news/CEG/2023.02.16/Constellation Energy : Q4 2022 Earnings Presentation.txt

        Earnings Conference Call Fourth Quarter 2022
      

        February 16, 2023
      




          Cautionary Statements Regarding Forward-Looking Information
        

          This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and
        

          ans and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
        

          The factors that could cause actual results to differ materially from the forward-looking statements made by Constellation Energy Corporation and Constellation Energy 2022 Annual Report on Form 10-K (to be filed on al Condition and Results of Operations, (c) Part
        

          II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies, and (d) other factors discussed in filings with the SEC by the Registrants.
        

          Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this presentation. Neither of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this presentation.
        



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          Non-GAAP Financial Measures
        

          The Registrants report their financial results in accordance with accounting principles generally accepted in the United States (GAAP). Constellation supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including:
        


Adjusted EBITDA represents earnings before interest, income taxes, depreciation and amortization, and excludes certain costs, expenses, gains and losses and other specified items, including mark-to-market adjustments from economic hedging activities and fair value adjustments related to gas imbalances and equity investments, decommissioning related activity, asset impairments, certain amounts associated with plant retirements and divestitures, pension and other post-employment benefits (OPEB) non-service credits, separation related costs and other items as set forth in the Appendix. Includes nuclear fuel amortization expense.
          

Adjusted cash flows from operations primarily includes net cash flows from operating activities and Collection of Deferred Purchase Price (DPP) related to the revolving accounts receivable arrangement, which is presented in cash flows from investing activities under GAAP
          

Free cash flows before growth (FCFbg) is adjusted cash flows from operations less capital expenditures under GAAP for maintenance and nuclear fuel, non-recurring capital expenditures related to separation and Enterprise Resource Program (ERP) system implementation, changes in collateral, net merger and acquisitions, and equity investments and other items as set forth in the Appendix
          

Adjusted operating revenues excludes the mark-to-market impact of economic hedging activities due to the volatility and unpredictability of the future changes in commodity prices
          

Adjusted purchased power and fuel excludes the mark-to-market impact of economic hedging activities and fair value adjustments related to gas imbalances due to the volatility and unpredictability of the future changes in commodity prices
          

Total gross margin is defined as adjusted operating revenues less adjusted purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, JExel Nuclear JV, variable interest entities, and net of direct cost of sales for certain end-user businesses
          

Adjusted operating and maintenance (O&M) excludes direct cost of sales for certain end-user businesses, ARO accretion expense from unregulated units and decommissioning costs that do not affect profit and loss, the impact from operating and maintenance expense related to variable interest entities at Constellation, and other items as set forth in the reconciliation in the Appendix
          


          Due to the forward-looking nature of some forecasted non-GAAP measures, information to reconcile the forecasted adjusted (non-GAAP) measures to the most directly comparable GAAP measure may not be available, as management is unable to project all of these items for future periods.
        



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          Non-GAAP Financial Measures Continued
        

          de
        

          operating performance by excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this information is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting of future periods.
        




                These non-
              



                tations. Constellation has provided
              




          these non-GAAP financial measures as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These non-GAAP measures should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP measures provided in the materials presented.
        

          Non---GAAP measures to the most comparable GAAP measures are provided in the appendices and attachments to this presentation, except for the reconciliation for total gross margin*, which appears on slide 36 of this presentation.




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          Delivered on Our Commitments in 2022
        

          Enduring Businesses Ready to Meet the Climate Crisis
        

          Generated ~180 TWhs of clean energy, avoiding ~127 million metric tons of carbon dioxide;
        

          equivalent to over 27.5M passenger vehicles being removed for one year
        





Nuclear capacity factor of 94.8%


98.4% power dispatch match


95.8% wind and solar energy capture


Partnered with Microsoft to develop an hourly carbon-free energy matching technology that will allow our customers to have a transparent and independent way to certify that they are meeting their clean energy goals
            





Secured nuclear fuel supply through 2028


Pilot program to begin hydrogen production at Nine Mile Point


Hydrogen hubs being encouraged by DOE


Executed two largest CORe deals ever


Ranked overall #1 Retail Energy Supplier in






          Premier ESG Company
        





Introduced industry-leading climate goals
            

Issued carbon emissions reports to customers


Published first sustainability report


Launched $1M workforce development program






Created first DEI Advisory Board


Donated more than $12.5M to charitable causes, including $4.6M from employee contributions


80,000 hours of employee volunteerism






          Delivering Value for Our Shareholders
        





Earned Adjusted EBITDA* of $2,667M, above our revised guidance range


Paid down $2.5B in long-term debt and term loans, and generated strong FCF to support investment grade balance sheet
            





S&P upgraded to BBB


Paid $185M in dividends






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Constellation Energy Corporation published this content on 16 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2023 12:08:04 UTC.