7.75, which aligns with or surpasses current market expectations.