With its increasing interests in nuclear energy, Vistra Corp. ( VST ) had a stellar 2024, followed by solid gains until H1 2025. However, it's hard to ignore that the stock is down by over 16% since ILong Term Tips focuses on the generational opportunity in the fast growing green economy, which has seen a CAGR of ~14% over the past decade.The profile is run by Manika Premsingh, who heads the investing group Green Growth Giants and also runs another Seeking Alpha profile in her own name. She is a macroeconom ...

Constellation Energy Corporation (NASDAQ:CEG) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds. Constellation Energy (CEG) Price Target Raised to $420 Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the US, with over 32.4 GW of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets. Constellation Energy Corporation (NASDAQ:CEG) received a boost on December 17 when UBS raised its price ...

Core Insights - NextEra Energy is a leading electric power and energy infrastructure company, focusing on clean energy assets such as natural gas, wind, solar, and nuclear energy [1] Business Structure - NextEra Energy operates two distinct businesses: Florida Power & Light (FPL), the largest electric utility in the U.S., serving approximately 12 million customers in Florida, and NextEra Energy Resources, a major energy infrastructure development company [2][3] Financial Performance - The company has achieved an adjusted earnings per share growth rate of 8.9% annually over the past two decades, significantly outpacing the average utility growth rate of 3.3% [6] - Over the past decade, NextEra's growth rate has accelerated to 10%, compared to 3.1% for its peers [6] Growth Drivers - FPL benefits from Florida's rapid growth and abundant sunshine, allowing for significant investments in solar energy to meet rising power demand [7] - NextEra Energy Resources has capitalized on the increasing demand for clean energy, contributing to the company's overall growth [7] Future Outlook - The company anticipates continued growth, projecting adjusted earnings-per-share growth at the upper end of its 6% to 8% annual target range through 2027 [8] - NextEra expects to increase its dividend by approximately 10% annually through at least next year [8] Competitive Advantages - NextEra Energy's operations in Florida and its focus on clean energy infrastructure provide it with significant competitive advantages, enabling faster growth compared to average utility companies [9]

Core Insights - NextEra Energy is positioned as a growth-oriented utility, with a strong dividend yield of 2.7%, significantly higher than the S&P 500's 1.2% yield, and a history of increasing dividends for over 30 years at a 10% compound annual growth rate [1][2]. Financial Performance - The company reported a 9.7% year-over-year increase in adjusted earnings per share for the third quarter, which is notable for a utility [3]. - NextEra's Florida Power & Light (FPL) segment saw earnings increase by nearly 13% due to investments in solar energy and the growing energy needs of Florida's population [4][6]. Growth Drivers - NextEra Energy's growth is supported by its Florida utility operations and a large-scale renewable energy platform, with 1.7 gigawatts of new projects placed into service during the quarter [4][6]. - The company expects adjusted earnings per share to grow from a range of $3.45-$3.70 this year to $3.85-$4.32 by 2027, reflecting a 6% to 8% annual growth rate [7]. Future Outlook - NextEra has a backlog of 30 gigawatts of renewable energy and storage projects expected to be completed through 2029, enhancing its long-term growth forecast [8]. - Plans to restart the Duane Arnold nuclear plant in Iowa, with a power purchase agreement with Google, could add up to $0.16 per share in annual adjusted earnings over the first 10 years of operation [9]. Strategic Initiatives - The company is exploring advanced nuclear generation and other power generation opportunities to meet future energy demands, particularly in light of the growing needs for AI data centers and electric vehicles [10][11]. - NextEra Energy's diverse growth strategies position it for continued earnings growth well into the 2030s [11]. Investment Potential - With multiple growth drivers and an attractive dividend, NextEra Energy is expected to deliver strong total returns in the coming years, making it a compelling long-term investment [12].

