10-QPeriod: Q1 FY2023

EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 3, 2023For Securities:EXC

Summary

Exelon Corporation reported solid financial results for the first quarter of 2023, with a significant increase in net income attributable to common shareholders from continuing operations, rising to $669 million ($0.67 per diluted share) from $481 million ($0.49 per diluted share) in the same period last year. This growth was driven by higher electric distribution formula rate earnings at ComEd, benefiting from increased allowed ROE due to rising U.S. Treasury rates and higher rate base, as well as favorable rate impacts at PECO, BGE, and PHI. The company also benefited from lower corporate support service costs previously allocated to Constellation and carrying costs related to ComEd's Carbon Mitigation Credit (CMC) regulatory assets. Despite these positives, results were partially offset by unfavorable weather impacting PECO and PHI, higher interest expenses, increased environmental liabilities at Pepco, and higher depreciation and credit loss expenses at PECO. Operationally, the company continues to focus on infrastructure investment, with projected capital expenditures for 2023 estimated at $7.175 billion across its utility operations. Exelon is actively pursuing funding opportunities under the Infrastructure Investment and Jobs Act, having submitted multiple applications for smart grid and grid resilience grants, totaling nearly $700 million. The company's liquidity remains strong, supported by operating cash flows and access to credit facilities, with no outstanding amounts on its main revolving credit facilities as of March 31, 2023. Exelon also maintained its quarterly dividend at $0.36 per share.

Financial Highlights

46 data points
Beta

Revenue

$5.56B

Net Income

$669.00M

12.0% Net Margin

EPS (Diluted)

$0.67

Total Assets

$96.92B

Cash & Equivalents

$522.00M

Free Cash Flow

-$1.40B

Financial Statements
Beta
Revenue$5.56B
Operating Expenses$4.46B
Operating Income$1.11B
Net Income$669.00M
EPS (Basic)$0.67
EPS (Diluted)$0.67
Shares Outstanding (Basic)995.00M
Shares Outstanding (Diluted)996.00M

Key Highlights

  • 1Net income from continuing operations increased by 39% to $669 million ($0.67/share) from $481 million ($0.49/share) year-over-year.
  • 2ComEd's electric distribution formula rate earnings improved due to higher allowed ROE and rate base, while PECO, BGE, and PHI saw benefits from rate increases.
  • 3Capital expenditures for 2023 are projected at $7.175 billion across Exelon's utility operations.
  • 4Exelon is actively seeking nearly $700 million in federal funding through applications for the Infrastructure Investment and Jobs Act.
  • 5The company maintained strong liquidity with no outstanding amounts on its revolving credit facilities as of March 31, 2023.
  • 6The quarterly dividend remained stable at $0.36 per share.

Frequently Asked Questions

The primary drivers for the increase in net income were higher electric distribution formula rate earnings at ComEd, benefiting from higher allowed ROE due to rising U.S. Treasury rates and an increased rate base. Favorable impacts from rate increases at PECO, BGE, and PHI, along with lower corporate support service costs previously allocated to Constellation, also contributed positively.

Exelon has projected capital expenditures of $7.175 billion for 2023 across its utility operations, focusing on transmission, distribution, and gas infrastructure. The company is actively pursuing federal funding opportunities through the Infrastructure Investment and Jobs Act, having submitted multiple applications for smart grid and grid resilience grants.

Exelon maintains a strong liquidity position, supported by internally generated cash flows from operations and access to capital markets. As of March 31, 2023, the company had no outstanding amounts on its main revolving credit facilities and significant capacity available under its commercial paper programs and credit facilities.

Exelon is involved in ongoing regulatory proceedings, including base rate case filings and transmission formula rate updates across its operating subsidiaries. The company is also subject to certain legal matters, including an ongoing SEC investigation related to ComEd's past lobbying activities, though no loss contingency has been reflected as it's not probable or reasonably estimable at this time. The company continues to monitor these matters closely.

Exelon's Board of Directors declared a quarterly dividend of $0.36 per share for the first quarter of 2023, maintaining the same rate as the previous quarter. This indicates a commitment to returning value to shareholders.