Exelon Corporation · NASDAQ:EXC
Exelon — Q2 2023 Earnings Presentation
34 slides from Exelon's earnings presentation, Aug 2, 2023
Slide 1: Earnings Conference Call Second Quarter 2023
August 2, 2023 Earnings Conference Call Second Quarter 2023
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “w
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Exelon reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). Historical results were revised from amounts previously reported to reflect only Exelon continuing operations. Exelon supplements the reporting of
Slide 4: Key Messages
Key Messages • Delivered earnings right in line with expectations Financial and ‒ GAAP Earnings of $0.34 per share in Q2 2023 versus $0.47 per share in Q2 2022 Operational ‒ Adjusted Operating Earnings* of $0.41 per share in Q2 2023 versus $0.44 per share in Q2 2022 Excellence • Best-on-record relia
Slide 5: Operating Highlights
Operating Highlights YTD 2023 Operations Metric • Reliability remains strong BGE ComEd PECO PHI ―ComEd achieved top decile SAIFI and SAIDI performance (1) Safety OSHA Recordable Rate ―ComEd, PECO, and PHI recorded best-on-record performance in both SAIFI and SAIDI 2.5 Beta SAIFI • ComEd, PECO, and P
Slide 6: Q2 2023 QTD Adjusted Operating Earnings Waterfall
Q2 2023 QTD Adjusted Operating Earnings* Waterfall $0.01 Distribution Rates(1) $0.01 Distribution Rates ($0.03) Interest Expense $0.01 CMC Carrying Costs(2) ($0.01) Interest Expense $0.44 $0.02 ($0.04) $0.02 ($0.03) $0.41 $0.04 $0.04 $0.14 $0.10 $0.01 Gas Distribution Rates(3) $0.01 Distribution and
Slide 7: Exelon Distribution Rate Case Updates
Exelon Distribution Rate Case Updates 2023 2024 Expected/Received Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Order Date DPL DE IT RT EH FO Q2 2024 Electric ComEd(1) IT RT EH IB RB FO Dec 2023 ACE IT RT EH FO Q1 2024 BGE(2) IT RT EH IB RB FO Dec 2023 (3) Pepco DC CF IT RT EH IB RB FO Q2 2024
Slide 8: Featured Capital Investment: PECO's Civic Terminal Yard Substation
Featured Capital Investment PECO’s Civic Terminal Yard Substation Installation of a new 69-13kV substation in Philadelphia at the Civic Terminal Yard is expected to enhance distribution and transmission reliability, increase flood resiliency, and enable PECO to supply additional capacity to the grow
Slide 9: Maintaining a Strong Balance Sheet is a Top Financial Priority
Maintaining a Strong Balance Sheet is a Top Financial Priority • Executed 100% of our planned 2023 debt financing needs in Q1 and Q2, S&P FFO / Debt %* and Moody’s CFO (Pre-WC) / Debt %* mitigating interest rate volatility over the balance of year; strong interest in debt offerings supported by the
Slide 10: 2023 Business Priorities and Commitments
2023 Business Priorities and Commitments ❖ Maintain industry-leading operational excellence ❖ Achieve constructive rate case outcomes for customers and Industry-Leading shareholders Platform ❖ Deploy $7.2B of capex for the benefit of the customer Financial Sustainable Operational ❖ Earn consolidated
Slide 11: Additional Disclosures
Additional Disclosures 11
Slide 12: Delivering Sustainable Value as the Premier T&D Utility
Delivering Sustainable Value as the Premier T&D Utility SUSTAINABLE VALUE INDUSTRY-LEADING PLATFORM ✓ Size and Scale: Largest T&D utility in the country serving 10+ million customers ✓ Strong Growth Outlook: ~$31.3B of T&D capital from 2023-2026 to meet customer needs, resulting in expected rate bas
Slide 13: Key Modeling Drivers and Assumptions
Key Modeling Drivers and Assumptions 2023 2024 2025 2026 YoY YoY YoY YoY OpCo Drivers(1) Drivers(1) Drivers(1) Drivers(1) EPS EPS EPS EPS BGE Gas and electric MYP 1 year 3 Gas and electric MYP 2 year 1 Gas and electric MYP 2 year 2 Gas and electric MYP 2 year 3 rates, MYP 1 reconciliation (2021 rate
Slide 14: Q2 2023 YTD Adjusted Operating Earnings Waterfall
Q2 2023 YTD Adjusted Operating Earnings* Waterfall $0.02 BSC Allocations Adjustment for $0.05 Distribution Rates(1) $0.02 Distribution Rates Discontinued Operations(4) $0.02 CMC Carrying Costs(2) ($0.01) Interest Expense ($0.05) Interest Expense ($0.01) Other $0.02 Other $1.08 $1.11 $0.07 ($0.09) $0
Slide 15: Exelon's Annual Earned Operating ROEs
Exelon’s Annual Earned Operating ROEs* 9.6% 10.0% 9.5% 9.4% 9.2% 9.4% 8.7% 2016 2017 2018 2019 2020 2021 2022 2023 operating ROE* on track to be within our 9-10% targeted range Note: Represents the twelve-month periods December 31, 2016-2022 for Exelon’s utilities (excludes Corp). Earned operating R
Slide 16: Exelon Debt Maturity Profile
Debt Balances (as of 6/30/23)(1,2) Exelon Debt Maturity Profile(1,2) BGE Short-Term Debt - Long-Term Debt(4) $4.6B Total Debt $4.6B As of 6/30/2023 ComEd $0.7B $11.7B $12.4B ($M) PECO - $5.3B $5.3B PHI - $8.6B $8.6B Corp $0.5B(3) $11.2B(4) $11.7B Exelon $1.2B $41.4B $42.6B 2,400 1,883 600 1,650 997
