EX-99.1 2 ceg-20230803991.htm EX-99.1 Document


Exhibit 99.1
News Release
constellationlogo.jpg
Contact:  Paul Adams
Corporate Communications
410-470-9700

Emily Duncan
Investor Relations
833-447-2783
CONSTELLATION REPORTS SECOND QUARTER 2023 RESULTS
Earnings Release Highlights
•GAAP Net Income of $833 million and Adjusted EBITDA (non-GAAP) of $1,031 million for the second quarter of 2023
•Raising guidance range for full year 2023 Adjusted EBITDA (non-GAAP) to $3,300 million to $3,700 million
•Delivering on our commitment to shareholders – announced acquisition of NRG’s 44% stake in South Texas Project Electric Generating Station (STP); commenced project to repower our Criterion wind facility; and repurchased over $250 million of shares in the second quarter, now having completed half of our $1.0 billion share repurchase program
•Moody’s raised outlook on credit ratings from stable to positive, reflecting continued strength in the balance sheet
•Reached landmark agreement with Microsoft that will allow Microsoft to track power usage using Constellation’s hourly carbon-free energy (CFE) matching platform
•Exhibiting role as a leader in the clean energy transition by setting an industry record for blending hydrogen with natural gas at our Hillabee Generating Station

Baltimore (Aug. 3, 2023) — Constellation Energy Corporation (Nasdaq: CEG) today reported its financial results for the second quarter of 2023.

“Constellation continues to deliver strong operational and financial performance across the business, while giving customers the visibility and certainty they need to manage energy costs during a time of market volatility and creating value for our shareholders,” said Joe Dominguez, president and CEO, Constellation. “During a summer of record-setting heat, our nuclear fleet continues to deliver clean, reliable and affordable electricity to the communities we serve in every hour of every day of the year, making it an essential tool in meeting our customers’ carbon reduction goals. In a first for our industry, we recently signed a landmark agreement with Microsoft to provide one of its data centers with environmental attributes from nuclear energy as part of a strategy to power its operations with clean energy around the clock, demonstrating the unique value of nuclear as a sustainable climate solution.”

1

“We earned in excess of $1 billion in adjusted EBITDA in the second quarter, marking a significant increase year-over-year,” said Dan Eggers, executive vice president and chief financial officer. “Our commercial team continues to capture significant value in the market through higher customer margins, successful load auction wins and by optimizing across our load-serving and generation positions. Our strong investment-grade balance sheet remains a critical competitive advantage, allowing us to create additional value where others cannot. As a result of this strong performance, we are raising our adjusted EBITDA guidance range to $3.3 billion to $3.7 billion from $2.9 billion to $3.3 billion, which raises the midpoint by $400 million.”
Second Quarter 2023
Our GAAP Net Income for the second quarter of 2023 increased to $833 million from ($111) million GAAP Net Loss in the second quarter of 2022. Adjusted EBITDA (non-GAAP) for the second quarter of 2023 increased to $1,031 million from $603 million in the second quarter of 2022. For the reconciliations of GAAP Net Income (Loss) to Adjusted EBITDA (non-GAAP), refer to the tables beginning on page 3.
Adjusted EBITDA (non-GAAP) in the second quarter of 2023 primarily reflects:
•Favorable market and portfolio conditions and ZEC revenue; partially offset by unfavorable labor, contracting, and materials, unfavorable nuclear outage impacts and decreased capacity revenues.
Recent Developments and Second Quarter Highlights
•Delivering on Our Capital Allocation Promises: In alignment with our capital and strategic plan we have agreed to acquire NRG Energy Inc.’s 44% ownership stake in the South Texas Project Nuclear Generating Station, a 2,645-megawatt, dual-unit nuclear plant located about 90 miles southwest of Houston, for $1.75 billion. We expect to issue approximately $500 million of incremental debt to finance the transaction, with the remainder of the purchase price being funded by existing cash and previously planned debt issuances. This acquisition is complementary to and aligned strategically with our existing clean energy business operations. Absent any delays, we expect to close within 2023.

