What is the main reason Exelon is looking to sell its investment in Sithe Energies?

Exelon is looking to sell its Sithe Energies investment to resolve ownership limitations of Sithe's qualifying facilities and to exit a financially burdensome investment. The sale would also allow Exelon to avoid consolidating approximately $1.3 billion in Sithe's debt and financial results.

What are the expected financial implications of selling Sithe Energies?

Exelon anticipates recognizing a one-time loss from the sale, but expects to receive several hundred million dollars in cash. This move is also intended to remove $1.3 billion in debt from its consolidated financial statements.

Has Exelon provided any updates on its overall financial performance for 2003?

Yes, Exelon indicated that its earnings for the first quarter of 2003 would be higher than analysts expected. The company also affirmed its full-year 2003 operating earnings per share guidance range of $4.80 to $5.00, assuming normal weather and excluding one-time items.

What is the status of the AmerGen acquisition talks?

Exelon and British Energy have discussed Exelon acquiring British Energy's interest in AmerGen, but have not reached an agreement on price. British Energy is seeking over $300 million, while Exelon's offer is in the range of $200 million.

EXC 8-K SEC Disclosure — Mar 14, 2003

Summary

This 8-K filing provides an update on Exelon Corporation's (EXC) strategic initiatives and financial outlook, primarily stemming from comments made by CEO John W. Rowe at an investor conference. A key development is Exelon's active pursuit of selling its investment in Sithe Energies, Inc. This sale, if successful, is expected to result in a one-time loss but would yield several hundred million dollars in cash and relieve Exelon from consolidating Sithe's substantial debt ($1.3 billion) and financial results. Furthermore, Exelon affirmed its 2003 operating earnings per share guidance of $4.80-$5.00, while also indicating that first-quarter 2003 earnings would exceed analyst expectations. The company also provided an update on its negotiations with British Energy regarding the potential acquisition of its stake in AmerGen, noting that the parties have been unable to agree on a purchase price, with Exelon valuing the stake significantly lower than British Energy's asking price.

Key Highlights

1Exelon is actively seeking to sell its investment in Sithe Energies.
2A sale of Sithe is anticipated to generate several hundred million dollars in cash.
3Exelon will avoid consolidating approximately $1.3 billion in Sithe-related debt if the sale is completed.
4Exelon expects to recognize a one-time loss upon the sale of its Sithe investment.
5First-quarter 2003 earnings are expected to be higher than analyst consensus.
6Exelon reaffirms its 2003 operating earnings per share guidance of $4.80-$5.00.
7Discussions with British Energy regarding the sale of its AmerGen interest have stalled due to price disagreements.

EXELON CORP 8-K Report (Mar 14, 2003)

Summary

Key Highlights

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