FINWIRES · TerminalLIVE
FINWIRES

Constellation Energy's Q2 Nuclear Generation Slips, While Gas, Renewables Pick Up Pace

By

Constellation Energy (CEG) reported a decline in its Q2 nuclear generation Thursday, while natural gas, oil and renewables soared, aided by a recent acquisition.

The company's nuclear fleet generated 44,160 gigawatt-hours during the quarter, down from 45,170 GWh a year earlier. Output increased in the Mid-Atlantic region, but declined across the Midwest, New York and ERCOT.

The nuclear fleet's capacity factor fell to 93% from 94.8%, with planned refueling outage days doubling to 86 from 41, while non-refueling outage days edged down to 20 from 22.

Generation from natural gas, oil and renewable assets climbed to 30,649 GWh from 5,560 GWh, largely reflecting its acquisition of Calpine earlier this year, which contributed 24,914 GWh during the quarter.

The company also signed an additional 920 MW of long-term nuclear power purchase agreements with investment-grade customers. The contracts have terms of 15 to 20 years and are scheduled to begin between 2029 and 2032. This also includes a 176 MW agreement with Walmart.

Constellation said that it had entered into an agreement with LS Power to sell its 606 MW Brazos Valley Energy Center natural gas-fired plant in ERCOT to LS Power for $860 million, which is part of the regulatory divestiture requirements tied to its acquisition of Calpine.

Related Articles

Commodities

Matador Resources Q2 Production Increases, Lifts 2026 Production Outlook

Matador Resources Company (MTDR) reported Q2 earnings Wednesday, with average daily production increasing to 215,631 barrels of oil equivalent per day from 209,013 boe/d.Total average daily volumes were 3% above Matador's Q2 guidance range, which was between 206,000 boe/d and 212,000 boe/d.Average oil production rose to 126,106 barrels per day from 122,875 b/d a year earlier. Q2 2026 average daily oil output was 2% above the company's guidance.Average natural gas production increased to 537.1 million cubic feet per day for the quarter ended June 30, up from 516.8 MMcf/d a year earlier.Net production oil volumes stood at 11.476 million barrels for the quarter ended June 30, up from 11.182 million barrels for the same quarter last year.Net production volumes for natural gas rose to 48.9 billion cubic feet in Q2, up from 47 Bcf in the year-ago quarter.San Mateo's natural gas gathering throughput rose to 577 MMcf/d in Q2 from 491 MMcf/d a year earlier, while natural gas processing volumes rose to 552 MMcf/d from 486 MMcf/d.Oil gathering and transportation throughput declined to 41,600 b/d from 50,300 b/d a year earlier, while produced water handling volumes fell to 343,400 b/d from 414,400 b/d.Matador revised its full-year 2026 oil production guidance to 127,500 b/d to 129,000 b/d from 123,000 b/d to 125,000 b/d. Natural gas production guidance increased to 546 MMcf/d to 567 MMcf/d from 525 MMcf/d to 545 MMcf/d.The company also raised its full-year 2026 total production outlook to 218,500 boe/d to 223,500 boe/d from 210,500 boe/d to 216,000 boe/d.The company updated full-year drilling, completion and equipping capital expenditure guidance to $1.48 billion to $1.56 billion from $1.35 billion $1.44 billion.It also lifted midstream capital spending to $145 million to $165 million from $100 million to $110 million.Matador expects Q3 production of 222,000 boe/d to 226,000 boe/d, including 128,500 b/d to 130,500 b/d of oil and 561 MMcf/d to 573.0 MMcf/d of natural gas.The company plans to turn 30 to 33 net operated horizontal wells to sales during the quarter.The company said Q2 production exceeded expectations despite shutting in about 9,900 boe/d because of weak Waha pricing and third-party maintenance. It turned 23.7 net operated wells to sales, including 13 wells on the Guss pad during the quarter.Matador completed four strategic transactions during and after the quarter, including the acquisition of 5,154 net undeveloped acres in the Delaware Basin, Cardinal Midstream and agreements to acquire Paloma Permian and Ridge Runner Resources.The Paloma acquisition includes estimated Q3 production of about 11,100 boe/d, comprising 57% oil, and adds 55 million boe of reserves.Matador said its Rae's Creek Woodford well achieved test rates exceeding 2,200 boe/d, comprising 72% oil.

$MTDR
Commodities

US Natural Gas Update: Futures Nearly Flat as Heat Forecast Counters Supply Outlook

US natural gas futures remained essentially flat in after-hours trade on Wednesday as forecasts for hotter weather across much of the country fueled expectations for stronger cooling demand, although any potential gains were capped by prospects for another larger-than-average weekly storage build.The front-month Henry Hub contract and continuous contract both lost 0.45% to trade at $2.670 per million British thermal units.The Commodity Weather Group said forecast models turned warmer, with above-normal temperatures expected to persist across the western US through Aug. 14. The hotter outlook is expected to lift electricity demand for air conditioning, supporting natural gas consumption by power generators.However, the market remained cautious ahead of Thursday's weekly storage report from the US Energy Information Administration. Various analysts' estimates range between a 27 and a 30 billion cubic foot inventory build for the week ended July 31, all exceeding the five-year average build of 23 Bcf for the period.Natural gas prices also continued to face pressure from Tuesday's announcement by Energy Transfer that the Hugh Brinson pipeline is on track to resume its full transportation capacity of 1.5 Bcf/d by Sept. 1. The expanded capacity will allow additional natural gas to move from the Permian Basin to the Henry Hub benchmark in Erath, Louisiana, further increasing already ample domestic supply.Barchart, citing BNEF data, said lower-48 US dry gas production averaged 111.4 Bcf/d on Wednesday, up 2.6% from a year earlier. Gas demand across the lower 48 states averaged 81.4 Bcf/d, an 8.4% increase from the same period last year.Meanwhile, estimated net flows to US LNG export terminals were 18.2 Bcf/d, up 0.3% from the previous week but still below capacity due to weaker liquefaction demand from Freeport LNG, which is undergoing maintenance work expected to wrap up at month-end.

Commodities

APA Tops Q2 Production Guidance, Raises 2026 US Oil Output Outlook

APA on Wednesday reported Q2 2026 total production averaged 410,000 barrels of oil equivalent per day, down 12% from the same quarter a year ago.The company said adjusted average production also fell by 12% in the quarter ended June 30 to 347,000 Boe/d, but added that both figures surpassed guidance.It said US oil production averaged 123,500 b/d, about 2,500 b/d above guidance, reflecting drilling and completion efficiency gains as well as strong base production in the Permian Basin.In Egypt, adjusted production averaged 61,000 Boe/d, in line with guidance, while gross production reached 207,000 Boe/d. Gross natural gas production rose to 539 million cubic feet per day, supported by continued execution of the company's gas-focused development program. APA said nearly half of its Egypt gas production is now benefiting from a revised gas pricing agreement.The company also raised its full-year 2026 US oil production outlook to 123,000 b/d while maintaining its US capital spending budget at $1.3 billion.APA said it continues to expect total upstream capital investment of about $2.07 billion for the year, reflecting lower exploration spending due to a shift in the timing of exploration activity at Suriname Block 58.The company also lowered its full-year lease operating expense guidance by $25 million to $1.5 billion, citing ongoing cost-saving initiatives.