We have commenced a project to repower our Criterion wind facility in Oakland, Md. The repower will increase the efficiency and output of the facility, resulting in the delivery of more carbon-free electricity to the region for many years to come. The project is part of our previously announced $350 million effort to increase the output and lifespan of our renewable energy portfolio.

We’ve also continued our share repurchase program, repurchasing nearly 3 million shares for a total of $252 million in the second quarter 2023. To date, we have successfully repurchased approximately 6.2 million shares for a combined $503 million.

•Moody’s credit ratings raised to positive outlook: On May 10, 2023, Moody’s Investor Service reaffirmed our senior unsecured issuer ratings (Baa2) and short-term rating (Prime-2) while raising the outlook from stable to positive. Moody’s cites the expected improvement of our credit metrics, revenue stability provided by the nuclear production tax credit, and our commitment to managing debt levels as rationale for putting the ratings on positive outlook.

•Hourly Carbon-Free Energy Matching Agreement: We’ve entered into an agreement with Microsoft to significantly reduce the carbon footprint of one of its data centers in Boydton, Virginia. Under the agreement, the facility will receive up to 35 percent in environmental attributes from nuclear power, complementing the company’s new wind and solar purchases. This agreement puts Microsoft very close to its goal of operating the data center on 100 percent carbon-free
2

electricity around the clock, further proof that hourly, regional matching of clean energy to demand is both practical and feasible today with suitable infrastructure and energy innovation.

•Industry Record for Hydrogen Blending: We have set an industry record for blending high concentrations of hydrogen with natural gas, further proof that hydrogen can be an effective tool to lower greenhouse gas emissions. Working with Siemens Energy and the Electric Power Research Institute, the hydrogen blending test was conducted in May 2023 at our Hillabee Generating Station, a 753-megawatt combined-cycle natural gas plant in central Alabama that began operating in 2010. The test showed that with only minor modifications, an existing natural gas plant of that age can safely operate on a blend of 38.8 percent hydrogen, nearly doubling the previous blending record for similar generators. The testing results at Hillabee demonstrate that hydrogen produced with clean energy can be an effective tool to help achieve the nation’s climate goals.

•Nuclear Operations: Our nuclear fleet, including our owned output from the Salem Generating Station, produced 41,895 gigawatt-hours (GWhs) in the second quarter of 2023, compared with 42,522 GWhs in the second quarter of 2022. Excluding Salem, our nuclear plants at ownership achieved a 92.4% capacity factor for the second quarter of 2023, compared with 94.2% for the second quarter of 2022. There were 94 planned refueling outage days in the second quarter of 2023 and 66 in the second quarter of 2022. There were 25 non-refueling outage days in the second quarter of 2023 and 15 in the second quarter of 2022.

•Natural Gas, Oil, and Renewables Operations: The dispatch match rate for our fleet was 99.1% in the second quarter of 2023, compared with 99.6% in the second quarter of 2022. Renewable energy capture for our fleet was 96.1% in the second quarter of 2023, compared with 96.3%1 in the second quarter of 2022.
GAAP/Adjusted EBITDA (non-GAAP) Reconciliation
Adjusted EBITDA (non-GAAP) for the second quarter of 2023 and 2022, respectively, does not include the following items that were included in our reported GAAP Net Income (Loss):
(in millions)Three Months Ended June 30, 2023Three Months Ended June 30, 2022
GAAP Net Income (Loss) Attributable to Common Shareholders$833 $(111)
Income Taxes342 (270)
Depreciation and Amortization274 277 
Interest Expense, Net103 56 
Unrealized Gain on Fair Value Adjustments(426)(24)
Plant Retirements and Divestitures— (8)
Decommissioning-Related Activities(116)684 
Pension & OPEB Non-Service Costs(14)(33)
Separation Costs36 31 
ERP System Implementation Costs10 5 
Change in Environmental Liabilities1 8 
Noncontrolling Interests(12)(12)
Adjusted EBITDA (non-GAAP)$1,031 $603 
________
1Prior year energy capture was previously reported as 95.3%. The update reflects a change to include the Conowingo run-of-river hydroelectric operational performance within renewable energy capture, and remove the performance from dispatch match. This update did not result in an impact to the dispatch match
3

