Constellation Energy

Track record since separation is strong: Constellation bought a 44 percent STP nuclear stake, announced Crane restart underpinned by a 20‑year Microsoft PPA, signed a landmark 20‑year Meta PPA at Clinton to replace state ZEC support, and agreed to acquire Calpine to add flexible gas and geothermal and elevate the retail platform.

The company completed about 2 billion of repurchases since 2023 with authorization remaining, raised the dividend and issued a 30‑year green bond to fund nuclear uprates.

We view the Calpine deal logic as compelling strategically and financially (EPS and FCF accretion, augmented scale), though it adds integration risk and some cyclicality from gas assets. Discipline appears sound with an emphasis on high‑return uprates, life extensions and contract‑backed growth.

We will watch for dilution from stock issuance at Calpine close and the cadence of buybacks thereafter.