Investors might want to bet on Constellation Energy Corporation (CEG) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years i ...

Core Viewpoint - Constellation Energy has significantly benefited from the artificial intelligence rally, achieving a total return of 57% in 2024, primarily due to its substantial reliance on nuclear power, which constitutes about 67% of its energy-producing capacity [1][2]. Group 1: Company Operations and Strategic Advantages - Constellation Energy is the leading provider of carbon-free energy in the U.S., with 7% of its capacity from renewables and 26% from natural gas and oil plants [3]. - The company has a diverse geographic presence, with 76% of its capacity located in the New York/Mid-Atlantic and Midwest regions, along with a significant footprint in Texas [3]. - As of year-end 2023, only 12.4% of its total capacity is under contract to supply large customers, indicating a substantial opportunity for growth in contractual relationships [4]. Group 2: Financial Performance and Market Outlook - In Q2 2024, Constellation reported adjusted earnings-per-share (EPS) of $1.68, a 2.4% increase from the previous year, although it slightly missed analysts' expectations [8]. - Revenue for the quarter was $5.48 billion, reflecting an increase of less than 1% year-over-year, but also fell short by $70 million compared to expectations [8]. - The company raised its full-year adjusted EPS guidance by nearly 5% to a midpoint of $8, which was 3% higher than analysts had anticipated [9]. Group 3: Market Dynamics and Future Growth - The demand for energy is projected to grow at an annual rate of 2.4% through 2030, which presents an opportunity for Constellation to benefit from rising prices through increased contracted supply [5]. - The capacity factor of the company's nuclear fleet increased by 3% to 95.4% from Q2 2023, indicating improved operational efficiency [10]. - Constellation is well-positioned to meet the growing energy demands from data centers, which are expected to consume 8% of all U.S. energy by 2030, up from 3% in 2022 [7].

Financial Data and Key Metrics Changes - Constellation Energy reported second quarter GAAP earnings of $2.58 per share and adjusted operating earnings of $1.68 per share, an increase of $0.04 per share compared to the previous year [7][30]. - The company raised its adjusted operating earnings guidance from a range of $7.23 to $8.03 per share to a new range of $7.60 to $8.40 per share, indicating strong business performance [7][33]. Business Line Data and Key Metrics Changes - The commercial business performed exceptionally well, optimizing generation and load positions, which contributed to higher margins above long-term averages [30][27]. - Nuclear performance was strong, producing over 41 million megawatt hours with a capacity factor of 95.4%, while renewables and natural gas fleets also exceeded performance expectations [26][27]. Market Data and Key Metrics Changes - The PJM capacity market auction results indicated tightening supply and demand fundamentals, with expectations for higher sustained pricing for capacity to address reliability needs [9][11]. - The company recognized $33 million in the Illinois ZEC program for banked credits, down from $218 million recognized last year, reflecting changes in market conditions [31][32]. Company Strategy and Development Direction - Constellation aims to grow base earnings by at least 10% through the decade, supported by federal PTC and opportunities in clean energy generation [8][39]. - The company is focusing on data center opportunities, emphasizing the importance of colocation with nuclear plants to enhance economic competitiveness and national security [15][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet growing electricity demand while maintaining reliability, highlighting the unique position of nuclear energy in the market [10][39]. - The company is optimistic about the future, citing the need for clean and reliable power generation to support economic growth and sustainability goals [39][40]. Other Important Information - Constellation was certified as a great place to work for the second consecutive year, reflecting a strong company culture and employee satisfaction [6]. - The company completed $1 billion in share buybacks year-to-date, indicating confidence in its stock and financial health [8][38]. Q&A Session Summary Question: Does the FERC technical conference prolong the timeline for a deal announcement? - Management indicated that while it may slow down the process for some, they are still moving forward with negotiations and do not need to wait for FERC clarity to finalize deals [44][45]. Question: Does the outcome of the PJM auction increase urgency for data center deals? - Yes, the auction results have increased urgency for both colocation and in-front-of-meter deals, as the market tightens and demand for clean, reliable megawatts grows [52][53]. Question: What are the state legislative priorities to support the colocation strategy? - The company plans to be reactive to state legislative developments and will work with stakeholders to ensure economic growth opportunities remain available [64].

[GLOSSARY OF TERMS AND ABBREVIATIONS](index=3&type=section&id=GLOSSARY%20OF%20TERMS%20AND%20ABBREVIATIONS) This section provides definitions for key terms and abbreviations used throughout the report, including company names, former related entities, and industry-specific acronyms, to ensure clarity and consistent understanding of the financial and operational disclosures - Defines 'CEG Parent' as Constellation Energy Corporation and 'Constellation' as Constellation Energy Generation, LLC[6](index=6&type=chunk) - Lists various industry acronyms such as AOCI, ARO, CAISO, ERCOT, FERC, GAAP, GHG, IRA, ISO, MISO, NRC, NYISO, PJM, PTC, SEC, SOFR, VIE, ZEC[7](index=7&type=chunk)[8](index=8&type=chunk) [FILING FORMAT](index=7&type=section&id=FILING%20FORMAT) This section clarifies that the combined Form 10-Q is filed separately by Constellation Energy Corporation and Constellation Energy Generation, LLC, with each registrant solely responsible for its own information - The combined Form 10-Q is filed separately by Constellation Energy Corporation and Constellation Energy Generation, LLC[9](index=9&type=chunk) - Neither registrant makes any representation as to information relating to the other registrant[9](index=9&type=chunk) [CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION](index=7&type=section&id=CAUTIONARY%20STATEMENTS%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This section warns readers about forward-looking statements in the report, emphasizing that actual results may differ materially due to various risks and uncertainties detailed in other sections of this report and previous filings, and that no obligation is undertaken to update these statements - Report contains certain forward-looking statements subject to risks and uncertainties[10](index=10&type=chunk) - Factors that could cause actual results to differ are discussed in the Registrants' combined **2023** Annual Report on Form 10-K and this Quarterly Report on Form 10-Q[11](index=11&type=chunk) - Readers