NRG Energy to boost stock repurchase program by $650 million after sales of STP stake

Shares of NRG Energy Inc.
NRG,
-0.76%
rose 1.5% toward a 6-week high in premarket trading Thursday, after the home-services energy company authorized an additional $650 million in stock repurchases. The new authorization will follow the closing of the deal to sell 44% of its interest in South Texas Project Electric Generating Station (STP) to Constellation Energy Corp.
CEG,
+0.38%
for $1.75 billion, which is expected to occur by the end of 2023. With $350 million remaining in NRG’s existing share buyback program, the total repurchase authorization will increase to $1 billion, which represents 12.9% of the company’s market capitalization of $7.78 billion as of Wednesday’s close. NRG’s stock has gained 6.2% year to date through Wednesday, while Utilities Select Sector SPDR exchange-traded fund
XLU,
+0.92%
has lost 7.9% and the S&P 500
SPX,
-0.61%
has advanced 8.9%.