Constellation Energy Corporation (NASDAQ: CEG) shares are rising significantly on the US stock charts, up 23.42% to $300.94 as of the last check. The news of CEG’s acquisition of Calpine Corp., a significant turning point in the energy industry, coincided with that stock-price surge .
Information on the $26.6 billion agreement
Calpine Corp. and Constellation Energy (CEG) have officially entered into an acquisition agreement that is structured as a stock and cash transaction. The $16.4 billion equity transaction price includes 50 million shares of CEG stock, $4.5 billion in cash, and the assumption of $12.7 billion in Calpine’s net debt. When Calpine’s cash flow and tax characteristics are taken into account, the net purchase cost comes to $26.6 billion, which is an appealing 7.9x 2026 EV/EBITDA multiple.
The Biggest Clean Energy Supplier in the Nation Is Born
The firm becomes the nation’s largest clean energy supplier by combining Constellation Energy’s expertise in emissions-free nuclear power with Calpine’s competence in low-emission natural gas and geothermal energy production. With the expansion of its renewable energy portfolio, CEG is now able to provide energy solutions to 2.5 million clients nationwide.
Advancing America’s Energy Transition
The collaboration underscores both companies’ commitment to advancing America’s shift toward cleaner and more reliable energy. Calpine’s natural gas plants will ensure grid reliability as the transition progresses, while Constellation Energy plans to boost zero-emission energy output by extending the lifespan of existing facilities, investing in advanced nuclear and renewable projects, and restarting the Crane Clean Energy Center in Pennsylvania.
Financial Gains and Strategic Growth
The transaction is expected to yield substantial financial benefits for Constellation Energy. It promises an immediate adjusted EPS accretion exceeding 20% in 2026, alongside a projected $2 billion in annual free cash flow. This strategic capital will drive further reinvestment in clean energy technologies, with double-digit earnings growth anticipated through the decade.
This landmark acquisition not only combines the strengths of two industry leaders but also reinforces their shared mission to promote sustainability, operational excellence, and energy reliability for families, businesses, and communities across the nation.