are cautioned not to place undue reliance on these forward-looking statements, and neither Registrant undertakes any obligation to publicly release any revision[12](index=12&type=chunk) [WHERE TO FIND MORE INFORMATION](index=7&type=section&id=WHERE%20TO%20FIND%20MORE%20INFORMATION) This section directs readers to the SEC's website (www.sec.gov) and the company's website (www.ConstellationEnergy.com) for additional reports and information, clarifying that content on the company's website is not incorporated into this report - The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements, and other information filed electronically[13](index=13&type=chunk) - Documents are also available on the company's website at www.ConstellationEnergy.com, but information contained on the website is not deemed incorporated into this Report[13](index=13&type=chunk) [PART I. FINANCIAL INFORMATION](index=8&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements, management's discussion and analysis of financial condition and results of operations, quantitative and qualitative disclosures about market risk, and controls and procedures for Constellation Energy Corporation and Constellation Energy Generation, LLC for the quarter ended June 30, 2024 [ITEM 1. FINANCIAL STATEMENTS](index=8&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section provides the consolidated financial statements for Constellation Energy Corporation and Constellation Energy Generation, LLC, including statements of operations, cash flows, balance sheets, and changes in equity, along with combined notes detailing accounting policies, segment information, government assistance, and other financial disclosures [Constellation Energy Corporation Consolidated Statements of Operations and Comprehensive Income](index=8&type=section&id=Constellation%20Energy%20Corporation%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the three and six months ended June 30, 2024, Constellation Energy Corporation reported a decrease in net income attributable to common shareholders for the three-month period but a significant increase for the six-month period, driven by changes in operating revenues and expenses Constellation Energy Corporation Consolidated Statements of Operations and Comprehensive Income (Millions USD) | Metric (Millions USD) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Operating revenues | $5,475 | $5,446 | $11,637 | $13,011 | | Operating income | $1,100 | $669 | $1,913 | $700 | | Net income (loss) attributable to common shareholders | $814 | $833 | $1,697 | $929 | | Basic EPS | $2.58 | $2.57 | $5.37 | $2.85 | | Diluted EPS | $2.58 | $2.56 | $5.35 | $2.84 | [Constellation Energy Corporation Consolidated Statements of Cash Flows](index=10&type=section&id=Constellation%20Energy%20Corporation%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, Constellation Energy Corporation experienced a net cash outflow from operating activities, a significant net cash inflow from investing activities, and a net cash outflow from financing activities, resulting in a decrease in cash and cash equivalents Constellation Energy Corporation Consolidated Statements of Cash Flows (Millions USD) | Metric (Millions USD) | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :-------------------- | :-------------------------- | :-------------------------- | | Net cash flows provided by (used in) operating activities | $(1,336) | $(1,126) | | Net cash flows provided by (used in) investing activities | $2,650 | $171 | | Net cash flows provided by (used in) financing activities | $(1,385) | $752 | | Cash, restricted cash, and cash equivalents at end of period | $383 | $325 | [Constellation Energy Corporation Consolidated Balance Sheets](index=11&type=section&id=Constellation%20Energy%20Corporation%20Consolidated%20Balance%20Sheets) As of June 30, 2024, Constellation Energy Corporation reported an increase in total assets and total equity compared to December 31, 2023, while total liabilities also saw a slight increase Constellation Energy Corporation Consolidated Balance Sheets (Millions USD) | Metric (Millions USD) | June 30, 2024 | December 31, 2023 | | :-------------------- | :------------ | :---------------- | | Total assets | $51,340 | $50,758 | | Total liabilities | $39,559 | $39,472 | | Total equity | $11,781 | $11,286 | [Constellation Energy Corporation Consolidated Statements of Changes in Equity](index=12&type=section&id=Constellation%20Energy%20Corporation%20Consolidated%20Statements%20of%20Changes%20in%20Equity) For the six months ended June 30, 2024, Constellation Energy Corporation's total equity increased, primarily due to net income, partially offset by common stock repurchases and dividends paid Constellation Energy Corporation Consolidated Statements of Changes in Equity (Millions USD) | Metric (Millions USD) | Balance, Dec 31, 2023 | Balance, Jun 30, 2024 | | :-------------------- | :-------------------- | :-------------------- | | Total Equity | $11,286 | $11,781 | | Net Income (loss) | N/A | $883 (Q1), $814 (Q2) | | Common stock repurchased | N/A | $(504) (Q1), $(505) (Q2) | | Common stock dividends | N/A | $(112) (Q1), $(110) (Q2) | [Constellation Energy Generation, LLC Consolidated Statements of Operations and Comprehensive Income](index=14&type=section&id=Constellation%20Energy%20Generation%2C%20LLC%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the three and six months ended June 30, 2024, Constellation Energy Generation, LLC reported a slight decrease in net income for the three-month period but a substantial increase for the six-month period, reflecting similar trends to the parent company Constellation Energy Generation, LLC Consolidated Statements of Operations and Comprehensive Income (Millions USD) | Metric (Millions USD) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Operating revenues | $5,475 | $5,446 | $11,637 | $13,011 | | Operating income | $1,100 | $669 | $1,913 | $700 | | Net income (loss) attributable to membership interest | $814 | $833 | $1,697 | $929 | [Constellation Energy Generation, LLC Consolidated Statements of Cash Flows](index=15&type=section&id=Constellation%20Energy%20Generation%2C%20LLC%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, Constellation Energy Generation, LLC experienced net cash outflows from operating and financing activities, offset by a significant net cash inflow from investing activities, resulting in a decrease in cash and cash equivalents Constellation Energy Generation, LLC Consolidated Statements of Cash Flows (Millions USD) | Metric (Millions USD) | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :-------------------- | :-------------------------- | :-------------------------- | | Net cash flows provided by (used in) operating activities | $(1,350) | $(1,207) | | Net cash flows provided by (used in) investing activities | $2,650 | $171 | | Net cash flows provided by (used in) financing activities | $(1,368) | $852 | | Cash, restricted cash, and cash equivalents at end of period | $372 | $317 | [Constellation Energy Generation, LLC Consolidated Balance Sheets](index=16&type=section&id=Constellation%20Energy%20Generation%2C%20LLC%20Consolidated%20Balance%20Sheets) As