Balance Sheet

Cash and cash equivalents, as of March 31, 2011 stood at $487 million, substantially lower than $2,524.0 million as of March 31, 2010. Property, plant and equipment, net as of March 31, 2011 were $30,549.0 million versus $27,737.0 million as of March 31, 2010.

As of March 31, 2011 accounts payable were $1,331.0 million versus $1,143.0 million as of March 31, 2010. Long-term debt of the company as of March 31, 2011 was $11,762.0 million versus $10,808.0 million as of March 31, 2010. Total shareholders’ equity as of March 31, 2011 was $13,391.0 million versus $13,451.0 million as of March 31, 2010.

Cash Flow and Capital Expenditure

Capital expenditures for the quarter were $1,150.0 million versus $878.0 million in the first quarter of 2010.

Exelon estimates capital expenditure of $2.3 billion in 2011, which includes utility growth capital expenditure of $450 million. In the current fiscal the company expects to return cash of $1.4 billion to its shareholders through payment of dividends.

During the quarter Exelon Corporate, Generation and PECO replaced their unsecured revolving credit facilities with new facilities with aggregate bank commitments of $6.4 billion. The new credit facilities are scheduled to expire on March 23, 2016.

The company expects to generate $4.3 billion cash from operations in 2011. Exelon also forecasts the issue of new debts of $1 billion during 2011 and hopes to retire $600 million of debt during the year.

Dividend Update

On May 5, 2011, the board of directors of Exelon declared a regular quarterly dividend of $0.525 per share. The dividend is payable on June 10, 2011, to shareholders of record as of May 16, 2011.

Acquisition

On April 28, 2011, Exelon Corporation announced that it entered into a definite agreement to acquire Constellation Energy Group Inc. (CEG), for about $7.9 billion. Exelon is expected to issue 0.93 of its shares for every share of Constellation owned by the latter’s shareholders.

The exchange ratio agreed upon represents an 18.1% premium to the 30-day average closing stock prices of Exelon and Constellation as of April 27, 2011. Following the completion of the merger Exelon shareholders will have 78% ownership of the combined company, while the rest will belong to Constellation shareholders.

The merger is approved by the shareholders of both the companies and the union is subject to overcoming some regulatory hurdles. The companies expect to close the merger by early 2012.

Baltimore based Constellation Energy is a supplier of power, natural gas and energy products and services for homes and businesses across the continental United States.
 

• The company continues to face potential regulatory and political risk related to its utility businesses, which could impair the valuation and earnings of its regulated businesses.
• Fluctuations in interest rates would affect the profitability of the business.
• Unfavorable weather could result in lower earnings.
• There is a downside risk in forward earnings if the rate freeze legislation is enacted.
• Exposure to fluctuating power prices in the Midwest and eastern power markets would affect the operations of the company.