Utilities - Nuclear

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CEG vs. DUK: Which Nuclear-Powered Utility Is Worth Your Investment?
ZACKS· 2025-06-26 13:45
Core Insights - Nuclear power plants are recognized for their high-capacity factor, providing a reliable source of baseload electricity compared to intermittent renewable sources [2] - The U.S. aims to increase nuclear energy capacity from 100 GW to 400 GW by 2050 through executive orders issued by President Trump [4] - The demand for clean electricity is rising due to factors like AI data centers, urbanization, and electric vehicles, making nuclear energy stocks attractive [5] Constellation Energy's Position - Constellation Energy operates the largest nuclear fleet in the U.S., generating nearly 90% carbon-free energy annually [6] - The company plans to invest $3 billion to $3.5 billion in capital expenditures through 2026, with 35% allocated for nuclear fuel [10][16] - Constellation Energy's return on equity (ROE) is 21.93%, indicating efficient capital use compared to Duke Energy's 9.88% [10][14] Duke Energy's Position - Duke Energy's nuclear operations provide reliable, low-carbon electricity, helping meet climate goals and federal regulations [8] - The company received approval to extend operations of its largest nuclear plant for an additional 20 years, supporting its clean energy strategy [8] - Duke Energy anticipates capital expenditures of $190-$200 billion over the next decade, with a significant portion for clean energy transition [17] Financial Performance Comparison - Constellation Energy's earnings per share (EPS) estimates for 2025 and 2026 increased by 0.75% and 3.78%, respectively, while Duke Energy's estimates remained flat or slightly decreased [10][12][14] - Constellation Energy's dividend yield is 0.49%, significantly lower than Duke Energy's 3.61% [18] Investment Outlook - Both Constellation Energy and Duke Energy have potential for growth in the energy sector, but Constellation Energy is favored for its better earnings growth and ROE [19][20]
Duke Energy's largest nuclear plant receives approval to extend operations; supports growing energy demand, helps keep customer costs as low as possible
Prnewswire· 2025-03-31 20:30
Core Viewpoint - The U.S. Nuclear Regulatory Commission has renewed Duke Energy's Oconee Nuclear Station operating licenses for an additional 20 years, allowing it to operate through 2053 and 2054, which supports the company's strategy for cleaner energy while maintaining reliability and affordability for customers as electricity demand grows [1][2][6] Group 1: License Renewal and Impact - Oconee Nuclear Station is the first of Duke Energy's nuclear facilities to achieve an 80-year operational license extension, with plans for similar renewals for other plants, including Robinson Nuclear Plant [2][10] - The renewal is crucial for South Carolina's energy generation to keep pace with economic growth, as emphasized by state officials [2][6] - Nuclear energy has provided over 50% of electricity to Duke Energy's Carolinas customers in 2024, highlighting its importance in the energy mix [4][8] Group 2: Operational Enhancements - Duke Energy has invested significantly in maintenance and upgrades at Oconee, including replacing reactor vessel heads, steam generators, and other critical equipment to ensure safe operations through mid-century [3][5] - In 2024, Oconee added a combined 45 megawatts through power uprate improvement projects across all three units [3] Group 3: Economic and Community Benefits - Duke Energy's nuclear plants generate large amounts of electricity at low operating costs, providing thousands of jobs and economic benefits to local communities [5] - The federal nuclear production tax credit incentivizes cost-efficient operations at existing plants like Oconee, further lowering nuclear energy costs for customers [5] Group 4: Future Energy Strategy - The approval of the license extension is a significant milestone for Duke Energy, aiding in the completion of license applications for other plants and ensuring nuclear energy remains a vital part of its generation portfolio [7][10] - Duke Energy is committed to an energy transition that includes investments in cleaner technologies while maintaining customer reliability and value [13]