Webcast Information
We will discuss second quarter 2023 earnings in a conference call scheduled for today at 10 a.m. Eastern Time. The webcast and associated materials can be accessed at https://investors.constellationenergy.
About Constellation
A Fortune 200 company headquartered in Baltimore, Constellation Energy Corporation (Nasdaq: CEG) is the nation’s largest producer of clean, carbon-free energy and a leading supplier of energy products and services to businesses, homes, community aggregations and public sector customers across the continental United States, including three fourths of Fortune 100 companies. With annual output that is nearly 90% carbon-free, our hydro, wind and solar facilities paired with the nation’s largest nuclear fleet have the generating capacity to power the equivalent of 15 million homes, providing approximately 11% of the nation’s clean energy. We are further accelerating the nation’s transition to a carbon-free future by helping our customers reach their sustainability goals, setting our own ambitious goal of achieving 100% carbon-free generation by 2040, and by investing in promising emerging technologies to eliminate carbon emissions across all sectors of the economy. Follow Constellation on LinkedIn and Twitter.
Non-GAAP Financial Measures
In analyzing and planning for our business, we supplement our use of net income as determined under generally accepted accounting principles in the United States (GAAP), with Adjusted EBITDA (non-GAAP) as a performance measure. Adjusted EBITDA (non-GAAP) reflects an additional way of viewing our business that, when viewed with our GAAP results and the accompanying reconciliation to GAAP net income included above, may provide a more complete understanding of factors and trends affecting our business. Adjusted EBITDA (non-GAAP) should not be relied upon to the exclusion of GAAP financial measures and is, by definition, an incomplete understanding of our business, and must be considered in conjunction with GAAP measures. In addition, Adjusted EBITDA (non-GAAP) is neither a standardized financial measure, nor a presentation defined under GAAP and may not be comparable to other companies’ presentations or deemed more useful than the GAAP information provided elsewhere in this press release and earnings release attachments. We have provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted EBITDA (non-GAAP) should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measure provided in this earnings release and attachments. A reconciliation of projected Adjusted EBITDA, which is a forward-looking non-GAAP financial measure, to the most directly comparable GAAP financial measure, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure. This press release and earnings release attachments provide reconciliations of Adjusted EBITDA (non-GAAP) to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on our website: www.ConstellationEnergy.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on August 3, 2023.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current
4

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 Generation, LLC, (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2022 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) the Registrants' Second Quarter 2023 Quarterly Report on Form 10-Q (to be filed on August 3, 2023) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 13, Commitments and Contingencies; and (3) 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 press release. Neither Registrant undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.
5

