Latest news with #ConstellationEnergy
Reuters
27 minutes ago
- Business
- Reuters
Constellation Energy receives nod from FERC for Calpine acquisition
July 24 (Reuters) - Utility company Constellation Energy (CEG.O), opens new tab said on Thursday it has received a regulatory approval from the Federal Energy Regulatory Commission (FERC) for its previously announced $16.4 billion acquisition of Calpine Corporation. This approval represents a step forward in the transaction following earlier approvals by the New York Public Service Commission and the Public Utility Commission of Texas, the company said.
Yahoo
an hour ago
- Business
- Yahoo
3 Brilliant Energy Stocks to Buy Now and Hold for the Long Term
Key Points The U.S. economy is experiencing increased energy demand, driven by the growth of data centers that power advanced artificial intelligence (AI) algorithms. The push for energy independence in the United States has become a key focus for President Donald Trump's administration. Energy operators across the oil and gas, nuclear, and hydrogen sectors all have an opportunity to grow amid this domestic surge in demand. 10 stocks we like better than Enterprise Products Partners › Energy plays a vital role in the U.S. economy, and we can expect to see a considerable increase in demand for it in the coming years. The surge in demand for energy isn't just about keeping the lights on; it's about fueling the innovative algorithms and advanced technological processes that define the industries of tomorrow. The push for U.S. energy independence has become a key focus for the Trump administration. For investors looking to capitalize on this growing energy demand, here are three compelling stocks to consider today. Enterprise Products Partners provides steady income Enterprise Products Partners (NYSE: EPD) owns and operates over 50,000 miles of pipelines and 300 million barrels (MMBbls) of liquid storage capacity, giving it expansive infrastructure across North America. Its midstream energy platform links oil and gas producers and customers throughout the U.S., Canada, and some offshore basins. As a midstream master limited partnership (MLP), the company's business model is designed for stability, thanks to its contractual agreements and steady demand for its services. Approximately 90% of its contracts include an escalation provision to mitigate the impact of inflation on cash flow and distributions. Additionally, due to the importance of energy in our everyday lives, demand for its pipeline services is relatively inelastic. Another positive is that Enterprise Products Partners has grown its distribution for 26 consecutive years and has returned $58 billion to unit holders since its IPO in 1998. Given its stable, fee-based model and growth in domestic oil and gas production, Enterprise is a solid stock for investors, especially those seeking income. Constellation Energy's massive nuclear fleet positions it well long-term Constellation Energy (NASDAQ: CEG) is a major player in the nuclear industry and is well-positioned for growth as sentiment around nuclear power shifts. The company has positioned itself as the largest nuclear operator in the United States today, with a nuclear fleet comprising 22 gigawatts (GW) of capacity. It's been an eventful year for Constellation Energy, which has entered into 20-year power purchase agreements with both Meta Platforms and Microsoft to help power their growing data centers. It was also awarded a $1 billion contract from the U.S. General Services Administration. Part of this includes one 10-year, $840 million contract to supply the GSA with over 1 million megawatt-hours (MWhs) of power annually, beginning this year. Earlier this year, it also announced an agreement to acquire Calpine for $26.6 billion, inclusive of debt. The company sees the acquisition as being transformative, creating the nation's leading competitive retail electric supplier and combining Constellation's nuclear fleet with Calpine's natural gas and geothermal assets. The acquisition of natural gas and geothermal assets enhances Constellation's diverse portfolio, which already includes nuclear, hydro, wind, and solar energy sources, thereby creating a more diversified generation fleet. This expanded portfolio, combined with existing clean energy and uprate opportunities, positions Constellation to meet the increasing demand from data centers and artificial intelligence (AI), making it an energy stock that is an appealing one to hold long term. Bloom Energy's fuel systems can help companies meet demand needs today Bloom Energy (NYSE: BE) provides fuel cell systems that can offer on-site, low-carbon power. Its core product, the Bloom Energy Server, is based on its proprietary solid oxide technology that converts fuel into electricity without combustion. These systems are designed to be on-site solutions, offering reduced operating costs and lower greenhouse gas emissions compared to conventional fuels. Bloom's on-site, fully