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Exelon: 2015 Eei Financial Conference Cautionary Statements Regarding Forward-Looking Information

The following excerpt is from the company's SEC filing.

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 materially from the

forward-looking statements made by Exelon Corporation, Commonwealth Edison

Company, PECO Energy Company, Baltimore Gas and Electric Company and Exelon

Generation Company, LLC (Registrants) include those factors discussed herein, as well

as the items discussed in (1) Exelons 2014 Annual Report on Form 10-K in (a) I TEM

1A. Risk Factors, (b) ITEM 7. Managements Discussion and Analysis of Financial

Condition and Results of Operations and (c) ITEM 8. Financial Statements and

Supplementary Data: Note 22; (2) Exelons Third Quarter 2015 Quarterly Report on

Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial

Information, ITEM 2. Managements Discussion and Analysis of Financial Condition and

Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial

Statements: Note 19; and (3) other factors discussed in filings with the SEC by the

Registrants. Readers are cautioned not to place undue reliance on these forward-

looking statements, which apply only as of the date of this presentation. None of the

Registrants undertakes any obligation to publicly release any revision to its forward-

looking statements to reflect events or circumstances after the date of this

2015 EEI Financial Conference

2015: An Exceptional Year of Performance

Our utilities are performing at their best levels, our generation business is world class and our

Constellation

maximizes

value.

deliver

earnings

between

per share.

On track to invest

$3.7 billion

this year to make the grid smarter, more reliable, and more resilient

Exceeding

1 billion in

net income

this year at Exelon Utilities

Constructive regulatory environments across our jurisdictions

PECO rate case settlement

ComEd formula rate

Recent BGE unanimous rate case settlement

Industry leading operational excellence

Quartile SAIFI performance

Quartile Customer Satisfaction

Top Decile

Gas Odor Response

Successful

matching strategy

is protecting earnings

Active role in policy development to deliver Capacity Performance construct

Provider

retail

electricity,

serving

nearest

competitor

Top 10 marketer of natural gas

World Class Operator

2015 Nuclear capacity factor through 3Q: 93.8%

2015 Power dispatch match through 3Q: 98.7%

2015 Renewables energy capture 3Q: 95.6%

Represents adjusted (non-GAAP) operating earnings. Refer to slide 31 for a list of adjustments from GAAP EPS to adjusted (non-GAAP) operating earnings

Looking Ahead

The Exelon Strategy

Addressing Key Immediate Issues

Capital Allocation

Pepco Holdings Acquisition

Extending Clinton One Year

Cost Management Initiative

The Foundation for Exelons Growth

Our Key Objectives

Employ our integrated model to deliver

stable growth, sustainable

earnings

and an

attractive dividend

Stable Growth

Grow our

regulated and contracted businesses and

optimize our existing generation portfolio

Sustainable Earnings

Utilities, contracted assets, and balanced

generation to load strategy profits are an engine for predictable earnings

and our generation business positions us to capture market upside

Attractive Dividend

Dividend will be covered by the utilities, insulated

from the earnings volatility of the generation business

How We Will Meet Our Objectives

We will produce

stable earnings growth

per year from 2015 to 2018

Investing more than $18 billion in Exelons current utilities through 2020 to modernize the grid and

better serve our customers ($11 billion from 2016-2018)

while also preserving the benefit of

market upside

through:

Ensuring operating excellence across every business

Shifting our earnings mix to be more regulated through investments in Exelons utilities and the

acquisition of Pepco Holdings (Expect earnings to be ~60% regulated in 2018)

Effectively managing our costs

Growing the amount of contracted assets in our Exelon Generation portfolio

Maximizing the value of our generation fleet and customer base through our proven generation to

load matching strategy

Hedging our generation in a manner that preserves upside from our fundamental price view

We will continue to deliver an

of $1.24 per share

Targeting dividend funding entirely from regulated utilities

Our business mix protects our dividend regardless of changing phases of the commodities cycle

