Exelon Corporation · NASDAQ:EXC
Exelon — Q3 2021 Earnings Presentation
40 slides from Exelon's earnings presentation, Nov 3, 2021
Slide 1: Earnings Conference Call Third Quarter 2021
Earnings Conference Call Third Quarter 2021 November 3, 2021
Slide 2: Cautionary Statements Regarding Forward-Looking Information
2 Q3 2021 Earnings Release Slides 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 including, among others,
Slide 3: Non-GAAP Financial Measures
3 Q3 2021 Earnings Release Slides 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-GA
Slide 4: Non-GAAP Financial Measures Continued
4 Q3 2021 Earnings Release Slides 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 m
Slide 5: Third Quarter Results
5 Q3 2021 Earnings Release Slides Third Quarter Results • Passage of clean energy legislation in Illinois • Announced continued operation of Byron and Dresden nuclear stations • Completed the acquisition of EDF’s ownership stake of CENG nuclear plants • FERC approved separation of utility and genera
Slide 6: Operating Highlights
6 Q3 2021 Earnings Release Slides Operating Highlights (1) 2.5 Beta SAIFI is YE projection (2) Excludes Salem. Nuclear operations prior to Q3 2021 reflect Exelon’s 50.01% ownership share of the CENG Joint Venture. Reflects 100% ownership of CENG beginning August 7, 2021. Exelon Utilities Operational
Slide 7: Progress on Separation
7 Q3 2021 Earnings Release Slides Progress on Separation Commission Application Filing Key Regulatory Milestones Approved? New York Public Service Commission (NY PSC) (Case No. 21-E-0130) February 25, 2021 • Comments/intervention were due June 8, 2021 • Notice of Impending Settlement Negotiations is
Slide 8: Third Quarter Adjusted Operating Earnings and Full Year Guidance
8 Q3 2021 Earnings Release Slides $0.23 $0.28 $0.12 $0.44 ComEd $0.04 ($0.01) ExGen PHI Q3 2021 BGE PECO HoldCo $1.09 Third Quarter Adjusted Operating Earnings* Results and Full Year Adjusted Operating Earnings* Guidance Note: Amounts may not sum due to rounding (1) 2021 earnings guidance based on e
Slide 9: Q3 2021 QTD Adjusted Operating Earnings Waterfall
9 Q3 2021 Earnings Release Slides Q3 2021 QTD Adjusted Operating Earnings* Waterfall $1.04 $1.09 $0.05 ComEd PECO2020 ($0.02)$0.03 ($0.02) BGE PHI ($0.03) ExGen(5) $0.04 Corp 2021 ($0.09) Net Unrealized and Realized Losses on Equity Investments ($0.03) Capacity Revenues ($0.02) Nuclear Outages(3) $0
Slide 10: Exelon Utilities Trailing Twelve Month Earned ROEs
10 Q3 2021 Earnings Release Slides Exelon Utilities Trailing Twelve Month Earned ROEs* Exelon Utilities’ Consolidated Trailing Twelve Month Earned ROEs* 9.6% 9.6% 10.2% 10.2% 10.1% 10.0% 9.7% 9.1% 8.9% 8.7% 8.9% 9.4% 9.3% Q4 2019Q3 2019 Q3 2021Q1 2020Q3 2018 Q2 2019Q1 2019Q4 2018 Q2 2020 Q3 2020 Q4
Slide 11: Exelon Utilities' Distribution Rate Case Updates
11 Q3 2021 Earnings Release Slides Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Revenue Requirement Requested ROE / Equity Ratio Expected Order $41.0M (1,2) 9.60% / 50.21% Jul 14, 2021 $13.5M (1,3) 9.60% / 50.37% Sep 15, 2021 (4) $132.0M (1) 10.95% / 53.41% Dec 2021 $45.8M (1,5) 7.36% / 48.70% De
Slide 12: Exelon Utilities Path to Clean: Advancing Energy Efficiency
12 Q3 2021 Earnings Release Slides Exelon Utilities Path to Clean: Advancing Energy Efficiency Driving Emissions Reductions Reducing Customer Energy Consumption Supporting Customer Affordability ➢ Helped our customers save 22.3 million MWhs of electricity in 2020 ➢ Behavioral programs notify custome
Slide 13: Exelon Generation: Gross Margin Update
13 Q3 2021 Earnings Release Slides Exelon Generation: Gross Margin* Update (1) Gross margin* categories rounded to nearest $50M (2) Reflects Exelon’s 50.01% ownership share of CENG Joint venture from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 (3) Mark-to-M
Slide 14: 2021 Business Priorities and Commitments