islanded microgrid solutions enable customers, particularly data centers, to bypass lengthy interconnection queues and avoid the need for costly upgrades to their transmission and distribution systems. This means Bloom can deploy power in a matter of months, rather than years, and meet today's growing energy demands sooner. Morgan Stanley estimates that the U.S. power grid will face a shortfall of up to 42 gigawatts by 2028, and views Bloom's solid oxide fuel cell technology as a key AI enabler and one of the pivotal solutions to help address this shortfall. The company needs to continue securing and deploying projects as it demonstrates its ability to provide on-site power within a few short months. Given its potential role in meeting energy needs in the medium term, I believe Bloom Energy is an excellent investment opportunity with solid long-term upside. Should you buy stock in Enterprise Products Partners right now? Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Courtney Carlsen has positions in Bloom Energy, Microsoft, and Morgan Stanley. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool recommends Enterprise Products Partners and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 Brilliant Energy Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool
Reuters
2 days ago
- Business
- Reuters
Biggest US power grid auction prices rise by 22% to new heights
July 22 (Reuters) - Prices out of the biggest U.S. power auction, held by grid operator PJM Interconnection, cleared at $329.17 a megawatt-day, roughly 22% higher than last year's record-high levels as electricity demand continues to outstrip supply, according to results released by the organization on Tuesday. A recent surge in U.S. power consumption driven by Big Tech's data center demand has butted up against roughly a decade of shrinking power supplies in PJM, North America's largest power grid operator, leading to a supply shortfall that has driven up prices in the capacity auction. PJM's capacity auction determines what power plant owners in the grid network, which covers one in five Americans, will be paid to guarantee that they pump out electricity during times of extreme demand to help avoid blackouts. Shares of major power-producing companies that receive capacity payments rose on the auction results. Talen Energy shares were up over 9%, Constellation Energy shares rose over 5%, and NRG Energy (NRG.N), opens new tab climbed over 6% in trading after the bell. The payments are a sign of the energy supply and demand balance in PJM, with higher prices typically acting as an incentive for developers to build more power plants. PJM's territory covers 13 states and the District of Columbia, as well as the biggest concentration of data centers in the world, including Virginia's "Data Center Alley." The latest auction, which covers the year beginning next summer, is showing signs of a continued supply crunch. PJM attracted 2,669 megawatts of additional power supplies, which will be added through upgrading existing power plants and adding new ones, marking the first time in the last four auctions that new generation was added. The additions, however, represent only about half the amount of new power demand PJM expects to see over the period the auction covers. While prices overall increased from last year, two zones within PJM - covered by Baltimore Gas and Electric Company and Dominion Energy (D.N), opens new tab - saw price decreases. "Rapid electricity demand growth continues to outpace the rate of new generation," Evercore ISI analyst Nicholas Amicucci said in a note of the higher prices. Year-ago auction prices shot up by more than 800%, rising to $269.92 per megawatt-day from the previous year as data center demand crept up. Prices from that auction began to take effect last month, while the most recent results will impact bills beginning next summer. Those high payment prices, which are ultimately paid for by the public, drew a backlash from state consumer advocates, politicians and environmental groups, leading to several changes at PJM. PJM says it expects power bills for homes and businesses will rise only 1.5% to 5% year-over-year as a result of the latest auction results. Prices in BGE and Dominion may decline, it said. The types of power-generating capacity cleared through the auction included 45% natural gas, 21% nuclear, 22% coal, 4% hydro, 3% wind and 1% solar. Environmental groups, which successfully sued over the last PJM capacity results, said PJM has failed to quickly connect new carbon-free renewable power like wind and solar. 'PJM has failed our communities through its refusal to adopt substantive reforms, completely at odds with its mission of providing reliable energy at the lowest cost to its customers,' said Jessi Eidbo, Sierra Club senior adviser. PJM said it has approved the connection of 46,000 MW of power plants, many of them solar, but those projects have not yet been built for reasons outside the grid operator's control.
