Exelon Corporation · NASDAQ:EXC
Exelon — Q4 2019 Earnings Presentation
73 slides from Exelon's earnings presentation, Feb 11, 2020
Slide 1: Earnings Conference Call Fourth Quarter 2019
Earnings Conference Call Fourth Quarter 2019 February 11, 2020
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. The factors that could cause actual results to differ mat
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). Exelon supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including:
Slide 4: Non-GAAP Financial Measures Continued
Non-GAAP Financial Measures Continued This information is intended to enhance an investor’s overall understanding of period over period financial results and provide an indication of Exelon’s baseline operating performance by excluding items that are considered by management to be not directly relat
Slide 5: 2019 Accomplishments
2019 Accomplishments Maintain industry leading operational excellence • Best on record Customer Satisfaction at all utilities • ComEd had its best performance ever in both CAIDI and SAIFI; PHI continued to improve its reliability scores in 2019, setting best on record results in SAIFI • 2019 capacit
Slide 6: Utility Investments Lead to Customer Benefits
Utility Investments Lead to Customer Benefits Over the last four years Exelon Utilities have invested $22 billion in resilience, reliability and infrastructure improvements and plan to invest $26 billion over the next four years. These investments have provided benefits to all of our 10 million util
Slide 7: Customer Benefits are Enabled Through Regulatory Models
7 Customer Benefits are Enabled Through Regulatory Models •Distribution System Investment Charge tracker provides a mechanism to begin recovering gas and electric infrastructure investments for reliability every six months Delaware •On May 30, 2019, Pepco DC filed first multi-year rate plan District
Slide 8: Stakeholder Reaction to FERC PJM Capacity Market Order
8 Stakeholder Reaction to FERC PJM Capacity Market Order Illinois Maryland The Commission’s expanded MOPR will likely prevent many new [T]he December 2019 Order forcefully treads on states’ rights as they capacity resources with beneficial environmental attributes from pertain to state jurisdiction
Slide 9: Utility Operating Highlights
Utility Operating Highlights At CEG Merger (2012) 2015 2019 Operations Metric BGE ComEd PECO PHI BGE ComEd PECO PHI OSHA Recordable Rate Electric 2.5 Beta SAIFI (Outage Operations Frequency) 2.5 Beta CAIDI (Outage Duration) Customer Satisfaction N/A Customer Service Level % of Calls Operations Answe
Slide 10: Best in Class at Generation and Constellation
Best in Class at Generation and Constellation Generation Operational Metrics Constellation Metrics • Continued best in class performance across our Nuclear fleet:(1) 79% retail power 36% power new − Capacity factor of 95.7%(2,3) was the highest customer renewal customer win rate ever for Exelon (own
Slide 11: 2019 Financial Results
2019 Financial Results Q4 2019 EPS Results Full Year 2019 EPS Results • Adjusted (non-GAAP) operating earnings $3.22 drivers versus full year guidance of $0.83 $3.01 $0.79 $3.00 - $3.30: $1.16 $1.31 Exelon Utilities $0.41 $0.44 – Favorable weather $0.37 $0.37 – Lower costs from major storms $0.55 –
Slide 12: Earned ROE