Financial Data and Key Metrics Changes - NextEra Energy reported a 9.7% year-over-year increase in adjusted earnings per share for Q3 2025, with a 9.3% increase for the first nine months of the year [4][19] - Florida Power & Light (FPL) saw an increase of $0.08 in earnings per share year-over-year, driven by an 8% growth in regulatory capital employee [19] - Adjusted earnings per share from corporate and other decreased by $0.04 year-over-year [23] Business Line Data and Key Metrics Changes - FPL's capital expenditures for Q3 2025 were approximately $2.5 billion, with full-year expectations between $9.3 billion and $9.8 billion [19] - Energy Resources reported a 13% year-over-year growth in adjusted earnings, with adjusted earnings per share increasing by $0.06 [20] - Energy Resources added 3 gigawatts to its backlog, totaling nearly 30 gigawatts, marking the sixth consecutive quarter of adding three or more gigawatts [22] Market Data and Key Metrics Changes - FPL's retail sales decreased by 1.8% year-over-year due to milder weather, but increased by 1.9% on a weather-normalized basis [19][20] - Wind resource for Q3 2025 was approximately 90% of the long-term average, down from 93% in Q3 2024 [20] Company Strategy and Development Direction - NextEra Energy plans to invest approximately $40 billion over the next four years in energy infrastructure, including solar, battery storage, and gas generation [9] - The company is focused on developing a comprehensive energy solution that includes renewables, storage, gas, and nuclear to meet growing electricity demands [12][41] - NextEra Energy is uniquely positioned to serve large load customers, leveraging its national footprint and strong balance sheet [13][47] Management's Comments on Operating Environment and Future Outlook - Management highlighted the strong demand for electricity in the U.S. and the company's capability to meet this demand through its diverse energy portfolio [4][5] - The Florida economy is experiencing significant growth, which supports FPL's long-term investment strategy [6] - Management expressed confidence in meeting financial expectations and delivering results at or near the top end of adjusted earnings per share ranges for 2025-2027 [23] Other Important Information - The proposed settlement agreement for FPL's 2025 base rate proceeding includes a regulatory return on equity of 10.95% and aims to keep customer bills below the national average [10][11] - NextEra Energy has entered into a 25-year power purchase agreement with Google to recommission the Duane Arnold Energy Center, expected to contribute up to $0.16 of annual adjusted EPS [14][17] Q&A Session Summary Question: Cost of restart for Duane Arnold and buy-in price for 30% stake - Management did not disclose specific CapEx numbers but expressed confidence in the efficient recommissioning of Duane Arnold, which is in good shape [25][26] Question: Clarification on backlog removal - Management explained that 650 MW was removed for conservative management reasons, while 250 MW faced permitting delays, with expectations to recover these in 2026 and 2027 [27][28] Question: Future gas-fired generation opportunities - Management indicated a strong pipeline for new gas-fired generation, leveraging existing development capabilities and partnerships [39][40] Question: Interest in AP1000 nuclear technology - Management is focused on existing nuclear facilities and SMR technology, emphasizing a disciplined capital allocation strategy [44][46] Question: Interaction of renewables with data centers - Management highlighted the importance of securing load interconnects for data centers, utilizing renewables and storage to meet initial power needs [75][76] Question: Project returns and market demand - Management noted that project returns are currently higher than ever due to strong demand and limited supply, positioning the company well for future growth [78][79]

Financial Performance - NextEra Energy's adjusted earnings per share increased by 9.7% year-over-year[6] - Adjusted earnings increased from $2.127 billion in 2024 to $2.348 billion in 2025[7] - Adjusted EPS increased from $1.03 in 2024 to $1.13 in 2025[7] Florida Power & Light (FPL) - FPL's earnings per share increased by $0.08 from the prior-year comparable quarter[18] - FPL's EPS increased from $0.63 in 2024 to $0.71 in 2025[19] - FPL's regulatory capital employed grew by approximately 7.8% from Q3 2024 to Q3 2025, reaching $74.2 billion[22] NextEra Energy Resources (NEER) - NextEra Energy Resources' adjusted earnings per share increased by $0.06 from the prior-year comparable quarter[29] - NextEra Energy Resources' adjusted EPS increased from $0.47 in 2024 to $0.53 in 2025[33] - NextEra Energy Resources added 3.0 GW of new renewable and storage projects to its backlog since the second quarter call[34] - Renewables and storage backlog stands at approximately 29.6 GW[36] Future Outlook - NextEra Energy expects a 6% to 8% annual adjusted EPS growth rate through 2027, off the 2024 adjusted EPS expectations range[44] - NextEra Energy expects approximately 10% annual dividend per share growth through at least 2026[44]