Reuters
2 days ago
- Business
- Reuters
Prices jump 22% in biggest US power grid energy auction
July 22 (Reuters) - Prices out of an annual energy auction held by PJM Interconnection, the largest grid operator in the U.S., cleared at $329.17 a megawatt-day, 22% higher than last year's record-high levels, according to results released by the organization on Tuesday. A recent surge in U.S. power consumption driven by Big Tech's data center demand has butted up against roughly a decade of shrinking power supplies in PJM, leading to a supply shortfall that has driven prices in the capacity auction to new heights. PJM's so-called capacity auction determines what power plant owners in the grid network that covers one in five Americans will be paid to guarantee that they pump out electricity during times of extreme demand, which typically happen on the hottest or coldest days of the year. Shares of major power-producing companies in PJM rose on the auction result news. Talen Energy shares up over 9%, Constellation Energy up over 5% and NRG Energy up over 6% in trading after the bell. The payments are a sign of the energy supply and demand balance on the grid, which spans 13 states and the District of Columbia, with higher prices typically acting as an incentive for developers to build more power plants. PJM's territory covers the biggest concentration of the world's energy-intensive data centers in Northern Virginia's "Data Center Alley" and other fledgling hubs that require massive amounts of electricity faster than power plants are connecting to the grid. Year-ago auction prices shot up by more than ninefold, rising to $269.92 per megawatt-day from the previous year as data center demand crept up. Those high payment prices, which are ultimately paid for by the public, drew a backlash from state consumer advocates, politicians and environmental groups, leading to several changes at PJM. The capacity cleared through the auction was 45% natural gas-fired power, 21% nuclear, 22% coal, 4% hydro, 3% wind and 1% solar.
Globe and Mail
7 days ago
- Business
- Globe and Mail
How Is Constellation Energy Advancing the Clean Energy Shift?
Constellation Energy Corporation CEG is benefiting from renewable energy options in several ways, primarily by expanding its portfolio of clean energy sources, attracting environmentally conscious customers and enhancing its reputation as a leader in the transition to a carbon-free future. While CEG is a major player in the nuclear energy sector, it is also expanding its presence in renewable energy markets. This diversification helps it remain competitive and resilient in a changing energy landscape. CEG is developing new offerings that allow smaller businesses to participate in renewable energy projects, overcoming barriers like minimum energy commitments and high credit standards. Constellation Energy offers various renewable energy solutions like offsite renewables (CORe), on-site solar projects and emission-free energy certificates (EFECs). CORe allows businesses to purchase power from offsite renewable energy projects, like wind and solar farms. It also provides on-site solar solutions, which can help businesses manage energy costs and improve energy reliability. Constellation Energy's commitment to renewable energy aligns with the growing global focus on reducing carbon emissions and combating climate change. CEG is actively working to expand its portfolio of clean energy resources, including nuclear, hydro, wind and solar. Nearly 90% of CEG's annual energy output comes from carbon-free sources, and it has set a goal to produce 95% carbon-free electricity by 2030 and 100% by 2040. Other Utilities Focus on Renewable Operations Some other utility companies that are also focused on expanding their renewable operations have been discussed below: Dominion Energy 's D long-term objective is to add more battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years. NextEra Energy NEE expects to add 36.5-46.5 gigawatt (GW) of new renewables in the 2024-2027 period to the generation portfolio. As of the first quarter of 2025, it had nearly 3.2 GW of renewable projects in its existing backlog. The company's renewables backlog is now nearly 28 GW. CEG Stock's Earnings Estimates The Zacks Consensus Estimate for Constellation Energy's 2025 and 2026 EPS indicates an increase of 9% and 22%, respectively. Image Source: Zacks Investment Research CEG Stock Trading at a Premium CEG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 29.14X compared with the industry average of 20.89X. CEG Stock's Price Performance In the past three months, CEG's shares have risen 49.1% compared with the industry 's 28.1% growth. CEG's Zacks Rank CEG currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Constellation Energy Corporation (CEG): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report
