Exelon (EXC)

1. Exelon (EXC) Michael Dietrich

2. Business Summary • Incorporated in 1999 in Chicago • Utility services holding company with regulated and unregulated divisions • Primarily engages in generation of electricity • Also, purchases and retailing electricity and natural gas • Provides electric to 3.8million in Illinois, 1.6million in PA • Provides natural gas to 499,000 in PA

3. Key Statistics • Purchase Price: $43.61 Consider Sell: $78.30 • Recent Price: $44.65 Consider Buy: $40.60 • Fair Value: $58.00 • Portfolio Weight: 2.9% • YTD Return: 2.6% • Holding Return: -2.02%

4. Key Statistics Cont.

5. 1 Year Chart

6. 1 Year Comparative

7. Stock Checklist

8. Recent News • EXC is making moves into China in that they formed a consulting group to help out China National Nuclear Corp. • EXC $7.98 billion takeover of Constellation Energy Group Inc • 52.5 cents per share quarterly and will continue if the merger happens but payments may be made in two separate payments

9. Strengths • Largest nuclear plant operator in the United States • Produces low-cost electricity with minimal greenhouse gases • Wide profit margins • Top management team in utility industry

10. Weakness • Performance depends on volatile power prices • Struggles in their regulated units continue to dilute the generation unit’s value • The surge in renewable energy could hurt margins for Exelon’s nuclear plants

11. Opportunities • Merger with Constellation allows for EXC to add a countercyclical retail business • EXC advancing in China although for short period of time

12. Threats • Remaining deregulated • Constellation deal would make EXC go through a lot of regulatory hurdles • If market power prices are capped or regulated Exelon’s will lose its main profit source

13. Recommendations