Constellation Energy Corporation - CEG STOCK NEWS

Constellation (CEG) has announced the acquisition of Calpine Corp. in a cash and stock transaction valued at $16.4 billion, consisting of 50 million Constellation shares and $4.5 billion in cash, plus assuming $12.7 billion in Calpine net debt. The net purchase price is $26.6 billion, representing a 7.9x 2026 EV/EBITDA multiple.

The merger creates America's largest clean energy provider, combining Constellation's nuclear fleet with Calpine's natural gas and geothermal operations. The combined entity will have nearly 60 gigawatts of capacity from zero- and low-emission sources, becoming the nation's leading competitive retail electric supplier serving 2.5 million customers.

The transaction is expected to close within 12 months and will be immediately accretive, with over 20% adjusted EPS accretion in 2026 and adding more than $2 billion in annual free cash flow. Calpine's significant shareholders have agreed to an 18-month lock-up period for their Constellation stock ownership.

Constellation (Nasdaq: CEG), America's largest carbon-free energy producer, responded to the U.S. Treasury Department's final decision regarding clean hydrogen production tax credits under Section 45V of the Inflation Reduction Act. The Treasury reversed its previous stance, now allowing existing nuclear plants powering clean hydrogen production to qualify for federal tax credits.

CEO Joe Dominguez welcomed the decision, highlighting its importance for customers transitioning to clean hydrogen and sustainable technologies. He referenced a recent 10-year agreement with the U.S. General Services Administration for clean nuclear power as evidence of increasing demand for nuclear energy solutions.

While viewing the final rule as progress, Constellation noted concerns about incrementality limits. The company is currently evaluating how the final rules and new electric transmission charges might affect its proposed clean hydrogen project at the LaSalle Clean Energy Center and its role in the MachH2 Hub.

Constellation (CEG) has secured contracts worth over $1 billion from the U.S. General Services Administration (GSA). The deal includes a record-breaking 10-year, $840 million contract to supply more than 1 million MWh annually of clean energy to 13+ government agencies starting 2025. Additionally, a $172 million Energy Savings Performance Contract was awarded for implementing energy conservation measures at five GSA facilities in the National Capital Region.

The power supply will partially come from planned nuclear plant uprates. The energy efficiency project includes LED lighting, weatherization, HVAC upgrades, and converting four DC buildings from steam to electric power. The construction will span approximately 42 months, starting this month.

The energy will be supplied to various federal agencies across Illinois, Maryland, New Jersey, Pennsylvania, and Ohio. Combined with the previously announced Crane restart, Constellation plans to add approximately 1,100 MWs of clean energy capacity by 2028.

Constellation Energy (NASDAQ: CEG) has launched America's first residential nuclear energy program in Washington, D.C., allowing households to power their homes with 100% clean nuclear energy. The pilot program offers electricity at 11.99 cents per kilowatt-hour, lower than current local utility rates.

Customers can participate by signing up through Constellation's website, continuing to receive electricity through existing utility infrastructure. The company matches 100% of customer usage with Emission Free Energy Certificates (EFECs) generated at Constellation's nuclear facilities in PJM. The company plans to expand the pilot to additional markets in 2025.

Constellation's nuclear facilities achieved 94.4% capacity factors in 2023, with their clean generation fleet avoiding 125 million metric tons of carbon emissions annually. The company's combined nuclear, hydro, wind, and solar facilities can power approximately 16 million homes.

Constellation (Nasdaq: CEG), the nation's largest producer of emissions-free energy, announced changes to its board of directors. Peter Oppenheimer and Eileen Paterson will join the board effective December 16, 2024, while Laurie Brlas will retire on December 31.

Oppenheimer, currently serving on Goldman Sachs' board and former Apple CFO (2004-2014), brings significant financial expertise. Paterson, former CEO of Aerojet Rocketdyne and U.S. Army veteran, serves on boards of Marathon Petroleum and Woodward, Inc., contributing operational and leadership experience.

Brlas concludes her tenure after providing 16 years of financial leadership experience and chairing Constellation's Audit & Risk Committee since its inception following the 2022 spinoff.

Constellation Energy reported strong Q3 2024 results with GAAP Net Income of $3.82 per share and Adjusted Operating Earnings of $2.74 per share, up from $2.13 in Q3 2023. The company raised its full-year 2024 guidance to $8.00-$8.40 per share. A significant highlight includes signing a 20-year power purchase agreement with Microsoft to support the Crane Clean Energy Center, requiring approximately $1.6 billion in capital expenditures with an estimated 2028 in-service date. The nuclear fleet produced 45,510 GWhs in Q3 2024, achieving a 95.0% capacity factor, while maintaining strong operational performance across its generation portfolio.

Constellation Energy (Nasdaq: CEG) has declared a quarterly dividend of $0.3525 per share, payable on Dec. 6, 2024, to shareholders of record as of Nov. 15, 2024. The company is the nation's largest producer of clean, emissions-free energy, with annual output that is nearly 90% carbon-free. Their facilities, including hydro, wind, solar, and nuclear, can power approximately 16 million homes, providing about 10% of the nation's clean energy. Constellation aims to achieve 100% carbon-free generation by 2040.

Constellation (Nasdaq: CEG), the largest producer of emissions-free energy in the US, has announced a $1 million grant funding initiative through the Constellation Foundation. This initiative, known as the Constellation Leading Environmental Accelerators Network (CLEAN) Awards, will support 35 conservation projects across five states: Illinois, Maryland, New York, Pennsylvania, and Texas.

The grants, ranging from $5,000 to $125,000, have been awarded to 25 nonprofits for projects focusing on combating the climate crisis, protecting ecosystems, and advancing sustainability. These projects include installing living shorelines, restoring native habitats, advancing environmental education, and supporting an aquatic recovery center for reptiles and amphibians.

Notable recipients include the Chesapeake Bay Trust, which will manage grants for four organizations in Southern Maryland, and the American Chestnut Land Trust, which will work on establishing the Southern Maryland Woodlands National Wildlife Refuge. In total, the Constellation Foundation has awarded $2.3 million in 2024 to support community organizations focused on workforce development, environmental stewardship, and clean energy education.

Constellation (Nasdaq: CEG) has announced a 20-year power purchase agreement with Microsoft, paving the way for the launch of the Crane Clean Energy Center (CCEC) and the restart of Three Mile Island Unit 1. The agreement will restore approximately 835 megawatts of carbon-free energy to the grid, create 3,400 direct and indirect jobs, and deliver over $3 billion in state and federal taxes.

The CCEC, named after former CEO Chris Crane, is expected to be online in 2028. Constellation will make significant investments to restore the plant and seek license renewal to extend operations until at least 2054. The project has strong public support in Pennsylvania and is expected to add $16 billion to the state's GDP. Constellation has also committed an additional $1 million in philanthropic giving to the region over the next five years.