Growth target is a net income compounded annual growth rate (CAGR), assumes September 30, 2015 market prices, and does not include our fundamental market view

of prices

Dividends are subject to declaration by the Exelon Board of Directors

We Are Well Down the Path of Delivering on Our Key Objectives

(Pre-CEG Merger)

25,544 MW (Total

Capacity)

67% Nuclear

151 TWh

5.4M Electric Customers

0.5M Gas Customers

$791M Net Income

$13B Rate Base

6,054 Miles of

Transmission Lines

2011 Earnings

29% Utilities

71% Generation

Generator

Top Performing

Preeminent

Competitive

Transforming

the Business

(Post-CEG Merger)

32,753 MW (Total

59% Nuclear

205 TWh

6.7M Electric Customers

1.2M Gas Customers

$20B Rate Base

7,435 Miles of

2014 Earnings

47% Utilities

53% Generation

(Post-PHI Merger)

34,800 MW (Total

56% Nuclear

206 TWh

8.6M Electric Customers

1.3M Gas Customers

$1.5B-1.7B Net Income

$38B Rate Base

~12,000 Miles of

48 States, DC, & Canada

~210 TWh/yr

6-8 Bcf

of Gas

2018 Earnings

~60% Utilities

~40% Generation

Represents adjusted (non-GAAP) operating earnings. Refer to slide

for a list of adjustments from GAAP EPS to adjusted (non-GAAP) operating earnings.

Includes after-tax interest expense of (~$150M) for debt held at Corporate related to utility investment

Includes CENG at ownership; does not assume put exercised

Based on September 30, 2015 market prices

4 States

~59 TWh/yr

<1 Bcf

of Gas per day

48 States, DC & Canada

~155 TWh/yr

4-6 Bcf

Pepco Holdings Acquisition

Delivering Value to Shareholders Through a Principled Capital

Allocation Policy

capital

decision

shareholders

We are

arvesting free cash flow

from Exelon Generation to:

First, invest in

where we can earn an appropriate return,

Invest in

where we can meet return thresholds, and/or

Return capital

to shareholders by retiring debt, repurchasing our

shares, or

increasing our dividend if required investment returns are not met

committed

maintaining an attractive dividend

strong balance sheet

underpins our capital allocation policy

Redeploying Exelon Generations Free Cash Flow to Maximize Shareholder

2016-2018 Exelon Generation Free Cash Flow

(1,2,3)

and Planned Growth Investment ($M)

~$2,700

~$4,150

Committed Contracted

Generation Growth CapEx

Available for Investing in

Utilities, Contracted Assets

or Returning Capital to

($750)

Committed Non-Contracted

($700)

Cumulative ExGen

FCF 2016-18

If investments do not meet our thresholds, we will return capital to shareholders

Free Cash Flow = Adjusted Cash Flow from Operations less Base CapEx and Nuclear Fuel. Free Cash Flow is midpoint of a range based on September 30, 2015 market prices. Adjusted

Cash Flow From Operations (non-GAAP) primarily includes net cash flows from operating activities and net cash flows from investing activities excluding capital expenditures.

Reconciliation of Free Cash Flow to GAAP can be found on slide 32.

Does not include an extension of bonus depreciation. A two year extension of bonus depreciation would add

~$200

million of Free Cash Flow

Does not include impacts of PHI, which would decrease Free Cash Flow by (~$100M)

Capital Allocation

Disciplined Commitment to Growth

We will prioritize investment in assets that minimize earnings volatility and support

Note: Including PHI would increase combined rate base by $10 billion in 2018; Exelon Utilities 2016-2018 capital investment is $11 billion for existing

Exelon utilities ($15 billion including PHI); Exelon Generation 2016-2018 investment opportunities total $1.6 billion

No incremental equity issuance needed to fund investment

Investing in utility infrastructure to

benefit our customers by making the grid

from 2016 to 2020

(existing Exelon Utilities)

$25 billion

(including PHI)