Slide 17: 2023 Financing Plan
2023 Financing Plan(1) OpCo Instrument Issuance ($M) Maturity ($M) Issued ($M)(3) Remaining ($M) FMB $975 - $975 - FMB $350 - $350 - FMB $75 - $75 - FMB $650 ($500) $650 - FMB $525 ($50) $575 - Senior Notes $600 ($300) $700 - Senior Notes $2,500 ($850)(2) $2,500 - $425M of equity expected Equity - -
Slide 18: Exelon Adjusted Operating Earnings Sensitivities
Exelon Adjusted Operating Earnings* Sensitivities Interest Rate Sensitivity to +50bp 2023E 2024E (1) 30-Year US Treasury Yield $0.01 $0.00 (2) Cost of Debt $(0.00) $(0.01) Exelon Consolidated Effective Tax Rate 16.5% 8.9% Exelon Consolidated Cash Tax Rate 9.2% 8.3% (1) Reflects full year impact to a
Slide 19: Rate Case Details
Rate Case Details 19
Slide 20: Exelon Distribution Rate Case Updates
Exelon Distribution Rate Case Updates Revenue Requested ROE / Expected/Received Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Requirement Equity Ratio Order Date DPL DE (1,2) 10.50% / IT RT EH FO $41.8M Q2 2024 Electric 50.50% 2024: 10.50% / 50.58% (1,4) $1.54B 2025: 10.55% / 50.81% ComEd(3) I
Slide 21: Delmarva DE (Electric) Distribution Rate Case Filing
Delmarva DE (Electric) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 22-0897 • December 15, 2022, Delmarva Power filed an application with the Delaware Public Service Commission (DPSC) Test Period July 1 – June 30 seeking an increase in electric distribution rates Test Year
Slide 22: ComEd Distribution Rate Case Filing
ComEd Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 23-0055 • January 17, 2023, ComEd filed a four-year multi-year plan (MYP) request with the Illinois Commerce Commission (ICC) seeking an increase in electric Test Period January 1 – December 31 distribution
Slide 23: ACE Distribution Rate Case Filing
ACE Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. ER23020091 • February 15, 2023, ACE filed a distribution base rate case with the New Jersey Board of Public Utilities (NJBPU) to increase distribution base rates Test Period July 1 – June 30 • This rate increase will support
Slide 24: BGE Distribution Rate Case Filing
BGE Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 9692 • February 17, 2023, BGE filed a three-year multi-year plan (MYP) request with the Maryland Public Service Test Period January 1 – December 31 Commission (MDPSC) seeking an increase in electric and Test
Slide 25: Pepco DC Distribution Rate Case Filing
Pepco DC Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 1176 • April 13, 2023, Pepco submitted its “Climate Ready Pathway DC” three-year multi-year plan (MYP) application to the Test Period January 1 – December 31 Public Service Commission of the District of
Slide 26: Pepco MD Distribution Rate Case Filing
Pepco MD Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 9702 • May 16, 2023, Pepco submitted its “Climate Ready Pathway MD” three-year multi-year plan (MYP) application with proposed Test Period April 1 – March 31 9-month extension to the Maryland Public Serv
Slide 27: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 27
Slide 28: Projected GAAP to Operating Adjustments
Projected GAAP to Operating Adjustments • Exelon’s projected 2023 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: – Certain costs related to a change in environmental liabilities; – Costs related to a change in the SEC matter loss contingency; – Costs related t
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) (2) (3) S&P FFO/Debt = FFO (a) Moody’s CFO (Pre-WC)/Debt = CFO (Pre-WC) (c) Adjusted Debt (b) Adjusted Debt (d) S&P FFO Calculation(2) Moody’s CFO (Pre-WC) Calculation(3) GAAP Operating Income Cash Flow From Operations + Depreciation & Amortization +/- Working Cap
Slide 30: Q2 QTD GAAP EPS Reconciliation
Q2 QTD GAAP EPS Reconciliation Three Months Ended June 30, 2023 ComEd PECO BGE PHI Other Exelon 2023 GAAP Earnings (Loss) from Continuing Operations Per Share $0.25 $0.10 $0.04 $0.10 ($0.15) $0.34 Change in Environmental Liabilities - - - 0.01 - 0.01 SEC Matter Loss Contingency - - - - 0.05 0.05 Sep
Slide 31: Q2 YTD GAAP EPS Reconciliation
Q2 YTD GAAP EPS Reconciliation Six Months Ended June 30, 2023 ComEd PECO BGE PHI Other Exelon 2023 GAAP Earnings (Loss) from Continuing Operations Per Share $0.49 $0.26 $0.24 $0.26 ($0.24) $1.02 Change in Environmental Liabilities - - - 0.03 - 0.03 SEC Matter Loss Contingency - - - - 0.05 0.05 Chang
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($M)(1) 2016 2017 2018 2019 2020 2021 2022 Net Income (GAAP) $1,103 $1,704 $1,836 $2,065 $1,737 $2,225 $2,501 Operating Exclusions $461 ($24) $32 $30 $246 $82 $96 Adjusted Operating Earnings $1,564 $1,680 $1,869 $2,095 $1,984 $
Slide 33: Thank you
Thank you Please direct all questions to the Exelon Investor Relations team: InvestorRelations@ExelonCorp.com 312-394-2345
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