of June 30, 2024, Constellation Energy Generation, LLC reported an increase in total assets and total equity compared to December 31, 2023, with a slight increase in total liabilities Constellation Energy Generation, LLC Consolidated Balance Sheets (Millions USD) | Metric (Millions USD) | June 30, 2024 | December 31, 2023 | | :-------------------- | :------------ | :---------------- | | Total assets | $51,321 | $50,738 | | Total liabilities | $39,445 | $39,364 | | Total equity | $11,876 | $11,374 | [Constellation Energy Generation, LLC Consolidated Statements of Changes in Equity](index=18&type=section&id=Constellation%20Energy%20Generation%2C%20LLC%20Consolidated%20Statements%20of%20Changes%20in%20Equity) For the six months ended June 30, 2024, Constellation Energy Generation, LLC's total equity increased, primarily due to net income, partially offset by distributions to members Constellation Energy Generation, LLC Consolidated Statements of Changes in Equity (Millions USD) | Metric (Millions USD) | Balance, Dec 31, 2023 | Balance, Jun 30, 2024 | | :-------------------- | :-------------------- | :-------------------- | | Total Equity | $11,374 | $11,876 | | Net Income (loss) | N/A | $883 (Q1), $814 (Q2) | | Distributions to member | N/A | $(610) (Q1), $(610) (Q2) | [Combined Notes to Consolidated Financial Statements](index=19&type=section&id=Combined%20Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures supporting the consolidated financial statements, covering significant accounting policies, recent transactions, revenue recognition, segment performance, government assistance, accounts receivable, nuclear decommissioning, income taxes, retirement benefits, derivative instruments, debt, fair value measurements, commitments, contingencies, shareholders' equity, variable interest entities, and supplemental financial information [1. Basis of Presentation](index=19&type=section&id=1.%20Basis%20of%20Presentation) Describes the company as a carbon-free energy producer and supplier, with primary generation from nuclear, wind, solar, natural gas, and hydroelectric assets across five reportable segments. The unaudited interim financial statements are prepared in accordance with GAAP, with certain information condensed or omitted per SEC rules - Company is a producer of carbon-free energy and supplier of energy products and services, with generating capacity primarily from nuclear, wind, solar, natural gas, and hydroelectric assets[38](index=38&type=chunk) - Has **five reportable segments**: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions[38](index=38&type=chunk) - The accompanying Consolidated Financial Statements are unaudited and prepared in accordance with **GAAP**, with certain information condensed or omitted pursuant to SEC rules[39](index=39&type=chunk) [2. Mergers, Acquisitions, and Dispositions](index=19&type=section&id=2.%20Mergers%2C%20Acquisitions%2C%20and%20Dispositions) Details the acquisition of a 44% ownership interest in the South Texas Project (STP) nuclear plant in November 2023 for $1.65 billion. A subsequent settlement in May 2024 involves selling a 2% interest in STP to CPS, which is not expected to materially impact financial statements - Completed the acquisition of a **44%** undivided ownership interest in the jointly owned **STP** nuclear plant in November **2023** for **$1.65 billion**[40](index=40&type=chunk) - Executed a settlement agreement in May **2024** to sell a **2%** ownership interest in **STP** to CPS, resolving litigation[41](index=41&type=chunk) - The terms of settlement are not expected to have a **material impact** on consolidated financial statements[41](index=41&type=chunk) [3. Revenue from Contracts with Customers](index=20&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) Explains the company's revenue recognition from competitive sales of power, natural gas, and sustainable solutions. It details contract assets and liabilities, including those related to energy efficiency, the Mystic COS, and the Illinois ZEC program, and provides a rollforward of these balances - Recognizes revenue from contracts with customers for competitive sales of power, natural gas, and other energy-related products and sustainable solutions[43](index=43&type=chunk) 3. Contract Assets Rollforward (Millions USD) | Metric | 2024 | 2023 | | :-------------------------- | :--- | :--- | | Beginning balance as of January 1 | $82 | $130 | | Ending balance as of June 30 | $93 | $89 | 3. Contract Liabilities Rollforward (Millions USD) | Metric | 2024 | 2023 | | :-------------------------- | :--- | :--- | | Beginning balance as of January 1 | $40 | $47 | | Ending balance as of June 30 | $35 | $52 | - For the June **2023** through May **2024** planning year, **$218 million** of revenue was recognized as a receivable for ZECs delivered in prior planning years, with payment expected in the **third quarter of 2024**[51](index=51&type=chunk) [4. Segment Information](index=22&type=section&id=4.%20Segment%20Information) Details the company's five reportable segments (Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions) based on geographic electricity business management. Performance is evaluated using Operating revenues net of Purchased power and fuel expense (RNF). Tables disaggregate revenue by product and region and reconcile segment revenues to total consolidated operating revenues - The company has **five reportable segments**: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions[53](index=53&type=chunk)[54](index=54&type=chunk) - Performance of electric business activities is evaluated and resources are allocated based on **Operating revenues net of Purchased power and fuel expense (RNF)**[55](index=55&type=chunk) 4. Total Consolidated Operating Revenues (Millions USD) | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $5,475 | $5,446 | | Six Months Ended June 30 | $11,637 | $13,011 | 4. Total RNF (Operating Revenues Net of Purchased Power and Fuel Expense) (Millions USD) | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $3,183 | $2,559 | | Six Months Ended June 30 | $5,928 | $4,395 | [5. Government Assistance](index=25&type=section&id=5.%20Government%20Assistance) Discusses federal government incentives under the Inflation Reduction Act (IRA), specifically the nuclear Production Tax Credit (PTC). The company's nuclear units are eligible for a transferable credit of up to $15 per MWh, subject to phase-out. For the three and six months ended June 30, 2024, estimated nuclear PTCs of $408 million and $712 million, respectively, were recognized in Operating revenues. Many state programs require refunds or pass-through of this PTC - Nuclear units are eligible for a transferable **Production Tax Credit (PTC)** up to **$15 per MWh** under the **Inflation Reduction Act (IRA)**, beginning in **2024**[64](index=64&type=chunk) 5. Estimated Nuclear PTCs Recognized in Operating Revenues (Millions USD) | Period | Amount | | :-------------------------- | :----- | | Three Months Ended June 30, 2024 | $408 | | Six Months Ended June 30, 2024 | $712 | - Many state-sponsored programs require refunding or passing through the nuclear **PTC**, leading to **$404 million** of estimated payables as of June 30, **2024**[65](index=65&type=chunk) [6. Accounts Receivable](index=25&type=section&id=6.