Exelon Utilities Trailing Twelve Month Earned ROEs* Q4 2019: Trailing Twelve Month Earned ROEs* 12.0% Legacy Exelon Utilities Consolidated Exelon Utilities PHI Utilities 10.0% $30.0/10.3% 8.0% $10.8/9.2% $40.8/10.0% Earned ROE* (%) 6.0% 4.0% 2.0% 0.0% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2019E
Slide 13: Our Capital Plan Drives Leading Rate Base Growth
Our Capital Plan Drives Leading Rate Base Growth Capital Expenditures ($M) Rate Base ($B)(1) 6,475 6,450 6,550 6,475 54.2 1,125 +7.3% 1,300 1,200 1,150 50.7 47.3 9.5 44.2 8.9 1,225 1,200 40.8 8.3 1,125 1,200 7.7 10.9 6.9 10.0 9.2 8.4 1,800 1,675 7.8 1,675 1,700 13.4 12.7 11.9 11.5 10.8 2,350 2,325 2
Slide 14: Utility Adjusted Operating Earnings
Exelon Utilities Project EPS* Growth of 6-8% to 2023 Exelon Utilities Operating Earnings* $2.60 $2.60 $2.50 $2.50 $2.40 $2.30 Utility Adjusted Operating Earnings* $2.25 $2.30 $2.20 $2.20 $2.10 $2.10 $2.05 $2.00 $1.91 $1.95 $1.90 $1.80 $1.80 $1.75 $1.70 $0.00 2019A 2020E 2021E 2022E 2023E Rate base g
Slide 15: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin* Update Change from December 31, 2019 September 30, 2019 (1) Gross Margin Category ($M) 2020 2021 2020 2021 Open Gross Margin*(2) $3,600 $3,450 $(400) $(100) (including South, West, New England, Canada hedged gross margin) Capacity and ZEC Revenues(2) $1,900 $1,850 -
Slide 16: Driving Costs and Capital Out of the Generation Business
Driving Costs and Capital Out of the Generation Business Adjusted O&M* ($M) Capital Expenditures ($M)(1) 4,200 4,150 1,800 125 1,675 75 825 825 850 775 2020E 2021E 2020E 2021E Committed Growth Nuclear Fuel Base Continued focus on all O&M and capital costs at ExGen Note: All amounts rounded to the ne
Slide 17: Maintaining Strong Investment Grade Credit Ratings is a Top Financial Priority
Maintaining Strong Investment Grade Credit Ratings is a Top Financial Priority Exelon S&P FFO/Debt %*(1,2) ExGen Debt/EBITDA Ratio*(4) 25% 19%-21% 4.0 20% 20% 3.0x S&P Threshold 3.0 15% 2.4x 2.0 1.9x 10% Book Excluding Non-Recourse 5% 1.0 0% 0.0 2020 Target 2020 Target Credit Ratings by Operating Co
Slide 18: 2020 Adjusted Operating Earnings Guidance
2020 Adjusted Operating Earnings* Guidance $3.22(1) $3.00 - $3.30(2) Key Year-Over-Year Drivers • ExGen: Lower realized energy prices and capacity revenues and absence $1.31 of R&D tax benefit and NDT realized $1.20 - $1.30 gains • BGE: Higher depreciation, partially offset by higher distribution an
Slide 19: 2020 Business Priorities and Commitments
2020 Business Priorities and Commitments Maintain industry leading operational excellence Meet or exceed our financial commitments Effectively deploy ~$6.5B of utility capex Ensure timely recovery on investments to enable customer benefits Support Enactment of Clean Energy Policies Grow dividend at
Slide 20: The Exelon Value Proposition
The Exelon Value Proposition ▪ Regulated Utility Growth with utility EPS rising 6-8% annually from 2019- 2023 and rate base growth of 7.3%, representing an expanding majority of earnings ▪ ExGen’s free cash generation will support utility growth, ExGen debt reduction, and the external dividend ▪ Opt
Slide 21: Additional Disclosures
Additional Disclosures 21 Q4 2019 Earnings Release Slides
Slide 22: Exelon Utilities Project EPS Growth of 6-8% to 2023
Exelon Utilities Project EPS Growth of 6-8% to 2023 Q4 2018 Operating Earnings*(1) Q4 2019 Operating Earnings* $2.60 $2.60 $2.60 $2.50 $2.45 $2.50 $2.50 $2.40 $2.40 $2.30 $2.25 $2.20 $2.30 $2.15 $2.25 $2.30 $2.10 $2.15 $2.05 $2.20 $2.20 $2.00 $2.10 $2.10 $1.95 $2.05 $1.90 $1.80 $1.85 $2.00 $1.80 $1.
