Exelon Corporation EXC

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Exelon CorporationEXC
Wednesday, December 3rd
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Company Overview

• One of the nations largest electric utilities
• Distributes electricity to approximately 5.2
  million customers in Illinois and Pennsylvania,
  and gas to 460,000 customers in the Philadelphia
  area
• Two main business segments
• Energy Delivery Electricity and Natural Gas
• ComED - Largest electric utility in Illinois
• PECO Pennsylvanias largest utility
• Power Generation
• Fossil, Hydro, and Renewables
• Nuclear

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Key Statistics

• One of the nations largest electric utilities
  with nearly 19 billion in annual revenues.
• Profit Margin (ttm)13.71
• P/E Ratio (ttm) 13.13
• Market Cap. leader with 33.73B
• EPS 3.905
• Operating Cash Flow (ttm)5.35B

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Company Risks

• Short Term
• Economic Crisis
• Decommissioning trust funds
• NRG buyout attempt
• Due to refinancing of 8 in debt
• Lost of investment grade credit rating would cost
  830 million dollars (2007)
• Long Term
• Rising commodity prices
• Stock Price has high correlation with natural gas
  spot
• Unplanned Future Expenses
• Weather
• Terrorism
• Changes to competitive market
• High Regulation
• Illinois regulations
• Environmental Regulations

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Investment Positives

• Implements Hedging Policies
• 90 of 2009 revenue hedged
• Pennsylvania Rate Capping to End 2010
• Future Scale
• If NRG merger passes
• Largest utility company in U.S by assets, market
  cap, and generating power
• Large Nuclear Power Provider
• Competitive advantage
• Low operating costs
• Future Carbon legislation
• Could produce 1 billion revenue from carbon
  credit sales
• Obama Presidency
• Supports nuclear energy
• Supports cheap, low cost energy

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Competitive Landscape

• The nations largest gas and utilities company
  and with a market cap of 37B.
• Direct Competitors
• AEE- Ameren Corportation
• DYN- Dynergy
• PPL- PPL Corporation

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Competitive Edge

• Exelons 2020 Action Plan
• Exelon's goal is to reduce, offset or displace
  more than 15 million metric tons of greenhouse
  gas emissions per year by 2020. In three ways
• Green Operations
• Make customers aware
• Offer more low-carbon electricity

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Competitive Edge

• Commitment to customers
• Online message board
• Emails to customer
• Frequent tips to save money
• Green facts
• Seasonal helpers

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Stock Performance
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Valuation

• Discount Rate
• 8.6
• Per Share Fair Value
• 61.07
• Margin
• 18.3

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Summary

• We Recommend a BUY!
• Diversified
• Subsidiaries
• Utilities company with commodity exposure.
• Innovated
• 2020 Plan
• Environmentally friendly
• Expansion
• Nations largest utilities company
• Plans to add to their fleet