American energy company Constellation Energy (CEG) has agreed to acquire private natural gas company Calpine in a $26.6 billion deal. Constellation Energy will use a cash and stock mix to purchase Calpine for $16.4 billion. The deal also includes $12.7 billion of debt held by Calpine while accounting for additional cash generated and tax attribute value.
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Constellation Energy’s acquisition of Calpine includes $4.5 billion in cash. The remaining $11.9 billion of the purchase price will be covered by 50 million shares of CEG stock. This assumes a $237.98 per share price for CEG stock based on its trailing 20-day VWAP.
Constellation Energy and Calpine expect the deal to close within a year, so long as regulators and shareholders approve it. Once complete, Constellation Energy will become the largest clean energy company in the U.S. The company also expects the deal to be 20% accretive to its adjusted EPS in 2026 and provide at least an additional $2 per share in the years after.
How This Affects CEG Stock Today
Shares of CEG stock are undergoing a massive rally on Friday alongside its Calpine acquisition announcement. The company’s shares are up 17.84% this morning, building on a 117.46% increase over the last 52 weeks. This movement comes with strong trading today as 8.41 million shares changed hands compared to a three-month daily average of 2.99 million units.
Is CEG Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Constellation Energy is Moderate Buy based on nine Buy and five Hold ratings over the last three months. With that comes an average price target of $282.38, a high of $348, and a low of $234. This represents a potential 15.81% upside for CEG shares.