Slide 23: Utility Capex and Rate Base vs. Previous Disclosure
Utility Capex and Rate Base vs. Previous Disclosure Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 6,475 6,450 6,550 6,475 5,925 5,750 5,875 850 800 800 750 5,325 800 700 5,475 775 700 775 1,325 1,550 1,300 1,300 1,275 1,100 1,075 950 1,000 3,850 3,875 4,125 4,300 4,075 4,450 4,
Slide 24: Mechanisms Cover Bulk of Rate Base Growth
Mechanisms Cover Bulk of Rate Base Growth Rate Base Growth Breakout 2020–2023 ($B) 3.5 13.4 Base Rate Case 1.0 Tracker/Formula Rate 2.5 4.6 3.4 1.2 2.2 3.1 1.0 2.1 8.7 3.4 1.3 2.1 2020E 2021E 2022E 2023E Total Of the ~$13.4B of rate base growth Exelon Utilities forecasts over the next 4 years, ~65%
Slide 25: ComEd Capital Expenditure and Rate Base Forecast
ComEd Capital Expenditure and Rate Base Forecast Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 2,425 2,350 2,400 2,450 2,325 2,150 2,175 425 475 450 500 1,875 325 1,900 500 450 300 325 1,875 2,000 1,900 1,825 1,950 1,950 1,575 1,725 1,575 2019E 2020E 2021E 2022E 2019A 2020E 202
Slide 26: PECO Capital Expenditure and Rate Base Forecast
PECO Capital Expenditure and Rate Base Forecast Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 1,200 1,225 1,200 1,125 975 1,000 975 975 1,000 300 275 250 275 75 250 300 250 250 125 300 125 200 125 50 100 125 50 825 875 600 575 600 650 650 700 700 2019E 2020E 2021E 2022E 2019A 2
Slide 27: BGE Capital Expenditure and Rate Base Forecast
BGE Capital Expenditure and Rate Base Forecast Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 1,300 1,250 1,200 1,175 1,125 1,150 1,100 1,075 450 950 475 450 400 425 400 450 425 375 275 275 200 300 200 250 225 225 175 475 525 525 575 500 500 475 400 400 2019E 2020E 2021E 2022E 2
Slide 28: PHI Consolidated Capital Expenditure and Rate Base Forecast
PHI Consolidated Capital Expenditure and Rate Base Forecast Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 1,800 1,675 1,700 1,675 1,525 1,550 1,550 75 1,375 1,425 100 75 75 75 75 50 550 50 75 450 550 450 425 475 425 300 375 1,025 1,025 1,000 1,075 1,125 1,050 1,175 1,150 975 20
Slide 29: ACE Capital Expenditure and Rate Base Forecast
ACE Capital Expenditure and Rate Base Forecast Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 350 375 350 350 300 325 325 300 175 150 150 150 250 125 150 150 125 100 200 200 225 225 200 175 175 150 175 2019E 2020E 2021E 2022E 2019A 2020E 2021E 2022E 2023E Q4 2018 Rate Base ($B)
Slide 30: Delmarva Capital Expenditure and Rate Base Forecast
Delmarva Capital Expenditure and Rate Base Forecast Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 450 375 400 100 375 350 75 325 350 375 75 325 75 50 50 75 75 75 125 100 100 125 100 100 75 100 100 200 200 200 225 200 225 175 175 175 2019E 2020E 2021E 2022E 2019A 2020E 2021E 202
Slide 31: Pepco Capital Expenditure and Rate Base Forecast
Pepco Capital Expenditure and Rate Base Forecast Q4 2018 Capital Expenditures ($M) Q4 2019 Capital Expenditures ($M) 1,100 950 975 975 900 875 325 800 225 225 725 700 325 175 250 175 75 100 750 675 775 725 650 625 625 600 650 2019E 2020E 2021E 2022E 2019A 2020E 2021E 2022E 2023E Q4 2018 Rate Base ($
Slide 32: ExGen O&M and Capex vs. Previous Disclosure
