Constellation Spin-off Complete, Launches As Stand-Alone Company

February 2, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Constellation today announced the completion of its separation from Exelon Corp. and its launch as a standalone, publicly traded company.

Constellation began "regular way" trading on the Nasdaq Global Select Market today under the symbol "CEG."

Constellation includes the competitive generation and customer supply businesses formerly owned by Exelon (including various retail suppliers as well as broker Breakerbox). The various Exelon distribution utilities are now no longer affiliated with Constellation or any competitive supplier

Among its strategies, Constellation cited its customer business serving 2 million residential, public sector and business customers. See more background on Constellation's retail strategy as a stand-alone company in our recent story here

Constellation also said that it will follow a "disciplined financial policy" and that, "Constellation is committed to maintaining investment grade credit ratings, continuing a track record of effective cost management with more than $1.1 billion in cost reductions since 2015 and strong stewardship of capital, with a $180 million dividend growing at 10 percent annually and 2022 EBITDA guidance of $2.35 billion to $2.75 billion."

"Constellation also is exploring growth opportunities that build on its core businesses and capitalize on the rapidly expanding demand for carbon-free energy and solutions to reduce emissions. The company can pursue numerous avenues for growth, including potential acquisitions of clean energy assets, creating clean hydrogen using its nuclear fleet, introducing new products and services for business customers or leveraging the generation fleet for repowering, co-location of data centers and other opportunities," Constellation said

In connection with the separation, Exelon shareholders received one share of Constellation common stock for every three shares of Exelon common stock held at the close of business on January 20, the record date for the distribution. The transaction was tax-free to Exelon and its shareholders for U.S. federal income tax purposes. Exelon shareholders will retain their current shares of Exelon stock.

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