EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2023

Summary

Exelon Corporation reported solid financial results for the second quarter and first half of 2023. For the three months ended June 30, 2023, net income attributable to common shareholders from continuing operations was $343 million, or $0.34 per diluted share, compared to $465 million, or $0.47 per diluted share, in the prior year period. This decrease was primarily attributed to higher interest expenses, unfavorable weather impacts at PECO, and increased depreciation at PECO, partially offset by favorable rate increases across several subsidiaries and higher electric distribution formula rate earnings. For the six months ended June 30, 2023, net income attributable to common shareholders from continuing operations increased to $1,012 million, or $1.02 per diluted share, compared to $946 million, or $0.96 per diluted share, in the prior year period. This improvement was driven by rate increases, higher electric distribution formula rate earnings, and lower Business Support Company (BSC) costs impacting continuing operations, with partial offsets from unfavorable weather, higher interest expenses, and increased environmental liabilities. Adjusted (non-GAAP) operating earnings provided a clearer view of ongoing operational performance, showing $0.41 per diluted share for Q2 2023 compared to $0.44 in Q2 2022, and $1.11 per diluted share for the first six months of 2023 compared to $1.08 in the same period last year. These figures exclude certain items such as mark-to-market impacts, environmental liability changes, SEC matter loss contingencies, and separation costs. Capital expenditures for the first six months of 2023 totaled $3.7 billion, largely in line with prior year investments, supporting infrastructure improvements across Exelon's utility operations.

Key Highlights

• 1Total operating revenues increased to $4.818 billion for Q2 2023 from $4.239 billion in Q2 2022, and to $10.380 billion for the first six months of 2023 from $9.566 billion in the prior year period.
• 2Net income attributable to common shareholders from continuing operations decreased to $343 million ($0.34/share) in Q2 2023 from $465 million ($0.47/share) in Q2 2022, but increased year-to-date to $1,012 million ($1.02/share) from $946 million ($0.96/share) in the same period of 2022.
• 3Adjusted (non-GAAP) operating earnings were $408 million ($0.41/share) for Q2 2023, down from $433 million ($0.44/share) in Q2 2022. Year-to-date adjusted operating earnings increased to $1,104 million ($1.11/share) from $1,065 million ($1.08/share) in the prior year period.
• 4Capital expenditures for the six months ended June 30, 2023, were $3.7 billion, an increase from $3.3 billion in the same period of 2022, primarily reflecting ongoing investments in utility infrastructure.
• 5The company actively filed for and received approval for several distribution base rate case proceedings, with significant rate increase requests pending across its service territories, indicating efforts to recover capital investments and earn allowed returns.
• 6Exelon's subsidiaries continue to manage regulatory matters, with various proceedings related to rate cases, transmission formula rates, and legislative impacts like the Climate and Equitable Jobs Act (CEJA) in Illinois.
• 7The company maintained its dividend payout, with quarterly dividends declared at $0.36 per share for the first three quarters of 2023.

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