What is Exelon's primary strategy for managing commodity price risk?

Exelon manages commodity price risk through a combination of hedging activities using derivative and non-derivative contracts, such as forwards, futures, and swaps. The company aims to mitigate exposure to fluctuations in commodity prices by hedging its expected generation.

What is Exelon's exposure to counterparty credit risk?

Exelon is exposed to credit risk from counterparties engaging in derivative instruments. As of June 30, 2015, Exelon Generation reported a net credit exposure of $2,196 million, with the majority ($1,619 million) from investment-grade counterparties, and $444 million of this exposure was to counterparties representing more than 10% of the net exposure.

How does Exelon manage credit risk related to its derivative contracts?

Exelon manages credit risk through collateral arrangements with its counterparties. This includes the posting and holding of cash collateral and letters of credit to mitigate potential losses arising from a counterparty's non-performance.

What is the status of Exelon's hedging levels for future electricity generation?

As of June 30, 2015, Exelon Generation reported that 98%-101% of its expected generation was hedged for 2015, 77%-80% for 2016, and 46%-49% for 2017. This indicates a high level of price certainty for near-term generation.

EXC 10-Q Quarterly Report Q2 FY2015 — Revenue, Net Income, EPS

Summary

This filing focuses on Exelon Corporation's (EXC) market risk disclosures as of June 30, 2015, providing an update to its 2014 10-K. The company is exposed to various market risks, including commodity prices, interest rates, equity prices, and counterparty credit. Exelon's Risk Management Committee (RMC) oversees these risks. A significant portion of Exelon Generation's expected electricity output is hedged, with 98%-101% for 2015, 77%-80% for 2016, and 46%-49% for 2017. The company employs derivative and non-derivative contracts to manage commodity price risk, with a stated aim of mitigating exposure to market fluctuations. The filing also details credit risk exposures, particularly for Generation, with significant net exposure to investment-grade counterparties. Collateral management is a key aspect of mitigating these risks, with specific details provided on cash collateral posted and held. The company has largely maintained its risk factor disclosures from the prior year, and internal controls over financial reporting were deemed effective as of June 30, 2015, with the exception of the recently acquired Integrys business.

Financial Highlights

51 data points

Beta

Revenue

$6.51B

Net Income

$638.00M

0.1% Net Margin

EPS (Diluted)

$0.74

Total Assets

$92.21B

Cash & Equivalents

$6.01B

Free Cash Flow

$803.00M

Financial Statements

Beta

Revenue	$6.51B
Operating Expenses	$5.39B
Operating Income	$1.13B
Interest Expense	$145.00M
Net Income	$638.00M
EPS (Basic)	$0.74
EPS (Diluted)	$0.74
Shares Outstanding (Basic)	863.00M
Shares Outstanding (Diluted)	866.00M

Key Highlights

1Exelon Generation has a substantial portion of its future electricity output hedged, providing a degree of price certainty for 2015 and 2016.
2The company actively uses derivative and non-derivative financial instruments to manage commodity price risk.
3Exelon Generation faces credit risk from counterparties, with significant exposure to investment-grade entities.
4Collateral management is a critical component of mitigating counterparty credit risk.
5The company's risk factor disclosures remain consistent with those in its 2014 Annual Report.
6Disclosure controls and procedures were deemed effective as of June 30, 2015, excluding the Integrys acquisition for the period.

EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2015

Summary

Financial Highlights

Key Highlights

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