Constellation Energy Stock Skyrockets in 2025 Following $26.6 Billion Acquisition of Calpine
In 2025, Constellation Energy's shares surged after announcing a $26.6 billion deal to acquire Calpine, positioning it as the leading clean energy provider in the U.S.
Highlights
- Constellation Energy's stock jumped significantly in 2024 after agreeing to purchase Calpine for $26.6 billion.
- This acquisition strengthens Constellation’s footprint in key markets like California and Texas, making it the largest clean energy supplier nationwide.
- The deal aligns with the growing energy demands driven by AI data centers, boosting energy sector stocks over the past year.
Constellation Energy (CEG) experienced a remarkable stock surge in 2024 after finalizing plans to acquire Calpine, a private energy firm, in a transaction valued at $26.6 billion. This strategic move aims to establish Constellation as the top clean energy provider across the United States.
By integrating Calpine’s extensive natural gas and renewable energy assets, Constellation expands its presence in Texas, California, and the Northeastern U.S. The combined entity is projected to generate over $2 billion in adjusted free cash flow annually and increase earnings per share by $2 beyond 2026.
The acquisition deal, structured as a mix of cash and stock, includes $4.5 billion in cash and 50 million Constellation shares. Additionally, Constellation will assume approximately $12.7 billion in Calpine’s net debt, totaling a net purchase price of $26.6 billion.
The transaction is anticipated to close within the next 12 months, marking a significant milestone in the clean energy sector.
AI-Driven Energy Demand Fuels Acquisition
The purchase comes amid soaring power needs from AI data centers, which Mizuho Research forecasts will triple U.S. electricity demand by 2030. This surge has propelled energy stocks like Constellation, Duke Energy, and NextEra Energy upward over the past year.
On the day of the announcement, Constellation’s shares rose more than 23%, reaching $300.50 in intraday trading, more than doubling their value over the last 12 months.
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