Earnings Release Attachments
Table of Contents

Constellation Energy Corporation and Subsidiary Companies
Consolidated Statements of Operations
(unaudited)
(in millions)
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Operating revenues$5,446 $13,011 
Operating expenses
Purchased power and fuel2,887 8,616 
Operating and maintenance1,477 2,908 
Depreciation and amortization274 542 
Taxes other than income taxes139 271 
Total operating expenses4,777 12,337 
Gain on sales of assets and businesses— 26 
Operating income669 700 
Other income and (deductions)
Interest expense, net(103)(210)
Other, net605 919 
Total other income and (deductions)502 709 
Income before income taxes1,171 1,409 
Income taxes342 472 
Equity in losses of unconsolidated affiliates(5)(11)
Net income824 926 
Net (loss) attributable to noncontrolling interests(9)(3)
Net income attributable to common shareholders$833 $929 
Three Months Ended June 30, 2022Six Months Ended June 30, 2022
Operating revenues$5,465 $11,056 
Operating expenses
Purchased power and fuel3,508 7,059 
Operating and maintenance1,273 2,477 
Depreciation and amortization277 557 
Taxes other than income taxes133 268 
Total operating expenses5,191 10,361 
(Loss) gain on sales of assets and businesses(2)13 
Operating income272 708 
Other income and (deductions)
Interest expense, net(56)(112)
Other, net(654)(973)
Total other income and (deductions)(710)(1,085)
Loss before income taxes(438)(377)
Income taxes(328)(381)
Equity in losses of unconsolidated affiliates(3)(6)
Net loss(113)(2)
Net (loss) income attributable to noncontrolling interests(2)3 
Net loss attributable to common shareholders$(111)$(5)
Change in Net income (loss) attributable to common shareholders from 2022 to 2023$944 $934 
1
Constellation Energy Corporation and Subsidiary Companies
Consolidated Balance Sheets
(unaudited)
(in millions)
June 30, 2023December 31, 2022
Assets
Current assets
Cash and cash equivalents$269 $422 
Restricted cash and cash equivalents56 106 
Accounts receivable
Customer accounts receivable (net of allowance for credit losses of $51 and $46 as of June 30, 2023 and December 31, 2022, respectively)
1,306 2,585 
Other accounts receivable (net of allowance for credit losses of $5 as of June 30, 2023 and December 31, 2022)
646 731 
Mark-to-market derivative assets1,733 2,368 
Inventories, net
Natural gas, oil, and emission allowances278 429 
Materials and supplies1,109 1,076 
Renewable energy credits436 617 
Other1,742 1,026 
Total current assets7,575 9,360 
Property, plant, and equipment, net20,239 19,822 
Deferred debits and other assets
Nuclear decommissioning trust funds14,821 14,114 
Investments647 202 
Mark-to-market derivative assets1,067 1,261 
Deferred income taxes43 44 
Other2,167 2,106 
Total deferred debits and other assets18,745 17,727 
Total assets$46,559 $46,909 
2
June 30, 2023December 31, 2022
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings$935 $1,159 
Long-term debt due within one year110 143 
Accounts payable1,260 2,828 
Accrued expenses744 906 
Mark-to-market derivative liabilities1,179 1,558 
Renewable energy credit obligation673 901 
Other324 344 
Total current liabilities5,225 7,839 
Long-term debt6,156 4,466 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits3,203 3,031 
Asset retirement obligations12,971 12,699 
Pension obligations638 605 
Non-pension postretirement benefit obligations638 609 
Spent nuclear fuel obligation1,260 1,230 
Payable related to Regulatory Agreement Units3,120 2,897 
Mark-to-market derivative liabilities613 983 
Other1,123 1,178 
Total deferred credits and other liabilities23,566 23,232 
Total liabilities 34,947 35,537 
Commitments and contingencies
Shareholders’ equity
Common stock12,808 13,274 
Retained earnings (deficit)248 (496)
Accumulated other comprehensive loss, net(1,800)(1,760)
Total shareholders’ equity11,256 11,018 
Noncontrolling interests356 354 
Total equity11,612 11,372 
Total liabilities and shareholders’ equity$46,559 $46,909 
3
Constellation Energy Corporation and Subsidiary Companies
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Six Months Ended June 30,
 20232022
Cash flows from operating activities
Net income (loss)$926 $(2)
Adjustments to reconcile net income (loss) to net cash flows (used in) provided by operating activities
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization1,219 1,207 
Gain on sales of assets and businesses(26)(13)
Deferred income taxes and amortization of ITCs189 (707)
Net fair value changes related to derivatives281 31 
Net realized and unrealized (gains) losses on NDT funds(270)800 
Net realized and unrealized (gains) losses on equity investments(414)25 
Other non-cash operating activities103 459 
Changes in assets and liabilities:
Accounts receivable1,298 60 
Receivables from and payables to affiliates, net— 20 
Inventories124 (88)
Accounts payable and accrued expenses(1,725)385 
Option premiums paid, net(48)(167)
Collateral (posted) received, net(474)1,123 
Income taxes160 289 
Pension and non-pension postretirement benefit contributions(18)(213)
Other assets and liabilities(2,451)(1,946)
Net cash flows (used in) provided by operating activities(1,126)1,263 
Cash flows from investing activities
Capital expenditures(1,336)(800)
Proceeds from NDT fund sales3,116 2,188 
Investment in NDT funds(3,203)(2,323)
Collection of DPP, net1,582 1,595 
Proceeds from sales of assets and businesses24 39 
Other investing activities(12)2 
Net cash flows provided by investing activities171 701 
Cash flows from financing activities
Change in short-term borrowings(524)(702)
Proceeds from short-term borrowings with maturities greater than 90 days500 — 
Repayments of short-term borrowings with maturities greater than 90 days(200)(1,180)
Issuance of long-term debt1,791 6 
Retirement of long-term debt(121)(1,109)
Retirement of long-term debt to affiliate— (258)
Contributions from Exelon— 1,750 
Dividends paid on common stock(185)(93)
Repurchases of common stock(499)— 
Other financing activities(10)(28)
Net cash flows provided by (used in) financing activities752 (1,614)
(Decrease) increase in cash, restricted cash, and cash equivalents(203)350 
Cash, restricted cash, and cash equivalents at beginning of period528 576 
Cash, restricted cash, and cash equivalents at end of period$325 $926 
4

