Constellation Energy (CEG) 6 Nov 232023 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Constellation Energy Corporation Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this call may be recorded.

I would now like to introduce your host for today's call, Emily Duncan, Senior Vice President, Investor Relations.

You may begin.

Thank you, Abigail. thank conference joining call. and Third Energy everyone, earnings Quarter morning, you Constellation for Corporation's Good Constellation's Leading Constellation's Executive Eggers, President call and Financial the today Chief Officer; are and Joe Dominguez, Chief Officer. Dan will other by questions Constellation's team answer joined are be prepared members to remarks. They available our senior of management who following your

during and can discuss Constellation's release the and Investor risk factors in based to filings projections, today's earnings could factors that our forecasts with material Actual website. and discussed of and issued this from uncertainties. Constellation's for results forward-looking estimates found earnings refer morning along statements discussions we circumstances are risks assumptions management's the various other regarding made its may section today's be of differ other presentation, call. today's call to other contain cause We forward-looking Constellation and results this subject all to Please during subsidiaries differ The SEC release of X-K matters statements considerations which and on and in Relations and comments that our expectations. and and from

appendix our to the EBITDA Today's measures. our refer non-GAAP to in and the the measures of non-GAAP measures. earnings and the presentation information GAAP adjusted and presentation release Please for contained between also references includes other reconciliations equivalent nearest

our Constellation, Dominguez. Joe of over CEO I'll now the to call turn

everyone. Thanks of our Thanks, Emily. joining the morning, great. Thanks to getting for wasn't Good the operator I started. the audio apologize for call. if quality us

our could pretty around lost a is building. into Duncan's believe much sitting going Emily we everything phone if numbers, But see cell else here the all, could because line We from it, you as you here. well are trunk around

they continued good strong and to people want of of the They they do. from an delivering Constellation best thanking awesome the what performance the third year quarter. are half at the for first the by I begin

earned $X.XXX EBITDA. billion third in adjusted quarter, For we the

this The strong $X.X again will raising XXXX million. have of by billion. full range to continued result year is disclosures in see performance, XXXX, we you are that strength limited our As $XXX margin a gross $X to raised our guidance not to our we billion and

not here XXXX. disclosures final emphasize that to our STP is want yet in I for

average you we $XXX XXXX years. is as to it EBITDA XXXX those extra contribution recall, As to little one estimated the of million year. the third an have outage fact STP we lower year happens, incremental that be due a with every per an so And

outage be higher However, we the since believe extra will we that the Texas offset energy by have that seen transaction. prices the of impact announced we've

better. estimated So we're looking XXXX with even XXXX back to an for million $XXX

call. all We updated the financials will fourth our of and in provide other STP quarter

about clean in they this business. couple translates We want ability largest country balance to competitive best strong and, solutions. has but fleet them in our with customers a costs before, that and as and the C&I certainty to a well powerful a us repeating. the give advantage on owns provide into and We and energy turn, retail most strategically Constellation these wholesale It channels. the unique sheet it visibility across talked reliable energy as gives platform and bears commercial the in the businesses sustainability

margin to All of you. that for ultimately creates leads expansion and value

our to I performance, exciting last talk about I want Before to the turn since some call. operational developments

opportunities performance. and resolve mutually working looking includes hours. XXX explore of ahead forward relationship South strong and our production beneficial reliable of This clean, schedule improve of earlier, as to We're a to our acquisition and Project, approximately XX% to Texas million-megawatt pending on annual to with I we First, our closed noted new nuclear the co-owners, forging CPS. Energy Austin expanding litigation working

XX our Peach Chairman around that that's amazing, fact see the the STP STP think just days. Hansen, for lasts and we Chief just of you At a if days. very consider Officer, was about Generation in quarter last we Bottom XX we I machine was an talked to see asset. And similar average at in to will the some as Byron, that I outage completed an completed that named the outage in days. happy Bryan Board realize that begin XX immediately opportunities of outage

want which project want a $X DOE offset of will hydrogen the includes nuclear La award role I that is for Salle. the at billion Energy is A Hydrogen play a the to production. energy our jump-starting development cost of highlight administration awarded second existing Midwest grant to our clean in project. and Department vital hydrogen the proof the to that U.S. this portion The The award Hub, domestic

remains or Department rules nuclear need confirms the energy see it that won't Certainly, happen. existing the guidance qualifies full critical that good that to we However, produce we to hydrogen award sign, the is for Treasury production but a right hub credit. think energy using clean hub tax the the

