Press Release: Constellation Reports Fourth Quarter and Full Year 2023 Results

Dow Jones02-27
      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) 
 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:, 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 
                                (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 
                  ----------  ---------------            ----------  --------------- 
 revenues         $5,796       $    (84)       (b),(c)   $7,333       $     (713)     (b),(c) 
    power and 
    fuel           4,018           (898)       (b)        5,708           (1,125)     (b) 
   Operating and                               (f),(l),                               (c),(d),(f),( 
    maintenance    1,422            (83)       (n)        1,375              (86)     g),(l) 
    amortization     288           (288)       (h)          272             (272)     (h) 
   Taxes other 
    than income 
    taxes            134             --                     138               -- 
                   -----                                  ----- 
    expenses       5,862                                  7,493 
                   -----                                  ----- 
Gain (loss) on 
 sales of assets 
 and businesses       (1)            --                     (12)              -- 
                   -----                                  ----- 
Operating income 
 (loss)              (67)                                  (172) 
                   -----                                  ----- 
Other income and 
    net             (139)           139        (i)          (64)              64      (i) 
                                               (b),(c),                               e),(f),(g),(j 
   Other, net        349           (326)       (e),(m)      383             (367)     ),(m) 
                   -----                                  ----- 
   Total other 
    income and 

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February 27, 2024 05:55 ET (10:55 GMT)

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