US Constellation Energy sells natural gas power plant to LS Power for $860 million

en.Wedoany.com Reported - Constellation Energy said on August 6 that it would sell a natural gas power plant in Texas to LS Power for $860 million, and raised its full-year operating earnings forecast due to strong electricity demand; following the announcement, the company's shares rose 1.3% in early trading.

The Brazos Valley Energy Center plant being sold is the final divestiture required for Constellation Energy to complete its $16.4 billion acquisition of Calpine assets. As the largest nuclear power operator in the U.S., Constellation Energy has been expanding beyond its nuclear-dominated generation portfolio, and the Calpine acquisition added a significant amount of natural gas generation assets, giving it greater flexibility in high-demand markets such as Texas.

Company executives said on a conference call that most of the anticipated data center load in Texas is still under construction and has not yet been connected to the grid.

LS Power said in a separate statement that the transaction is expected to close by the end of this year, after which its total installed capacity will reach 14,100 megawatts and strengthen its presence in the Electric Reliability Council of Texas (ERCOT), one of the fastest-growing electricity markets.

Constellation Energy said the majority of its generation output is now contracted through 2050 and beyond, providing long-term revenue visibility. The company has also signed agreements with diversified investment-grade customers to supply an additional 920 megawatts of nuclear power over 15 to 20 years, with delivery scheduled between 2029 and 2032.

The company has filed applications with the U.S. Nuclear Regulatory Commission to extend the operating licenses of the Ginna Clean Energy Center in New York and the Nine Mile Point Unit 1 reactor to 2049, which would extend them by 20 years if approved.

According to data compiled by the London Stock Exchange Group (LSEG), Constellation Energy reported operating earnings per share of $2.55, above the analyst average estimate of $2.28. The company raised its annual operating earnings per share forecast to $11.50 to $12.50, up from the previous range of $11.00 to $12.00.