01—Abstract
Summary
Summary of the 10-K filed February 11, 2020. Cited figures are marked; the original filing is the authoritative source.
Exelon Corporation's (EXC) 2019 10-K filing reveals a company with diverse operations across energy generation, delivery, and marketing.
The report highlights a robust utility segment providing a stable earnings foundation, complemented by Generation's competitive businesses which generate free cash flow. Exelon's strategy is focused on leveraging its integrated business model to navigate industry changes, emphasizing operational excellence and financial discipline. The company is committed to investing in its regulated utilities for improved reliability and customer experience, while Generation aims to create value through innovative energy solutions and hedging strategies to mitigate market volatility.
02—Key points
Key Highlights
- Exelon operates across energy generation (Exelon Generation Company, LLC) and energy distribution and transmission (ComEd, PECO, BGE, Pepco, DPL, ACE).
- The company is committed to managing costs through ongoing savings initiatives, particularly at Exelon Generation.
- Exelon Generation's diverse generation fleet includes nuclear, fossil fuels, and renewables, with nuclear power being a significant contributor to its total electric supply.
- The utility subsidiaries operate in regulated environments, with rate cases and regulatory approvals playing a crucial role in their financial performance.
- Exelon's financial strategy prioritizes maintaining investment-grade credit metrics, optimal capital structure, and returning value to shareholders through dividends and earnings growth.
- The company is actively involved in various regulatory and legislative matters, including those related to climate change, renewable portfolio standards, and nuclear plant operations, which could impact its future financial statements.
- Exelon Generation is exposed to commodity price risk, managed through a comprehensive hedging strategy.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 11, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $34.44B$35.98B | −4.3% |
| Operating Expenses | $30.10B$32.14B | −6.4% |
| Operating Income | $4.37B$3.89B | +12.4% |
| Interest Expense | $1.59B$1.53B | +4.1% |
| Net Income | $2.94B$2.00B | +46.4% |
| EPS (Basic) | $3.02$2.07 | +45.9% |
| EPS (Diluted) | $3.01$2.07 | +45.4% |
| Shares Outstanding (Basic) | 973.00M967.00M | +0.6% |
| Shares Outstanding (Diluted) | 974.00M969.00M | +0.5% |
05—Questions
Frequently Asked Questions
What are Exelon's main business segments?
Exelon operates through two primary segments: Exelon Generation, which handles energy generation, physical delivery, and marketing of power and energy-related products and services; and its regulated utility businesses (ComEd, PECO, BGE, Pepco, DPL, and ACE), which are involved in energy distribution and transmission.
How does Exelon manage commodity price risk?
Exelon Generation utilizes a combination of derivative and non-derivative financial instruments, including swaps, futures, forwards, and options, to hedge its exposure to commodity price volatility. It aims to hedge a significant portion of its expected generation over a three-year period.
What is Exelon's strategy for future growth and investments?
Exelon's strategy involves investing in its regulated utility infrastructure to improve reliability and customer experience, anticipating approximately $26 billion in capital expenditures over the next four years. Exelon Generation focuses on pursuing opportunities that provide stable revenues and load matching to reduce earnings volatility, exploring strategic investments in emerging technologies and market development.
What are the key regulatory matters affecting Exelon?
Exelon's utility operations are subject to state utility commissions that regulate rates and services. Additionally, Exelon Generation is subject to FERC jurisdiction for wholesale sales and transmission. The company is also impacted by environmental regulations, including those related to air quality, water quality, and global climate change, as well as state-specific programs like Renewable Portfolio Standards and Zero Emission Credit programs.
How does Exelon approach cost management?
Exelon is committed to managing costs, as evidenced by its ongoing cost savings initiatives, particularly at Exelon Generation. These actions aim to enhance efficiency and productivity in response to economic challenges.
06—Continue