Core Insights - NextEra Energy and Google have formed a significant partnership to restart the Duane Arnold Energy Center in Iowa, the state's only nuclear facility, to address increasing electricity demand driven by AI and data center growth [1][2] - The 615-MW plant is expected to be fully operational by Q1 2029, pending regulatory approval [1] - Google will purchase a large portion of the plant's output as a 24/7 carbon-free energy source for its cloud and AI infrastructure, while Central Iowa Power Cooperative will acquire the remaining capacity [2] Economic Impact - The restart of Duane Arnold, which was shut down in 2020, is projected to create approximately 400 permanent jobs and generate over $9 billion in total economic benefits for Iowa, including $3 million annually in new tax revenue [3] - The partnership is seen as a model for similar clean energy investments across the U.S., emphasizing the economic growth potential in the Hawkeye State [5] Strategic Importance - The collaboration is expected to enhance U.S. grid reliability and advance national energy independence, with NextEra's CEO highlighting the role of next-generation nuclear technology [4] - The companies plan to explore new nuclear generation projects nationwide, positioning nuclear power as essential for meeting the rising electricity demand anticipated through 2035 due to AI and electrification [6] State Support - Iowa officials view the project as a significant milestone in the state's energy evolution, with Governor Kim Reynolds praising it as a fusion of nuclear and AI innovation that will drive economic growth and strengthen communities [7]

Group 1 - Public Service Enterprise Group Incorporated (PEG) is recognized as one of the 12 best nuclear power dividend stocks to buy now, highlighting its strong position in the nuclear energy sector [1][2] - PEG operates primarily as a regulated energy company, providing electric and gas services, and is involved in nuclear energy through its subsidiary PSEG Power, which manages nuclear generating assets [2] - The company had a strong performance in Q2 2025, exceeding expectations in both earnings and revenue, with nuclear output increasing to 7,511 gigawatt-hours (GWh) compared to 7,007 GWh in Q2 2024, and reaching 15.9 terawatt-hours (TWh) for the first half of the year [4] Group 2 - PEG has a long-standing commitment to shareholders, having paid dividends for 118 consecutive years, and recently raised its quarterly dividend by 5% to $0.63 per share, marking its 14th consecutive annual increase [5] - The current annual dividend yield for PEG stands at 3.08%, indicating a solid return for investors [5] - Evercore ISI initiated coverage of PEG with an 'In Line' rating and a price target of $83, suggesting potential involvement in the PJM data center buildout [3]

Core Insights - Constellation Energy Corporation (NASDAQ:CEG) is recognized as one of the top nuclear power dividend stocks to invest in currently [1] - The company is the largest producer of carbon-free energy in the US, with a generating capacity exceeding 32,400 MW, primarily from nuclear, wind, solar, natural gas, and hydroelectric sources [2] - CEG's stock reached an all-time high following an upgrade from Seaport Research analyst Angie Storozynski, who raised the rating from 'Neutral' to 'Buy' and set a price target of $407, reflecting a 4.7% increase from its current peak [3] Company Developments - The anticipated merger between Constellation Energy and Calpine is expected to finalize within the next month, with expectations of increased cash flows for thermal independent power producers due to rising power and capacity prices, lower interest rates, and the absence of cash taxes [4] - The analyst forecasts a surge in datacenter power deal announcements, further M&A activity, and positive earnings revisions for thermal independent power producers by the end of 2025 [4]

Group 1 - NextEra Energy, Inc. (NYSE:NEE) is recognized as one of the best nuclear power dividend stocks to invest in currently [1] - The company has a market capitalization exceeding $174 billion, making it the most valuable utility company globally, with a diverse energy portfolio that includes natural gas, nuclear, renewable energy, and battery storage [2] - Jefferies has raised its price target for NextEra Energy from $77 to $85, maintaining a 'Hold' rating, and anticipates an 8% growth trajectory extending beyond 2030, albeit with above-average risk for modest growth [3] Group 2 - NextEra Energy has demonstrated a strong dividend growth track record, with a compound annual growth rate (CAGR) of approximately 10% over the past two decades, resulting in an overall annual return exceeding 15% [4] - The company has consistently increased its dividends for 29 consecutive years and aims to continue this trend with a target of raising dividends by about 10% annually through at least 2026 [4]