Nick Amicucci

Nick Amicucci asked about Talen Energy's hedge book through 2027, specifically how it is expected to evolve over time or if it will remain open given that forward curves may not fully reflect market tightness. He also asked for clarification on the $500 million EBITDA from the Cornerstone acquisition, inquiring if it's a run rate to be allocated from the closing date in 2026 or if it includes embedded growth for 2027.

Answer

Mac McFarland, President and CEO, and Terry Nutt, President, explained that Talen Energy employs a pragmatic, not programmatic, hedging strategy. They took advantage of price spikes in December 2025 to layer in hedges for 2027. They noted that while the forward market is volatile, the general direction is upward, and they will continue to add hedges opportunistically. Mr. Nutt added that as contracted margin from deals like AWS grows, the need for hedging to support basic cash flows diminishes, making hedging more opportunistic. Regarding Cornerstone, Mr. Nutt confirmed that $500 million is a good run rate number for 12 months forward from the close date, with Mac McFarland adding that there's typically more value in summer and winter months.

Nick Amicucci inquired about Talen Energy's hedging strategy for 2027 and beyond, specifically whether the company plans to continue increasing its hedge book or leave more optionality open given the forward curves.

Answer

Mac McFarland, President and CEO, explained that Talen's hedging is pragmatic, not programmatic, taking advantage of market volatility, such as the price increases in December 2025 for 2027 hedges. Chris, Chief Commercial Officer, added that Talen maintains intentional length in outer periods to capitalize on volatility and will add hedges opportunistically within stated targets. Terry Nutt, President, noted that increasing contracted margin from the AWS deal reduces the need for extensive hedging, making it more opportunistic. Terry Nutt also confirmed that the $500 million EBITDA from the Cornerstone acquisition is a good run-rate number for 12 months post-closing, with Mac McFarland adding that value is higher in peak seasons.

Nick Amicucci from Evercore ISI asked about PSEG's nuclear fuel availability and hedging strategy through the capital plan, particularly in light of Russia potentially going offline in 2028. He also inquired about Governor Sherrill's stance on SMRs versus large nuclear and PSEG's potential involvement in recent DOE procurement allocations for AP1000s.

Answer

Ralph M. LaRossa, President, Chair, and CEO, explained that PSEG is contracted for most of its nuclear fuel needs for the next few years, with changes expected towards the tail end of the 5-year period. He anticipated modest movements in supply-demand pricing for fuel but no dramatic shifts. He reiterated PSEG's advocacy for large nuclear (like AP1000s) and their ongoing education efforts with the new administration, noting their Early Site Permit is technology-agnostic.

Nick Amicucci with Evercore ISI inquired about PSEG's nuclear fuel availability and hedging strategy, particularly concerning the impact of Russia going offline in 2028 and any pre-buying efforts. He also asked about Governor Sherrill's stance on SMRs versus large nuclear and PSEG's potential involvement in the Brookfield/Westinghouse/DOE AP1000 procurement.

Answer

Ralph LaRossa, President, Chair, and CEO, confirmed PSEG is contracted for nuclear fuel for the next few years, with modest price movements expected from global supply shifts rather than dramatic impacts from Russia. He reiterated PSEG's advocacy for large nuclear, like the AP1000, and its ongoing education efforts with the new administration, noting the technology-agnostic nature of their Early Site Permit.

Nick Amicucci asked about the impact of the significant sentiment shift towards behind-the-meter solutions for AI-driven power demand in West Texas on compression demand, specifically whether Archrock has seen a true inflection of demand or if more is yet to come. He also inquired about potential price opportunities in the Aftermarket Services (AMS) segment, given units running harder and supply chain constraints.

Answer

Brad Childers, President and Chief Executive Officer, confirmed an increase in demand for in-basin gas supply, driven by more in-basin use rather than long-haul pipelines. He clarified that this translates into more *future* demand for compression rather than immediate current demand. Regarding AMS, Mr. Childers expressed satisfaction with current returns (24% gross margin) and sees opportunities for further improvement in stability, quality, and earnings, while acknowledging the low barriers to entry and high competition in the segment.

Nick Amicucci asked if Archrock has observed an inflection in demand for compression services in West Texas, driven by the shift towards behind-the-meter power solutions for AI complexes and hyperscalers, given the Permian's lack of regulatory constraints. He also inquired about potential pricing opportunities in the aftermarket services (AMS) segment, considering assets running harder for longer and supply chain constraints, and Archrock's prudent approach to unit economics.

Answer

Brad Childers, President and Chief Executive Officer, confirmed an increase in demand for in-basin gas supply, driven by more in-basin use of natural gas, but noted that this is translating into more future demand rather than immediate current demand for compression. Regarding AMS, Mr. Childers expressed satisfaction with the current 24% gross margin but acknowledged opportunities to further improve stability, quality, and earnings. He highlighted the low barriers to entry and high competition in AMS, emphasizing the importance of a strategic approach to ensure profitability and value-add.