%20Accounts%20Receivable) Details unbilled customer revenue and the revolving accounts receivable financing arrangement (Facility) with NER, a wholly-owned special purpose entity. The Facility allows for the sale of eligible short-term customer accounts receivable, with the Deferred Purchase Price (DPP) representing the subordinated interest 6. Unbilled Customer Revenues (Millions USD) | Date | Amount | | :-------------------------- | :----- | | June 30, 2024 | $171 | | December 31, 2023 | $372 | - The company has a revolving accounts receivable financing arrangement (Facility) with a maximum funding limit of **$1.1 billion** through **August 2025**[68](index=68&type=chunk) 6. Deferred Purchase Price (DPP) (Millions USD) | Date | Amount | | :-------------------------- | :----- | | June 30, 2024 | $1,553 | | December 31, 2023 | $1,216 | 6. Loss on Sale of Receivables (Millions USD) | Period | 2024 | 2023 | | :-------------------------- | :--- | :--- | | Three Months Ended June 30 | $17 | $26 | | Six Months Ended June 30 | $32 | $46 | [7. Nuclear Decommissioning](index=27&type=section&id=7.%20Nuclear%20Decommissioning) Addresses the legal obligation to decommission nuclear power plants, including the Asset Retirement Obligations (AROs) and Nuclear Decommissioning Trust (NDT) funds. The ARO balance decreased due to updated retirement timing assumptions for Braidwood and Byron plants. The company demonstrated adequate funding assurance for most shutdown units to the NRC 7. Nuclear Decommissioning AROs (Millions USD) | Metric | Amount | | :-------------------------- | :----- | | Balance as of December 31, 2023 | $13,891 | | Net decrease due to changes in, and timing of, estimated future cash flows | $(909) | | Balance as of June 30, 2024 | $13,275 | - The net decrease in **AROs** was primarily driven by the change in assumed retirement dates for the Braidwood and Byron plants, commensurate with an update to estimated useful lives[75](index=75&type=chunk) 7. NDT Funds (Millions USD) | Date | Amount | | :-------------------------- | :----- | | June 30, 2024 | $17,015 | | December 31, 2023 | $16,398 | 7. Payables related to Regulatory Agreement Units (Millions USD) | Entity | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | | ComEd | $3,566 | $2,955 | | PECO | $274 | $278 | | CenterPoint | $349 | $338 | | AEP Texas | $121 | $117 | | **Total** | **$4,310** | **$3,688** | - The annual decommissioning funding status report filed with the NRC in March **2024** demonstrated adequate funding assurance for all shutdown units except for Peach Bottom Unit 1[78](index=78&type=chunk) [8. Income Taxes](index=29&type=section&id=8.%20Income%20Taxes) Reconciles the effective income tax rate to the U.S. federal statutory rate, highlighting the impact of state income taxes, NDT fund income/losses, and Production Tax Credits (PTCs). The effective tax rate decreased significantly in 2024 due to the non-taxable nuclear PTC and a state tax benefit 8. Effective Income Tax Rate | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | 16.0% | 29.2% | | Six Months Ended June 30 | 15.8% | 33.5% | - The change in effective tax rate in **2024** is primarily due to the increase in pre-tax book income inclusive of the nuclear **PTC**, which is not taxable, and a state tax benefit due to a change in forecasted apportionment[200](index=200&type=chunk) - Receivables from Exelon under the Tax Matters Agreement were **$137 million** in Other accounts receivable and **$193 million** in Other deferred debits and other assets as of June 30, **2024**[84](index=84&type=chunk) [9. Retirement Benefits](index=30&type=section&id=9.%20Retirement%20Benefits) Presents the components of net periodic benefit (credits) costs for pension and other postretirement employee benefits (OPEB) plans. Service costs remained relatively stable, while non-service components showed a credit for pension benefits and a cost for OPEB 9. Net Periodic Benefit (Credit) Cost (Millions USD) | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $32 | $11 | | Six Months Ended June 30 | $60 | $23 | - The pension benefit and OPEB service costs reflected in the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, **2024**, totaled **$27 million** and **$51 million**, respectively[86](index=86&type=chunk) [10. Derivative Financial Instruments](index=31&type=section&id=10.%20Derivative%20Financial%20Instruments) Details the use of derivative instruments to manage commodity price, interest rate, and foreign exchange risks. All derivatives are recognized at fair value, with specific accounting treatments for NPNS, cash flow hedges, and fair value hedges. The company manages credit risk through netting agreements, credit limits, and collateral requirements - The company uses derivative instruments (swaps, futures, forwards, options) to manage commodity price risk, interest rate risk, and foreign exchange risk[87](index=87&type=chunk)[90](index=90&type=chunk)[99](index=99&type=chunk) 10. Mark-to-Market Derivative Balances (Millions USD) | Metric | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | | Total mark-to-market derivative assets | $10,984 | $11,272 | | Total mark-to-market derivative liabilities | $(11,711) | $(12,564) | 10. Net Pre-Tax Commodity Mark-to-Market Gains (Losses) for Economic Hedges (Millions USD) | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $589 | $(4) | | Six Months Ended June 30 | $778 | $(267) | - Credit exposure for all derivative instruments, net of collateral and instruments subject to master netting agreements, was **$1,219 million** as of June 30, **2024**[103](index=103&type=chunk) - If the company were downgraded below investment grade, an estimated **$1,950 million** in additional collateral would be required as of June 30, **2024**[108](index=108&type=chunk) [11. Debt and Credit Agreements](index=36&type=section&id=11.%20Debt%20and%20Credit%20Agreements) Outlines the company's short-term and long-term debt, including commercial paper and revolving credit facilities. The revolving credit facility was amended in June 2024, increasing commitment to $4.5 billion and extending maturity. Details debt issuances and redemptions, and confirms compliance with all debt covenants - The existing **$3.5 billion revolving credit facility (RCF)** was amended in June **2024**, increasing the available aggregate commitment to **$4.5 billion** and extending the maturity date from January **2027** to June **2029**[110](index=110&type=chunk) 11. Aggregate Bank Commitments and Available Capacity (Millions USD) | Metric | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | | Aggregate Bank Commitment | $7,458 | $6,108 | | Available Capacity | $4,740 | $3,166 | - Issued **$900 million** in Green Senior Notes (**5.75%** due March **2054**) during the six months ended June 30, **2024**[113](index=113&type=chunk) - As of June 30, **2024**, the company is in compliance with all debt covenants[114](index=114&type=chunk) [12. Fair Value of Financial Assets and Liabilities](index=37&type=section&id=12.