CORRECT: Exelon CEO: Gas, Power Prices in Trough, but Recovery Ahead

Date : 06/07/2012 @ 11:16AM
Source : Dow Jones News
Stock : Exelon Corp. (EXC)
Quote : 37.99  0.31 (0.82%) @ 4:02PM

CORRECT: Exelon CEO: Gas, Power Prices in Trough, but Recovery Ahead

Exelon (NYSE:EXC)
Historical Stock Chart

5 Years : From Jul 2012 to Jul 2017

Click Here for more Exelon Charts.

("Exelon CEO: Gas, Power Prices in Trough, but Recovery Ahead," at 10:10 a.m. EDT, misstated the stock price in the seventh paragraph. The correct version follows:)

 
 
   By Cassandra Sweet 
 

NEW YORK--U.S. natural gas prices, which have pulled power prices to historic lows, are likely to bounce back by 2014 and benefit power sellers, Exelon Corp.'s (EXC) top executive said Thursday.

The low natural gas and power prices have pressured revenues and profits of power plant operators such as Exelon, forcing them to look for other businesses, such as selling electricity to retail customers, rather than the wholesale market, to earn better returns.

U.S. natural gas prices are likely to rise to $4 a million British thermal units by 2014, pushing power prices higher and benefiting electricity providers, Exelon Chief Executive Christopher Crane said.

"We're in a trough, but by 2014, we'll start to come back out of the position we're in, with gas prices around $4" a million BTUs, Mr. Crane said, speaking at a meeting with analysts.

Exelon expects 2012 adjusted operating earnings of $2.55 to $2.85 a share, Mr. Crane said.

Analysts surveyed by Thomson Reuters most recently estimated per-share earnings at $2.98.

Shares of Exelon were recently trading 1.5% higher at about $38.03.

The company is committed to providing a shareholder dividend of $2.10 a share, despite the difficult wholesale market, Mr. Crane said. He added that the dividend would "compensate investors during the market downturn."

Exelon bought rival Constellation Energy in March, bringing in that company's Baltimore Gas & Electric and PECO utilities, its fleet of nuclear and other power plants, and its retail electricity business that operates in states with deregulated power markets.

The new, larger company has $74.5 billion in assets, $32.7 billion of 2011 revenue, about 35 gigawatts of power plant generation, and about 6.6 million utility customers, the company said Thursday.

The company expects about half its cash flow and revenue to come from its utilities and about half to come from its power plants, Mr. Crane said.

Exelon also expects to cut costs within the combined company, use project financing for renewable-power projects and defer some generation growth projects until the wholesale market improves.

Exelon has the largest merchant generation power plant fleet in the U.S. and it is the nation's largest operator of nuclear power plants. In addition to the other utilities, Exelon owns Chicago-based utility Commonwealth Edison.

The company had a market capitalization of about $32 billion as of Thursday.

Write to Cassandra Sweet at cassandra.sweet@dowjones.com

Latest EXC Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.