Nicholas Amicucci asked for insights into the factors contributing to NRG's consistent strong financial performance and guidance beats. He also inquired about the incremental upside potential from the Virtual Power Plant (VPP) opportunity, particularly with the RTC+B initiative in ERCOT and data points from Vivint.

Answer

CFO Bruce Chung attributed success to a strong team, excellent execution, operational changes, and favorable weather. CEO Larry Coben highlighted a culture of continuous improvement and collaboration. Larry Coben also described the VPP and RTC+B initiative as an "enormous opportunity" that NRG is uniquely positioned to capture, with its full potential still being quantified.

Nicholas Amicucci inquired about the specific factors contributing to NRG's consistent strong financial performance and guidance beats over the past three periods. He also asked about the incremental upside potential of the Virtual Power Plant (VPP) opportunity, particularly with the RTC+B initiative in ERCOT, given NRG's data points and ability to arbitrage.

Answer

CFO Bruce Chung attributed the strong performance to a great team, excellent execution, significant operational changes, and favorable weather. CEO Larry Coben added that a culture of continuous improvement and collaboration across businesses has led to new ways of operating more profitably. Larry Coben described the VPP opportunity as enormous and one that NRG is uniquely positioned to capture, viewing it as an extraordinary opportunity just beginning to be quantified.

Nick Amicucci focused on the increased capital investment plan, particularly new generation, and asked about potential upside on the transmission side related to bridge solutions. He also sought insight into the typical timeframes and appetite for duration in large load contracts' minimum take provisions.

Answer

David P. Poroch, CFO, explained that the electric companies' bilateral negotiation ability allows them to meet customer needs, including potential partnerships for services. Christopher C. Womack, Chairman, President and CEO, added that bridge solutions are complementary and represent potential upsides. Poroch also stated that the company typically pegs contract durations to a 15-year window or longer for durability.

Nick Amicucci questioned the potential upside on the transmission side, given the increased capital investment primarily in new generation, and how new generation assets might connect to the broader grid. He also asked about the typical duration of large load contracts and the counterparties' appetite for longer versus shorter terms.

Answer

CFO David P. Poroch stated that PowerSecure offers many options to meet customer needs, not bound by static tariffs, and can partner to bring services. Chairman, President, and CEO Christopher C. Womack added that bridge solutions are complementary and represent potential upsides. Mr. Poroch confirmed that they are targeting contract durations of 15 years or longer for durability.

Nick Amicucci asked about Quanta's ability to execute more renewables projects, especially given recent guidance on the FIOC (Future Investment in Offshore Wind) side, and whether conversations have picked up.

Answer

Duke Austin, President and CEO, confirmed continued double-digit growth in Quanta's renewables business with visibility through 2030, stating he is not concerned. He noted that solar and batteries are the fastest forms of energy to deploy on the grid, and wind projects are still being built despite some negative press. Jayshree Desai, CFO, added that Quanta's customers are strategic in managing political dynamics and have robust pipelines, ensuring strong demand for renewable projects.

Nick Amicucci asked about the company's ability to execute on more renewables projects, given recent guidance on the FIOC side, and whether conversations regarding these projects have picked up.

Answer

Duke Austin, President and CEO, confirmed that the renewables business continues to experience double-digit growth with visibility extending through 2030. He acknowledged the 'noisy' nature of the business (e.g., FIOC) but emphasized that solar and batteries offer the fastest deployment. Jayshree Desai, CFO, added that customers are strategically managing political dynamics with robust pipelines, allowing Quanta to maintain comfortable renewables expectations and strong demand.

Nick Amicucci asked about conversations regarding pipeline infrastructure given the increased demand for natural gas, and whether it's still early for more pipeline construction.

Answer

President and CEO Duke Austin acknowledged daily conversations about pipeline projects but guided for $500 million next year, emphasizing that Quanta is not focusing on it as a core growth driver due to lumpiness and risks like weather, mat, and permitting. He stated Quanta would be selective and de-risk projects.

Nick Amicucci inquired about the increased demand for natural gas as a feed fuel, asking if Quanta Services is having conversations about the pipeline business and the need for more infrastructure, given its projected decline this year.

Answer

President and CEO Duke Austin confirmed daily conversations about pipeline projects but guided for $500 million in pipeline revenue next year, emphasizing it's not a primary company focus unless booked work is secured. He noted that large diameter pipe projects are lumpy, making consistent earnings difficult, and permitting at the state level remains challenging despite market opportunities.