ExGen O&M and Capex vs. Previous Disclosure Adjusted O&M* - Q4 2018 ($M) Adjusted O&M* - Q4 2019 ($M) 4,325 4,250 4,200 4,200 4,150 2019E 2020E 2021E 2020E 2021E CapEx – Q4 2018 ($M)(1) CapEx – Q4 2019 ($M)(1) 1,900 1,925 1,750 1,800 150 200 1,675 150 125 75 900 900 825 775 825 875 825 825 850 775 2
Slide 33: Adjusted O&M Forecast
Adjusted O&M* Forecast ($ in millions) 7,850 $7,925 $750 $775 $775 $825 Key Year-over-Year Drivers $1,000 • BGE: Increase driven by inflation $1,000 • PECO: Increase driven by return to normal storm and inflation $1,275 $1,300 • PHI: Driven by inflation, substation costs and cyber security costs, of
Slide 34: 2020 Projected Sources and Uses of Cash
2020 Projected Sources and Uses of Cash Total Cash ($M)(1) BGE ComEd PECO PHI ExGen Corp(9) Exelon (1) All amounts rounded to the nearest Utilities Balance $25M. Figures may not add due to Beginning Cash Balance* (2) 1,500 rounding. Adjusted Cash Flow from Operations (2) 825 1,500 825 1,150 4,275 3,
Slide 35: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile(1) As of 12/31/19 (2) ($M) LT Debt Balances (as of 12/31/19) BGE 3.3B 500 ComEd 8.7B PECO 3.6B PHI 6.6B ExGen recourse (3) 6.0B ExGen non-recourse 2.0B HoldCo 6.3B Consolidated 36.4B 910 2,512 1,023 1,225 1,200 850 500 600 2,150 1,189 175 1,550 1,430 1,400 1,275 1,150 99
Slide 36: EPS Sensitivities
EPS Sensitivities* 2020E 2021E Henry Hub Natural Gas + $1/MMBtu $0.09 $0.31 - $1/MMBtu ($0.08) ($0.29) ExGen EPS Impact* (1) NiHub ATC Energy Price + $5/MWh $0.01 $0.13 - $5/MWh ($0.01) ($0.13) PJM-W ATC Energy Price + $5/MWh ($0.00) $0.05 - $5/MWh $0.00 ($0.06) Sensitivity to +50 BP ComEd Distribut
Slide 37: Historical Nuclear Capital Investment
Historical Nuclear Capital Investment Nuclear Non-Fuel Capital Expenditures(1) ($M) Nuclear Baseline CAGR Cancelled Growth Fukushima Growth(4) Nuclear Baseline (excluding Fuel) (2,3) 975 -2.3% 50 925 825 850 150 775 250 25 175 650 50 25 675 175 175 25 100 25 600 575 50 75 525 650 700 675 575 575 600
Slide 38: Exelon Recognition and Partnerships
Exelon Recognition and Partnerships SUSTAINABILITY Sustainability DIVERSITY & INCLUSION Diversity and Inclusion Dow Jones Sustainability North America Index HeForShe Exelon named to Dow Jones Sustainability North America Index for the Exelon is a Thematic Champion in the United Nations HeForShe 14th
Slide 39: Exelon Utilities
Exelon Utilities 39 Q4 2019 Earnings Release Slides
Slide 40: Exelon Utilities' Distribution Rate Case Updates
Exelon Utilities’ Distribution Rate Case Updates Rate Case Schedule and Key Terms Requested Revenue Expected Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep ROE / Requirement Order Equity Ratio 8.91% / (1,2) ComEd FO ($16.9M) 47.97% Dec 4, 2019 Elec: 9.70%; (1,4) BGE RT SA FO $79.0M Gas: 9.75% / (3)
Slide 41: ComEd Distribution Rate Case Filing
ComEd Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 19-0387 • April 8, 2019, ComEd filed its annual distribution formula rate update with the Illinois Test Year January 1, 2018 – December 31, 2018 Commerce Commission seeking a decrease to Test Period 2018 Actual Costs + 201
Slide 42: BGE Distribution Rate Case Filing
BGE Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. Case No. 9610 • Case originally filed on May 24, 2019 seeking an increase in electric and gas distribution revenues Test Year August 1, 2018 – July 31, 2019 • October 25, 2019, BGE filed a settlement Test Period agreement wi
