Constellation Energy Corporation (NASDAQ:CEG) Q3 2023 Earnings Call Transcript November 6, 2023 10:00 AM ET Company Participants Emily Duncan - SVP, IR Joe Dominguez - President and CEO Dan Eggers - CFO Conference Call Participants David Arcaro - Morgan Stanley Steve Fleishman - Wolfe Research Shar Pourreza - Guggenheim Partners Julien Dumoulin-Smith - Bank of America Durgesh Chopra - Evercore ISI Operator Good day, ladies and gentlemen, and welcome to the Constellation Energy Corporation Third Quarter 2023 ...

Reconciliation of Non-GAAP Measures + Nuclear Fuel Amortization - Cash on Balance Sheet + AR Securitization Imputed Debt +/- Other Moody's Debt Adjustments 30 GAAP to Non-GAAP Reconciliations (1) Net Debt/EBITDA = Adjusted EBITDA* (b) Adjusted EBITDA* (d) + Short-Term Debt + Short-Term Debt - Cash on Balance Sheet - Cash on Balance Sheet Net Debt Calculation Net Debt Calculation Excluding Non-Recourse Long-Term Debt (including current maturities) Long-Term Debt (including current maturities) = Net Debt Excl ...

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Constellation Energy Corporation (NASDAQ:CEG) Q2 2023 Earnings Conference Call August 3, 2023 10:00 AM ET Company Participants Emily Duncan - SVP, IR Joe Dominguez - President and CEO Dan Eggers - CFO James McHugh - EVP and CCO Dave Dardis - General Counsel Kathleen Barron - EVP and Chief Strategy Officer Conference Call Participants Steve Fleishman - Wolfe Research Shar Pourreza - Guggenheim Partners David Arcaro - Morgan Stanley Paul Zimbardo - Bank of America Operator Good day, ladies and gentlemen, and ...

Book Excluding Non-Recourse 45% 35% Moody's CFO Pre-WC/ Debt* 2.2x 1.8x S&P FFO / Debt* Net Debt / EBITDA* (2) Share Repurchase Update | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Of our $1 billion share repurchase program authorized in February, we repurchased a total of ~$500 million, or ~6.2 million shares, in the first half of the year | (1) Credit metrics forecast ...

Accounting Implications of the Regulatory Agreement Units | --- | --- | --- | --- | --- | |------------------------------------------------|-------|-----------------------------|-------|-------------------------------| | ComEd | $ | June 30, 2023 \n2,857 | $ | December 31, 2022 \n2,660 | | PECO | | 263 | | 237 | | Payables related to Regulatory Agreement Units | $ | 3,120 | $ | 2,897 | NRC Minimum Funding Requirements NRC regulations require that licensees of nuclear generating facilities demonstrate reason ...

Financial Data and Key Metrics Changes - For Q1 2023, the company reported adjusted EBITDA of $658 million, which is lower than the $866 million reported in Q1 2022 [10][94] - The gross margin forecast for 2023 has increased by $100 million to $8.45 billion, driven by strong performance in the Commercial business and existing hedges [11][32] - The company expects to end 2023 comfortably in the top half of its guidance range and anticipates 2024 to be better than previously reported [5][26] Business Line Data and Key Metrics Changes - The Commercial business has shown strong performance, contributing to better-than-expected earnings and locking in value for the remainder of 2023 and into 2024 [68][72] - The company executed $250 million of new business in Q1 and increased its target by another $50 million, indicating strong demand and execution in the Commercial sector [75] Market Data and Key Metrics Changes - The company operates in a volatile market environment, with the physical generation stack undergoing changes as coal-fired resources are phased out [16][81] - The company serves 25% of the competitive commercial and industrial market in the U.S., including 75% of the Fortune 100, positioning it well to meet growing clean energy demands [89][98] Company Strategy and Development Direction - The company is focused on growth opportunities through uprates, hydrogen, and wind repowering, with $2 billion of unallocated capital available for investments or share buybacks [7][70] - The Inflation Reduction Act (IRA) provides unique opportunities for the company, particularly through the Nuclear Production Tax Credit (PTC), which supports the economic viability of its nuclear assets [6][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial targets for 2023 and 2024, despite challenges such as higher hedge prices and planned refueling outages [10][19] - The company highlighted its strong balance sheet as a competitive advantage, allowing it to provide certainty to customers in a volatile market [30][81] Other Important Information - The company has initiated a $1 billion share repurchase program, completing nearly 25% of it by repurchasing 3.2 million shares for approximately $250 million in March [96] - The company produced over 40 terawatt hours of carbon-free generation from its nuclear plants, achieving a capacity factor of 92.8% [91] Q&A Session Summary Question: What is the outlook for the Commercial results and competitive environment? - Management noted strong performance in the Commercial business, with effective pricing strategies in a volatile market leading to margin expansion [15][18] Question: How does the company view the impact of the Inflation Reduction Act? - Management expressed confidence that the IRA will not be undermined and will continue to support the company's growth initiatives [85][86] Question: What are the plans for capital allocation and potential M&A opportunities? - Management indicated that while they are exploring growth and M&A opportunities, they are also prepared to use unallocated capital for share buybacks if no compelling opportunities arise [53][114]

| --- | --- | --- | |-------|--------------------|--------------------------| | | | | | | | | | | | Earnings Conference Call | | | First Quarter 2023 | | | | | | Cautionary Statements Regarding Forward-Looking Information 2 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. Words such as "could," "may," "expects," "anticipates," "will," "targets," "goals," "projects," "intends," ...

| --- | --- | --- | |-------------------------------------------------------------------------------|-------------------|-------------------------------------------| | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | CONSTELLATION ENERGY CORPORATION: Common Stock, without par value | CEG | The Nasdaq Stock Market LLC | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of ...

Constellation Energy Corp (NASDAQ:CEG) Q4 2022 Earnings Conference Call February 16, 2023 10:00 AM ET Company Participants Emily Duncan - VP, IR Joseph Dominguez - President, CEO & Director Daniel Eggers - EVP & CFO Kathleen Barron - EVP & Chief Strategy Officer Conference Call Participants James Thalacker - BMO Capital Markets Steven Fleishman - Wolfe Research David Arcaro - Morgan Stanley Paul Zimbardo - Bank of America Merrill Lynch Operator Good day, ladies and gentlemen, and welcome to the Constellati ...