Constellation skips first earnings call since spinoff

Constellation Energy, the U.S.'s largest nuclear power company, missed its quarterly investor call for the first since it went public three years ago.

Constellation didn't immediately respond to an inquiry for comment. Analysts were surprised by the lack of a phone call.

Constellation, based in Maryland, held a conference call with its management last month. It announced that it was planning to acquire private natural gas and geothermal provider Calpine for $16.4 billion. This is one of the largest deals ever made by the U.S. energy industry.

Bank of America analysts stated in a report that a discussion on Tuesday could have included questions regarding Constellation’s results for the full year 2024, Calpine’s acquisition, and other matters relating to the company. Some analysts were surprised by the cancellation.

Constellation, which was spun off from Exelon in early 2022, released stronger-than-expected fourth-quarter earnings earlier on Tuesday. At midday, its shares were up about 2.5%.

Constellation has been one of the top stock market performers in the last year. Its share price rose by roughly 150% due to a surge in artificial intelligence data center demand.

Recently, the independent power producer won lucrative contracts. One of them was to restart a Three Mile Island reactor for Microsoft's data centers.

Analysts at J.P. Morgan and BofA said that a meeting on Thursday between Constellation executives and regulators could act as a catalyst to the stock. Federal Energy Regulatory Commission could address Constellation’s complaint about rules governing colocated commercial agreements, where data centers are directly connected to a power station.

The co-location of data centers has been hailed as a solution to power them quickly without having to wait for the grid. However, critics have raised concerns about the reliability and costs. (Reporting and editing by Richard Chang; Laila Kearney)

(source: Reuters)