Const. Energy on Nuclear Mode - Analyst Blog
May 27 2011 - 6:15AM
Zacks
Constellation Energy Nuclear Group, LLC awarded a $300 million
contract to Global Nuclear Fuel-Americas, a joint venture of
General Electric Company (GE), Toshiba
Corporation (TOSBF) and Hitachi Ltd.
(HIT). Per the contract, Constellation Energy Nuclear will be
provided with fuel and related services for its Nine Mile Point
nuclear facility in New York state.
Constellation Energy Nuclear is a joint venture of
Constellation Energy Group Inc. (CEG) and
Électricité de France Group. The joint venture is a leading
producer of safe and reliable nuclear power. The company owns and
operates five nuclear reactors at three sites in New York and
Maryland.
Constellation Energy Group Inc. is a diversified energy company
with regulated and merchant businesses. The visibility of its
underlying earnings strength is enhanced by a
geographically-disparate customer base and a diversified power
generation portfolio, as well as a strong balance sheet and stable
regulated earnings.
All these positives are, however, offset by significant Maryland
exposure, risks in the merchant power space, and pending regulatory
cases for its ongoing merger proceedings. Constellation Energy
announced at the fag end of April that it would be acquired by
Exelon Corporation (EXC) for about $7.9 billion.
The merger has been approved by the shareholders of both the
companies and the union is subject to overcoming some regulatory
hurdles. The companies expect to close the transaction by early
2012.
Constellation Energy presently retains a short-term Zacks #4
Rank (Sell). We however have a long-term Neutral recommendation on
the stock.
Baltimore-based Constellation Energy Group Inc. is a diversified
holding company for a group of energy businesses focused on
wholesale power marketing and merchant generation. It owns a
diversified fleet of generating units, totaling approximately
12,000 megawatts of generating capacity, and is a leading advocate
for clean, environmentally sustainable energy sources, such as
solar power and nuclear energy.
CONSTELLATN EGY (CEG): Free Stock Analysis Report
EXELON CORP (EXC): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
HITACHI (HIT): Free Stock Analysis Report
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