Key Stats for Constellation Energy Stock
- Price change for Constellation Energy stock in the last 1 year: -28%
- $CEG Stock Price as of Oct. 1: $259
- 52-Week High: $413
- $CEG Stock Price Target: $343
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What Happened?
Constellation Energy (CEG) and Amazon (AMZN) announced a long-term power deal on Wednesday. It covers the Calvert Cliffs Clean Energy Center in Lusby, Maryland.
The deal runs for 20 years and includes 690 megawatts of power. It will support more than $3 billion in investment at the plant.
About 190 megawatts of new capacity should come online between 2030 and 2032. That adds to the plant’s current 1,790 megawatts.
Amazon’s commitment also gives Constellation the revenue certainty it needs to relicense the plant for another 20 years.
The two companies also signed a retail supply agreement for Amazon’s operations across the 13-state PJM market.
All power from Calvert Cliffs will keep flowing to the PJM grid.
CEO Joe Dominguez said the deal shows how private investment can strengthen critical energy infrastructure.
An AWS executive said it supports hundreds of jobs and adds new generation to the grid.
Calvert Cliffs is Maryland’s only nuclear plant. It employs more than 800 people and pays about $21 million in taxes each year.
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What the Market Is Telling Us About Constellation Energy Stock
Investors seem to like the long-term nature of this deal.
A 20-year contract with a customer like Amazon gives Constellation Energy stock a clearer path for earnings. It also supports the company’s plan to keep its nuclear plants running for decades.
The business was already moving in the right direction.
- In Q2, Constellation earned $2.55 per share in adjusted operating earnings. That was $0.64 higher than a year earlier.
- Management then raised its full-year guidance by $0.50 to a range of $11.50 to $12.50 per share.
Management also said it had signed about 920 megawatts of long-term nuclear deals since March.
Those deals average 18.5 years. About 30% of its clean baseload output is now under long-term contracts.
Constellation has also been buying back its own shares. It has spent about $2.2 billion on repurchases and has $2.8 billion of authorization left.
For anyone watching Constellation Energy stock, that adds another source of support.
Some questions remain. Constellation says rule changes in PJM are still being worked out. The company has said clearer rules should help more customers sign deals.
Constellation Energy stock may keep reacting to news on new contracts and on those rules.
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So what is Constellation Energy stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