Constellation Energy Corporation
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (non-GAAP) and Analysis of Earnings
Three Months Ended June 30, 2023 and 2022
(unaudited)
(in millions)
2022 GAAP Net Loss Attributable to Common Shareholders
$(111)
Income Taxes (1)(270)
Depreciation and Amortization277 
Interest Expense, Net56 
Unrealized Gain on Fair Value Adjustments (2)(24)
Plant Retirements and Divestitures(8)
Decommissioning-Related Activities (3)684 
Pension & OPEB Non-Service Costs(33)
Separation Costs (4)31 
ERP System Implementation Costs (5)5 
Change in Environmental Liabilities8 
Noncontrolling Interests (6)(12)
2022 Adjusted EBITDA (non-GAAP)
$603 
Year Over Year Effects on Adjusted EBITDA (non-GAAP):
Market and Portfolio Conditions (7)527 
ZEC Revenue (8) 172 
Labor, Contracting and Materials (9)(102)
Capacity Revenue (10)(72)
Nuclear Outages (11)(80)
Other(17)
Total Year Over Year Effects on Adjusted EBITDA (non-GAAP) $428 
2023 GAAP Net Income Attributable to Common Shareholders
$833 
Income Taxes342 
Depreciation and Amortization274 
Interest Expense, Net103 
Unrealized Gain on Fair Value Adjustments (2)(426)
Decommissioning-Related Activities (3)(116)
Pension & OPEB Non-Service Costs(14)
Separation Costs (4)36 
ERP System Implementation Costs (5)10 
Change in Environmental Liabilities1 
Noncontrolling Interests (6)(12)
2023 Adjusted EBITDA (non-GAAP)
$1,031 

5
(1)In 2022, includes amounts contractually owed to Exelon under the Tax Matters Agreement (TMA) reflected in Other, net.
(2)Includes mark-to-market on economic hedges and fair value adjustments related to gas imbalances and equity investments.
(3)Reflects all gains and losses associated with Nuclear Decommissioning Trusts (NDT), Asset Retirement Obligation (ARO) accretion, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.
(4)Represents certain incremental costs related to the separation (system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation), including a portion of the amounts billed to us pursuant to the Transition Services Agreement (TSA).
(5)Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(6)Represents elimination of the noncontrolling interest related to certain adjustments.
(7)Favorable market and portfolio conditions primarily driven by higher contracted prices and generation-to-load optimization.
(8)Includes revenue recognized for ZECs delivered under the Illinois ZEC program in prior planning years
(9)Primarily reflects increased employee-related costs, including labor and other incentives, and certain non-essential maintenance work.
(10)Reflects decreased capacity revenues primarily in the Midwest and Mid-Atlantic.
(11)Reflects volume and operating and maintenance impact of nuclear outages.