%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) Presents the fair value measurements of financial assets and liabilities, categorized into Level 1, 2, and 3 of the GAAP hierarchy. Details the fair values of long-term debt, SNF obligation, NDT fund investments, and mark-to-market derivatives, along with a reconciliation of Level 3 assets and liabilities 12. Long-Term Debt and SNF Obligation Fair Values (Millions USD) | Metric | June 30, 2024 (Carrying Amount) | June 30, 2024 (Fair Value) | December 31, 2023 (Carrying Amount) | December 31, 2023 (Fair Value) | | :-------------------------- | :------------------------------ | :------------------------- | :---------------------------------- | :----------------------------- | | Long-Term Debt | $8,444 | $8,507 | $7,617 | $7,914 | | SNF Obligation | $1,331 | $1,281 | $1,296 | $1,222 | 12. Total Assets Measured at Fair Value (Millions USD) | Date | Amount | | :-------------------------- | :----- | | June 30, 2024 | $20,981 | | December 31, 2023 | $20,284 | 12. Total Liabilities Measured at Fair Value (Millions USD) | Date | Amount | | :-------------------------- | :----- | | June 30, 2024 | $(1,202) | | December 31, 2023 | $(1,120) | - As of June 30, **2024**, NDTs have outstanding commitments to invest in private credit (**$420 million**), private equity (**$190 million**), and real estate investments (**$395 million**)[122](index=122&type=chunk) [13. Commitments and Contingencies](index=43&type=section&id=13.%20Commitments%20and%20Contingencies) Discloses commercial commitments, environmental remediation liabilities, and litigation matters. Commercial commitments include letters of credit and surety bonds. Environmental liabilities are accrued for, and the company is involved in various litigation, including asbestos-related claims, for which reserves are maintained 13. Total Commercial Commitments (Millions USD) | Metric | Total | | :-------------------------- | :----- | | Letters of credit | $2,175 | | Surety bonds | $736 | | **Total commercial commitments** | **$2,911** | 13. Accrued Environmental Liabilities (Millions USD) | Date | Current | Non-current | Total | | :-------------------------- | :------ | :---------- | :---- | | June 30, 2024 | $56 | $161 | $217 | | December 31, 2023 | $61 | $88 | $149 | 13. Estimated Liabilities for Asbestos-Related Bodily Injury Claims (Millions USD) | Date | Amount | | :-------------------------- | :----- | | June 30, 2024 | $129 | | December 31, 2023 | $131 | [14. Shareholders' Equity](index=44&type=section&id=14.%20Shareholders%27%20Equity) Details the share repurchase program, which was increased by $1 billion in April 2024 to a total of $3 billion. The company repurchased 1.2 million shares for $150 million during the six months ended June 30, 2024, including through Accelerated Share Repurchase (ASR) agreements. Also presents changes in Accumulated Other Comprehensive Loss (AOCI) - The Board of Directors approved a **$1 billion** increase to the share repurchase program in April **2024**, authorizing up to **$3 billion** in total repurchases[135](index=135&type=chunk) - During the six months ended June 30, **2024**, the company repurchased **1.2 million shares** of common stock for a total cost of **$150 million**[136](index=136&type=chunk) 14. Accelerated Share Repurchase (ASR) Agreements (Millions USD, except per share data) | ASR Agreement Initiation | Total Cost | Initial Shares Received | ASR Agreement Settlement | Additional Shares Received | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------------- | :--------- | :---------------------- | :----------------------- | :------------------------- | :------------------------------- | :--------------------------- | | March 2024 | $354 | 1.7 | May 2024 | 0.2 | 1.9 | $182.65 | | May 2024 | $505 | 1.8 | July 2024 | 0.6 | 2.4 | $211.40 | 14. Accumulated Other Comprehensive Loss (AOCI), Net (Millions USD) | Date | Amount | | :-------------------------- | :----- | | December 31, 2023 | $(2,191) | | June 30, 2024 | $(2,161) | [15. Variable Interest Entities](index=46&type=section&id=15.%20Variable%20Interest%20Entities) Discusses consolidated and unconsolidated Variable Interest Entities (VIEs). Consolidated VIEs include CRP, Bluestem Wind Energy Holdings, Antelope Valley, and NER, whose assets and liabilities are included in the consolidated financial statements. Unconsolidated VIEs primarily involve energy purchase and sale agreements where the company is not the primary beneficiary 15. Consolidated VIEs' Assets and Liabilities (Millions USD) | Metric | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | | Total assets | $3,882 | $3,532 | | Total liabilities | $992 | $990 | - Consolidated **VIEs** include CRP (wind and solar project entities), Bluestem Wind Energy Holdings (Tax Equity structure), Antelope Valley (solar generating facility), and NER (accounts receivable financing entity)[145](index=145&type=chunk) - Unconsolidated **VIEs** primarily consist of energy purchase and sale agreements where the company is not the primary beneficiary because it does not conduct the operational activities[149](index=149&type=chunk) [16. Supplemental Financial Information](index=49&type=section&id=16.%20Supplemental%20Financial%20Information) Provides additional details on operating lease income, taxes other than income taxes, and components of 'Other, net' in the statements of operations. Also reconciles cash, restricted cash, and cash equivalents, and provides supplemental balance sheet information on accounts payable and accrued expenses 16. Operating Lease Income (Millions USD) | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $13 | $13 | | Six Months Ended June 30 | $17 | $17 | 16. Total Decommissioning-Related Activities (within Other, net) (Millions USD) | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $51 | $155 | | Six Months Ended June 30 | $347 | $435 | 16. Total Cash, Restricted Cash, and Cash Equivalents (Millions USD) | Date | CEG Parent | Constellation | | :-------------------------- | :--------- | :------------ | | June 30, 2024 | $383 | $372 | | December 31, 2023 | $454 | $440 | | June 30, 2023 | $325 | $317 | - Accounts payable and accrued expenses included **$536 million** (CEG Parent) and **$402 million** (Constellation) for compensation-related accruals, and **$201 million** (CEG Parent) and **$183 million** (Constellation) for taxes accrued as of June 30, **2024**[160](index=160&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=52&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial performance, condition, and results of operations for the quarter ended June 30, 2024. It covers an executive overview, significant transactions, key business drivers, critical accounting policies, detailed financial results, and liquidity and capital resources [Executive Overview](index=52&type=section&id=Executive%20Overview) Constellation is a clean energy supplier with diverse generation capacity (nuclear, wind, solar, natural gas, hydroelectric) and integrated business operations selling electricity, natural gas, and sustainable solutions across five reportable segments - Constellation is a supplier of clean energy, with generating capacity