| Metric [Unit] | Q3 2024 |
|---------------|---------|
| Total Reportable Segment Power Revenues [Million USD] | **5,351**    |
| Total Natural Gas Revenues [Million USD] | **533**    |
| Total Other Revenues [Million USD] | **666**    |
| Total Consolidated Operating Revenues [Million USD] | **6,550**    |

1ef4149814564dd80f647b9cff66cb4697ad81dfd6710c0227ed7f6cb279747e

Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

Property, Plant, and Equipment (PP&E) [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Lease Liabilities [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

3a3c79eefb9fc8b78117007c8460f435c991e6f3d5c872c17e01607868ed0b3f

Constellation Energy Corporation (CEG) is the nation's largest producer of clean, emissions-free energy, with a diverse generation portfolio that includes nuclear, wind, solar, hydroelectric, and lower-carbon natural gas assets **[0001868275-24-000066_ceg-20241104991.htm:3]** **[0001552781-24-000159_e24016_ceg-def14a.htm:6]**. The company operates through five reportable segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions, which include New England, South, West, and Canada **[0001868275-24-000069_ceg-20240930.htm:15]** **[0001868275-24-000069_ceg-20240930.htm:59]**. CEG's primary products are power sales and natural gas sales, with power sales further disaggregated by geographic region **[0001868275-24-000069_ceg-20240930.htm:17]**. The company also engages in wholesale and retail sales of natural gas, energy-related sales in the United Kingdom, and other energy-related products and sustainable solutions, although these activities are not significant to the overall results of operations **[0001868275-24-000069_ceg-20240930.htm:15]** **[0001868275-24-000069_ceg-20240930.htm:59]**.

1. **Power Sales** - Provides electricity to distribution utilities, municipalities, cooperatives, and various customer segments across multiple geographic regions.
   1. **Mid-Atlantic** - Delivers power in the Mid-Atlantic region.
   2. **Midwest** - Supplies electricity in the Midwest region.
   3. **New York** - Offers power solutions in the New York area.
   4. **ERCOT** - Serves the Electric Reliability Council of Texas (ERCOT) region.
   5. **Other Power Regions** - Includes power sales in New England, South, West, and Canada.
2. **Natural Gas Sales** - Engages in the wholesale and retail sales of natural gas to various markets.
3. **Energy-Related Products and Sustainable Solutions** - Offers additional energy-related products and sustainability solutions, including activities in the United Kingdom, though these are not significant to the overall operations.

7fbcae5fc586b8efb588913dacd481ac11afecc5f423ad2c27a3be37fba8a4eb

1. With the recent **FERC ruling rejecting Talend's ISA** and the need for **regulatory clarity on colocation**, how confident are you in resolving these issues quickly to capitalize on the increasing demand from data economy customers, and what specific steps are you taking to address potential delays?  **[CEG_3405589_1]** 

2. Given that you expect **13% compounded growth** through the end of the decade backed by **federal support**, can you elaborate on how potential **capacity market challenges** and **delays in PJM auctions** might impact your growth projections and strategic plans?  **[CEG_3405589_6]** **[CEG_3405589_1]** 

3. As you have **limited additional nuclear uprate capacity** and **high customer interest**, how do you plan to manage the scarcity of this resource to maximize value without compromising on customer relationships or broader strategic objectives?  **[CEG_3405589_14]** 

4. With the emphasis on both **front-of-the-meter** and **behind-the-meter** solutions for data centers, how are you addressing the **transmission configuration challenges** and ensuring **speed to market**, especially in zones with potential transmission constraints like **ComEd** and **PECO**?  **[CEG_3405589_7]** **[CEG_3405589_9]** 

5. Considering the reliance on **capacity markets** to incentivize **demand response** and **new generation**, how are you mitigating risks associated with potential **market reforms**, **delayed auctions**, and **regulatory uncertainties** that could hinder your ability to meet the growing power demand from **electrification** and the **data economy**?  **[CEG_3405589_11]** **[CEG_3405589_16]** **[CEG_3405589_1]** 