14 Q3 2021 Earnings Release Slides 2021 Business Priorities and Commitments Meet or exceed our financial commitments Effectively deploy ~$6.6B of utility capex Ensure timely recovery on investments to enable customer benefits Support enactment of clean energy policies Continued demonstration of corp
Slide 15: Additional Disclosures
15 Q3 2021 Earnings Release Slides Additional Disclosures
Slide 16: Q3 2021 YTD Adjusted Operating Earnings Waterfall
16 Q3 2021 Earnings Release Slides Q3 2021 YTD Adjusted Operating Earnings* Waterfall $1.92 $0.07 $0.01 2020 BGE $0.10 PECOComEd $0.12 PHI ($0.78) ExGen(7) ($0.06) Corp 2021 $2.46 ($0.80) Market and Portfolio Conditions(3) ($0.13) Income Taxes(4) ($0.04) Credit Loss Expense(3) $0.17 Higher Realized
Slide 17: Constellation Technology Ventures' Portfolio
17 Q3 2021 Earnings Release Slides Constellation Technology Ventures’ Portfolio Note: Constellation’s active technology investments can be found at http://technologyventures.constellation.com/; reflects current portfolio as of September 30, 2021 (1) Green boxes reflect companies that have executed I
Slide 18: Exelon Long-Term Debt Maturity Profile
18 Q3 2021 Earnings Release Slides Exelon’s weighted average LTD maturity is approximately 16 years (1) Maturity profile excludes non-recourse debt, securitized debt, capital leases, fair value adjustments, unamortized debt issuance costs and unamortized discount/premium (2) Long-term debt balances
Slide 19: Exelon Utilities
19 Q3 2021 Earnings Release Slides Exelon Utilities
Slide 20: ACE Distribution Rate Case Filing Details
20 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. ER20120746 • December 9, 2020, ACE filed a distribution base rate case with the New Jersey Board of Public Utilities (NJBPU) to increase distribution base rates • July 14, 2021, the NJBPU approved the settlement with new ra
Slide 21: Delmarva DE Distribution Rate Case Filing Details
21 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. 20-0149 • March 6, 2020, Delmarva Power filed an application with the Delaware Public Service Commission (DPSC) seeking an increase in electric distribution base rates • A partial settlement agreement, primarily on customer
Slide 22: PECO Distribution Rate Case Filing Details
22 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. R-2021-3024601 • March 30, 2021, PECO filed a general base rate request with the Pennsylvania Public Utility Commission (PAPUC) seeking an increase in electric distribution base rates • Rate increase amount is driven by con
Slide 23: ComEd Distribution Rate Case Filing Details
23 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. 21-0367 • April 16, 2021, ComEd filed its annual distribution formula rate update with the Illinois Commerce Commission (ICC) seeking a $51.2M increase to distribution base rates • Rate increase amount is driven by continue
Slide 24: Delmarva MD Distribution Rate Case Filing Details
24 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Case No. 9670 • September 1, 2021, Delmarva Power filed an application with the Maryland Public Service Commission (MDPSC) seeking an increase in electric distribution base rates • Request is driven by $18.3M of higher depreciation ex
Slide 25: Exelon Generation Disclosures September 30, 2021
25 Q3 2021 Earnings Release Slides Exelon Generation Disclosures September 30, 2021
Slide 26: Portfolio Management Strategy
26 Q3 2021 Earnings Release Slides Portfolio Management Strategy Protect Balance Sheet Ensure Earnings Stability Create Value Exercising Market Views % H e d g e d Purely ratable Actual hedge % Market views on timing, product allocation and regional spreads reflected in actual hedge % High End of Pr
Slide 27: Components of Gross Margin
27 Q3 2021 Earnings Release Slides Components of Gross Margin* Categories Open Gross Margin* •Generation Gross Margin* at current market prices, including ancillary revenues, nuclear fuel amortization and fuels expense •Power Purchase Agreement (PPA) Costs and Revenues •Provided at a consolidated le
Slide 28: ExGen Disclosures