6
Constellation Energy Corporation
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (non-GAAP) and Analysis of Earnings
Six Months Ended June 30, 2023 and 2022
(unaudited)
(in millions, except per share data)
2022 GAAP Net Loss Attributable to Common Shareholders
$(5)
Income Taxes (1)(323)
Depreciation and Amortization557 
Interest Expense, Net112 
Unrealized Loss on Fair Value Adjustments (2)
94 
Plant Retirements and Divestitures(8)
Decommissioning-Related Activities (3)
1,038 
Pension & OPEB Non-Service Costs(58)
Separation Costs (4)
68 
ERP System Implementation Costs (5)
11 
Change in Environmental Liabilities8 
Noncontrolling Interests (6)(25)
2022 Adjusted EBITDA (non-GAAP)
$1,469 
Year Over Year Effects on Adjusted EBITDA (non-GAAP):
Market and Portfolio Conditions (7)555 
ZEC Revenue (8)179 
Labor, Contracting and Materials (9)(215)
Capacity Revenue (10)(176)
Nuclear Outages (11)(125)
Other 1 
Total Year Over Year Effects on Adjusted EBITDA (non-GAAP)$219 
2023 GAAP Net Income Attributable to Common Shareholders$929 
Income Taxes472 
Depreciation and Amortization542 
Interest Expense, Net210 
Unrealized Gain on Fair Value Adjustments (2)(129)
Plant Retirements and Divestitures(27)
Decommissioning-Related Activities (3)(356)
Pension & OPEB Non-Service Costs(27)
Separation Costs (4)66 
ERP System Implementation Costs (5)15 
Change in Environmental Liabilities17 
Noncontrolling Interests (6)(24)
2023 Adjusted EBITDA (non-GAAP)$1,688 
7

(1)In 2022, includes amounts contractually owed to Exelon under the TMA reflected in Other, net.
(2)Includes mark-to-market on economic hedges and fair value adjustments related to gas imbalances and equity investments.
(3)Reflects all gains and losses associated with NDTs, ARO accretion, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.
(4)Represents certain incremental costs related to the separation (system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation), including a portion of the amounts billed to us pursuant to the TSA.
(5)Reflects costs related to a multi-year ERP system implementation.
(6)Represents elimination of the noncontrolling interest related to certain adjustments.
(7)Favorable market and portfolio conditions primarily driven by higher contracted prices and generation-to-load optimization.
(8)Includes revenue recognized for ZECs delivered under the Illinois ZEC program in prior planning years
(9)Primarily reflects increased employee-related costs, including labor and other incentives, and certain non-essential maintenance work.
(10)Reflects decreased capacity revenues primarily in the Midwest and Mid-Atlantic.
(11)Reflects volume and operating and maintenance impact of nuclear outages.