df0bc2b9ec9acc1b2b5becda6292b58a1d208fdbf12a7e0c2cd11ee623c7c316

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Operating Earnings Guidance**: Raised to a range of **$8.00 to $8.40 per share**, with a midpoint of **$8.20 per share**  **[CEG_3405589_5]** **[CEG_3405589_2]** .
  2. **Earnings Growth**: Base EPS expected to grow by at least **13% through 2030**  **[CEG_3405589_2]** **[CEG_3405589_6]** .
  3. **Capital Allocation**: Approximately **$1 billion** in share buybacks authorized and **$1.8 billion** of unallocated capital for 2024-2025  **[CEG_3405589_5]** .
  4. **Future Guidance Updates**: Plans to include 2026 in future guidance updates  **[CEG_3405589_18]** .
  5. **Refueling Outages**: More refueling outages in 2026 than in 2025, affecting electricity production and O&M costs  **[CEG_3405589_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Operating Earnings Guidance**: Raised to a range of **$7.60 to $8.40 per share**, with the midpoint increased to **$8.00 per share**  **[CEG_3396623_7]** **[CEG_3396623_1]** .
  2. **Enhanced Gross Margin**: Increased by **$450 million** due to better optimization and higher commercial margins  **[CEG_3396623_7]** .
  3. **2025 Enhanced Gross Margin Expectation**: Increased by **$250 million** due to strong backlog and higher prices  **[CEG_3396623_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Earnings Guidance**: Maintained range of **$7.23 to $8.03 per share**  **[CEG_3387862_5]** .
  2. **Base Earnings Growth**: Projected **10% growth through the decade**  **[CEG_3387862_7]** .
  3. **Share Repurchase Authorization**: Additional **$1 billion** authorized, totaling **$3 billion**  **[CEG_3387862_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **2024 EPS Guidance**: Range of **$7.23 to $8.03 per share**  **[CEG_3375197_11]** **[CEG_3375197_2]** .
  2. **Base EPS Growth**: Expected to grow at least **10% through the decade**  **[CEG_3375197_12]** **[CEG_3375197_11]** .
  3. **Enhanced Earnings Contribution**: Expected to add **10% to 20% to total EPS**  **[CEG_3375197_12]** **[CEG_3375197_11]** .
  4. **Dividend Growth**: Plan to grow dividend by **25% in 2024** and **10% annually** thereafter  **[CEG_3375197_13]** .
  5. **Free Cash Flow**: Forecast of approximately **$6 billion** over 2024-2025  **[CEG_3375197_13]** .
  6. **Capital Allocation**: **$1 billion** in share repurchases planned  **[CEG_3375197_13]** .
  7. **Unallocated Capital**: **$3.1 billion to $3.5 billion** available for strategic priorities  **[CEG_3375197_13]** .

6276d8985ca004c64303ee5aa6b8c4d44a5240618b0c4974bfc2b07e9852bfc5

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [Shares, Thousands]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

6aa20cb64b1667413dd5e69573251ccd95adfc4470b7a4a3ce29784af4db295d

Mid-Atlantic

- Intersegment

Midwest

New York

ERCOT

Other Power Regions

Total Power Revenues

Natural Gas Revenues

Other Revenues

Total Revenue

e9842bc5c8b67a9d2839b976f41cdcbad55f1b911305ccf88d86b99cb78f555e

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name            | Position                                           | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------|----------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Joseph Dominguez| President and Chief Executive Officer              | February 2022    | Joseph Dominguez oversees Constellation's carbon-free energy fleet, including nuclear, wind, solar, hydro-electric, and natural gas facilities across 19 states. He also manages the company's competitive retail and commodities business  **[0001552781-23-000110_e23042_ceg-def14a.htm:22]** . |
| Daniel Eggers   | Executive Vice President and Chief Financial Officer| N/A              | Daniel Eggers has been involved in signing important documents for the company, such as the quarterly report on Form 10-Q for the period ended September 30, 2024  **[0001868275-24-000069_ceg-20240930x10qxexh322.htm:0]** **[0001868275-24-000069_ceg-20240930x10qxexh312.htm:0]** .                                                                        |
| Bryan C. Hanson | Executive Vice President and Chief Generation Officer| Early 2022       | Bryan C. Hanson has been with the company since its launch over 2.5 years ago, following the separation of Constellation from Exelon  **[CEG_3401955_3]** .                                                                                                        |
| James McHugh    | Executive Vice President and Chief Commercial Officer| N/A              | James McHugh serves as the Executive Vice President and Chief Commercial Officer at Constellation Energy Corporation (CEG)  **[0001552781-24-000159_e24016_ceg-def14a.htm:45]** .                                                                                                                  |
| Kathleen Barrón | Executive Vice President and Chief Strategy Officer | N/A              | Kathleen Barrón serves as the Executive Vice President and Chief Strategy Officer at Constellation Energy Corporation (CEG)  **[0001552781-24-000159_e24016_ceg-def14a.htm:45]** .                                                                                                                 |

