Constellation Energy to sell gas plant to LS Power, raises profit forecast
CEG•Data center demand and LS Power comments
Executives said on a conference call that much of the anticipated data center load in Texas remains under construction and has not yet been connected to the grid.
In a separate statement, LS Power said its deal for the Texas plant, expected to close by the end of this year, will bring its total capacity to 14,100 MW post completion and strengthen its presence in ERCOT, one of the fastest-growing power markets.
Earnings beat and higher annual forecast
The company posted operating earnings of $2.55 per share, beating analysts' average estimates of $2.28 per share, according to data compiled by LSEG.
It raised its annual forecast for operating earnings to between $11.50 and $12.50 per share, from $11.00 to $12.00 per share earlier.
Texas gas plant sale and Calpine divestiture
Constellation Energy said on Thursday it will sell a gas plant in Texas to LS Power for $860 million, and raised its current-year operating earnings forecast on the back of robust power demand, sending shares up 1.3% in morning trading.
The sale of the Brazos Valley Energy Center plant to LS Power marks the last divestiture required by Constellation to complete its acquisition of Calpine assets.