28 Q3 2021 Earnings Release Slides ExGen Disclosures (1) Gross margin* categories rounded to nearest $50M (2) Reflects Exelon’s 50.01% ownership share of CENG Joint venture from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 (3) Mark-to-Market of Hedges assume
Slide 29: ExGen Disclosures: Expected Generation and Hedging
29 Q3 2021 Earnings Release Slides ExGen Disclosures (1) Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted for capacity based upon a simulated dispatch model that makes assumptions regarding future market conditions, wh
Slide 30: ExGen Hedged Gross Margin Sensitivities
30 Q3 2021 Earnings Release Slides ExGen Hedged Gross Margin* Sensitivities (1) Based on September 30, 2021 market conditions and hedged position; gas price sensitivities are based on an assumed gas-power relationship derived from an internal model that is updated periodically; power price sensitivi
Slide 31: 2021 ExGen Hedged Gross Margin Upside/Risk
31 Q3 2021 Earnings Release Slides 5,000 5,500 6,000 6,500 7,000 2021 ExGen Hedged Gross Margin* Upside/Risk A p p ro xi m a te G ro s s M a rg in * ( $ m il li o n )(1 ) (1) Represents an approximate range of expected gross margin*, taking into account hedges in place, between the 5th and 95th perc
Slide 32: Additional ExGen Modeling Data
32 Q3 2021 Earnings Release Slides Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2021 Adjusted Operating Revenues*(2,3) $19,875 Adjusted Purchased Power and Fuel*(2,3) $(13,175) Other Revenues(4) $(175) Direct cost of sales incurred to generate revenues for certain Cons
Slide 33: Appendix: Reconciliation of Non-GAAP Measures
33 Q3 2021 Earnings Release Slides Appendix Reconciliation of Non-GAAP Measures
Slide 34: Q3 QTD GAAP EPS Reconciliation
34 Q3 2021 Earnings Release Slides Q3 QTD GAAP EPS Reconciliation Three Months Ended September 30, 2021 ComEd PECO BGE PHI ExGen Other Exelon 2021 GAAP Earnings (Loss) Per Share $0.22 $0.11 $0.04 $0.27 $0.62 ($0.04) $1.23 Mark-to-market impact of economic hedging activities - - - - (0.58) 0.01 (0.57
Slide 35: Q3 QTD GAAP EPS Reconciliation (continued)
35 Q3 2021 Earnings Release Slides Q3 QTD GAAP EPS Reconciliation (continued) Three Months Ended September 30, 2020 ComEd PECO BGE PHI ExGen Other Exelon 2020 GAAP Earnings (Loss) Per Share $0.20 $0.14 $0.05 $0.22 $0.05 ($0.16) $0.51 Mark-to-market impact of economic hedging activities - - - - (0.20
Slide 36: Q3 YTD GAAP EPS Reconciliation
36 Q3 2021 Earnings Release Slides Q3 YTD GAAP EPS Reconciliation Nine Months Ended September 30, 2021 ComEd PECO BGE PHI ExGen Other Exelon 2021 GAAP Earnings (Loss) Per Share $0.62 $0.39 $0.30 $0.55 ($0.25) ($0.26) $1.34 Mark-to-market impact of economic hedging activities - - - - (0.95) 0.01 (0.9
Slide 37: Q3 YTD GAAP EPS Reconciliation (continued)
37 Q3 2021 Earnings Release Slides Q3 YTD GAAP EPS Reconciliation (continued) Nine Months Ended September 30, 2020 ComEd PECO BGE PHI ExGen Other Exelon 2020 GAAP Earnings (Loss) Per Share $0.31 $0.32 $0.28 $0.43 $0.58 ($0.28) $1.64 Mark-to-market impact of economic hedging activities - - - - (0.36)
Slide 38: Projected GAAP to Operating Adjustments
38 Q3 2021 Earnings Release Slides Projected GAAP to Operating Adjustments • Exelon’s projected 2021 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-market adjustments from economic hedging activities; − Unrealized gains and losses from NDT funds to t
Slide 39: GAAP to Non-GAAP Reconciliations: Operating TTM ROE
39 Q3 2021 Earnings Release Slides GAAP to Non-GAAP Reconciliations Consolidated EU Operating TTM ROE Reconciliation ($M) Q4 2018 Q3 2018 Net Income (GAAP) $1,836 $1,770 Operating Exclusions $32 $40 Adjusted Operating Earnings $1,869 $1,810 Average Equity $19,367 $18,878 Operating (Non-GAAP) TTM ROE
Slide 40: GAAP to Non-GAAP Reconciliations: ExGen Adjusted O&M
40 Q3 2021 Earnings Release Slides GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2021 GAAP O&M $4,600 Decommissioning(2) $25 Byron and Dresden(3) $575 Asset Impairments(4) ($525) Direct cost of sales incurred to generate revenues for certain Constellation and Power busin