85e456abae4fa2d4011268792d7b9334429823202725d593fe5b0fe47114d292

| Program Details          | Program 1     |
|--------------------------|---------------|
| Approval Date            | **2023**  **[0001868275-24-000069_ceg-20240930.htm:41]** **[0001868275-24-000069_ceg-20240930.htm:48]** **[0001868275-24-000069_ceg-20240930.htm:79]**  |
| End Date/Duration        | N/A           |
| Total additional amount  | **$3 billion**  **[0001868275-24-000069_ceg-20240930.htm:41]** **[0001868275-24-000069_ceg-20240930.htm:48]** **[0001868275-24-000069_ceg-20240930.htm:79]**  |
| Remaining authorization  | **$991 million**  **[0001868275-24-000069_ceg-20240930.htm:41]** **[0001868275-24-000069_ceg-20240930.htm:48]** **[0001868275-24-000069_ceg-20240930.htm:79]**  |
| Details                  | The program is part of a strategy to return value to shareholders and capitalize on the stock's attractiveness. The Board increased the authorization to **$3 billion** in April 2024. As of September 30, 2024, **16.1 million shares** had been repurchased for **$2 billion**.  **[0001868275-24-000069_ceg-20240930.htm:48]** **[0001868275-24-000069_ceg-20240930.htm:41]** **[0001868275-24-000069_ceg-20240930.htm:79]** **[CEG_3387862_5]**  |

eb0eb4384b30ac921237bb281568e87b1f1a31d069abb912287466c5cc03c900

Power Revenues

afb574677fb0e2b21069ac0e4f034868803745fa5fa52d86b1c3cce6ffa28cb0

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

4523b5618a4daebb7d2e6fb07a98708568adfb6a3984175564b2283ac6192ce9

**Annual guidance for FY 2024:**
- **Adjusted Operating Earnings Guidance**: $8.00 to $8.40 per share  **[CEG_3405589_5]** **[CEG_3405589_2]**  (raised from $7.60 to $8.40 per share  **[CEG_3396623_7]** **[CEG_3396623_1]** )  
- **Earnings Growth**: Base EPS expected to grow by at least 13% through 2030  **[CEG_3405589_2]** **[CEG_3405589_6]**  (no prior guidance)  
- **Capital Allocation**: Approximately $1 billion in share buybacks authorized and $1.8 billion of unallocated capital for 2024-2025  **[CEG_3405589_5]**  (no prior guidance)  
- **Future Guidance Updates**: Plans to include 2026 in future guidance updates  **[CEG_3405589_18]**  (no prior guidance)  
- **Refueling Outages**: More refueling outages in 2026 than in 2025, affecting electricity production and O&M costs  **[CEG_3405589_5]**  (no prior guidance)  

9e66277bc9e4a87088397deb22478dc94cd273ea8ac262a59908ff714c6043c7

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2022  **[0001868275-24-000014_ceg-20231231.htm:114]**    | Present  | Current auditor   |

537d851eb095d034ffc9bddb39bcba4211e5a2a362154358a8ea75172105c5c6

af32cba14939867563928ab133bc05b79f6ed601fbd8bd98f262443df1108e8c

9deabe38a132023312cd9ff714dda4e253d9e026cc7bc55399a3276372a88ac3

Nuclear PTC (maximum credit) ($/MWh)

ZEC reference price for New Jersey (Mid-Atlantic) ($/MWh)

ZEC reference price for Illinois (Midwest) ($/MWh)

ZEC reference price for New York ($/MWh)

Illinois CMC Price ($/MWh)

Average day-ahead around-the-clock reference price in PJM West (Mid-Atlantic) ($/MWh)

Average day-ahead around-the-clock reference price in ComEd (Midwest) ($/MWh)

Average day-ahead around-the-clock reference price in Central (New York) ($/MWh)

Average day-ahead around-the-clock reference price in North (ERCOT) ($/MWh)

Average day-ahead around-the-clock reference price in Southeast Massachusetts (Other) ($/MWh)

Capacity price in Eastern Mid-Atlantic Area Council (Mid-Atlantic) ($/MW Day)

Capacity price in ComEd (Midwest) ($/MW Day)

Capacity price in Rest of State (New York) ($/MW Day)

Capacity price in Southeast Massachusetts (Other) ($/MW Day)

Nuclear Generation in Mid-Atlantic (GWh)

Nuclear Generation in Midwest (GWh)

Nuclear Generation in New York (GWh)

Nuclear Generation in ERCOT (GWh)

Total Nuclear Generation (GWh)

Natural Gas, Oil, and Renewables in Mid-Atlantic (GWh)

Natural Gas, Oil, and Renewables in Midwest (GWh)

Natural Gas, Oil, and Renewables in ERCOT (GWh)

Natural Gas, Oil, and Renewables in Other Power Regions (GWh)

Total Natural Gas, Oil, and Renewables (GWh)

Purchased Power in Mid-Atlantic (GWh)

Purchased Power in Midwest (GWh)

Purchased Power in ERCOT (GWh)

Purchased Power in Other Power Regions (GWh)

Total Purchased Power (GWh)

Total Supply/Sales in Mid-Atlantic (GWh)

Total Supply/Sales in Midwest (GWh)

Total Supply/Sales in New York (GWh)

Total Supply/Sales in ERCOT (GWh)

Total Supply/Sales in Other Power Regions (GWh)

