Constellation Energy Acquires Calpine: A New Powerhouse in Clean Generation

Telluride Research has published a comprehensive analysis of Constellation Energy’s $26.6 billion acquisition of Calpine Corporation, a deal that forms the largest independent clean energy producer in the United States. The combined entity will operate nearly 60 GW of diversified generation capacity spanning nuclear, natural gas, geothermal, hydro, solar, and battery storage—uniquely positioned to meet surging power demand from AI and electrification.

Our team breaks down the strategic and financial implications of the merger, including expected 20%+ EPS accretion by 2026, over $2 billion in annual free cash flow, and a disciplined entry valuation at 7.9x EV/EBITDA. We also examine regulatory considerations, integration risks, and long-term synergies across the retail and wholesale energy markets.

Read the report here.