Targeting long-term ROE of

Growing existing rate base from

in 2015 to

$28 billion

CAGR of 7-9%

from 2015-2018

Going forward, we will

invest in assets

with contracted cash flows

We are reviewing development

opportunities that may result in

investment of

$2.8 billion

2016 through 2020

Approximately half of any growth

investment will be funded through

structured financing

Projects must earn attractive return

10% ROE

Projected Earnings Accretion at Various Earned ROE Levels

PHI Acquisition Increases Sustainability of Earnings Growth

Operational improvements should drive enhanced regulatory

outcomes, positively

impacting EPS

~$0.00

9% ROE

8% ROE

7% ROE

6% ROE

Base Plan

~$0.10

~$0.18

~$0.20

(~$0.05)

Q3 2015 Guidance

PHI Accretion

$0.07 to $0.12

$0.15 to $0.20

Base Plan accretion figures represent midpoint of updated guidance range from Q3 2015 earnings call and reflect current PHI business plan

Chart above illustrates accretion at various weighted average distribution earned ROEs for PHI

Accretion is measured against Exelon standalone plan, which excludes the impact of PHI acquisition debt and equity

Note: Represents adjusted (non-GAAP) operating earnings. Refer to slide 31 for a list of adjustments from GAAP EPS to adjusted (non-GAAP) operating earnings

BGE: A Proven Track Record of Enhancing Utility Value

Increased reliability by 10% per year and customer

satisfaction by 3% per year

Increased ROE by more than 250 basis points from 2011

to 2015 and grew net income 15% annually over same

period

Continued system investments in reliability and safety

necessitate continued rate cases for capital recovery

Delivering value to our customers and regulators by improving reliability while providing

investors with predictable cost recovery and earnings growth

Operating Net Income

Operating ROE

SAIFI and Customer Satisfaction Index

Operating ROE (%) and Net Income ($M)

SAIFI (2.5 Beta)

Note: 2012 ROE and Net Income normalized by excluding one-time $112M rate credit as part of EXC-CEG merger. Operating net income represents adjusted

(non-GAAP) operating earnings. Refer to slide 31 for a list of adjustments from GAAP EPS to adjusted (non-GAAP) operating earnings

We Will Continue to Operate Clinton for Another Year

What has changed in 2015?

upward

movement

$150/MWd

auction and Illinois Power Authority Zone 4 procurement auction

Fleet capacity revenue uplift due to Capacity Performance of $1.4B, beyond our

expectations; MISO will now consider similar market reforms

EPAs Clean Power Plan finalized. Development of Illinois compliance program in

2016, could facilitate significant upside from implementation

Legislative engagement on Illinois Low Carbon Portfolio Standard. Resolution of

budget crisis should facilitate legislative consideration in 2016

Improved operating efficiency and agile nuclear fuel procurement strategy

Over the last 2 years Clinton has deferred approximately $100M of strategic

capital, minimizing the cost of maintaining the optionality at Clinton

Significant potential NiHub

upside in the out-years not yet reflected in illiquid

forward markets

If we do not see a path to sustain profitability for these units . . . we will be forced

to retire them.

Chris Crane, July 31, 2014

More Progress Necessary for Clinton to Operate Beyond 2017

MISO Reforms:

MISO is

committed to evaluate Zone 4 market design

Illinois Commerce Commission is holding workshops to examine

potential fixes to address Zone 4

Reforms must provide strong revenues like the PJM reforms

effectuated

Areas of Additional Progress Needed:

Passage of Low Carbon Portfolio Standard

Illinois implementation of EPAs Clean Power Plan must fully recognize

the value of Clinton

The Sustainability and Growth of Our Earnings Will be

Supported by an Aggressive Cost Management Program

Exelon has launched a cost management program across to provide

sustainable improvement to the Companys earnings trajectory

Estimated EPS benefit of

0.13 to $0.18

An additional

$50 million

of nuclear fuel savings already reflected in hedge

disclosures

Savings

realized

Based on projected 2018 share count of 965M shares, which assumes PHI merger closes

Represents adjusted (non-GAAP) operating earnings. Refer to slide

The initiative will achieve

$350 million

of annual cost savings at

Exelon Generation and Corporate

Financial Data

2015 Operating Earnings Guidance

2015 Initial Guidance

$2.25 -

$1.15 -

$0.45 -

$0.35 -

$0.20 -

2015 Revised Guidance

(Disclosed on Q3 2015 Earnings Call)

