Exelon Corporation · NASDAQ:EXC
Exelon — Lehman Brothers 2008 Energy/Power Conference
16 slides from Exelon's conference presentation, Sep 4, 2008
Slide 1: Sustainable Value
Exhibit 99.2 Sustainable Value Matthew Hilzinger Senior Vice President & Chief Financial Officer Lehman Brothers 2008 Energy/Power Conference New York, NY September 4, 2008
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes 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 materially from these forward-looking statem
Slide 3: Key Messages
Key Messages • Tightening our 2008 operating earnings guidance range to $4.15 - $4.30/share – We expect third quarter 2008 results to be lower-middle to middle of the suggested contribution range (26-29%) • Announcing $1.5 billion share repurchase as part of 2008 Value Return Plan • Largely hedged a
Slide 4: Strategic Direction
Strategic Direction Protect Today’s Value + Grow Long-Term Value • Deliver superior operating • Drive the organization to the next performance level of performance • Advance competitive markets • Set the industry standard for low • Protect the value of our generation carbon energy generation and del
Slide 5: 2008 Revised Guidance
2008 Revised Guidance 2008 Revised EPS Guidance (1) Key Drivers 2008 vs. 2007 Operating EPS: $4.15 - $4.30 (2) Market conditions GAAP EPS: $3.90 - $4.30 (3) Nuclear volume (refueling outages) Inflationary pressures $4.15 - $4.30 PECO CTC amortization Weather Storms PECO bad debt expense ComEd transm
Slide 6: Executing on Value Return Plan
Executing on Value Return Plan Recent Share Repurchases - $3.25 billion • 2008 Repurchases – $0.5 billion accelerated share repurchase in February 2008 – $1.5 billion share repurchase announced in September 2008 • 2007 Repurchases – $1.25 billion accelerated share repurchase in September 2007 Divide
Slide 7: Value Return Framework
Value Return Framework Free Cash Flow before Dividends and CapEx Less Maintenance Capital and Committed Dividends Equals Available Cash and Balance Sheet Capacity (1) Monetize Return Value via Strengthen Balance Sheet / Invest in Growth Share Repurchases, Increase Financial Flexibility Increased Div
Slide 8: Hedging Targets
Hedging Targets Power Team employs commodity hedging Financial Hedging Range (1) strategies to optimize Exelon Generation’s earnings: Prompt Year Second Year Third Year • Maintain length for opportunistic sales (2008) (2009) (2010) • Use cross commodity option strategies to enhance hedge activities
Slide 9: 2009-2011 Earnings Drivers
2009-2011 Earnings Drivers 40% EPS Growth (1) 2011 Earnings Drivers • Market Conditions $4.15 - $4.30 • PECO PPA roll-off Managing our Base Case • Strong financial and operating performance • Executing regulatory recovery plan • Managing transition to competitive markets • Increasingly strong cash f
Slide 10: Well Positioned to Provide Sustainable Value
Well Positioned to Provide Sustainable Value Macro Trends Market Response Exelon’s Position Continued strong financial and operating Environmental / climate Massive capital performance, and long-term earnings growth change concerns investment driven by unregulated generation Slowing US economy Tight
Slide 11: Appendix
Appendix Exelon. 11
Slide 12: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of August 29, 2008. Source: OTC quotes and electronic trading system. Quotes are daily. 12 Forward NYMEX Natural Gas 150 Forward NYMEX Coal 11.5 140 11 130 10.5 120 2010 10 110 2010 9.5 100 9 90 2011 8.5 2011 80 8 70 7.5 60 7 50 9/07 10/07 11/07 12/07 1/08
Slide 13: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of August 29, 2008. Source: OTC quotes and electronic trading system. Quotes are daily. 12.5 100 Houston Ship Channel Natural Gas ERCOT North On-Peak Forward Prices 12 Forward Prices 95 11.5 11 90 10.5 85 2010 10 2010 80 9.5 9 75 8.5 2011 2011 70 8 7.5 65
Slide 14: YTD GAAP EPS Reconciliation
YTD GAAP EPS Reconciliation Six Months Ended June 30, 2007 ExGen ComEd PECO Other Exelon 2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $1.77 $0.07 $0.33 $(0.07) $2.10 Mark-to-market adjustments from economic hedging activities (0.12) - - - (0.12) Investments in synthetic fuel-producin
Slide 15: 2008/2009 Earnings Outlook
2008/2009 Earnings Outlook • Exelon’s outlook for 2008/2009 adjusted (non-GAAP) operating earnings excludes the earnings impacts of the following: • Mark-to-market adjustments from economic hedging activities • Unrealized gains and losses from nuclear decommissioning trust fund investments • Signifi
Slide 16: Exelon Investor Relations Contacts
Exelon Investor Relations Contacts Inquiries concerning this presentation Investor Relations Contacts: should be directed to: Exelon Investor Relations Chaka Patterson, Vice President 10 South Dearborn Street 312-394-7234 Chicago, Illinois 60603 Chaka.Patterson@ExelonCorp.com 312-394-2345 Karie Ande
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