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BALTIMORE - Constellation Energy Corporation (NASDAQ:CEG), a $93 billion market cap energy giant with a robust financial health score of "Good" according to InvestingPro, has received regulatory approval from the New York State Public Service Commission for its planned acquisition of Calpine Corporation, the company announced in a press release.
The approval marks a significant step toward completing the transaction, which would combine Constellation’s nuclear fleet with Calpine’s natural gas and geothermal assets to create what the company describes as a coast-to-coast energy provider. The deal could further boost Constellation’s already impressive $24.2 billion in annual revenue and $6.5 billion in EBITDA.
"This transaction will unite two diverse generation portfolios to create the leading reliable and clean generation fleet," said Joe Dominguez, president and CEO of Constellation.
Earlier this month, the deal cleared regulatory review with Texas’ Public Utilities Commission. The transaction still requires approval from the Federal Energy Regulatory Commission and the Department of Justice, along with other customary closing conditions.
Constellation expects the acquisition to close in the fourth quarter of 2025.
The Fortune 200 company, headquartered in Baltimore, describes itself as the nation’s largest producer of emissions-free energy, with annual output that is nearly 90% carbon-free. Its current portfolio includes hydro, wind, solar, and nuclear facilities with generating capacity equivalent to powering 16 million homes. The stock has shown strong momentum with a 33% gain year-to-date, though InvestingPro analysis indicates the stock is currently overvalued. Discover detailed valuation metrics and 12 additional ProTips about CEG’s growth potential with an InvestingPro subscription.
The planned acquisition would expand Constellation’s geographic reach and generation capacity by incorporating Calpine’s assets, which primarily consist of natural gas and geothermal power plants.
In other recent news, Constellation Energy Corporation has received regulatory approval from the Public Utility Commission of Texas for its acquisition of Calpine Corporation. This merger is set to combine Constellation’s zero-emissions nuclear fleet with Calpine’s low-emission natural gas and geothermal assets. The transaction is awaiting further regulatory clearances, with an expected closure in the fourth quarter of 2025. Meanwhile, BMO Capital has raised Constellation Energy’s stock price target to $350, following a 20-year virtual power purchase agreement with Meta Platforms. Wolfe Research also increased the stock price target to $350, citing the company’s growth potential and investment strategies. In contrast, Citi downgraded Constellation Energy from Buy to Neutral, adjusting its price target to $318 after the Meta deal. UBS, however, lifted its price target to $360, maintaining a Buy rating, and noted the potential for further power purchase agreements. These developments underscore Constellation Energy’s ongoing strategic initiatives and market positioning.
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