Exelon Corporation · NASDAQ:EXC
Exelon — Q1 2021 Earnings Presentation
42 slides from Exelon's earnings presentation, May 5, 2021
Slide 1: Earnings Conference Call First Quarter 2021
Earnings Conference Call First Quarter 2021 May 5, 2021
Slide 2: Cautionary Statements Regarding Forward-Looking Information
2 Q1 2021 Earnings Release Slides Cautionary Statements Regarding Forward-Looking Information This presentation contains certain written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties includin
Slide 3: Non-GAAP Financial Measures
3 Q1 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 Q1 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: First Quarter Results
5 Q1 2021 Earnings Release Slides First Quarter Results • GAAP earnings of ($0.30) per share in Q1 2021 vs. $0.60 per share in Q1 2020 • Adjusted operating earnings* of ($0.06) per share in Q1 2021 vs. $0.87 per share in Q1 2020 Q1 2021 EPS Results $0.20 $0.20 $0.13 $0.13 $0.17 $0.17 $0.21 $0.22 ($0
Slide 6: Operating Highlights
6 Q1 2021 Earnings Release Slides Operating Highlights (1) 2.5 Beta SAIFI is YE projection (2) Excludes Salem and EDF’s equity ownership share of the CENG Joint Venture Exelon Utilities Operational Metrics Exelon Generation Operational Performance • Best in class performance across our Nuclear fleet
Slide 7: Policy Developments Supporting a Clean Energy Economy
7 Q1 2021 Earnings Release Slides Policy Developments Supporting a Clean Energy Economy Biden Administration • Set nationally determined contribution (NDC) to meet Paris Climate Accords of 50-52% reduction in greenhouse gas emissions from 2005 levels by 2030 • American Jobs Plan: – A national clean
Slide 8: Progress on Separation
8 Q1 2021 Earnings Release Slides Progress on Separation Commission Application Filing Key Regulatory Milestones New York Public Service Commission (NY PSC) (Case No. 21-E-0130) February 25, 2021 • Comments/intervention due May 24, 2021 Federal Energy Regulatory Commission (FERC) (Docket No. EC21-57
Slide 9: First Quarter Adjusted Operating Earnings Drivers
9 Q1 2021 Earnings Release Slides $0.20 $0.13 $0.17 $0.22 ($0.20) ($0.58) PHI Q1 2021 BGE HoldCo PECO ComEd ExGen First Quarter Adjusted Operating Earnings* Drivers Exelon Utilities • Utilities performed well in Q1 driven by continued investment and distribution rate case outcomes • Slightly milder
Slide 10: Exelon Utilities Trailing Twelve Month Earned ROEs
10 Q1 2021 Earnings Release Slides Exelon Utilities Trailing Twelve Month Earned ROEs* Exelon Utilities’ Consolidated Trailing Twelve Month Earned ROEs* 9.3% 9.4% 9.6% 9.6% 10.2% 10.2% 10.1% 10.0% 9.7% 9.1% 8.9% 8.7% 8.9% Q3 2019 Q4 2020Q4 2018Q1 2018 Q3 2018Q2 2018 Q2 2019Q1 2019 Q4 2019 Q1 2020 Q2
Slide 11: Exelon Utilities' Distribution Rate Case Updates
11 Q1 2021 Earnings Release Slides Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Revenue Requirement Requested ROE / Equity Ratio Expected Order $2.3M (1,2) 9.60% / 50.37% Jan 6, 2021 $135.9M (1,3) 3-Year MYP 9.70% / 50.68% Q2 2021 $22.9M (1,4) 10.30% / 50.37% Q3 2021 $104.1M (1,5) 3-Year MYP 10.2
Slide 12: Exelon Utilities Path to Clean: Enabling Vehicle Electrification
12 Q1 2021 Earnings Release Slides Exelon Utilities Path to Clean: Enabling Vehicle Electrification Advancing Accessibility of EV Infrastructure • Working with stakeholders to evolve legislation, regulations, and EV programs that promote the expansion of infrastructure and remove barriers to adoptio
Slide 13: Exelon Generation: Gross Margin Update
13 Q1 2021 Earnings Release Slides Exelon Generation: Gross Margin* Update (1) Gross margin* categories rounded to nearest $50M (2) Excludes EDF’s equity ownership share of the CENG Joint Venture (3) Mark-to-Market of Hedges assumes mid-point of hedge percentages (4) Based on March 31, 2021 market c
Slide 14: 2021 Business Priorities and Commitments
14 Q1 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 Q1 2021 Earnings Release Slides Additional Disclosures
Slide 16: 2021 Guidance
16 Q1 2021 Earnings Release Slides 2021 Guidance $0.55 - $0.85 ComEd $0.45 - $0.55 PHI $2.60 - $3.00(1) PECO HoldCo ($0.25) ExGen BGE $0.40 - $0.50 $0.55 - $0.65 $0.75 - $0.85 2021 Adjusted Operating Earnings* Guidance Note: Amounts may not sum due to rounding (1) 2021 earnings guidance based on exp
Slide 17: Q1 2021 Adjusted Operating Earnings Waterfall
17 Q1 2021 Earnings Release Slides Q1 2021 Adjusted Operating Earnings* Waterfall BGE $0.03 2020 $0.03 $0.02 ($0.14) PECOComEd $0.03 PHI ($0.90) ExGen(6) Corp 2021 $0.87 ($0.85) Market and Portfolio Conditions(2) ($0.14) Income Taxes(3) ($0.02) Credit Loss Expense(2) $0.08 Higher Realized NDT Fund G
Slide 18: Constellation Technology Ventures' Active Investments
18 Q1 2021 Earnings Release Slides Constellation Technology Ventures’ Active Investments Note: Constellation’s active technology investments can be found at http://technologyventures.constellation.com/; reflects current portfolio as of May 5, 2021 (1) Green boxes reflect companies that have executed
Slide 19: Debt Maturity Profile
19 Q1 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 20: Exelon Utilities
20 Q1 2021 Earnings Release Slides Exelon Utilities
