Constellation Energy Surges Pre-Market On $26.6B Calpine Acquisition Deal: Retail Sees Spark

Constellation Energy is the largest nuclear power producer in the U.S. Together, the two companies will have 60 gigawatts of capacity across power sources.

Shares of Constellation Energy Corp. (CEG) surged nearly 15% in pre-market trading on Friday after the company agreed to buy Calpine Corp., a geothermal and natural gas energy company, for a purchase price of $16.4 billion.

The cash-and-stock deal, the biggest in the US power history since TXU Corp.’s $45 billion buyout deal in 2007, is valued at $26.6 billion after accounting for cash and tax attributes.

“By combining Constellation’s unmatched expertise in zero-emission nuclear energy with Calpine’s industry-leading, best-in-class, low-carbon natural gas and geothermal generation fleets, we will be able to offer the broadest array of energy products and services available in the industry,” said Joe Dominguez, president and CEO, Constellation.

According to Constellation Energy, the two companies will have 60 gigawatts (GW) of capacity together. This includes low-emission sources such as natural gas, geothermal, and nuclear energy.

Constellation Energy is the largest producer of nuclear power in the U.S.

“Together, we will be better positioned to bring accelerated investment in everything from zero-emission nuclear to battery storage that will power our economy in a way that puts people and our environment first,” said Andrew Novotny, president and CEO of Calpine.

Retail sentiment on Stocktwits soared on Friday, entering the ‘extremely bullish’ (75/100) territory. Message volume was in the ‘high’ (68/100) zone at the time of writing.

Users sounded optimistic about Constellation Energy’s stock as the deal’s news broke.

Constellation Energy’s stock price has gained over 11% in the past six months, while it has more than doubled over the past year, gaining over 110%.

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