Constellation Energy Surges in Market Performance
Constellation Energy (NASDAQ: CEG), the largest producer of carbon-free energy in the U.S., has delivered impressive returns since its IPO in February 2022, with total returns of 738% since its spinoff from Exelon. In the past year, the company has achieved a 47.2% stock price return, which significantly outperforms the S&P 500’s return of 12.8% during the same timeframe.
Key drivers of this performance include a resurgence in nuclear energy demand, supported by long-term power purchase agreements with major tech companies like Microsoft and Meta Platforms. Microsoft signed a 20-year PPA in September 2024, committing to buy 100% of future power from the Three Mile Island Unit 1 reactor, which Constellation plans to restart by 2028. Additionally, the company is set to acquire Calpine for $26 billion to bolster its presence in natural gas and geothermal energy.