Total Supply/Sales (All Regions) (GWh)

Nuclear fleet capacity factor (percent)

Refueling outage days (days)

Non-refueling outage days (days)

82563739b925c3a3e40ecf6a04e4e0003237f8d4119b990f3b52883b008555f1

e2c2fe2083ca9d2682f15d56366887b93f3dddffac63e365c5aa50ab00b54ff4

| Year   | Amount Due (Millions) | Debt Type                          | Interest Rate (%)         | % of Total Debt                                                                 |
|--------|------------------------|------------------------------------|---------------------------|---------------------------------------------------------------------------------|
| 2025   | $1                    | Energy Efficiency Project Financing | 2.20 - 4.96 **[0001868275-24-000069_ceg-20240930.htm:34]**       | 0.01% = (1 / 8412) * 100 **[0001868275-24-000069_ceg-20240930.htm:35]** **[0001868275-24-000069_ceg-20240930.htm:34]**                                       |
| 2026   | $(25)                 | West Medway II Nonrecourse Debt    | 1-month SOFR + 3.225 **[0001868275-24-000069_ceg-20240930.htm:34]** | -0.3% = (-25 / 8412) * 100 **[0001868275-24-000069_ceg-20240930.htm:35]** **[0001868275-24-000069_ceg-20240930.htm:34]**                                     |
| 2027   | $(22)                 | CR Nonrecourse Debt                | 3-month SOFR + 2.25 **[0001868275-24-000069_ceg-20240930.htm:34]** | -0.3% = (-22 / 8412) * 100 **[0001868275-24-000069_ceg-20240930.htm:35]** **[0001868275-24-000069_ceg-20240930.htm:34]**                                     |
| 2033   | $(28)                 | Continental Wind Nonrecourse Debt  | 6.00 **[0001868275-24-000069_ceg-20240930.htm:34]**              | -0.3% = (-28 / 8412) * 100 **[0001868275-24-000069_ceg-20240930.htm:35]** **[0001868275-24-000069_ceg-20240930.htm:34]**                                     |
| 2035   | $(9)                  | RPG Nonrecourse Debt               | 4.11 **[0001868275-24-000069_ceg-20240930.htm:34]**              | -0.1% = (-9 / 8412) * 100 **[0001868275-24-000069_ceg-20240930.htm:35]** **[0001868275-24-000069_ceg-20240930.htm:34]**                                      |
| 2037   | $(15)                 | Antelope Valley DOE Nonrecourse Debt | 2.29 - 3.56 **[0001868275-24-000069_ceg-20240930.htm:34]**       | -0.2% = (-15 / 8412) * 100 **[0001868275-24-000069_ceg-20240930.htm:35]** **[0001868275-24-000069_ceg-20240930.htm:34]**                                     |
| 2054   | $900                  | Green Senior Notes                 | 5.75 **[0001868275-24-000069_ceg-20240930.htm:34]**              | 10.7% = (900 / 8412) * 100 **[0001868275-24-000069_ceg-20240930.htm:35]** **[0001868275-24-000069_ceg-20240930.htm:34]**                                     |

a960ca307e5f1a083f468f0968bdd23612d8f4cdcc230a30f7df64e2cb2a7233

1. **Shift to Front-of-the-Meter Deals**  
   **Q:** How does shifting to front-of-the-meter deals affect value creation and speed to market?  
   **A:** CEO Joseph Dominguez stated that Constellation is aggressively pursuing both front-of-the-meter and behind-the-meter deals. They are exploring opportunities to use their power stations to support data center development and partner with utilities to ensure customers get access to clean and reliable power. **Speed to market is crucial**, and they will follow customers where they need to go, depending on transmission configurations.  **[CEG_3405589_7]** 

2. **Timeline for BTM Tariff Clarity**  
   **Q:** What's the realistic timeline for getting clarity on behind-the-meter tariffs?  
   **A:** Dominguez acknowledged there's **no quick fix**, but many parties are interested in moving forward. They are considering how to address comments from the recent technical conference and craft a framework for a larger deal. He anticipates that energy around this issue will intensify, necessitating that **FERC and others clear up the rules quickly**.  **[CEG_3405589_10]** 

3. **Transmission Capacity in Key Zones**  
   **Q:** Can you speak to transmission capacity in ComEd and PECO zones for front-of-the-meter deals?  
   **A:** Dominguez highlighted that Constellation operates in markets with **robust transmission capabilities**. The **ComEd zone has the most robust export capabilities** within PJM. New transmission is being built, expanding their ability to move energy and capacity, which they are actively exploring.  **[CEG_3405589_9]** 