Slide 21: Delmarva DE (Gas) Distribution Rate Case Filing Details
21 Q1 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. 20-0150 – Per Settlement (Black Box) • February 21, 2020, Delmarva Power filed an application with the Delaware Public Service Commission (DPSC) seeking an increase in gas distribution base rates • Size of ask is driven by
Slide 22: Pepco DC Multi-Year Plan Case Filing Details
22 Q1 2021 Earnings Release Slides 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 Service Commission of the District of Columbia (DCPSC) seeking an increase in electric distribution base rates •
Slide 23: Delmarva DE (Electric) Distribution Rate Case Filing Details
23 Q1 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 • Size of ask is driven by continued investments in ele
Slide 24: Pepco MD Multi-Year Plan Case Filing Details
24 Q1 2021 Earnings Release Slides Multi-Year Plan Case Filing Details Notes Formal Case No. 9655 • October 26, 2020, Pepco MD filed a three-year multi-year plan (MYP) request with the Maryland Public Service Commission (MDPSC) seeking an increase in electric distribution base rates • MYP proposes f
Slide 25: PECO (Gas) Distribution Rate Case Filing Details
25 Q1 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. R-2020-3018929 • On September 30, 2020, PECO filed a general base rate filing with the Pennsylvania Public Utility Commission (PAPUC) seeking an increase in gas distribution base rates • Size of ask is driven by continued i
Slide 26: ACE Distribution Rate Case Filing Details
26 Q1 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 (BPU) to increase distribution base rates • Size of ask is primarily driven by continued investments in el
Slide 27: PECO (Electric) Distribution Rate Case Filing Details
27 Q1 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. R-2021-3024601 • On 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
Slide 28: ComEd Distribution Rate Case Filing Details
28 Q1 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 29: Exelon Generation Disclosures March 31, 2021
29 Q1 2021 Earnings Release Slides Exelon Generation Disclosures March 31, 2021
Slide 30: Portfolio Management Strategy
30 Q1 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 31: Components of Gross Margin
31 Q1 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 32: ExGen Disclosures
32 Q1 2021 Earnings Release Slides ExGen Disclosures (1) Gross margin* categories rounded to nearest $50M (2) Excludes EDF’s equity ownership share of the CENG Joint Venture (3) Mark-to-Market of Hedges assumes mid-point of hedge percentages (4) Based on March 31, 2021 market conditions (5) Reflects
Slide 33: ExGen Disclosures
33 Q1 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 34: ExGen Hedged Gross Margin Sensitivities
34 Q1 2021 Earnings Release Slides ExGen Hedged Gross Margin* Sensitivities (1) Based on March 31, 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 sensitivities
Slide 35: 2021 ExGen Hedged Gross Margin Upside/Risk
35 Q1 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 x im 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 per
Slide 36: Additional ExGen Modeling Data
36 Q1 2021 Earnings Release Slides Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2021 Revenue Net of Purchased Power and Fuel Expense*(2,3) $7,150 Other Revenues(4) $(175) Direct cost of sales incurred to generate revenues for certain Constellation and Power businesses
Slide 37: Appendix Reconciliation of Non-GAAP Measures
37 Q1 2021 Earnings Release Slides Appendix Reconciliation of Non-GAAP Measures
Slide 38: Q1 GAAP EPS Reconciliation
38 Q1 2021 Earnings Release Slides Q1 GAAP EPS Reconciliation Three Months Ended March 31, 2021 ComEd PECO BGE PHI ExGen Other Exelon 2021 GAAP Earnings (Loss) Per Share $0.20 $0.17 $0.21 $0.13 ($0.81) ($0.20) ($0.30) Mark-to-market impact of economic hedging activities - - - - (0.14) - (0.14) Unrea
Slide 39: Q1 GAAP EPS Reconciliation (continued)
39 Q1 2021 Earnings Release Slides Q1 GAAP EPS Reconciliation (continued) Note: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not sum due to rounding. Three Months Ended March 31, 2020 ComEd PECO BGE PHI ExGen Other Exelon 2020 GAAP Earnings (Loss) P
Slide 40: Projected GAAP to Operating Adjustments
40 Q1 2021 Earnings Release Slides Projected GAAP to Operating Adjustments • Exelon’s projected 2021 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-market adjustments from economic hedging activities; − Unrealized gains and losses from NDT funds to t
Slide 41: GAAP to Non-GAAP Reconciliations
41 Q1 2021 Earnings Release Slides GAAP to Non-GAAP Reconciliations Consolidated EU Operating TTM ROE Reconciliation ($M) Q4 2018 Q3 2018 Q2 2018 Q1 2018 Net Income (GAAP) $1,836 $1,770 $1,724 $1,643 Operating Exclusions $32 $40 $13 $32 Adjusted Operating Earnings $1,869 $1,810 $1,737 $1,675 Average
Slide 42: GAAP to Non-GAAP Reconciliations: ExGen Adjusted O&M
42 Q1 2021 Earnings Release Slides GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2021 GAAP O&M $3,925 Decommissioning(2) $50 Byron and Dresden Retirements(3) $475 Direct cost of sales incurred to generate revenues for certain Constellation and Power businesses(4) ($275)