Constellation Energy Corporation

Long-term 20-year power purchase agreements with Microsoft and Meta at roughly $110-115/MWh and the nuclear Production Tax Credit providing an approximately $40-44/MWh floor underpin partial revenue visibility. Only about one-quarter of expected clean output is contracted, however, and the majority of generation earns wholesale spot prices subject to market cycles.

Post-Calpine, the portfolio spans nuclear, natural gas, and geothermal, with approximately 2.5 million retail customers as well. All three generation segments are tightly correlated to electricity market prices, however, and the company operates solely in energy-related verticals with no genuinely uncorrelated revenue stream offsetting power market exposure.

Substantially all of Constellation's generation and customer revenue originates in the United States, with no material international operations. The 2026 Calpine acquisition expanded the regional footprint to include Texas and California alongside the legacy PJM markets, but the entire business operates under a single national regulatory and economic framework.

Nuclear plants operate at near-zero marginal cost above fixed overheads, producing strong operating leverage from a fleet running above 90% capacity factor in recent years. Expanding generation, however, requires multi-billion-dollar capital outlays and decade-long NRC licensing timelines, moderating scalability relative to asset-light businesses.

Contracted output (roughly 20-25% of total) is sold under 20-year agreements with Microsoft and Meta at approximately $110-115/MWh, with the nuclear PTC floor backstopping uncontracted nuclear volumes at roughly $40-44/MWh. The majority of generation still sells at wholesale commodity rates, tempering the contractual strength of the overall portfolio.