4. **Confidence Amid Regulatory Uncertainty**  
   **Q:** Does regulatory uncertainty cause setbacks in bringing BTM/FTM deals to market?  
   **A:** Dominguez expressed that the recent ruling was a **narrow decision** and does not cause them to over-rotate. Their internal planning remains the same, and they are moving at pace with both front-of-the-meter and behind-the-meter deals. Interest in their uprates has **intensified**, particularly after the Microsoft deal. They expect these opportunities to be additive to their **13% growth projection**.  **[CEG_3405589_13]** 

5. **Uprate Structures and Contracting**  
   **Q:** How are you approaching uprate structures and potential recontracting?  
   **A:** Dominguez indicated they are seeing significant interest in uprates and want to **package them with other opportunities**. They have more customers interested than available uprates, so they plan to pair uprates with initiatives like **relicensing**. This approach aims to establish broader strategic relationships rather than offering uprates alone.  **[CEG_3405589_14]** 

6. **Hyperscalers' Perspectives**  
   **Q:** Are hyperscalers worried about regulatory issues in PJM? Any changes in their thinking?  
   **A:** Dominguez emphasized that hyperscalers have limited options and **PJM remains a priority region**. The power issue is critical for them, and they are not slowing their investment pace. He noted that regulatory flexibility and creativity are required across all markets, and hyperscalers are **not willing to wait ten years** for power infrastructure to be built.  **[CEG_3405589_15]** 

7. **Potential Market Changes in PJM**  
   **Q:** What are your thoughts on potential major market changes or re-regulation in PJM?  
   **A:** Dominguez believes that such changes are **unrealistic**. He noted that auctions have been delayed, and **price signals need to be set** to incentivize demand response and competitive supply. Historically, the market responds when given proper signals. He doesn't foresee significant progress on re-regulation and expects the market to work as it has in the past.  **[CEG_3405589_16]** 

8. **Grid Charges for FTM Deals**  
   **Q:** How do front-of-the-meter grid charges impact deal economics?  
   **A:** Dominguez stated that his view on grid charges hasn't changed; they should be charged for when the grid is used, and previous estimates remain valid. Efficient interconnections with reasonable costs mean prices shouldn't be much higher than previously shared figures. The issue is more about **speed than dollars**; customers are willing to pay their fair share but don't want to be delayed by lengthy study processes.  **[CEG_3405589_17]** 

9. **Capital Allocation and Buybacks**  
   **Q:** Will you lean more on buybacks this year, and what updates are expected in Q4?  
   **A:** The CFO indicated they plan to provide a comprehensive financial update on the **Q4 earnings call**, including formal 2025 guidance and updates on cash outlook. Regarding the buyback, they plan to be in the market whenever possible and see opportunities, especially when the stock is lower.  **[CEG_3405589_18]** 

10. **FERC Decision and Process**  
    **Q:** Do you expect FERC to start a process following the recent decision?  
    **A:** Dominguez said it's still unclear if FERC will initiate a process. They intend to **drive the agenda** if unsatisfied with progress, possibly with others of similar mind. They aim to **formulate a plan over the next few weeks**.  **[CEG_3405589_19]** 

4c9c25b570b13fa7a62e291275e9b39e414ffcb882d16ee959599258579115db

1. **Free Cash Flow Growth**  
   **Q:** Will free cash flow grow along with earnings over time?  
   **A:** Management expects free cash flow before growth to increase similarly to earnings over time, though higher cash tax rates due to using up accumulated tax credits may affect it slightly.  **[CEG_3375197_17]**  They anticipate good follow-through on free cash flow despite possible year-to-year variations in nuclear fuel spend and base CapEx.  **[CEG_3375197_17]** 

2. **Retail Power Margins Outlook**  
   **Q:** Why do retail power margins decline from $1.75 to $0.50?  
   **A:** The projected decrease in retail power margins from about **$1.75 above the 13-year average** in 2024 to **$0.50** in 2025 reflects conservative assumptions.  **[CEG_3375197_23]**  Management assumes unsold volumes revert to historical average margins but believes there's potential upside if current market conditions persist.  **[CEG_3375197_23]**  Strong margins in recent contracts suggest opportunities to sustain higher margins.  **[CEG_3375197_23]** 

3. **Use of Free Cash Flow**  
   **Q:** How will you use the unallocated $3 billion capital?  
   **A:** The company plans to deploy the **$3.1 to $3.5 billion** unallocated capital toward a mix of share buybacks and growth investments.  **[CEG_3375197_19]**  Some of this will impact base EPS through share count reduction and reinvestment in projects with contractual visibility.  **[CEG_3375197_19]**  They aim for flexibility without committing to a single capital deployment strategy.  **[CEG_3375197_19]** 

