Constellation Energy Acquires Calpine, Projecting 20% EPS Increase for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13h ago
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Source: Fool
- Surge in Electricity Demand: In 2025, projected electricity demand in the ERCOT and PJM regions increased by 81% and 31% respectively, significantly enhancing the value of nuclear and geothermal energy, thereby solidifying Constellation's leadership in the clean energy market.
- Major Acquisition Completed: Constellation finalized its acquisition of Calpine on January 7, 2026, with a total deal value of $16.4 billion, bolstering its capabilities in natural gas and geothermal power while preparing for future electricity demand growth.
- Long-term Agreements Signed: Constellation entered into a 20-year power purchase agreement with Meta, set to commence in June 2027, ensuring 1.1GW output from its Illinois nuclear plant, further strengthening its position in the clean energy sector.
- Enhanced Policy Support: The Trump Administration expedited FERC's permitting reviews to facilitate energy infrastructure development, with Constellation's Three Mile Island unit restart ahead of schedule, expected to come online in mid-2027, thereby enhancing the company's competitive edge in the market.
Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CEG is 403.30 USD with a low forecast of 347.00 USD and a high forecast of 478.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 322.540
Low
347.00
Averages
403.30
High
478.00
Current: 322.540
Low
347.00
Averages
403.30
High
478.00
About CEG
Constellation Energy Corporation is a producer of emissions-free energy and an energy supplier to businesses, homes and public sector customers nationwide. The Company’s nuclear, hydro, wind, and solar generation facilities have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation's clean energy in the United States. Its segments include Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. Its nuclear fleet has a generating capacity of approximately 22 gigawatts (GWs). It operates approximately 10 GWs of natural gas, oil, hydroelectric, wind, and solar generation assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