8

Constellation Energy Corporation
GAAP Consolidated Statements of Operations and
Adjusted EBITDA (non-GAAP) Reconciling Adjustments
(unaudited)
(in millions, except per share data)
 Three Months Ended June 30, 2023Three Months Ended June 30, 2022
GAAP (a)
Non-GAAP Adjustments
GAAP (a)
Non-GAAP Adjustments
Operating revenues$5,446 $(212)(b),(c)$5,465 $298 (b),(c)
Operating expenses
Purchased power and fuel2,887 (202)(b)3,508 328 (b)
Operating and maintenance1,477 (89)(c),(d),(f),(l)1,273 (80)(c),(d),(f),(g)
Depreciation and amortization274 (274)(h)277 (277)(h)
Taxes other than income taxes139 — 133 — 
Total operating expenses4,777 5,191 
Loss on sales of assets and businesses— — (2)2 (g)
Operating income669 272 
Other income and (deductions)
Interest expense, net(103)103 (i)(56)56 (i)
Other, net605 (588)(b),(c),(e)(654)669 (b),(c),(d), (e), (g),(j),(m)
Total other income and (deductions)502 (710)
Income (loss) before income taxes1,171 (438)
Income taxes342 (342)(j)(328)328 (j)
Equity in losses of unconsolidated affiliates(5)— (3)— 
Net income (loss) 824 (113)
Net loss attributable to noncontrolling interests(9)12 (k)(2)12 (k)
Net income (loss) attributable to common shareholders$833 $(111)
Effective tax rate29.2 %74.9 %
Earnings per average common share
Basic$2.57 $(0.34)
Diluted$2.56 $(0.34)
Average common shares outstanding
Basic324 327 
Diluted325 328 
__________
(a)Results reported in accordance with GAAP.
(b)Adjustment for mark-to-market on economic hedges and fair value adjustments related to gas imbalances and equity investments.
(c)Adjustment for all gains and losses associated with NDTs, ARO accretion, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.
(d)Adjustment for certain incremental costs related to the separation (system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation), including a portion of the amounts billed to us pursuant to the TSA.
(e)Adjustment for Pension and Other Postretirement Employee Benefits (OPEB) Non-Service costs.
(f)Adjustment for costs related to a multi-year ERP system implementation
(g)Adjustments related to plant retirements and divestitures.
(h)Adjustment for depreciation and amortization expense.
(i)Adjustment for interest expense.
(j)Adjustment for income taxes.
(k)Adjustment for elimination of the noncontrolling interest related to certain adjustments.
(l)Adjustment for changes in environmental liabilities.
(m)In 2022, includes amounts contractually owed to Exelon under the tax matters agreement.
9


Constellation Energy Corporation
GAAP Consolidated Statements of Operations and
Adjusted EBITDA (non-GAAP) Reconciling Adjustments
(unaudited)
(in millions, except per share data)
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
GAAP (a)
Non-GAAP Adjustments
GAAP (a)
Non-GAAP Adjustments
Operating revenues$13,011 $(1,142)(b),(c)$11,056 $1,217 (b),(c)
Operating expenses
Purchased power and fuel
8,616 (1,428)(b)7,059 1,131 (b)
Operating and maintenance
2,908 (181)(c),(d),(f),(l)2,477 (131)(c),(d),(e),(f),(g),(l)
Depreciation and amortization
542 (542)(h)557 (557)(h)
Taxes other than income taxes
271 — 268 (2)(d)
Total operating expenses
12,337 10,361 
Gain on sales of assets and businesses26 (26)(g)13 — 
Operating income700 708 
Other income and (deductions)
Interest expense, net
(210)210 (i)(112)112 (i)
Other, net
919 (882)(c),(e)(973)992 (b),(c),(d), (e),(g),(j),(m)
Total other income and (deductions)709 (1,085)
Income (loss) before income taxes1,409 (377)
Income taxes472 (472)(j)(381)381 (j)
Equity in losses of unconsolidated affiliates(11)— (6)— 
Net income (loss)926 (2)
Net (loss) income attributable to noncontrolling interests(3)24 (k)3 25 (k)
Net income (loss) attributable to common shareholders$929 $(5)
Effective tax rate33.5 %101.1 %
Earnings per average common share
Basic$2.85 $(0.02)
Diluted$2.84 $(0.02)
Average common shares outstanding
Basic326 327 
Diluted327 328 
__________
(a)Results reported in accordance with GAAP.
(b)Adjustment for mark-to-market on economic hedges and fair value adjustments related to gas imbalances and equity investments.
(c)Adjustment for all gains and losses associated with NDTs, ARO accretion, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.
(d)Adjustment for certain incremental costs related to the separation (system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation), including a portion of the amounts billed to us pursuant to the TSA.
(e)Adjustment for Pension and Other Postretirement Employee Benefits (OPEB) Non-Service costs.
(f)Adjustment for costs related to a multi-year ERP system implementation
(g)Adjustments related to plant retirements and divestitures.
(h)Adjustment for depreciation and amortization expense.
(i)Adjustment for interest expense.
(j)Adjustment for income taxes.
(k)Adjustment for elimination of the noncontrolling interest related to certain adjustments.
(l)Adjustment for changes in environmental liabilities.
(m)In 2022, includes amounts contractually owed to Exelon under the tax matters agreement.
10