4. **M&A Strategy**  
   **Q:** What assets are targeted in your M&A strategy?  
   **A:** The company is focused on both the commercial business and nuclear asset base for M&A.  **[CEG_3375197_20]**  They're interested in acquiring young, dual-unit nuclear sites that fit their asset mix and return profile.  **[CEG_3375197_20]**  Acquisitions must come at the right price, and they remain disciplined, weighing opportunities against share buybacks for investor returns.  **[CEG_3375197_20]** 

5. **O&M and CapEx Increases**  
   **Q:** Why are O&M expenses and CapEx rising faster than EBITDA?  
   **A:** O&M expenses increased due to the acquisition of STP and higher performance-based compensation linked to extraordinary commercial results.  **[CEG_3375197_22]**  CapEx timing varies annually; they've advanced capital for high-return projects like uprates.  **[CEG_3375197_22]**  Management is comfortable with the O&M profile relative to earnings expectations.  **[CEG_3375197_22]** 

6. **Transition to EPS Guidance**  
   **Q:** Why shift from EBITDA to EPS guidance?  
   **A:** The shift to EPS guidance is driven by the nuclear PTC, which impacts after-tax net income but adds volatility to EBITDA calculations.  **[CEG_3375197_21]**  EPS better reflects their strong investment-grade profile, modest leverage, and compelling growth story, aligning them with companies they resemble more closely.  **[CEG_3375197_21]** 

7. **Attribute Values and Opportunities**  
   **Q:** How are you prioritizing attribute value opportunities like hydrogen?  
   **A:** Management sees selling **24/7 solutions** to data center customers as the most material opportunity.  **[CEG_3375197_15]**  They are cautiously pursuing hydrogen projects, pending favorable DOE rules, but may suspend investment if outcomes aren't favorable.  **[CEG_3375197_15]**  Deal timing is uncertain due to complexity, but incentives are aligned for speed.  **[CEG_3375197_15]** 

bc474f23edf51b9ce04e3cfe217f780170bc23c6e5cca7ba9ff857e0fe0f95e8

- **CEG is exploring significant opportunities to increase their energy production capacity through optimization of their existing fleet, upgrades, M&A activities, and unique opportunities to bring megawatts online.**  **[CEG_3375197_24]**
- **CEG has been an opportunistic consolidator in the retail energy market, focusing on profitable growth by adding customers that enhance margins, not just increasing volume.**  **[CEG_3375197_24]**
- **CEG's management reaffirms their commitment to delivering on promises and adapting to the evolving marketplace, positioning the company for future success.**  **[CEG_3375197_24]**

79ac6f5fc54b054a7ebb645ec527f2edad0fb4e8a5ca4ec85e0ef5c048717bab

- **Regulatory Uncertainty Surrounding Colocation Projects**: There is a lack of clarity on how the Federal Energy Regulatory Commission (FERC) will proceed regarding colocation, which could impact Constellation's ability to execute its colocation strategies. CEO Joe Dominguez stated, "There’s not clarity on where FERC goes... We got a little bit of work to do to understand it".  **[CEG_3405589_19]**
- **Potential Delays in Project Timelines**: The uncertainty and potential delays in regulatory approvals may hinder the company's ability to bring projects to market promptly. When asked about setbacks due to Friday's FERC ruling, Dominguez acknowledged that "**there's not a quick fix**" and that the regulatory process may not resolve issues "tomorrow".  **[CEG_3405589_10]**
- **Reliance on Market Changes and Regulatory Flexibility**: The company's growth plans depend on significant regulatory flexibility and market changes, particularly in PJM. Dominguez noted, "**This is going to require a degree of regulatory flexibility and creativeness that's going to stretch everybody**"  **[CEG_3405589_16]** , suggesting that achieving their goals may be challenging under current market conditions.

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- **Regulatory uncertainty regarding the co-location strategy could delay deal announcements and impact growth plans.** The ongoing FERC technical conference may slow down timelines as customers seek certainty.  **[CEG_3396623_10]** **[CEG_3396623_14]**
- **Public disputes and regulatory challenges may negatively impact customer relationships and ability to close deals.** The contentious process has attracted attention from customers and policymakers, potentially affecting negotiations.  **[CEG_3396623_15]**
- **Concerns exist about whether the PJM capacity market will bring new capacity fast enough, possibly leading to utilities rate-basing peaking plants, which could impact competitive dynamics.** This could affect CEG's position if utilities build rate-based generation in response.  **[CEG_3396623_11]**

53a90598bc5402b6e2a75a396831fd0bd275c0babfe07ac40a86c60c3b67ffdd

- **Constellation is aggressively pursuing both front-of-the-meter and behind-the-meter deals**, with their "foot on the accelerator pressed all the way down" to meet customer demand and focus on speed to market.  **[CEG_3405589_7]**
- They operate in markets with **robust transmission capabilities**, especially in the **ComEd zone**, which has "probably the most robust export capabilities of any zone within PJM," enabling efficient movement of energy and capacity to capitalize on market opportunities.  **[CEG_3405589_9]**
- Anticipated increases in **capacity market prices** are expected to re-incentivize demand response and competitive supply options, and **Constellation is well-positioned to benefit** due to their customer base and market position.  **[CEG_3405589_16]** **[CEG_3405589_11]**