Nick Amicucci from Evercore ISI inquired about the significance of the $150 million advance and aid of construction agreement (AIAC) from the first tenant, asking if it represents an incremental vote of confidence. He also asked about the next steps for tenant one, the progress of negotiations with other potential tenants, and the value ascribed to Fermi's behind-the-meter power solution.

Answer

CEO Toby Neugebauer viewed the $150 million AIAC as 'promises kept' and a clear indication of the tenant's seriousness, confirming the funds are already being used for the 1GW project. CFO Miles Everson reiterated it as a sign of good faith and commitment, noting active lease negotiations. Neugebauer stated the next step is a firm contract with tenant one and mentioned active discussions with half a dozen other potential tenants, emphasizing Fermi's increasing negotiating power due to rising power prices. Both executives highlighted the complete shift in large tech companies' mindset towards behind-the-meter power as a key component for future growth, with Fermi's site being uniquely positioned.

Nick Amicucci from Evercore inquired if roughly $0.08 per gigawatt was a reasonable rule of thumb for EPS accretion, the scalability of the EPC contract, and whether GenCo's growth would provide incremental savings to end consumers.

Answer

Shawn Anderson, EVP and CFO, stated there is no incremental guidance on EPS per gigawatt due to varying factors. Michael Luhrs, EVP of Technology and Customer and Chief Commercial Officer, confirmed the EPC structure is set up to be scalable for future growth. Lloyd Yates, CEO and President, affirmed that adding new customers and their use of the transmission grid should continue to flow back savings to retail customers, aiding affordability.

Nick Amicucci from Evercore ISI asked about the utilization of Bloom Energy's doubled capacity (2 GW by end of 2026, supporting 4x 2025 revenue) as the company enters 2027, and how Bloom plans for growth beyond this capacity. He also inquired about the specific value Bloom's technology brings to inference data centers, particularly concerning latency and reasoning within the AI complex.

Answer

K.R. Sridhar, Founder, Chairman, and CEO of Bloom Energy, explained that capacity expansion is fiscally disciplined and aims to prevent Bloom from being a bottleneck for customer growth, with current investments focused on enabling expansion beyond 2 GW. He added that Bloom's modular architecture is equally suited for inference and training data centers, and its non-polluting, quiet operation makes it the ideal power choice for inference centers located closer to end-users.

Nick Amicucci asked about the utilization of Bloom Energy's doubled capacity (2 gigawatts by end of 2026), which is expected to support four times the fiscal 2025 revenue, and the company's plans for expansion beyond 2 gigawatts. He also sought clarification on the additive value of Bloom's technology for inference data centers, particularly concerning latency and reasoning within the AI complex.

Answer

K.R. Sridhar, Founder, Chairman, and CEO of Bloom Energy, stated that capacity expansion decisions are fiscally disciplined and based on ROI, with a commitment to not be a bottleneck for customers. He confirmed investments in talent and capabilities for future expansion beyond 2 gigawatts. Sridhar explained that Bloom's modular, fault-tolerant architecture is equally effective for both inference (fewer 'Lego blocks') and training data centers, making it an ideal, non-polluting, and quiet power source for inference data centers located closer to users.

Nick Amicucci asked for insights into the expected evolution of NextEra Energy's portfolio by energy and generation source over the next decade, considering recent trends like increased storage in the backlog. He also inquired about the company's outlook on the nuclear fuel supply chain, particularly concerning Russia's enriched uranium capacity.

Answer

John Ketchum, Chairman, President, and CEO of NextEra Energy Inc., outlined extensive growth drivers for the next decade, including FPL's growth in Florida, large load tariffs, electric and gas transmission opportunities for NextEra Energy Transmission, and a stronger renewables and storage business. He highlighted nuclear opportunities (Duane Arnold, Point Beach, Seabrook, greenfield SMRs), gas-fired generation leveraging the 20 GW pipeline, and the unique position to serve large load customers with diverse capabilities and a 50-state footprint. Regarding nuclear fuel, Mr. Ketchum stated that the U.S. government and industry are focused on the supply chain, and NextEra Energy is disciplined in securing long-term fuel, with current positions baked into their financial numbers.

Nick Amicucci asked about the expected evolution of NextEra Energy's portfolio by energy and generation source over the next decade and the outlook for the nuclear fuel supply chain, particularly concerning Russia's enriched uranium capacity.

Answer

John Ketchum, Chairman, President and CEO of NextEra Energy, outlined diverse growth drivers including FPL's population growth and large load tariffs, competitive transmission, gas transmission, Energy Resources' renewables, storage, nuclear restarts/advanced, gas-fired generation, customer supply, re-contracting, and AI. Regarding nuclear fuel, Mr. Ketchum stated the U.S. government and industry are focused, NextEra is disciplined in securing long-term fuel, and current fuel position is factored into projections.