Slide 43: Pepco DC (Electric) Distribution Rate Case Filing
Pepco DC (Electric) Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 1156 • May 30, 2019, Pepco DC filed a three year multi-year plan (MYP) request with the Public Test Year January 1 – December 31 Service Commission of the District of Columbia Test Period 2020
Slide 44: Delmarva MD (Electric) Distribution Rate Case Filing
Delmarva MD (Electric) Distribution Rate Case Filing Rate Case Filing Details Notes Case No. 9630 • December 5, 2019, Delmarva Power filed an application with the Maryland Public Service Test Year September 1, 2018 – August 31, 2019 Commission (MDPSC) seeking an increase in Test Period 12 months act
Slide 45: Exelon Generation Disclosures
Exelon Generation Disclosures December 31, 2019 45 Q4 2019 Earnings Release Slides
Slide 46: Portfolio Management Strategy
Portfolio Management Strategy Align Hedging & Financials Portfolio Management Over Time Exercising Market Views Establishing Minimum Hedge Targets % Hedged High End of Profit % Hedged Low End of Profit Purely ratable Capital Credit Rating Structure Actual hedge % Capital & Market views on timing, pr
Slide 47: Components of Gross Margin Categories
Components of Gross Margin* Categories Gross margin* from Gross margin* linked to power production and sales other business activities Open Gross Capacity and ZEC MtM of “Power” New “Non Power” “Non Power” Margin* Revenues Hedges(2) Business Executed New Business •Generation Gross •Expected capacity
Slide 48: ExGen Disclosures
ExGen Disclosures December 31, 2019 (1) Gross Margin Category ($M) 2020 2021 (2) Open Gross Margin (including South, West, New England & Canada hedged GM) $3,600 $3,450 (2) Capacity and ZEC Revenues $1,900 $1,850 (2,3) Mark-to-Market of Hedges $850 $350 Power New Business / To Go $450 $750 Non-Power
Slide 49: ExGen Disclosures
ExGen Disclosures December 31, 2019 Generation and Hedges 2020 2021 (1) Exp. Gen (GWh) 186,100 181,500 Midwest 96,600 95,500 Mid-Atlantic(2) 47,500 48,000 ERCOT 26,300 21,400 New York(2) 15,700 16,600 % of Expected Generation Hedged(3) 91%-94% 61%-64% Midwest 92%-95% 62%-65% Mid-Atlantic(2) 99%-102%
Slide 50: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin* Sensitivities Gross Margin* Sensitivities (with existing hedges)(1) 2020 2021 Henry Hub Natural Gas ($/MMBtu) + $1/MMBtu $115 $405 - $1/MMBtu $(110) $(380) NiHub ATC Energy Price + $5/MWh $15 $165 - $5/MWh $(15) $(165) PJM-W ATC Energy Price + $5/MWh $(5) $60 - $5/MWh $5 $
Slide 51: ExGen Hedged Gross Margin Upside/Risk
ExGen Hedged Gross Margin* Upside/Risk 9,000 8,500 8,000 Approximate Gross Margin* ($ million)(1) 7,500 $7,450 $7,300 7,000 $7,100 6,500 $6,550 6,000 5,500 5,000 4,500 4,000 2020 2021 (1) Represents an approximate range of expected gross margin*, taking into account hedges in place, between the 5th
Slide 52: Illustrative Example of Modeling Exelon Generation 2021 Total Gross Margin
Illustrative Example of Modeling Exelon Generation 2021 Total Gross Margin* South, Row Item Midwest Mid-Atlantic ERCOT New York West, NE & Canada (A) Start with fleet-wide open gross margin $3.45 billion (B) Capacity and ZEC $1.85 billion (C) Expected Generation (TWh) 95.5 48.0 21.4 16.6 (D) Hedge %