primarily from nuclear, wind, solar, natural gas, and hydroelectric assets[162](index=162&type=chunk) - Through integrated business operations, the company sells electricity, natural gas, and other energy-related products and sustainable solutions to various customers[162](index=162&type=chunk) - The company has **five reportable segments**: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions[162](index=162&type=chunk) [Significant Transactions and Developments](index=52&type=section&id=Significant%20Transactions%20and%20Developments) Highlights the impact of the nuclear Production Tax Credit (PTC) from the IRA, which began in 2024 and is expected to provide significant revenue. Also notes the $1 billion increase to the share repurchase program, bringing the total authorized repurchases to $3 billion - Nuclear units are eligible for a **Production Tax Credit (PTC)** under the **IRA** beginning in **2024**, providing a transferable credit up to **$15 per MWh**[163](index=163&type=chunk) - Estimated nuclear **PTCs** of **$408 million** (three months) and **$712 million** (six months) were included in Operating revenues for the period ended June 30, **2024**[163](index=163&type=chunk) - The Board of Directors approved a **$1 billion** increase to the share repurchase program in April **2024**, authorizing total repurchases of up to **$3 billion**[164](index=164&type=chunk) [Other Key Business Drivers](index=52&type=section&id=Other%20Key%20Business%20Drivers) Discusses the ongoing monitoring of the Russia and Ukraine conflict's impact on nuclear fuel supply, noting the 'Prohibiting Russian Uranium Imports Act' and the company's proactive measures to increase nuclear fuel inventory from diverse suppliers. Also addresses environmental regulations, including EPA's final rule on greenhouse gases and the 'Good Neighbor Rule,' both subject to ongoing evaluation and litigation - Closely monitoring developments of the Russia and Ukraine conflict, including the '**Prohibiting Russian Uranium Imports Act**' that bans Russian uranium imports[165](index=165&type=chunk) - The company has entered into contracts to increase nuclear fuel inventory from diverse suppliers to ensure long-term operation and bridge potential Russian supply disruption into **2029**[165](index=165&type=chunk)[166](index=166&type=chunk) - Evaluating market impacts of EPA's final rule regulating greenhouse gases from power plants under the Clean Air Act and the '**Good Neighbor Rule**,' both subject to ongoing state implementation and litigation[167](index=167&type=chunk)[168](index=168&type=chunk) [Critical Accounting Policies and Estimates](index=53&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) States that critical accounting policies and estimates have not significantly changed from December 31, 2023, with the exception of accounting for government grants and disclosure of government assistance - Critical accounting policies and estimates had not changed significantly from December 31, **2023**[169](index=169&type=chunk) - Exception to unchanged policies is accounting for government grants and disclosure of government assistance[169](index=169&type=chunk) [Financial Results of Operations](index=53&type=section&id=Financial%20Results%20of%20Operations) Presents GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings, along with a reconciliation. It details the variance in net income, operating revenues by segment, sales and supply sources (GWhs), nuclear fleet capacity factor, ZEC prices, CMC prices, capacity prices, and electricity prices, explaining the drivers behind these changes Financial Results of Operations GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings (Millions USD) | Metric | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | GAAP Net Income (Loss) Attributable to Common Shareholders | $814 | $833 | $1,697 | $929 | | Adjusted (non-GAAP) Operating Earnings | $531 | $535 | $1,110 | $791 | - The unfavorable variance in **Net income attributable to common shareholders** for the three months ended June 30, **2024**, was primarily due to lower unrealized gains, unfavorable ZEC and CMC program revenues, higher labor/contracting/materials, increased environmental liabilities, and unfavorable NDT activity, partially offset by favorable mark-to-market activity, market conditions, nuclear **PTCs**, and nuclear outages[178](index=178&type=chunk)[179](index=179&type=chunk) - The favorable variance in **Net income attributable to common shareholders** for the six months ended June 30, **2024**, was primarily due to favorable mark-to-market activity, market conditions, nuclear **PTCs**, and nuclear outages, partially offset by unfavorable ZEC and CMC program revenues, lower unrealized gains, higher labor/contracting/materials, increased environmental liabilities, higher interest expense, and unfavorable NDT activity[180](index=180&type=chunk) Financial Results of Operations Operating Revenues by Segment (Millions USD) | Segment | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | % Change | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :------- | :-------------------------- | :-------------------------- | :------- | | Mid-Atlantic | $1,304 | $1,198 | 8.8% | $2,546 | $2,444 | 4.2% | | Midwest | $1,168 | $1,330 | (12.2)% | $2,262 | $2,361 | (4.2)% | | New York | $514 | $471 | 9.1% | $1,027 | $1,005 | 2.2% | | ERCOT | $357 | $328 | 8.8% | $678 | $497 | 36.4% | | Other Power Regions | $1,184 | $1,111 | 6.6% | $2,808 | $2,903 | (3.3)% | | Total reportable segment electric revenues | $4,527 | $4,438 | 2.0% | $9,321 | $9,210 | 1.2% | | Other | $756 | $797 | (5.1)% | $2,062 | $2,661 | (22.5)% | | Mark-to-market gains (losses) | $192 | $211 | N/A | $254 | $1,140 | N/A | | **Total Operating revenues** | **$5,475** | **$5,446** | **0.5%** | **$11,637** | **$13,011** | **(10.6)%** | Financial Results of Operations Nuclear Fleet Capacity Factor | Period | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | 95.4% | 92.4% | | Six Months Ended June 30 | 94.4% | 92.6% | Financial Results of Operations Average ZEC Reference Prices ($/MWh) | State (Region) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | % Change | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | % Change | | :-------------------------- | :-------------------------- | :-------------------------- | :------- | :-------------------------- | :-------------------------- | :------- | | New Jersey (Mid-Atlantic) | $10.00 | $9.92 | 0.8% | $10.00 | $9.90 | 1.0% | | Illinois (Midwest) | $3.33 | $8.11 | (58.9)% | $1.81 | $10.06 | (82.0)% | | New York (New York) | $18.27 | $18.27 | —% | $18.27 | $19.83 | (7.9)% | Financial Results of Operations Purchased Power and Fuel Expense (Millions USD) | Metric | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | % Change | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | % Change | | :------------------------------------------ | :-------------------------- | :-------------------------- | :------- | :-------------------------- | :-------------------------- | :------- | | Total electric purchased power and fuel | $2,122 | $2,036 | (4.2)% | $4,617 | $4,868 | 5.2% | | Other | $567 | $632 | 10.3% | $1,613 | $2,334 | 30.9% | | Mark-to-market losses (gains) | $(397) | $219 | N/A | $(521) | $1,414 | N/A | | **Total Purchased power and fuel** | **$2,292** | **$2,887** | **20.6%**| **$5,709** | **$8,616** | **33.7%**| - Operating and maintenance expense increased by **$168 million** (three months) and **$223 million** (six months) in **2024**, primarily due to higher labor, contracting, and materials, and an unfavorable increase in environmental liabilities, partially offset by lower nuclear refueling outage costs and separation costs[198](index=198&type=chunk) - Other, net was unfavorable for both the three and six months ended June 30, **2024**, compared to the same periods in **2023**, primarily due to decommissioning-related activities and net realized and unrealized gains (losses) from equity investments[199](index=199&type=chunk) - Effective income tax rates decreased to **16.0%** (three months) and **15.8%** (six months) for **2024**, primarily due to the non-taxable nuclear **PTC** and a state tax benefit from changes in forecasted apportionment[200](index=200&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's liquidity strategy, relying on internally generated cash flows, receivables sales, and external financing. It details NRC minimum funding requirements for nuclear decommissioning, summarizes cash flows from operating, investing, and financing activities, and addresses credit matters, pension funding, and other financial commitments - Liquidity and capital expenditure requirements are met by internally generated cash flows from operations, the sale of certain receivables, and funds from external sources in the capital markets and through bank borrowings[201](index=201&type=chunk) - NRC regulations require licensees of nuclear generating facilities to demonstrate reasonable assurance that sufficient funds will be available for radiological decommissioning[203](index=203&type=chunk) Liquidity and Capital Resources Summary of Change in Cash Flows from Operating Activities (Millions USD) | Metric | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | Change | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----- | | Net cash flows provided by (used in) operating activities | $(1,336) | $(1,126) | $(210) | Liquidity and Capital Resources Summary of Change in Cash Flows from Investing Activities (Millions USD) | Metric | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | Change | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----- | | Net cash flows provided by (used in) investing activities | $2,650 | $171 | $2,479 | Liquidity and Capital Resources Summary of Change in Cash Flows from Financing Activities (Millions USD) | Metric | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | Change | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----- | | Net cash flows provided by (used in) financing activities | $(1,385) | $752 | $(2,137) | - As of June 30, **2024**, the company had access to facilities with aggregate bank commitments of **$7.5 billion** and **$4.7 billion** of available capacity under its credit facilities[212](index=212&type=chunk)[214](index=214&type=chunk) - A loss of **investment grade credit rating** would require approximately **$2.0 billion** in incremental collateral[214](index=214&type=chunk) - Credit ratings from S&P and Moody's are **BBB+** and **Baa1**, respectively, as of June 30, **2024**, with Moody's having raised the issuer credit rating in March **2024**[222](index=222&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=71&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section discusses the company's exposure to market risks, including commodity price risk, credit risk, interest rate risk, and equity price risk, and the strategies employed to manage them. Highlights the nuclear PTC as a tool for managing commodity price risk and details collateral requirements for derivative instruments - The company is exposed to market risks associated with adverse changes in commodity prices, counterparty credit, interest rates, and equity prices, which are managed through risk management policies[223](index=223&type=chunk) - The nuclear **PTC** provided by the **IRA** is an important tool in managing commodity price risk for nuclear units not already receiving state support[226](index=226&type=chunk) - The forecasted market price risk exposure for the entire economic hedge portfolio associated with a **$5/MWh** reduction in energy price results in an immaterial impact to net income (loss) for **2024** and **2025**, largely due to the nuclear **PTC**[228](index=228&type=chunk) ITEM 3. Commodity Mark-to-Market Net Asset/Liability Balance (Millions USD) | Date | Amount | | :-------------------------- | :----- | | December 31, 2023 | $1,108 | | June 30, 2024 | $797 | - Credit risk is managed through enabling agreements allowing payment netting, credit limits, margining thresholds, and collateral requirements for counterparties[101](index=101&type=chunk)[235](index=235&type=chunk) - A hypothetical **25 basis points** increase in interest rates and **10%** decrease in equity prices would have resulted in a **$946 million** reduction in the fair value of NDT trust assets as of June 30, **2024**[242](index=242&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=75&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section states that the principal executive and financial officers evaluated the effectiveness of disclosure controls and procedures as of June 30, 2024, and concluded they were effective. No material changes in internal control over financial reporting occurred during the second quarter of 2024 - The principal executive officer and principal financial officer evaluated the effectiveness of disclosure controls and procedures as of June 30, **2024**, and concluded they were effective[243](index=243&type=chunk)[244](index=244&type=chunk) - No material changes in internal control over financial reporting occurred during the second quarter of **2024**[245](index=245&type=chunk) [PART II. OTHER INFORMATION](index=71&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information not covered in Part I, including legal proceedings, risk factors, unregistered sales of equity securities, mine safety disclosures, other information, and a list of exhibits [ITEM 1. LEGAL PROCEEDINGS](index=76&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 13 — Commitments and Contingencies in Part I for information regarding material lawsuits and regulatory proceedings, stating that the company is involved in various litigation matters in the ordinary course of business - The company is a party to various lawsuits and regulatory proceedings in the ordinary course of business[247](index=247&type=chunk) - Information regarding material lawsuits and proceedings is incorporated by reference from Note 13 — Commitments and Contingencies[247](index=247&type=chunk) [ITEM 1A. RISK FACTORS](index=76&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section states that the company's risk factors as of June 30, 2024, are consistent with those described in its 2023 Form 10-K - As of June 30, **2024**, the company's risk factors were consistent with the risk