TD Cowen Bullish on Constellation Energy (CEG) Amid Heightened Regulatory Risks and Recently Completed Calpine Acquisition

Core Viewpoint - Constellation Energy Corporation (NASDAQ: CEG) is recognized as a promising investment opportunity, particularly following its recent acquisition of Calpine for $16.4 billion, which is expected to enhance its growth potential despite regulatory risks [2]. Group 1: Acquisition and Financial Impact - The completed acquisition of Calpine is seen as a significant growth catalyst, with expectations of adding approximately $2 billion in annual free cash flow [3]. - The acquisition will expand Constellation's capacity to 55 GW of zero- and low-emission energy sources, including nuclear, natural gas, and geothermal generation [3]. Group 2: Regulatory Developments - The U.S. Nuclear Regulatory Commission has approved 20-year license renewals for the Clinton and Dresden clean energy centers, facilitating the company's operational longevity [3]. - Planned investments exceeding $370 million will be directed towards relicensing and upgrading reactors, allowing for extended operations through 2047 for Clinton and 2049-2051 for Dresden [3]. Group 3: Market Position and Services - Constellation Energy focuses on the generation, supply, and marketing of clean electricity, natural gas, and geothermal assets, along with wholesale and retail energy services [4].