Exelon Corporation · NASDAQ:EXC
Exelon — Q3 2023 Earnings Presentation
34 slides from Exelon's earnings presentation, Nov 2, 2023
Slide 1: Earnings Conference Call Third Quarter 2023
November 2, 2023 Earnings Conference Call Third 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 federal securities laws that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “pr
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 Q3 earnings right in line with expectations Financial and ‒ GAAP Earnings of $0.70 per share in Q3 2023 versus $0.68 per share in Q3 2022 Operational ‒ Adjusted Operating Earnings* of $0.67 per share in Q3 2023 versus $0.75 per share in Q3 2022 Excellence • Narrowing 2023 Ad
Slide 5: Operating Highlights
Operating Highlights Q3 2023 Operations Metric • Reliability remains strong with all utilities achieving top BGE ComEd PECO PHI quartile performance Safety OSHA Recordable Rate(1) ―ComEd achieved top decile SAIFI and SAIDI performance and was recognized with the 2023 ReliabilityOne National 2.5 Beta
Slide 6: Q3 2023 QTD Adjusted Operating Earnings Waterfall
Q3 2023 QTD Adjusted Operating Earnings* Waterfall $0.04 Distribution Rates(1) $0.01 Distribution Rates $0.01 CMC Carrying Costs(2) ($0.01) Depreciation and Amortization ($0.01) Other ($0.01) Storm Costs ($0.01) Interest Expense ($0.02) Interest Expense $0.75 $0.04 ($0.03) ($0.02) $0.07 ($0.06) $0.6
Slide 7: Exelon Distribution Rate Case Updates
Exelon Distribution Rate Case Updates 2023 2024 Expected/Received Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Order Date DPL DE RT EH FO Q2 2024 IT Electric ComEd(1) EH IB RB FO Dec 2023 (2) ACE FO Q4 2023 BGE(3) RT EH IB RB FO Dec 2023 (4) Pepco DC IT RT EH IB RB FO Q2/Q3 2024 (5) Pepco MD
Slide 8: Featured Capital Investment: DPL's Transmission Upgrade
Featured Capital Investment DPL’s Transmission Upgrade – East New Market to Cambridge Enhancing Reliability and Resiliency: rebuild of the 69 kV circuit between East New Market and Cambridge Substation with state-of-the-art steel poles to bolster distribution and transmission capabilities and reliab
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: Q3 2023 YTD Adjusted Operating Earnings Waterfall
Q3 2023 YTD Adjusted Operating Earnings* Waterfall $0.09 Distribution Rates(1) $0.03 Distribution Rates $0.02 BSC Allocations Adjustment for $0.03 CMC Carrying Costs(2) ($0.02) Interest Expense Discontinued Operations(4) ($0.01) Other ($0.01) Depreciation and Amortization ($0.07) Interest Expense ($
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 9/30/23)(1,2) Exelon Debt Maturity Profile(1,2) BGE Short-Term Debt $0.1B Long-Term Debt(4) $4.6B Total Debt $4.7B As of 9/30/2023 ComEd $0.7B $11.7B $12.4B ($M) PECO - $5.3B $5.3B PHI $0.2B $8.6B $8.8B Corp $0.8B(3) $11.2B(4) $12.0B Exelon $1.7B $41.5B $43.2B 2,400 1,983 600 1,
Slide 17: 2023 Financing Plan
2023 Financing Plan(1) OpCo Instrument Issuance ($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 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Requirement Equity Ratio Order Date DPL DE (1,2) 10.50% / IT RT EH FO $39.3M Q2 2024 Electric 50.50% 2024: 10.50% / 50.58% (1,4) $1.49B 2025: 10.55% / 50.81% ComEd(3) E
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: – Mark-to-market adjustments from economic hedging activities; – Certain costs related to a change in environmental liabilities; – Costs related to
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: Q3 QTD GAAP EPS Reconciliation
Q3 QTD GAAP EPS Reconciliation Three Months Ended September 30, 2023 ComEd PECO BGE PHI Other Exelon 2023 GAAP Earnings (Loss) from Continuing Operations Per Share $0.33 $0.15 $0.05 $0.23 ($0.06) $0.70 Mark-to-Market Impact of Economic Hedging Activities - - - - 0.01 0.01 Separation Costs 0.01 - - -
Slide 31: Q3 YTD GAAP EPS Reconciliation
Q3 YTD GAAP EPS Reconciliation Nine Months Ended September 30, 2023 ComEd PECO BGE PHI Other Exelon 2023 GAAP Earnings (Loss) from Continuing Operations Per Share $0.83 $0.41 $0.29 $0.49 ($0.30) $1.72 Mark-to-Market Impact of Economic Hedging Activities - - - - 0.01 0.01 Change in Environmental Liab
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($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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