factors described in its **2023** Form 10-K[248](index=248&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=76&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section provides details on the company's share repurchase program, which was increased to $3 billion in April 2024. During the three months ended June 30, 2024, 2.09 million shares were repurchased, including through ASR agreements, with $991 million remaining authority - The Board of Directors authorized a **$1 billion** increase to the share repurchase program in April **2024**, bringing the total authorized repurchases to **$3 billion**[248](index=248&type=chunk) - During the three months ended June 30, **2024**, **2.09 million shares** were repurchased under the program, including shares delivered from **Accelerated Share Repurchase (ASR)** agreements[249](index=249&type=chunk) - As of June 30, **2024**, there was approximately **$991 million** of remaining authority to repurchase shares[249](index=249&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=76&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section states that the item regarding mine safety disclosures is not applicable to the company - This item is not applicable[250](index=250&type=chunk) [ITEM 5. OTHER INFORMATION](index=76&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section reports that no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended June 30, 2024 - During the three months ended June 30, **2024**, none of the company's directors or executive officers adopted or terminated any Rule 10b5-1 trading plans[251](index=251&type=chunk) [ITEM 6. EXHIBITS](index=77&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including an amended and restated credit agreement, XBRL documents, and certifications from executive officers - Includes an Amended and Restated Credit Agreement dated as of June 14, **2024**, among Constellation, JPMorgan Chase Bank, N.A., and various financial institutions[253](index=253&type=chunk) - Contains Inline XBRL Instance Document and Taxonomy Extension Documents (Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase)[253](index=253&type=chunk) - Certifications pursuant to Rule 13a-14(a) and 15d-14(a) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 United States Code (Sarbanes — Oxley Act of **2002**) are filed by Joseph Dominguez and Daniel L. Eggers for both Constellation Energy Corporation and Constellation Energy Generation, LLC[253](index=253&type=chunk)[254](index=254&type=chunk) [SIGNATURES](index=78&type=section&id=SIGNATURES) This section contains the signatures of the principal executive officer, principal financial officer, and principal accounting officer for both Constellation Energy Corporation and Constellation Energy Generation, LLC, certifying the report as of August 6, 2024 - The report is signed by Joseph Dominguez (President and Chief Executive Officer), Daniel L. Eggers (Executive Vice President and Chief Financial Officer), and Matthew N. Bauer (Senior Vice President and Controller) for Constellation Energy Corporation[256](index=256&type=chunk)[257](index=257&type=chunk) - The report is also signed by Joseph Dominguez (President and Chief Executive Officer), Daniel L. Eggers (Executive Vice President and Chief Financial Officer), and Matthew N. Bauer (Senior Vice President and Controller) for Constellation Energy Generation, LLC[259](index=259&type=chunk) - The signing date for the report is August 6, **2024**[256](index=256&type=chunk)[259](index=259&type=chunk)

Constellation Energy Corporation (CEG) reported second-quarter 2024 earnings of $1.68 per share, which surpassed the Zacks Consensus Estimate of $1.43 by 17.5%. The bottom line also increased 2.4% from the yearago quarter's figure of $1.64. Total Revenues Constellation Energy Corporation Price, Consensus and EPS Surprise Revenues totaled $5.48 billion, up 0.5% from the year-ago quarter's figure of $5.45 billion. Highlights of the Release Total operating expenses were $4.38 billion, down 8.4% from $4.78 bill ...

For all the volatility sweeping through Wall Street in 2024, renewable energy stocks remain a strong long-term bet for investors. The global renewable energy market was valued at $1.1 billion in 2023 and is expected to rally to $2.45 trillion by 2032, representing a compound annual growth rate (CAGR) of 9.47%. With many governments worldwide committing to clean energy initiatives over the coming decades, renewable energy stocks remain an excellent long-term investment strategy to incorporate into portfolios ...

Exhibit 99.1 News Release Contact: Paul Adams Corporate Communications 667-218-7700 Emily Duncan Investor Relations 833-447-2783 CONSTELLATION REPORTS SECOND QUARTER 2024 RESULTS Earnings Release Highlights • GAAP Net Income of $2.58 per share and Adjusted (non-GAAP) Operating Earnings of $1.68 per share for the second quarter of 2024 • Raising full-year 2024 Adjusted (non-GAAP) Operating Earnings guidance range to $7.60-$8.40 per share • Delivering on our commitment to shareholders, repurchased approximate ...

Constellation Energy Corporation (CEG) is going to report its second-quarter 2024 results on Aug 6. The Zacks Consensus Estimate for CEG's second-quarter revenues is pegged at $5.30 billion, indicating a 2.67% decline from the year-ago reported figure. The consensus estimate for earnings is pegged at $1.43 per share. The Zacks Consensus Estimate for CEG's second-quarter earnings has declined 23.9% in the past 60 days. The estimate suggests a year-over-year decline of 44.1%. | --- | --- | --- | --- | --- | | ...

Constellation Energy Corporation (CEG) shares soared 12.5% in the last trading session to close at $189.80. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.2% loss over the past four weeks. Constellation Energy is the largest owner of nuclear plants in the US and produces clean electricity for its customers. It expects to invest nearly $5.1 billion during 2024-2025 period to strengthen its infrastructure and purchase of nuclea ...

Group 1 - Nuclear energy stocks experienced a significant surge after the largest electrical grid operator in the U.S. reported a ninefold increase in power market auction prices year-over-year [1][2] - PJM Interconnection announced that the 2025-2026 prices for power plants reached $262.92 per megawatt-day, compared to $28.92 a year ago, with over 20% of the energy mix expected to come from nuclear energy [2][3] - Constellation Energy's shares rose more than 12%, while Vistra's shares increased nearly 15% following the announcement, with Constellation's shares up over 62% year-to-date and Vistra's shares having doubled [3] Group 2 - The increase in electricity prices is attributed to the retirement of power plants and a surge in electricity demand, particularly driven by data centers supporting artificial intelligence [4] - Advanced Micro Devices reported that its data center revenue more than doubled to a quarterly record high, reflecting the rising demand for chips to power AI-supporting data centers [4] - The International Energy Agency projected that electricity consumption from data centers, AI, and the cryptocurrency sector could double by 2026 [5]