Summary
Exelon Corporation's (EXC) 2016 10-K filing highlights a significant year marked by the completion of the Pepco Holdings Inc. (PHI) merger, which expanded its regulated utility customer base to over 10 million. Financially, the company reported a net income attributable to common shareholders of $1,134 million, a decrease from $2,269 million in 2015, primarily impacted by merger-related costs and early nuclear plant retirement decisions which were later reversed for some facilities due to new state legislation. Exelon's generation segment faced challenging competitive energy markets with depressed prices, impacting its results, while its regulated utilities benefited from increased capital investments in infrastructure and modernization programs, such as smart meter deployments. The company maintains a strategy focused on stable earnings from its regulated utilities, free cash flow generation from its competitive businesses to fund investments and debt reduction, and financial discipline to maintain investment-grade credit metrics.
Financial Highlights
53 data points| Revenue | $31.37B |
| Operating Expenses | $28.11B |
| Operating Income | $3.21B |
| Interest Expense | $1.50B |
| Net Income | $1.12B |
| EPS (Basic) | $1.21 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 924.00M |
| Shares Outstanding (Diluted) | 927.00M |
Key Highlights
- 1Completed the acquisition of Pepco Holdings Inc. (PHI), expanding regulated utility operations to over 10 million customers.
- 2Reported net income attributable to common shareholders of $1,134 million, impacted by merger-related costs and the financial performance of the generation segment in competitive energy markets.
- 3Generation segment faced challenging market conditions with depressed prices, while regulated utilities benefited from increased capital investments in infrastructure and modernization.
- 4Reversed initial decisions to early retire Clinton and Quad Cities nuclear plants due to the passage of Illinois' Future Energy Jobs Act, which provides Zero Emissions Credits (ZECs).
- 5Continued focus on financial discipline, aiming to maintain investment-grade credit metrics and return value to shareholders through dividends and stable earnings growth.
- 6Company-wide cost management program targeting approximately $350 million in operating and maintenance expense reductions.