M&A activity in the natural gas-fired power sector accelerated in 2025, fueled by the rapid growth of AI and data center demand. The PJM Interconnection region emerged as a prime target for investors, with strong plant economics and strategic proximity to hyperscale infrastructure. Blackstone recently announced the nearly $1 billion acquisition of the 620 MW Hill Top Energy Center in Pennsylvania from Ardian. That follows its January purchase of the 774 MW Potomac Energy Center in Virginia. The deals build on Blackstone’s July commitment to invest more than $25 billion into Pennsylvania’s digital and energy infrastructure, underscoring the sharp rise in valuations for newer gas plants.
Also in September, CPS Energy announced the acquisition of multiple plants from ProEnergy, further highlighting the surge in gas-fired M&A activity. Most transactions this year have involved public buyers acquiring assets from private sellers, as the latter capitalize on elevated valuations, making the current conditions advantageous for exit. Other notable deals include Caithness Energy’s sale to Talen and Vistra’s purchase of Lotus Infrastructure Partners’ generation assets.
Enverus Intelligence® Research’s (EIR) analysis suggests elevated valuation multiples and robust deal flow will continue into 2026, supported by recent private equity transactions and earnings calls from independent power producers signaling a greater appetite for M&A.
Research Highlights:
- CPS Adds ProEnergy Plants – Prepping for Rising Power Demand – We analyze how Enverus Intelligence® Research’s valuation of ProEnergy’s gas portfolio compares to CPS Energy’s acquisition price and what the deal indicates about U.S. gas generation sentiment amid rising capital costs.
- Blackstone Strikes Again – Plugging Into PJM’s Load Growth – How does Enverus Intelligence® Research’s valuation of Ardian’s gas portfolio compare to Blackstone’s acquisition price? What does it signal about U.S. gas generation sentiment amid rising power demand?
- Clean Fuels Revalued – Navigating Evolving Policy – This report provides an analysis of project economics and revenue stacks for various clean fuels and our outlook on the sector following recent changes to the 45Z production tax credit, the Renewable Fuel Standard and California’s Low Carbon Fuel Standard.
DISCLOSURE
Private equity funds affiliated with Blackstone have entered into a definitive agreement to indirectly acquire Enverus, Inc., the parent company of Enverus Intelligence® Research, Inc.
Enverus Intelligence® | Research, Inc. is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.