is we I'll more the energy, with And in Third, -- finally, most than XX% thing earned of exciting at employees that colleagues of higher it's detail a proud is experience ComEd X,XXX U.S. a and our rate to points great Work said to to XX in certification. I'm this which cover the our clean Constellation. carbon-free deal the survey a Place power participated average their in based them percentage signed facility free probably XXXX company. matched Great work. a its That's that Constellation because with place really of minutes. we hourly how few on

and results about and what again. hard-working talented, and over over up that shows Our our in people passionate do, they are they're

in about an separation. is We've since attracting the a also market. new X,XXX asset workforce colleagues and our the onboarded mission pretty for culture XX,XXX best in incredible Our That's people. talent of

quarterly updates, starting operational Now I'll to Slide on turn the X.

electricity businesses power summer on helped ensure and our the to can hottest economy. support homes to grid have and families that the fleet their the During record, American our cool that

refueling they a June, during our nearly XXX% XX.X% August. outages. Our September, July factor planned third at The in ran plants XX.X% is and at reason had we're nuclear we quarter only but of capacity started that

extremely renewable well. Our and ran assets power also

Texas Our million extremely than a affected extreme an X.X state-of-the-art this last by but resource summer. hours unprecedented during ERCOT load changing megawatt includes not year, fleet, only year by This more the was mix. of heat CCGTs, challenging supporting summer, produced ERCOT impacts and which

and all-time For incredible example, with in peak gigawatts XX XX gigawatts, XXXX's summer, XX%. had nearly XX.X than peak exceeding set exceeding or days during peak demand the summer an ERCOT 'XX a by higher the

generation much after in The system is hours constrained peak to output of the portfolio. the its just peak but intermittent at due that not comprises

acquired expect will grid we amplify, and and of to us The our challenges generation in the continues special of generation. these dispatchable hour. send conditions up reliable, and operating change, do. I'd success. conditions for assets changes who all any that you stack newly to occur particularly could nuclear fleets clean, gas thank a sets challenging for and quality importance increase hours our the ERCOT great like to of with STP fleet, operate the at power they coupled our As The to dispatchable people the

able provide they both optimize to foundation of knocked for me Slide also the the We're which to across times, bills solutions. let create the We're in year, certainty financial way generation to can leads portfolios our the is business the ball. and move volatile margin our on This performance. And customers the energy our success additional positions Commercial expansion. leading on customer cover off to gross margin. The X. sustainability Now we

energy deal renewable we to produce In the clean the use nuclear time-matched about second and Microsoft quarter, we where spent energy product. time talking a

We see this to continue very interest product. in strong

power. with agreement utilities an carbon-free largest announce nuclear in to to facilities power one from excited hourly we're match its of country, quarter, ComEd, the This the with energy

clean carbon-free be to their sustainability exact help efforts climate is reliability be them tomorrow. energy. Microsoft thrilled Matching regionally reaching we're valuable and recognition while electricity and made That to nuclear moment produced when address reduction today essential by of essential crisis nuclear to goals more fleet the and maintaining through carbon even ComEd customer to move affordability. our energy why a in electric able and uses to of will are energy importance the the is is the both leaders, forward XX/X

to With the it for that, over update. I'm going to Dan financial turn

Joe, $X.XXX X, as perform adjusted which on Joe to compares extremely and in earned million Slide of third third morning, mentioned, continues $XXX business billion to well. Beginning the We in Thank the you, quarter everyone. quarter, year. EBITDA good in the last

the we Our continued have commercial success seen organization quarters. with recent over

and Our and have rates the desire historical as remain strong opportunity have their to our team. volatility created market customers budgets of control above renewal for levels margins been

'XX our on opportunity market discussed leading to by our commodity we've for are interest and volatility rates These markets in the pricing in appropriate the create that which load, conditions risk we and generation to XXXX margin more favorable with us higher in for optimize competitors. uplift gross a at calls, moment. of see As prior portfolio and look about talk as results combined we and 'XX I'll

the during On and power summer. fleet record-setting performed our well front, a extremely nuclear generation hot

extreme summer. and in As Joe during July ERCOT records load as said, of June, Texas, ran a full August. peak out and And new fleet during demand heat result our set nuclear the the growth XX

few operating which, record a more a in output above due load hour is and $X,XXX hours. observed at addition peak subsequent stretched resulted and thermal in low we times, cap significant after In to a for fleet conditions the peaks, a the intermittent $X,XXX to places hours megawatt

in ran ran Through plants last ensured grid Investments the previous we more they advance summer to Texas fleet year. when XX% our needed, Texas than help and we were more plants than were they made support of did the did in year. our the September, ready they

