CEG, SHEL Stocks Rise Overnight: Constellation Energy To Acquire Rhode Island State Energy Center From Shell For $715M

A US District Court ruled that the Trump administration's emergency order to keep the J.H. Campbell coal plant operating was unlawful. The court sided with Michigan and other states, finding the federal government overstepped its authority. Consumers Energy, the plant's owner, plans to replace it with methane, solar, and battery storage. Ratepayers in the MISO area have spent over $248 million to keep the plant running, with no immediate need for its electricity. Earthjustice and other climate o

Constellation agreed to buy the 609-megawatt Rhode Island State Energy Center from Shell for $715M, expecting immediate earnings accretion and returns above 10%. The deal, pending approval, adds flexible generation capacity to Constellation's New England portfolio.

Shell (NYSE:SHEL) agreed to sell its Rhode Island State Energy Center (RISEC) to Constellation Energy (NASDAQ:CEG) for $715M, with a net cash outlay of $580M after tax benefits. The deal, expected to close in Q1 2027, will be accretive to Constellation's operating profit. Shell also acquired Hunlock Creek Generation, two Pennsylvania power plants, for an undisclosed amount, anticipating high returns.

Shell Energy North America, a subsidiary of Shell plc, is reshaping its US power portfolio by acquiring 169 MW of natural gas-fired generation capacity in Pennsylvania for $715 million and selling its interests in a 609-MW power plant in New England. The deals aim to strengthen its position in the PJM electricity market and monetize existing assets, with both transactions expected to close in Q1 2027, subject to regulatory approvals.

Constellation Energy (CEG) has been simultaneously buying and selling power plants, focusing on nuclear assets. It acquired a 609 MW plant for $715M and sold a 606 MW plant for $860M. Q2 earnings rose 34% YoY, with guidance raised. A valuation model targets $295, implying 3.1% upside over 2.3 years. CEG's growth outlook contrasts with peers like Exelon (EXC) and Vistra (VST).

Shell is selling a 609 MW Rhode Island gas plant for $715M, 20 months after acquiring it, while buying a 169 MW Pennsylvania plant. The deals reflect Shell's strategy of active portfolio management, focusing on trading and optimization. Both transactions are subject to regulatory approval and expected to close in Q1 2027.