Slide 53: Additional ExGen Modeling Data
Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2020 2021 Revenue Net of Purchased Power and Fuel Expense*(2,3) $7,675 $7,325 Other Revenues(4) $(150) $(150) Direct cost of sales incurred to generate revenues for certain $(225) $(275) Constellation and Power businesses To
Slide 54: 2019A Earnings Waterfalls
2019A Earnings Waterfalls 54 Q4 2019 Earnings Release Slides
Slide 55: Q4 2019 QTD Adjusted Operating Earnings Waterfall
Q4 2019 QTD Adjusted Operating Earnings* Waterfall $0.03 R&D Tax Benefit(3) $0.01 Distribution and ($0.01) Other Transmission Rate Increases ($0.01) Other $0.83 $0.02 $0.02 Distribution Rate Increase ($0.01) Weather & Load ($0.01) Increased Storm Costs $0.21 ($0.01) Other $0.58 $0.00 $0.00 ($0.01) $
Slide 56: Q4 2019 YTD Adjusted Operating Earnings Waterfall
Q4 2019 YTD Adjusted Operating Earnings* Waterfall ($0.03) Income Taxes $0.09 Distribution Rate Increase $0.11 Distribution and ($0.01) Interest Expense ($0.01) Transmission Revenues Transmission Rate Increases $0.03 R&D Tax Benefit(5) $0.02 Decreased Storm Costs(1) ($0.01) Unfavorable Weather ($0.0
Slide 57: 2020E Earnings Waterfalls
2020E Earnings Waterfalls 57 Q4 2019 Earnings Release Slides
Slide 58: ComEd Adjusted Operating EPS Bridge 2019 to 2020
ComEd Adjusted Operating EPS* Bridge 2019 to 2020 ($0.02) $0.12 ($0.06) ($0.01) Inflation $0.71 ($0.01) Other ($0.05) $0.65 - $0.75 ($0.03) Energy Efficiency Amortization $0.09 Distribution & Transmission ($0.03) D&A $0.04 Energy Efficiency ($0.03) Treasury Yield Impact ($0.02) Interest Expense $0.0
Slide 59: PECO Adjusted Operating EPS Bridge 2019 to 2020
PECO Adjusted Operating EPS* Bridge 2019 to 2020 $0.55 $0.01 ($0.03) ($0.02) $0.45 - $0.55 ($0.01) $0.02 Transmission and ($0.01) Storms Distribution Revenues/Other ($0.01) Inflation ($0.01) Normalized Weather ($0.01) Other 2019A(3) RNF(1) O&M(2) D&A Other 2020E(3,4) Note: Drivers add up to mid-poin
Slide 60: BGE Adjusted Operating EPS Bridge 2019 to 2020
BGE Adjusted Operating EPS* Bridge 2019 to 2020 ($0.02) $0.07 ($0.03) ($0.01) Inflation $0.37 ($0.01) Other ($0.04) $0.30 - $0.40 $0.05 Distribution $0.02 Transmission ($0.02) Taxes ($0.01) Interest Expense ($0.01) Other 2019A(3) RNF(1) O&M(2) D&A Other 2020E(3,4) Note: Drivers add up to mid-point o
Slide 61: PHI Adjusted Operating EPS Bridge 2019 to 2020
PHI Adjusted Operating EPS* Bridge 2019 to 2020 ($0.01) $0.50 - $0.60 $0.07 ($0.04) $0.01 $0.52 $0.04 Distribution $0.03 Transmission 2019A(3) RNF(1) O&M(2) D&A Other 2020E(3,4) Note: Drivers add up to mid-point of 2020 adjusted operating EPS* range (1) Revenue net fuel (RNF)* is defined as operatin
Slide 62: ExGen Adjusted Operating EPS Bridge 2019 to 2020
ExGen Adjusted Operating EPS* Bridge 2019 to 2020 ($0.07) Nuclear Outages ($0.03) NEIL distribution ($0.05) NDT Realized Gains $0.08 Nuclear Retirements $0.03 Other $1.31 ($0.04) $1.20 - $1.30 ($0.02) $0.02 ($0.02) ($0.14) Capacity Revenues ($0.10) Nuclear Retirements $0.03 Nuclear Retirements $0.20
Slide 63: Appendix Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 63 Q4 2019 Earnings Release Slides
Slide 64: Q4 QTD GAAP EPS Reconciliation
