Constellation Energy Stock Jumps On Record $1B Power Deal With US Government: Retail Sentiment Turns Bullish

Constellation Energy Corporation (CEG) stock jumped more than 5% in mid-day trade on Thursday after the company announced it had signed a pair of deals with the US government to provide more than $1 billion of electricity and services.

The news also drove up the stock prices of fellow nuclear energy providers, Vistra Corp. (VST), which was also up over 5%, and GE Vernova (GEV), which saw a 1% uptick.

The deals awarded by the U.S. General Services Administration (GSA), include a $840 million, 10-year power supply agreement –  the largest in GSA history – and a $172 million Energy Savings Performance Contract for infrastructure improvements. 

Under the supply agreement, Constellation will deliver more than 1 million megawatt hours (MWh) annually to over 13 government agencies starting in 2025. 

A portion of the electricity will be sourced from increased output at Constellation’s facilities through "uprates" or plant efficiency enhancements.

The $172 million contract involves energy efficiency upgrades at five GSA-owned facilities in the National Capital Region. 

Projects include LED lighting, weatherization, HVAC system upgrades, and window replacements to lower emissions and energy costs at prominent buildings such as the Elijah Barrett Prettyman U.S. Courthouse and the Orville Wright Federal Building in Washington, D.C.

Construction will begin this month and is expected to take about 42 months to complete.

Constellation will also provide ongoing training and maintenance to maximize cost savings and efficiency gains.

 

Constellation Energy Corporation Sentiment and Message Volume on Jan 1 as of 01:45 p.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment jumped to ‘extremely bullish’ from ‘neutral’ a day ago, and chatter surged to ‘extremely high’ levels. 

This is the second time sentiment around the stock has peaked at this level in the past year after Sept. 01, 2024.

One user noted that this was a great start to the year for nuclear energy stocks. 

Others added or initiated their position.

“Under this agreement, the United States government joins Microsoft and other entities to support continued investment in reliable nuclear energy that will allow Constellation to relicense and extend the lives of these critical assets,” said CEO Joe Dominguez.

The stock has more than doubled in value over the past year. 

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