89bd8c718f339828e27b7881475148d885dd038885fb54124763aadb4a7d79e4

1. **Data Center Opportunities**  
   **Q:** Can you give more color on the data center opportunity?  
   **A:** The interest in data center opportunities is unprecedented, with numerous clients approaching us for power needs of sizes and scales that currently don't exist. We're focusing on nuclear energy because our clients want clean, non-emitting technologies. Although there are complexities in these transactions, we're working fast to meet the demand, with potential ramp-up starting in **2026**, **2027**, and **2028**. However, it's too early to specify when we'll announce any deals.  **[CEG_3387862_12]** 

2. **Capital Allocation Strategy**  
   **Q:** How do you think about investment opportunities versus share buybacks and M&A?  
   **A:** We believe the best place for our investment dollar is in Constellation itself, so we're focusing on organic growth opportunities and have authorized **$1 billion in share buybacks**. We see unrealized value in our own company compared to M&A opportunities and are investing in ourselves to deliver value to our owners.  **[CEG_3387862_14]** 

3. **Potential TMI Restart**  
   **Q:** Are you considering restarting Three Mile Island?  
   **A:** We're considering opportunities including a potential restart of TMI, similar to what occurred at Palisades. While we're not ready to disclose capital and timelines, such projects could position Constellation as a leader in adding firm, clean energy to the grid.  **[CEG_3387862_11]** 

4. **Enhanced Gross Margin Guidance**  
   **Q:** Where are you relative to recent market curves for enhanced gross margin?  
   **A:** We provided extensive disclosures previously and will update guidance when appropriate. While there's been market volatility, especially in the **'27** to **'29** timeframe, we don't see significant changes to our **'24** and **'25** expectations. The market run-up has held or gone higher in later years, but those markets are not very liquid right now.  **[CEG_3387862_10]** 

5. **Nuclear PTC Guidance**  
   **Q:** What are the key items to look for in nuclear PTC guidance?  
   **A:** We're awaiting Treasury guidance on nuclear PTC, expecting that spot prices, including energy and capacity at the plant busbar, will be used. This has been our planning assumption, but we don't have official confirmation yet.  **[CEG_3387862_15]** 

6. **Nuclear Fuel Positioning**  
   **Q:** What's the impact of the new law limiting Russian enriched uranium?  
   **A:** We anticipated the passage of the ban and are confident in our **industry-leading fuel position**. We're pleased to see investments in the domestic supply chain and expect to have reasonably priced fuel to run our fleet for the next decade.  **[CEG_3387862_13]** 

7. **Next-Generation Nuclear Units**  
   **Q:** Can you elaborate on exploring next-gen nuclear units at your sites?  
   **A:** We're engaging with companies like Google and Microsoft, proposing multi-tiered structures that could include subsequent license renewals, upgrades, and potentially **Small Modular Reactors (SMRs)**. We're considering technologies like **Rolls-Royce SMRs**, but also open to others, working with customers to select the best fit. This is in early stages but is of great interest to clients seeking more clean power in the future.  **[CEG_3387862_8]** 

d1148ff3919655e3eb9b1aafa1d507b89920e6be280c148c0b109afa3735b9f4

- **Strong demand from data center customers** is driving Constellation's progress on **colocation deals**, which could be announced even before regulatory processes conclude, signaling significant growth opportunities for the company.  **[CEG_3396623_11]** **[CEG_3396623_12]** **[CEG_3396623_14]**
- The **tightening energy market and higher capacity prices in PJM** are increasing the urgency among customers to secure Constellation's **clean and reliable energy offerings**, enhancing the company's market position.  **[CEG_3396623_12]** **[CEG_3396623_2]**
- Despite some regulatory noise, **policymakers and customers are supportive** of Constellation's colocation strategy, recognizing the economic benefits and the advantage of having **clean energy centers**, which strengthens the company's outlook.  **[CEG_3396623_15]** **[CEG_3396623_10]**

d092e6d3f0eb141c27693a8f7d3ba8fdb4e99ede335109759cd69cf573d30c87

- **Constellation Energy is focused on investing in its own high-potential growth opportunities and returning value to shareholders, evidenced by continued share buybacks and emphasizing organic growth over M&A.**  **[CEG_3387862_14]**
- **CEG is poised to benefit from significant demand in the data center industry, leveraging its clean, reliable nuclear energy to power large-scale data centers in collaboration with major tech companies.**  **[CEG_3387862_12]**
- **CEG is exploring opportunities to expand its nuclear capacity, including potential restarts of idle assets, positioning itself as a leader in adding firm, clean energy to the grid.**  **[CEG_3387862_11]**