Q4 QTD GAAP EPS Reconciliation Three Months Ended December 30, 2019 ComEd PECO BGE PHI ExGen Other Exelon 2019 GAAP Earnings (Loss) Per Share $0.15 $0.12 $0.10 $0.07 $0.41 ($0.05) $0.79 Mark-to-market impact of economic hedging activities - - - - 0.10 0.01 0.10 Unrealized gains related to NDT funds
Slide 65: Q4 QTD GAAP EPS Reconciliation (continued)
Q4 QTD GAAP EPS Reconciliation (continued) Three Months Ended December 30, 2018 ComEd PECO BGE PHI ExGen Other Exelon 2018 GAAP Earnings (Loss) Per Share $0.15 $0.13 $0.07 $0.06 ($0.18) ($0.07) $0.16 Mark-to-market impact of economic hedging activities - - - - 0.18 - 0.19 Unrealized losses related t
Slide 66: Q4 YTD GAAP EPS Reconciliation
Q4 YTD GAAP EPS Reconciliation Twelve Months Ended December 30, 2019 ComEd PECO BGE PHI ExGen Other Exelon 2019 GAAP Earnings (Loss) Per Share $0.71 $0.54 $0.37 $0.49 $1.16 ($0.25) $3.01 Mark-to-market impact of economic hedging activities - - - - 0.18 0.02 0.20 Unrealized gains related to NDT funds
Slide 67: Q4 YTD GAAP EPS Reconciliation (continued)
Q4 YTD GAAP EPS Reconciliation (continued) Twelve Months Ended December 30, 2018 ComEd PECO BGE PHI ExGen Other Exelon 2018 GAAP Earnings (Loss) Per Share $0.69 $0.47 $0.32 $0.41 $0.38 ($0.20) $2.07 Mark-to-market impact of economic hedging activities - - - - 0.25 0.01 0.26 Unrealized losses related
Slide 68: Projected GAAP to Operating Adjustments
Projected GAAP to Operating Adjustments • Exelon’s projected 2020 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-market adjustments from economic hedging activities; − Unrealized gains and losses from NDT funds to the extent not offset by contractual
Slide 69: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) (2) Exelon FFO/Debt = FFO (a) Adjusted Debt (b) Exelon FFO Calculation(2) GAAP Operating Income + Depreciation & Amortization = EBITDA - Interest Expense +/- Cash Taxes + Nuclear Fuel Amortization +/- Mark-to-Market Adjustments (Economic Hedges) +/- Other S&P Adju
Slide 70: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) ExGen Debt/EBITDA = Net Debt (a) ExGen Debt/EBITDA = Net Debt (c) Operating EBITDA (b) Excluding Non-Recourse Operating EBITDA (d) ExGen Net Debt Calculation ExGen Net Debt Calculation Excluding Non-Recourse Long-Term Debt (including current maturities) Long-Term
Slide 71: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Legacy EXC Q4 2019 Operating TTM ROE Reconciliation ($M) PHI Utilities Consolidated EU Utilities Net Income (GAAP) $488 $1,577 $2,065 Operating Exclusions $24 $6 $30 Adjusted Operating Earnings $512 $1,583 $2,095 Average Equity $5,557 $15,355 $20,913 Operating TTM RO
Slide 72: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2020 Adjusted Cash from Ops Calculation ($M)(1) BGE ComEd PECO PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $825 $1,500 $825 $1,150 $5,225 ($150) $9,375 Other cash from investing activities - - - - ($275) - ($275) Counterparty collate
Slide 73: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2019 2020 2021 GAAP O&M $4,725 $4,800 $4,750 Decommissioning(2) $200 $75 $75 Direct cost of sales incurred to generate revenues for certain Constellation and ($275) ($225) ($275) Power businesses(3) O&M for managed plants tha