Turning margin to outlook. gross and X Slide our

XXXX, strong forecast We I margin for Joe have continued gross our execution have incorporating the and and discussed. performance and XXXX increased

margin $XXX gross total to XXXX, million For by $X.X increased billion.

have year. we $XXX margin our unparalleled operating year, this gross projected expectations when million is reinforcing environment the now seen began than we higher the Our

Market In margin billion. increased by regions XXXX, quarter. our $XXX prices Total to is our margin total from million update. $X.XX across gross relative last including major last the PTC's increased gross

expected revenues plants expect to we a our nuclear As state less receipts. at to earn without result, due support X PTC higher gross

Commercial Turning our business. to

existing renew new margin are we XXXX. and contracts our customers extending enter out into favorable we C&I into with ones, load seeing As trends the and auctions

as we highs more in participants for opportunity some changing the load some We year anticipate the to market sustained composition from continue stack. in due and volatility, to time this trends of but auctions, in margins margin for commodity these have part, generation earlier moderation see seen

sheet, are volatile shareholders. our needs also value we of balance creating along strength meeting continue generation for our with load and integrated this customers' the our well our while during to positioned business, With environment

to XX. Moving Slide

the margin gross by $X.X reflects to year. strong our billion stock narrowing range since of year a to $X.X last billion significant EBITDA tempered our billion. compensation we increase beginning flagged compensation to due the to the including We $XXX our upward margin the to an and the upside million to outlook financial are driven primarily gross $X somewhat by O&M, forecast is by quarter, for raising And revision full guidance as adjusted This company. the increase the of midpoint performance increased employees,

note EBITDA as relatively of to starting small in materials disclosures gross at is that his remarks, STP plant disclosures. into anticipate that and a in closed I guidance. And or forecast for gross XXXX, not our just should updated last considering XXXX earnings week, that to again and our today. least which increase STP. cost the acquisition we STP do the our in is STP mentioned and year-end cost for from includes said, just our layer yet our in reflect margin meet part guidance That which $XXX the -- December, contribution the EBITDA not margin November we of We'll reflected million Joe

million Turning issued million to on fund and XX. transaction, tranches. liquidity unsecured significant the XX-year $X.X financing at of with demand billion senior debt, and across order We STP of including saw notes. books peaking $XXX To XX-year we Xx help of both Slide update the $XXX

also very XX-year recent treasuries competitively company look tranches, at transactions. holding and between with We achieved tight and pricing the to XX- we utility pricing both spreads when

income fixed and XXXX into the confidence owners long-term to our We years. the into in vote appreciate of need XX for the next licensed and our support from the lives their well

be will strain As stated debt transaction issuance did forward and not at of the metrics. a we the time announcement, the our credit credit-neutral

due in projected above of at laid credit to out metrics and now the year at fact, our be guidance. flows our XX% in XX% we the additional to cash earnings Moody's In or captured at S&P that beginning the the are

ahead quarter. the We by continue is When levels buybacks million we at capital on continue to see of third and commitment be completed we return opportunities to million execute remaining stock at shareholders, $XXX we'll to the opportunistic look our us, with another to of the our our our Board. during share attractive current still $XXX authorized

capital be in we $X.X XXXX our growth value owners. we shareholder As for used investments, to XXXX, June, through discussed return create of or to unallocated M&A and have billion additional of which will capital

remind our on by of I not upward that fourth outperformance this you disclosures should created next this that billion at year's and provide we shared on the does additional cash our quarter call. and XXXX call an any quarter based year-end year's updated expectations. We'll $X.X is fourth revisions to on this view all reflect

turn to now closing I'll remarks. back Joe the call his for

Dan. Thanks,

on team creating management remains the for here focused So value shareholders. our

we many and You of continue know to is business opportunities unique front in have us. our unique,

of electricity nuclear operator best we'll annually more make just the the plants fleet. than in As XXX STP, and carbon-free from nuclear with now you the largest million-megawatt producer we're our hours know, And U.S. of

Commercial Our like and market XX% and like the serves hourly the matching of ComEd our goals United more in Microsoft helping product. sustainability is business than customers C&I through meet products competitive their States

businesses our are great and provides assets security crisis Our part of addressing the nuclear long-term energy the as national IRA to climate The this commitment to essential of nation. are durable.

