Centrus Energy Secures $150M DOE Contract for HALEU

TL;DR

Centrus lands $150M DOE deal for HALEU fuel by year-end. Big win for US nuclear.

AI Summary

Centrus Energy Corp. announced on May 28, 2024, that it has entered into a contract with the U.S. Department of Energy (DOE) to provide 10 metric tons of high-assay low-enriched uranium (HALEU) by the end of 2024. This HALEU is crucial for the development of advanced nuclear reactors in the United States. The contract is valued at $150 million and aims to support the domestic nuclear fuel supply chain.

Why It Matters

This contract is a significant step towards re-establishing a domestic supply of HALEU, which is essential for the next generation of U.S. nuclear power plants and strengthens national energy security.

Risk Assessment

Risk Level: medium — While the contract is a positive development, the successful production and delivery of HALEU by the end of 2024 present execution risks.

Key Numbers

• 10 metric tons — HALEU (Amount to be supplied to DOE)
• $150 million — Contract Value (Secured from DOE for HALEU supply)

Key Players & Entities

• Centrus Energy Corp. (company) — Registrant
• U.S. Department of Energy (DOE) (company) — Contracting party
• 10 metric tons (dollar_amount) — Quantity of HALEU to be provided
• $150 million (dollar_amount) — Contract value
• May 28, 2024 (date) — Date of event
• 2024 (date) — Delivery deadline

FAQ

Key Financial Figures

• $0.10 — stered Class A Common Stock, par value $0.10 per share LEU NYSE American Indicate
• $234 million — ity contract and transfer approximately $234 million of its pension plan obligations to the
• $224 million — by assets of the Plans of approximately $224 million. The purchase resulted in a transfer of
• $234 m — nsion plan liabilities by approximately $234 million, or 79%. The transactions contemp
• $11 m — second quarter of 2024 of approximately $11 million, dependent upon the finalization
• $420 m — igations for the Plans by approximately $420 million, or 90%. As a result of the trans

Filing Documents

• leu-20240528.htm (8-K) — 30KB
• 0001065059-24-000041.txt ( ) — 182KB
• leu-20240528.xsd (EX-101.SCH) — 2KB
• leu-20240528_def.xml (EX-101.DEF) — 15KB
• leu-20240528_lab.xml (EX-101.LAB) — 26KB
• leu-20240528_pre.xml (EX-101.PRE) — 15KB
• leu-20240528_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events On May 28, 2024, Centrus Energy Corp. (the "Company") entered into an agreement (the "Agreement") with an insurer (the "Insurer") for its two defined benefit pension plans, the Employees' Retirement Plan of Centrus Energy Corp. and the Retirement Program Plan for Employees of United States Enrichment Corporation (collectively, the "Plans") to purchase a group annuity contract and transfer approximately $234 million of its pension plan obligations to the Insurer. The purchase of the group annuity contract will be funded directly by assets of the Plans of approximately $224 million. The purchase resulted in a transfer of future benefit obligations and administration responsibilities for more than 1,000 beneficiaries (the "Transferred Participants"). Upon issuance of the group annuity contract, the pension benefit obligations and annuity administration for the Transferred Participants will be irrevocably transferred to the Insurer. By transferring these obligations to the Insurer, the Company will reduce its pension plan liabilities by approximately $234 million, or 79%. The transactions contemplated by the Agreement are subject to closing conditions that are customary for transactions of this nature, including certain termination clauses. Assuming all of the closing conditions are met, the Company expects the transactions to be completed on or about June 3, 2024. Subject to certain closing conditions, all Transferred Participants will continue to receive their benefits from the Plans until September 1, 2024, at which time the Insurer will assume responsibility for the distribution of payments to the Transferred Participants, as well as responsibility for administrative and customer service support. As a result of the transaction contemplated by the Agreement, the Company estimates that it will recognize a pension settlement gain in the second quarter of 2024 of approximately $11 million, dependent upon the finalization of actuarial assumpt

Forward-Looking Statements

Forward-Looking Statements Certain matters contained in this Current Report on Form 8-K concerning expected future events and financial results constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are based upon management's expectations and beliefs concerning such future events impacting the Company. There can be no assurance that these future events will occur as anticipated or that the effect on the Company's results will be as estimated. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update them. For a description of certain factors that could cause the Company's future results to differ from those expressed in any such forward-looking statements, see the risk factors that are included in the Company's reports filed with the Securities and Exchange Commission, including those described under "Risk Factors" in its annual report on Form 10-K for the year ended December 31, 2023.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit No. Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL Document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Centrus Energy Corp. Date: May 29, 2024 By: /s/ Kevin J. Harrill Kevin J. Harrill Senior Vice President, Chief Financial Officer, and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR