Brokerage recommends "buy" on GULF, maintains 2026 revenue and EBITDA growth target of 12-15%

Constellation Energy signed a 20-year power purchase agreement with Google tied to upgrades at 11 existing nuclear units in Illinois, Pennsylvania and New Jersey. Constellation plans to spend more than $4.3 billion on the work, which is expected to add 890 megawatts of nuclear capacity to the PJM grid, with the first added output expected in 2028 and the full amount scheduled before the end of 2032. Constellation Energy shares climbed more than 12% following the announcement, while Talen Energy also posted a double-digit gain, Oklo Inc. rose more than 7% and NuScale Power advanced more than 4%. Talen Energy was not directly involved in the agreement but sells electricity into the same PJM market, while Oklo and NuScale Power are developing new reactor technologies rather than selling power from established nuclear fleets. The deal gives investors a real example of a large technology company committing long-term capital to nuclear generation to meet rising electricity demand from data centers.

SpaceX is reportedly seeking about $40B to finance a major Nvidia chip purchase, with Apollo Global Management expected to lead the financing. The package could include roughly $10B of bank loans and $30B of investment-grade debt, the Financial Times reported, adding another large financing commitment to the AI infrastructure buildout. Separately, David Ellison said technology will be central to Skydance's strategy following the completion of its $110B acquisition of Warner Bros. Discovery, noting in a memo obtained by Business Insider that technology is changing how content is created, distributed, and consumed. Constellation Energy jumped 12.2% Tuesday after announcing a 20-year power purchase agreement with Google tied to 890 MW of additional nuclear generation, lifting Talen Energy, Vistra, and NRG Energy by 12.4%, 10.7%, and 7%, respectively, while the State Street Utilities Select Sector SPDR rose 3%. Chevron agreed to sell interests in Hess Midstream and its DJ Basin crude midstream assets as it restructures related contracts, with revised Bakken agreements expected to cut midstream costs for its Bakken operations by roughly half. Ray Dalio warned the AI investment cycle is approaching a point where rising interest rates and heavy borrowing could trigger a reversal.

Google and major U.S. power producer Constellation Energy announced on the 6th that they have agreed to partner in the nuclear power business. Under the deal, Google will purchase for 20 years the additional generating capacity created by investment in nuclear plant equipment, aiming to secure electricity for data centers being built amid the expansion of artificial intelligence use. According to the announcement, Constellation will increase the generating capacity of 11 reactors it owns in the Midwestern state of Illinois and the Eastern states of Pennsylvania and New Jersey. Constellation will make more than 4.3 billion dollars in new investment, which is expected to create about 7,200 jobs during the construction period.

Black Hills Corporation announced definitive agreements to serve a planned Google data center in Cheyenne, Wyoming, sending its shares up 5% in after-hours trading Tuesday. The utility will invest $1.8 billion in new natural gas generation between 2027 and 2029, providing up to 590 megawatts of grid-connected energy service and managing 2.1 gigawatts of third-party contracted resources through a private microgrid under agreements running through 2048. Black Hills plans to construct 564 megawatts of company-owned natural gas generation at its existing Cheyenne Prairie Generating Station, with the remaining 26 megawatts supplied through market energy purchases and retail utility service. The project is expected to contribute approximately $150 million of net income in 2030 and generate approximately $2.4 billion of unlevered free cash flow through 2048, net of the $1.8 billion capital expenditure. Google will bear all costs associated with serving the data center and has provided Black Hills with $399 million in refundable advances for procurement of long-lead-time equipment, which the company expects to reimburse by June 30, 2027. Energy service is planned to begin in late 2027 and ramp to peak load in 2030.