We supported shareholders from over earnings our by bring have a grow level to against more benefit the And the PTC, war baseline to even of PTC. we'll many price life the ways inflation. value and

centers reliable and for ahead matched we nuclear our create opportunities like expanding data product. of the to provide hourly have hydrogen, additional We that energy us clean, value

have to fleet without to needing XX our to least years replace We relicense nuclear at ability it. run

could and stock. fund ways growing our robust used generate and double-digit value many have growth that back shareholders. unlevered be grow disciplined our strong organic support dividend pursue to to We A bring more M&, cash We at to returns, buy free flow

wind $X.X repowering. you, stock value spend of do. of plan. our owners. growth billion hydrogen bought and $XXX We these and we $X we Each And there's as We authorized STP more dividend, operates, in for executing million we're doubled create billion on the additional deal. our the strategy. an share per approximately back part announced closed opportunities of that will buyback And can We own in

significant enhance we provide have in to We our earnings capital and 'XX, growth and use and as Dan to just monies value unallocated further could 'XX you. outlined, those

the be cannot Constellation market. in matched anywhere

with our business what with clean large balance, unparalleled for provides Our and us carbon-free opportunities nuclear strong fleet, value paired And create customer-facing to sheet you. that's on. we're focused

a stand your operator. as ready we, management Thanks, team, address questions. Now to

[Operator Instructions] first David with Our Arcaro from Stanley. Morgan comes question

changes could Wondering market experiencing you're of environment the if you And retail in any on elaborate you're in competitive seeing terms margins in what a in as higher churn. just there? share bit

a prepared going I'll in bit his I'm add. covered -- Dan, to of Dan remarks this and

also volatility business talk lot, Margins particularly to have and risk year. this load the our David, us side, higher been I created the back a saw of Commercial continue price see saw for and the pull Market on business. capital side. market to strong say would opportunity we we put year, that in some active be kind you C&I the them backdrop for in involved as we as less a about strong for competitors earlier get both strong a them auction on

rates win maintaining, opportunity we've our where of expanding areas, and a some job So done at. in good seen we've

norms auction as we the say through on hasn't more months above this Quite had that as as huge the year seeing people strong markets. probably up we're earlier this a we history, year. of a I well pressure margins off moved we better I in said, on, we've again side, back margins, margins few so amount in of bit rest as trend of in show to engage participants activity, there but go a eye the has close been the load a seen are Again, on saw but all year past. we And to more more in than keeping start history. little would the than but relative now the little the kind highs seen historical last

Got far further you're it. that latest seeing And update, reflect into to that the you that's Yes, of does XQ so experienced here, continue in If XQ? of in kind opportunities color. just that the kind are dynamics the guidance fully helpful patterns bolster outlook the there XXXX?

year. as to Yes, continue add think a to business, we taken for margins we've next I approach expectations our reasonable

been that and seeing, better expectations it makes all said, sense from what but stays we're sure world has making we I embedded kind movements, As you. of our have than probably we we're assuming some the in of which for given moderation historically, meet margins

As backlog important we watch one through the go to quarter this we'll to the and and see balance year, fourth add 'XX. more we 'XX of for is can much how an

So to we're we'll continue hopeful find opportunity.

comes from Steve Research. Our next question Fleishman Wolfe with

your Emily, with work, Good phone cell there.

those? IRA that could the more watching and give should respect on out on just we hydrogen thoughts things of the at comes of just nuclear. hydrogen So hub we're much PTC then here, of PTC, kind as maybe the then rules of to you PTC the announcement the nuclear course timing us latest where color also kind how remaining with hydrogen on And interpret hinting

directly rule the of with question in of going. We're are there's conversations right the take rule. way be dialogue the in the detail with first. with and obviously a to the White very happy last But bit. needs the quite that a lot I'll other Steve, lot in a be House stakeholders, I'm

cautiously would I optimistic. say I'm So

economy, to really economy. get isn't benefits they're the energy I but most awards, as the need matched clean on jump reliable transition side grid a I the big start well think of hydrogen going to that the in part as fact the way to just produce hydrogen the environmental this hub economic we're both time think realizing that that and

look, leave I'll that. So it at

constructive. of spent lot of time on to that, have but this thing. land got conversations think I kind the a been We've really we've

we're administration the are land, In this that we pending when the I out lot to on not interviewed generally, article not come rule same and a in thing. alone just with slowing terms other for signings again And in of lot some down waiting it in guidance, need they was within things a of of that in people an the the indicated there's I understanding But obviously, think Bloomberg will that hydrogen on we're contract ecosystem, hubs. doing this. and

kind think I to down. to this was Treasury there nailed a come work out for that they're working So just of of There's get IRA implementation. the needed all ton -- of