Statistics
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Supply Source (GWhs)
Nuclear Generation(a)
Mid-Atlantic12,837 12,609 26,018 25,732 
Midwest22,966 23,342 45,952 46,804 
New York6,092 6,571 12,389 12,584 
Total Nuclear Generation41,895 42,522 84,359 85,120 
Natural Gas, Oil, and Renewables
Mid-Atlantic384 616 1,106 1,343 
Midwest221 281 560 649 
ERCOT4,042 2,913 7,141 5,887 
Other Power Regions(b)
1,713 1,874 4,616 4,777 
Total Natural Gas, Oil, and Renewables6,360 5,684 13,423 12,656 
Purchased Power
Mid-Atlantic3,428 2,898 7,448 5,656 
Midwest200 156 623 351 
ERCOT1,597 1,413 2,949 2,149 
Other Power Regions(b)
9,736 12,436 19,658 26,096 
Total Purchased Power14,961 16,903 30,678 34,252 
Total Supply/Sales by Region
Mid-Atlantic16,649 16,123 34,572 32,731 
Midwest23,387 23,779 47,135 47,804 
New York6,092 6,571 12,389 12,584 
ERCOT5,639 4,326 10,090 8,036 
Other Power Regions(b)
11,449 14,310 24,274 30,873 
Total Supply/Sales by Region63,216 65,109 128,460 132,028 
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Outage Days(c)
Refueling94 66 180 142 
Non-refueling25 15 34 25 
Total Outage Days119 81 214 167 
__________
(a)Includes the proportionate share of output where we have an undivided ownership interest in jointly-owned generating plants and the total output for fully owned plants.
(b)Other Power Regions includes New England, South, West, and Canada.
(c)Outage days exclude Salem.
11
Three Months Ended June 30,Six Months Ended June 30,
ZEC Reference Prices2023202220232022
State (Region)
New Jersey (Mid-Atlantic)$10.00 $10.00 $10.00 $10.00 
Illinois (Midwest)8.11 15.00 10.06 15.75 
New York (New York)18.27 21.38 19.83 21.38 
Three Months Ended June 30,Six Months Ended June 30,
Capacity Reference Prices2023202220232022
Location (Region)
Eastern Mid-Atlantic Area Council (Mid-Atlantic)$81.74 $143.11 $89.80 $154.42 
ComEd (Midwest)57.35 153.35 63.16 174.45 
Rest of State (New York)138.89 75.67 121.28 80.39 
Southeast New England (Other)106.67 145.13 116.67 149.75 
Three Months Ended June 30,Six Months Ended June 30,
Electricity Reference Prices2023202220232022
Location (Region)
PJM West (Mid-Atlantic)$29.43 $77.17 $31.27 $66.28 
ComEd (Midwest)22.62 66.46 24.71 53.36 
Central (New York)20.82 41.75 25.49 53.85 
North (ERCOT)40.39 70.79 31.82 53.92 
Southeast Massachusetts (Other)(a)
29.17 69.15 40.51 90.38 
__________
(a)Reflects New England, which comprises the majority of the activity in the Other region.
12