AEP and Amazon-backed X-energy agreed only to study a 960-megawatt nuclear site; the lockup lifts this week
AEP and X-energy agreed only to evaluate 960 MW at a retired Indiana coal site; Amazon's funding is milestone-based and its power purchase an intention. The 180-day IPO lock-up on XE expires this week, with roughly 348 million restricted share-equivalents behind the 44 million shares that trade.
Vincent Jiang · 3 min read
A one-percent morning for a gigawatt headline
This morning American Electric Power+2.00% — American Electric Power, up 2.00 percent as of its last quote (Nasdaq: AEP), the Ohio-based utility, and X-energy$1B — X-energy, private, latest valuation $1B (Nasdaq: XE), the Amazon+0.56% — Amazon, up 0.56 percent today-backed small-reactor developer, announced a joint development agreement to evaluate 12 of X-energy's 80-megawatt Xe-100 reactors at the retired Breed coal plant in Sullivan County, Indiana: 960 megawatts in all 15. The morning's coverage asked why the stock was surging 2. It was not: XE rose about 1% from Friday's $10.36 close 29.
What the signatures actually commit
The agreement covers the feasibility of construction, and AEP says nothing is built unless the project clears a final investment decision 1. Amazon "intends" to purchase the power under a long-term contract, its development funding is milestone-based, and the parties disclosed no capital cost, contract price or term, ownership structure or date for that decision 3. It is the second project in the Amazon and X-energy program targeting more than 5 gigawatts of U.S. nuclear by 2039, after the Cascade facility with Energy Northwest, a Washington state utility 34.
Eight shares behind the lock for every one trading
The April prospectus carries the arithmetic. XE priced at $23 on April 23, selling 44,254,659 Class A shares; on completion it had 273.4 million Class A shares outstanding plus 118.9 million Class B shares paired with units redeemable one-for-one 7. Only those 44 million IPO shares trade, and nearly eight restricted share-equivalents sit behind the 180-day lock-up for every one of them 7. The lock-up ends this week.
Amazon's holding company owns 65.8 million of those units, 27.8% of the pre-IPO common units, making it lead investor, development funder and intended customer at one table 47.
Down 72%, with 17.5% of the float sold short
Friday's close sits about 72% below the $37.10 peak and about 3% above the $10.07 all-time low, with 17.5% of the float sold short and the brokerage Piper Sandler carrying a $9 target 6.
XE's round trip: $23 IPO, $37.10 peak, and a $10.36 close a step off its low
Data
| Value | |
|---|---|
| IPO price | $23 |
| All-time high | $37.1 |
| Friday close | $10.36 |
| Post-IPO low | $10.07 |
Almost eight XE shares sit behind the lock-up for every one trading
Data
| Value | |
|---|---|
| Pre-IPO Class A, locked | 229.19M |
| Units redeemable into Class A, locked | 118.91M |
| IPO shares trading now | 44.25M |
The long case is real, and still marked down 72%
The long case has substance. The chemicals group Dow's Seadrift site in Texas, the first planned U.S. deployment, is in the final stage of Nuclear Regulatory Commission review of its construction permit 3. X-energy held $1.9 billion of liquidity with no debt at mid-year, against a pipeline of about 11.5 gigawatts 9.
First power targets the early 2030s, and operating cash flow ran about negative $253 million over the trailing twelve months 6. Strip $1.1 billion of cash from the $4.2 billion market cap and the reactor business is priced near $3.2 billion 6; the whole company was valued at $11.9 billion at its April listing and sits near $4.1 billion now 8.
Three dates decide it
Three dates settle it: the lock-up lift against the $10.07 floor, the Seadrift permit decision expected in early 2027, and third-quarter results in mid-November 6. Today's release commits none of the Indiana plant's power; it buys feasibility work, and it lands in the last days before pre-IPO holders can sell.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