$2.40 -

$1.35 -

$0.25 -

~($0.10)

HoldCo

Earnings guidance for OpCos

may not add up to consolidated EPS guidance. Represents adjusted (non-GAAP) operating earnings. Refer to slide 31 for a list of adjustments

Exelon Utilities ($M)

Exelon Generation($M)

Smart Grid/Smart Meter

Gas Delivery

Electric Transmission

Electric Distribution

Committed Growth

Our Capital Plan Drives Stable Earnings Growth

Note: Numbers rounded to nearest $25M

Figures reflect cash CapEx and CENG fleet at 100%; 2014 EEI presentation showed CENG fleet at ownership; Does not include potential pipeline of contracted

generation growth mentioned on slides 11 and 12

Exelons Existing Utilities Drive Stable Earnings Growth

$1,400

$1,250

$1,450

$1,350

$1,300

$1,200

$1,150

$1,100

$1,050

$1,000

$1,425

$1,275

Projected average earnings growth of ~7-9% per year from 2015-2018

Note: Does not include PHI net income and represents adjusted (non-GAAP) operating earnings. Refer to slide 31 for a list of adjustments from GAAP EPS to adjusted (non-GAAP) operating

earnings. Does not include an extension of bonus depreciation. Impact of a 2-year bonus depreciation extension for 2015 and 2016 would be ~($10M) in 2015 and ~($25M) a year in 2016-

2018. Excludes after-tax interest expense held at Corporate for debt associated with existing utility investment, which is (~$25M) a year.

Continued Focus on Our Balance Sheet

Our strong balance sheet supports our disciplined commitment to growth

Exelon Consolidated

FFO/Debt

Exelon Consolidated FFO/Debt

S&P Threshold

Solid investment grade credit ratings are a financial priority

Metrics include PHI financing. Because of ring-fencing, S&P deconsolidates BGE's and PHIs financial profile from Exelon and analyzes them solely as equity investments

Exelon Consolidated threshold of 18% is based on the S&P Exelon Corp Summary Report published on August 5, 2015

Current senior unsecured ratings as of 11/3/2015 for Exelon, Exelon Generation and BGE and senior secured ratings for ComEd and PECO

All ratings are Stable outlook, except for at Fitch, which has ComEd on Positive and Exelon on Ratings Watch Negative, and Moodys, which has ComEd on Positive outlook

Current Ratings

(3,4)

ExCorp

Recent Commentary

Exelon maintains a strong consolidated financial profilewhich should

produce steady

ratios of cash flow to debt in the low 20% range which, when combined with adequate

liquidity reserves and a growing focus on regulated investment opportunities, positions

Exelon firmly within its current rating category. Moodys Issuer Comment, June 11, 2015

generates

portion

operations.

retail

and wholesale channels, ExGen now provides nearly 5% of total U.S. power demand, and

enjoys regional diversity. The company's generation units are well positioned to grow where

capacity available for competitive supply has room to grow. We expect these incremental

revenue streams to make the consolidated Exelon somewhat more resilient to commodity

prices. S&P Summary Analysis; March 9, 2015

Fitch

The majority of capital investment is allocated to EXCs three utility subsidiaries, which

should provide a more stable earnings base. Fitch Full Ratings Report; October 15, 2015

Exgens

financial position has stabilized in recent years, and remains solidly within the

investment-grade category. Fitch Full Ratings Report; September 11, 2015

Exelon-PHI Debt Maturity Profile

PHI Regulated

EXC Regulated

PHI Holdco

As of 10/31/15

Debt Exchange Underway on Exelon Corp Notes due 2025, 2035 and 2045

ExCorp debt includes acquisition debt, including $1,150M mandatory convertible units remarketing in 2017; ExGen debt includes legacy CEG debt; Excludes securitized debt

and non-recourse debt

EPS Sensitivities

Based on September 30, 2015 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 prices sensitivities are derived by adjusting the power price assumption while keeping all other price inputs...


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