4bd434128fcb93061076fa68760c3dfa3bf5233f6356ee820fb76d54b7693527

- **Uncertainty around the nuclear production tax credit (PTC) guidance from the Treasury**: The company is still awaiting guidance from the Treasury on the nuclear PTC, which may impact financial planning and projections. The CEO mentioned that "**we are waiting for treasury guidance... we just don't know yet because they haven't announced anything**".  **[CEG_3387862_15]**
- **Market volatility and reliance on uncertain future projections**: There is significant volatility in power markets, especially in the out years, making future earnings projections less certain. The CFO stated, "**there's been a lot of movement, depending on what day you pick... I don't know that within the range you laid out that there's a lot of movement to what we shared with you**".  **[CEG_3387862_10]**  This suggests potential risks in their financial outlook.
- **Execution risks and long timelines for data center opportunities and new nuclear projects**: While the company is pursuing data center opportunities and next-generation nuclear units, these projects are complex, in early stages, and may not deliver benefits until several years later. The CEO noted that "**these are very complicated transactions... you're going to see people plop into service in '24, '25... this is more stuff that begins in '26, '27, '28 and it ramps steadily after that**".  **[CEG_3387862_12]**

76ee3092cd46f51b998947aa927641365e022c82cb42f6d0534bdced19e6d179

1. **Colocation Deal Timing**  
   **Q:** Will FERC proceedings delay colocation deals?  
   **A:** Management believes that while the FERC technical conference could slow things down for those seeking certainty, they don't need to wait until the end of the FERC process to announce deals. Contractual provisions will handle contingencies, and they could see deals announced even as the process continues.  **[CEG_3396623_10]** **[CEG_3396623_14]** 

2. **Increased Urgency After PJM Auction**  
   **Q:** Does the PJM auction outcome increase urgency for data center deals?  
   **A:** Yes, the tightening market from the PJM auction has increased urgency for data center customers to lock down colocation deals, especially for clean and reliable megawatts, creating a huge opportunity for the company.  **[CEG_3396623_12]** 

3. **Dual-Unit Plants Preferred**  
   **Q:** Are dual-unit plants preferred for data center colocation?  
   **A:** While dual-unit plants make sense with one unit acting as backup, management is exploring various configurations depending on the data center type. They foresee situations where behind-the-meter data centers are near on-grid centers, providing reliability through fiber. They're in early stages but believe dual-unit sites are the most natural choice initially.  **[CEG_3396623_13]** 

4. **Customer Concerns Over Public Scrutiny**  
   **Q:** Is public scrutiny affecting customer deals?  
   **A:** Not yet. Customers and policymakers are paying attention, but management aims to resolve issues amicably to avoid distractions. Policymakers want these projects to happen, and the company prefers working in a way that's friendly to both policymakers and customers.  **[CEG_3396623_15]** 

5. **State Legislative Focus**  
   **Q:** What are your state legislative priorities for colocation?  
   **A:** The company is largely reactive but will work with customers and labor unions to ensure opportunities for economic growth remain available. They are not planning to launch legislation, handling these issues in the regulatory arena like past cogeneration projects.  **[CEG_3396623_16]** 

6. **Ratepayer Benefits from Colocation**  
   **Q:** What's the benefit to ratepayers from a 1 GW colocation?  
   **A:** Management notes that building a 1 GW data center elsewhere could cost **billions**  **[CEG_3396623_17]** , often socialized to customers. With colocation, hyperscalers pay for the connection at the plant, costing a fraction. They see potentially a **10×** cost difference, reducing the burden on ratepayers and offering timely, feasible solutions.  **[CEG_3396623_17]** 

69351d27dbb884ff57aad4a2c626a540059878951b9fc31a16e7bbe8ead6984a

- **Limited Growth Potential Due to High Capacity Utilization**: The company's existing nuclear fleet is already running at a high capacity factor, and they are **not planning to build new nuclear plants**, which limits their ability to grow production significantly in the foreseeable future.  **[CEG_3375197_24]**
- **Uncertainty in Capital Allocation and M&A Strategy**: Management expressed uncertainty about where the greatest impact for investments would be, indicating potential challenges in efficiently allocating capital between M&A opportunities and share buybacks.  **[CEG_3375197_20]** **[CEG_3375197_19]**
- **Potential Increase in Cash Tax Rate Affecting Free Cash Flow**: The company's functional cash tax rate is expected to be **higher in the future** due to working through accumulated tax credits and changes in capital investments and bonus depreciation, which could impede free cash flow growth year-to-year.  **[CEG_3375197_17]**

9431b1fe57107de1621279b53cb8a3a89b7390d537906b58a7241103d404cc7f

Constellation Energy Corp (CEG)

Financials