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Exelon Corp. Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: February 9, 2012 10:00PM
Exelon Corp. (EXC) filed Annual Report for the period ended 2011-12-31. Exelon Corp. has a market cap of $26.54 billion; its shares were traded at around $40.045 with a P/E ratio of 9.6 and P/S ratio of 1.4. The dividend yield of Exelon Corp. stocks is 5.3%. Exelon Corp. had an annual average earning growth of 10.2% over the past 10 years. GuruFocus rated Exelon Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:Generation also manages the price and supply risks for energy and fuel associated with generation assets and the risks of power marketing activities. Generation implements a three-year ratable sales plan to align its hedging strategy with its financial objectives. Generation also enters into transactions that are outside of this ratable sales plan, such as a financial swap with ComEd that is described below and runs into 2013. However, except for the ComEd swap arrangement, Generation is exposed to relatively greater commodity price risk beyond 2012 for which a larger portion of its electricity portfolio may be unhedged. Generation has been and will continue to be proactive in using hedging strategies to mitigate this risk in subsequent years. As of December 31, 2011, the percentage of expected generation hedged was 88%-91%, 61%-64%, and 32%-35% for 2012, 2013 and 2014, respectively. The percentage of expected generation hedged is the amount of equivalent sales divided by the expected generation. Expected generation represents the amount of energy estimated to be generated or purchased through owned or contracted capacity. Equivalent sales represent all hedging products, which include cash flow hedges, other derivatives and certain non-derivative contracts, including sales to ComEd and PECO to serve their retail load. A portion of Generations hedging strategy may be implemented through the use of fuel products based on assumed correlations between power and fuel prices, which routinely change in the market. The trading portfolio is subject to a risk management policy that includes stringent risk management limits including volume, stop-loss and value-at-risk limits to manage exposure to market risk. Additionally, the corporate risk
ComEds kWh sales and peak electricity load are generally higher during the summer and winter months, when temperature extremes create demand for either summer cooling or winter heating. ComEds highest peak load occurred on July 20, 2011 and was 23,753 MWs; its highest peak load during a winter season occurred on January 15, 2009 and was 16,328 MWs.
PECOs kWh sales and peak electricity load are generally higher during the summer and winter months, when temperature extremes create demand for either summer cooling or winter heating. PECOs highest peak load occurred on July 22, 2011 and was 8,983 MW; its highest peak load during winter months occurred on December 20, 2004 and was 6,838 MW.
PECOs natural gas sales are generally higher during the winter months when cold temperatures create demand for winter heating. PECOs highest daily natural gas send out occurred on January 17, 2000 and was 718 mmcf.
Stocks Discussed: EXC,