And that. things sure hear that. I'm all rumors believe delaying don't I look, so the -- I and I they're that not

have as this working I only also don't could really controversial piece least at I think done. this limited I to like they're diligently a think things Treasury's nuclear get it time. of detect players or any that assets the other But regard. insofar hydrogen to in broad the taken who thing domestic is and applies of content PTC handful have application of the doesn't some us have rules of nuclear -- that

of we address come that those the use on demand be production things end close end year it the credit and I before wouldn't hydrogen even nuclear think quarter. in of the will will going of the categorically existing right the that come in guidance some as nuclear we I I the hydrogen am is tax hopeful expected, So in the see first place. that for to see or year to surprised to -- but the

the product one XX/X on And clean other the Okay. question then just and like.

seeing? the of might answer, of really interest normal should you and you we this probably of how getting levels power which of just Just pace versus you're adoption for part, just sales. type And be type that here is about this product premium can't kind think Yes.

Yes.

about towards product the of volatility think $X margins we and We've factor considerably we're of top to of going power and it's of the customer. north has into itself. of provides to new $X the because I sales, else, be clear as to offering historic that and reset that talked just normal is market value this everything power. we've sustainability that been kind sales new a The

really of fully for big how I in understand that, into yet something competitive details end think is of the gone margin the day, the terms reasons, haven't adoption. Beyond And is. pace at of that to we the we're

million-megawatt hours XXX got dollars. We've of

things -- and lot everything, want piece not they we're role got And load. we're policy million-megawatt going hard be like that significant talk as this will all deployed point, data of XXX play me It's hopefully, opportunity a to we're is I to big the customer hitting be of is others for energy. through hours. take states time-matched procure that say The quickly on all we've it about enough of carbon-free, to going but So to to think about here going a or to going sell. sit There's this how but other that deploy at this think of CFE. part to and to a to be to it's a centers able data we every hydrogen, just going and have chunk pushing how be

an point. So it's say this I -- would at incomplete it's

Partners. Shar with Our next Pourreza from question Guggenheim comes

on cash I didn't sort -- you Is a was sort buybacks? are of an incremental get Just buyback. et but for update you on The we I inkling key we powder, incremental just maybe again, got provide maybe free little some not Dan, mean, EBITDA saving why flow an would move update of that raised great. on any dry guess, -- of past obviously can there sense quarter. or be anything the cetera? bit guidance

deploy. place. $XXX have million thus million We've [indiscernible], quarter money can so now it. kind of And with through you in a of us about to see Yes, still we billion sure. gotten a had $X We program some far.and $XXX spend

looks and updated to our the You beyond strong great the by capital done could of far inform a this kind have, imagine capital Board we'll Getting better kind they forwards and that of be ERCOT with conversations as budget allocation. prices having how deployment of as of 'XX look plan and day STP moved year having was the 'XX, with wave as the next

we they Then amounts things deploy come meaningful to capital for like available. keep that and to along of opportunities that want looking other way if

certainly do get program that back down capital our we we lot keep can't when always we exceed a to that owners as priority but this understand got worked unleveraged still So want getting investments has we've dry double-digit find to and powder, a that been of around we return.

Got it. onetime And then percentage we another opportunistic or quarter more year-over-year versus of right? obviously outsized unpack items mean, I $XXX expansion sparks? guess, million I that like marketing a maybe ERCOT margin more? is portfolio gain can little maybe gains, trading what just durable

Yes. it's to have, I to to that honest. as hard mean, be I you totally would as much dismantle think probably like

think run we business our get generation you how responsible portfolio, in Commercial for If about business the managing becomes the [indiscernible]. the we once

dollar It's well who kind with plants point running say generation some a Texas will in this change. on about the where the as you're did positions set or to how working they way were. commercial hard summer with thinking prices it. But obviously, team of we the up is dispatch, they at as dollar So time

production We expectations. have outpaced our

in some real got contribution was ERCOT. quarter year really in the there So from or the we

first we've of in And I seen outside it it. strong, seen about So margins quite think But say piece the load that's We of a that auctions, in the going been we've unprecedented margins half talked is that of part margins. a that have piece business. be is right? right? fairly the of this what year fact is to I

moderate of right? was to situational so We that's been to that And year. in be this time. courses, we're there's that And bit So some a expect great. would that, in going those seeing normal

