X-energy (XE): XE Continues Commercial Execution, Inking JDA with AEP and Amazon for 960MW

This morning, X-energy and American Electric Power announced a Joint Development Agreement (JDA) to study the feasibility of a proposed 960MW, 12-unit Xe-100 small modular reactor (SMR) plant in Sullivan County, Indiana. Amazon plans to support project development through a funding agreement and subsequently purchase the power under a long-term contract. AEP's now-retired coal plant, Breed Generating Station, is the primary location under consideration for the project. We see the announcement as an encouraging signal, following through on 2Q call commentary that pointed to a 1GW announcement by year-end. As the parties progress through feasibility studies, we believe incremental details around firm contracted offtake, financing structure, capex, and licensing timeline could build meaningful investor confidence in the long-term growth outlook. The deal structure answers utility affordability concerns, but details are still to come;