Constellation Energy Corporation (NASDAQ:CEG) Q1 2024 Earnings Call Transcript

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I think that unrealized value is the best thing out there to go buy into. And so when we have extra cash, we’re going to buy into that. And that’s precisely what we’re doing. The only thing that we’ll like better than that is making ourselves bigger and better. So these upgrade opportunities or other things where we could add megawatts of scale, give us a great positioning and are actually supportive of the work we’re doing with the data companies. So that’s where I think you’re going to see our deployment in capital. We’ll continue to look at reinvesting in ourselves and investing in these organic opportunities. Presently, I don’t see an M&A opportunity on the horizon. Is that a scale that is going to enter into this conversation? Because I don’t think those opportunities provide equivalent value to our owners as investing in ourselves or the growth, organic growth opportunities that we have here.

Durgesh Chopra: That’s very clear, Joe. I appreciate all that color. And then can I just switch gears and quickly follow up in regards to the nuclear PTC guidance, what is the key, what are the key items for us to look there? Is it the definition of gross receipts and just how do you see that playing out? Anything you can share there?

Joseph Dominguez: Well, I wish I could. We’re waiting for treasury guidance. You know, we’ve probably said this on four calls, but it is not, as near as we could tell, a high priority item for treasury because it has, you know, narrow application out there. It’s really just nuclear owners that are. That are looking for. We think spot is most likely going to be the thing that prevails. So the spot price over the year at the bust of the plan, that’s going to be energy and capacity coupled together are going to be the measuring stick that the treasury will use for the application of the PTC. That’s kind of consistent with the vast majority of the comments in this area. And, you know, certainly we think that’s where they’re going, but we just don’t know yet because they haven’t announced anything and we’re waiting on that. But our planning is based on that spot interpretation as we’ve outlined previously.

Operator: Thank you. At this time, I would now like to turn the call back over to Joe for closing remarks.

Joseph Dominguez: Well, again, Wanda, thank you for kicking us off this morning. Thanks to all of you. We very much appreciate your interest in constellation. I want to thank our women and men for a fantastic quarter. We look for more to come as the year goes forward. You know, we’re working on a lot of different things here at the company. The wind is at our backs. We feel very confident about the future and the fact that our best days are ahead. So look forward to catching up with you again. Our next quarter of earnings call. Wanda close the call.

Operator: Ladies and gentlemen, that concludes today’s conference call, thank you for your participation. You may all disconnect. Everyone have a great day.

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