On markets, the this very the 'XX. mass for and book good year and in next going to margins in markets year year the that sit are carrying into the kind C&I this of we've seen

but was in I'm I to not said we committed has yet in not not going opportunities -- well to point some we and year those year, we into, as And what probably been last expect our fully in maximize think pockets last the had that we've in David volatility, portfolio been this on or done then year. our markets. part, to at margins time. moderation again about get there's as And But this front with physical earlier, have the this

are the -- light the a then still lastly, around thoughts of for capital before for working next planning quantum through especially of And know there you guys lot role. upgrades maybe it. been data But recent I your me, you on of you for have like Got there? realize potential timing Can and IRA, BWRs. get opportunity here in updated your the just sort of points

Sure.

pretty I opportunity said see. this recosting megawatts total We're the we between X,XXX universe somewhere point, those. think have we X,XXX, identified a than that think every we've actionable at basically and lot that team sense. much make less XXX is of economic Bryan his and

the fleet they'll out of them this think the drag some end decade I even into roll a and by bit little of longer. will

where a them. those the there's -- start results. lot they're opportunities, looks opportunities. we those of paddling one of opportunities We the those Bryan's work is and ordering the surface, duck on this have announce we update for we'll good think but which continue already just on as organization. an But spectacular pretty underneath clam that. to And in beyond that, We certainly But we'll complete But we work parts announced. see don't we've the

Our with from next Dumoulin-Smith of Bank question Julien America. is

to commitments, what and tied hedge to cetera. holding the hydrogen, year and to I of the some commitments last and Maybe the could capital allocation which were do on terms pace hubs try maybe on we on or or Just pursue for sun different you see et if pieces cetera? don't considering these tied the waiting where you order that's of in that's of go tease can up, have back to in then thumbs to in speaks on together data [ an here mean, going or you back thumbs also, firm centers whether kind hydrogen to of questions forward, move are a commitments, et like I timing you more buybacks, outsized get And the to extent effectively power? down want clarity to on ] timing. both next of start to will whether of

Look, so we've Yes, think line, be X we'll different become called in players. in we we're don't XXX% One circumstances occur Julien. And the fence for will people make take will plant,is somehow where fence gas I what gas for of energy center merchant sure, looking guess. the we the clean make hydrogen of behind those the behind will the that hydrogen us that what that the opportunities of gas when line ways. offtake

certainly there LaSalle. continuing and But I conversations of are on think we opportunity number if opportunities we'll LaSalle megawatts focus first, for that can. adding exists probably But So those there a more optimizing and plans. beyond

very facilities. of hydrogen electrolyzers contract we've way know other will the exist and justify the is those deal that those those what use talking our will hydrogen to of would what evolve integrate right, where say they don't be we're buy into And fast seeing -- kind tax be. the then customers added the who to including to their hydrogen in many great focus of hydrogen a can customer The by those that and in lot electrolyzers providing able will players that customer contract, credit around a production. getting I and base. how country. I opportunities like wire, much yet a through clean the a called contract we've through Microsoft for ComEd-type are

energy of I is So producing be in you type or tell gas in 'XX of terms 'XX. could systems, and a the actually the thing it those 'XX can't and producing this

the if hopeful of you'll think to way scale rules they hydrogen will end look line behind flurry see contracting us. and opportunity see up lot at you'll do I the we up, are other that fence to production a end the of places. us for a and opportunity And LaSalle the begin

right in say work. haven't data or And We inbounds are the and the certain would company discussions enormous a probably stopped this the into centers now. I sense,

case the move a discussion those whether will those to we'll of that hydrogen, require, case from In and things deal update both But just enormous in centers, of the great data tend be as of require Treasury clarification projects them. to forward.

