Exelon Corporation · NASDAQ:EXC
Exelon — Sanford C. Bernstein Strategic Decisions Conference 2014
9 slides from Exelon's conference presentation, May 29, 2014
Slide 1: Sanford C. Bernstein Strategic Decisions Conference
Sanford C. Bernstein Strategic Decisions Conference May 29, 2014
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: Exelon Overview
Exelon Overview Exelon Generation Exelon Utilities Power Generation Constellation ComEd, PECO & BGE • One of the largest merchant Generation • LeadingRetail & Wholesale competitive energy • One of the largest electric and fleets in the nation (~35 GW of provider in the U.S. gas distribution companie
Slide 4: Spot and Forward Market Volatility
Spot and Forward Market Volatility Q1 2014 Saw Increased Volatility Forward Markets Reacted To Spot Prices Spot Market Volatility 13.0 Whub On Peak HR - 2015 • Spot prices in 2014 have been high and have 12.5 Whub On Peak HR - 2016 started to reflect the changing nature of the grid NiHub On Peak HR
Slide 5: Portfolio Value and Positioning
Portfolio Value and Positioning Changes to Gross Margin Through 4/30/14 2015: Open Power Position Creating Value From Higher Prices(1) Power prices continued to increase in April 80% • Since the end of Q1 and thru 4/30/2014, power prices 70% Generation Hedged (1) in Mid-Atlantic and Midwest regions
Slide 6: Capacity Markets Better – Opportunity for Improvement
Capacity Markets Better – Opportunity for Improvement New England Auction Capacity market results • In Q1, 17/18 auction cleared much higher than expected indicative of tighter Capacity prices $/MW-Day supply/demand after unit retirement announcements 2016/2017 2017/2018 PJM PJM Auction Rest of Pool
Slide 7: Pepco Holdings Acquisition
Pepco Holdings Acquisition On April 30, 2014, Exelon announced the acquisition of Pepco Holdings Inc. in an all cash transaction Strategic Rationale • A strategic acquisition with a good geographic fit PA Trenton and economies of scale creates opportunities for NJ cost savings, improved customer rel
Slide 8: Transaction Economics
Transaction Economics (3) Earnings Accretive First Full Year (1) Rate Base Growth ($B)(2) +6% $0.15 - $0.20 +50% $31.8 PHI $30.0 $0.10 - $0.15 Exelon Achieve run-rate $8.8 $8.3 accretion of $ 2 0 .0 $0.15-$0.20 starting in 2017 $21.7 $23.0 2016 2017 2014 2015 2016 2015-2016 Operating Earnings(3) Pro
Slide 9: Exelon is positioned for a strong future
Exelon is positioned for a strong future Core Strength Implications and Actions With Pepco Holdings acquisition, we will have an even stronger Strong integrated business regulated base of earnings that provides dividend support and potential model increase in the future Power Market Upside Our clean
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