nuclear plants at ownership achieved a 95.1% capacity factor for the
fourth quarter of 2023, compared with 95.4% for the fourth quarter of
2022. There were 56 planned refueling outage days in the fourth quarter
of 2023 and 65 in the fourth quarter of 2022. There were seven
non-refueling outage days in the fourth quarter of 2023 and three in the
fourth quarter of 2022.
-- Natural Gas, Oil, and Renewables Operations: The dispatch match rate
for our gas and hydro fleet was 97.5% in the fourth quarter of 2023,
compared with 96.1%1 in the fourth quarter of 2022. Energy capture for
the wind and solar fleet was 96.3% in the fourth quarter of 2023,
compared with 96.7%1 in the fourth quarter of 2022.
GAAP/Adjusted EBITDA (non-GAAP) Reconciliation
Adjusted EBITDA (non-GAAP) for the three and twelve months ended December 31, 2023 and 2022 does not include the following items that were included in our reported GAAP Net Income:
Three Months Twelve Months
Ended December Ended December
31, 31,
--------------- ------------------
(in millions) 2023 2022 2023 2022
----- ---- ----- -----
GAAP Net Income (Loss)
Attributable to Common
Shareholders $ (36) $ 34 $1,623 $ (160)
Income Tax (Benefit)
Expense 158 133 840 (339)
Depreciation and
Amortization 288 272 1,096 1,091
Interest Expense, Net 139 64 431 251
Unrealized Loss (Gain)
on Fair Value
Adjustments 1,002 413 658 1,058
Asset Impairments -- -- 71 --
Plant Retirements and
Divestitures -- (7) (28) (11)
Decommissioning-Related
Activities (439) (306) (716) 820
Pension & OPEB
Non-Service Credits (14) (31) (54) (116)
Separation Costs 17 41 101 140
Acquisition Related
Costs 9 -- 12 --
ERP System
Implementation Costs 5 6 25 22
Change in Environmental
Liabilities 15 (2) 43 10
Prior Merger Commitment -- -- -- (50)
Noncontrolling Interests (7) (12) (77) (49)
----- ---- ----- -----
Adjusted EBITDA
(non-GAAP) $1,137 $ 605 $4,025 $2,667
===== ==== ===== =====
________
(1) Prior year dispatch match and energy capture was previously reported as 96.6% and 95.9%, respectively. 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.
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 16 million homes, providing about 10% 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.
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. 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 and are posted on our website: www.ConstellationEnergy.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on February 27, 2024.
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 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' 2023 Annual Report on Form 10-K (to be filed on February 27, 2024) 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, and (2) 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 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 press release.
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 December 31, 2023 Three Months Ended December 31, 2022
------------------------------------- ------------------------------------------
Non-GAAP Non-GAAP
GAAP (a) Adjustments GAAP (a) Adjustments
---------- --------------- ---------- ---------------
Operating
revenues $5,796 $ (84) (b),(c) $7,333 $ (713) (b),(c)
Operating
expenses
Purchased
power and
fuel 4,018 (898) (b) 5,708 (1,125) (b)
(c),(d),
Operating and (f),(l), (c),(d),(f),(
maintenance 1,422 (83) (n) 1,375 (86) g),(l)
Depreciation
and
amortization 288 (288) (h) 272 (272) (h)
Taxes other
than income
taxes 134 -- 138 --
----- -----
Total
operating
expenses 5,862 7,493
----- -----
Gain (loss) on
sales of assets
and businesses (1) -- (12) --
----- -----
Operating income
(loss) (67) (172)
----- -----
Other income and
(deductions)
Interest
expense,
net (139) 139 (i) (64) 64 (i)
(b),(c),(d),(
(b),(c), e),(f),(g),(j
Other, net 349 (326) (e),(m) 383 (367) ),(m)
----- -----
Total other
income and
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