I think have just we'll the around expect company. the early it's same way. centers 'XX out megawatts, will and And I'm hopeful an play on rules 'XX me way. it's But for of exciting to describe that. financial pacing, the out right too the data work outcomes -- of if the I number impact

the have. -- just and work I'd in XX most got opportunities And announce action. the have of done. of great all say that in business, to this these then exciting I to you'll think being we years they'll you, it get we'll for But we've yourself. And are see

expectations. there. just to But data Right. 'XX a say, on, out is And for here you're back capital the on right? a it's is or say. as XQ, let's as decision Patience other if it's waiting one And on as to set allocation not the more centers or ahead not if virtue hydrogen, you're they point, of holding

right. that's No, No.

that It's in think described question. hours said like We've it confronted well. the produce. megawatt I response got you've to $XXX of And we the yet of with it we're scarcity these things. million Steve's clean not I

point. in where this be luxury we're that certainly a be at not will versus So to another. mutually value year, the once. There multiple us and But wide going every angle the in time exclusive a one early going at think channels kind looking open working and the financial of we're I of gives we'll point channel at be of exploring

Evercore Durgesh with question comes Chopra Our ISI. next from

just of that that back year XX-ish moved the XXXX, year, be next I Year-to-date, generation. in I deck XXXX around That the been range. passive kind hasn't looking would QX ] QX [ percent. was for XXXX just XX%, last like have at the question one on XX% it's

So this can hedging just your is how into just of practice we should stay nuclear comment more PTCs beyond? that. 'XX and on sort to think And Maybe you going next year? and like forward about open willingness

Let me start with that.

years of passage is the and got not off whether of of to we're where options early generally explored at get the done described that early year. year, what exploring just a IRA after at X/X, we we as the stick many strategy with questions days tethered we is Constellation, the I think trying so all I And last we're it's that the in had been the deployed that X/X, for hedging kind Exelon we've about. of any all given Julien -- But kind a X/X. talked the certain hedging megawatts to we're fixed strategy, we've number to in of frankly,

different have We been. have the to we to patient, opportunities, freedom explore and be now

used IRA hedged at fleet more over because realize policy. And of we will hedging and as update at we'll year I we're for the to less think that talk us opportunities. year that the at the we've relevant bit wait think next become the and end the we've strategy. and the to entitled this point, historically these the that's I little $XX.XX the that the But about at and the bus a the gives percentage effectively changed different we disclosures ability under time, look of

incremental the here And that has looking so business. to the to anything we need way we're be do that's at to and opportunity,

to it's up this mean been for just go results but that answer, power to to over owners have. want is work. me power. offer the That to add is how and flexibility more the ultimately get look, on going we holding our we of to selling we're patient. It I'll the time just means may value fleet on And energy it. financial I'll frankly, be a causes depend And reliable clean, now. to add, I long value the we that But to think will -- already more have best it's channels these that that or

offshore we happening how on see, clean our reliability have. what's alone technology. anything And obviously, commenting the all resembles appreciate just is I difficult the owners with it I wind. energy, that think of to add let could Without

So for for that encourages the transition, the for patient us the opportunities walk and and customers policy to the best to IRA gives support be get as our the us country. us, through be patient we and

have I that more color, Joe. one appreciate did question. I Understood.

talked have guys You just about a not EBITDA. different or metrics, added reporting

Just color any share can additional there? that thoughts or you

and structure working you. hedge the like years Yes. I X/X, of is everything. that, basis a an through talking our to you we're an these earnings and was sense disclosures revenue We're host going X/X, for It's as more where probably stream, provide refresh mentioned, plan the XX think think probably measures X/X, into all tables, year-end we'll PTC PTC make getting had We've about the new also provides the dynamic going after-tax I sense of on of at being for whole think make the on I I that Joe for world moving still of of a after-tax very guys. us. with different something out revenue to update, right? all

Thank to this you. back time, like At Dominguez question-and-answer the call the Joe remarks. That closing for session. concludes turn would to I

end as line is Business that opposed brings here on operator, value. the one values -- thanks, started. Well, handling for I School this companies, And folks way focused team I the the that to is separate a that our call. thing business I'll kind has want to the you just Harvard and one and When of Constellation. there's when at we get of thank many, management focus of good you

value all mission that a excited and lifted kind the having thanking And We management team, about enormous passionate business, end again look to the company. talking that at quarter. interest in the but of it's end for to fourth employees you us the brought only forward of is them theirs. to are you clarity present want thanking feel they of for by super your not just to for But the I our of the we results the and

today's you concludes gentlemen, thank program. for today's and conference. in This Ladies participating

have day. may You a all disconnect. Everyone, great