10-QPeriod: Q1 FY2009

EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2009

Filed April 24, 2009For Securities:EXC

Summary

Exelon Corporation reported a strong first quarter in 2009, with net income rising to $712 million from $581 million in the same period of 2008, and diluted earnings per share increasing to $1.08 from $0.88. This improvement was driven primarily by higher energy gross margins at the Generation segment due to increased nuclear output and favorable market conditions, along with net mark-to-market gains on hedging activities. Regulatory rate increases at ComEd and PECO also contributed to the improved results. Despite the challenging economic environment and concerns about liquidity in capital markets, Exelon's overall financial position appears stable, supported by healthy cash flows from operations and significant available credit facilities. Management is actively managing operational costs and exploring strategic opportunities, including the ongoing acquisition proposal for NRG.

Financial Highlights

25 data points
Beta

Revenue

$4.72B

Net Income

$712.00M

15.1% Net Margin

EPS (Diluted)

$1.08

Cash & Equivalents

$2.15B

Free Cash Flow

$1.24B

Financial Statements
Beta
Revenue$4.72B
Operating Expenses$3.47B
Operating Income$1.25B
Interest Expense$163.00M
Net Income$712.00M
EPS (Basic)$1.08
EPS (Diluted)$1.08
Shares Outstanding (Basic)659.00M
Shares Outstanding (Diluted)661.00M

Key Highlights

  • 1Net income increased by 22.5% to $712 million for the three months ended March 31, 2009, compared to $581 million in the prior year period.
  • 2Diluted earnings per share rose to $1.08 from $0.88, a 22.7% increase.
  • 3Generation segment's performance improved significantly due to higher nuclear output and favorable market conditions.
  • 4ComEd and PECO benefited from increased distribution revenues due to recent rate case orders.
  • 5The company secured a 20-year license renewal for its Oyster Creek Generating Station.
  • 6Despite a challenging economic environment, Exelon maintained sufficient liquidity with $6.9 billion available on its credit facilities.
  • 7Exelon is actively pursuing the acquisition of NRG Energy, with an extended offer deadline of June 26, 2009.

Frequently Asked Questions

The increase in net income was primarily driven by higher energy gross margins at the Generation segment, resulting from increased nuclear output and favorable market conditions. Additionally, net mark-to-market gains on economic hedging activities, increased distribution revenue at ComEd and PECO from recent rate case orders, and benefits from an Illinois Supreme Court decision on investment tax credits contributed to the improved results.

Exelon submitted a proposal to acquire NRG Energy and has extended its exchange offer until June 26, 2009. The offer has secured over 51% of NRG's outstanding shares as of February 25, 2009. Exelon is focused on obtaining regulatory approvals from various federal and state agencies for the transaction.

Exelon is actively managing its operations and finances in response to the economic challenges. This includes performing assessments of market developments, reviewing liquidity in capital and credit markets, monitoring counterparty creditworthiness, and evaluating the value of its investments. The company is also implementing cost management initiatives and exploring opportunities aligned with the American Recovery and Reinvestment Act of 2009.

Exelon believes it has sufficient liquidity, with approximately $6.9 billion in available credit facilities as of March 31, 2009. While credit spreads remain wider than the prior year, commercial paper borrowing costs have stabilized. The company routinely monitors its liquidity position and has plans to extend or replace certain maturing letters of credit. However, management anticipates potential increases in borrowing costs upon renewal of credit facilities in the future.