Constellation's $26.6 Billion Acquisition of Calpine: A New Era in Clean Energy

Constellation Energy Corp. (CEG) has announced a significant move in the U.S. power industry, agreeing to acquire Calpine Corp. in a cash and stock transaction valued at approximately $26.6 billion. This deal, set to create the nation's largest clean energy provider, will open opportunities for Constellation to serve more customers coast-to-coast with a broader array of energy and sustainability products. The acquisition is expected to close within a year, pending regulatory approvals.



The acquisition will add Calpine's low-emission natural gas generation and expanded renewable energy portfolio, including the largest geothermal generation operation in the U.S., to Constellation's existing fleet. The combined company will have nearly 60 gigawatts of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration, and battery storage. This diverse energy portfolio will enable Constellation to offer the broadest array of energy products and services available in the industry.



Constellation's CEO, Joe Dominguez, stated, "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." Calpine's CEO, Andrew Novotny, added, "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."

The transaction is projected to add more than $2 billion of free cash flow annually, creating strategic capital and scale to reinvest in the business. Constellation's owners can expect immediate adjusted (non-GAAP) operating earnings per share (EPS) accretion of more than 20% in 2026 and at least $2 per share of EPS accretion in future years.



The acquisition will also create the nation's leading competitive retail electric supplier, providing 2.5 million customers with a broader array of customized energy and sustainability solutions. The combined company's geographic footprint will span the continental U.S., including a significantly expanded presence in Texas, California, Delaware, New York, Pennsylvania, and Virginia.

In conclusion, Constellation's acquisition of Calpine is a strategic move that will strengthen its position in the U.S. power industry. The combined company will have a diverse energy portfolio, a broad customer base, and significant financial resources to invest in clean energy technologies. This deal is a testament to the growing demand for clean and reliable energy sources and the potential for the power industry to drive a stronger American economy for a cleaner, healthier, and more sustainable future.