Constellation Energy Market Performance
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Portfolio Management Strategy
Strategic Policy Alignment
• Our portfolio starts in a position of already
partially hedged, via longer term state programs
such as the CMC in IL
⚫ Aligns hedging program financial policies and
financial outlook
•
•
Establish minimum hedge targets to meet
financial objectives of the company (dividend,
credit rating)
Hedge enough commodity risk to meet future
cash requirements under a stress scenario
Align Hedging & Financials
Establishing Minimum Hedge Targets
Three-Year Ratable Hedging
Ensure stability in near-term cash flows and
earnings
Disciplined approach to hedging
Tenor aligns with customer preferences and
market liquidity
Multiple channels to market that allow us to
maximize margins
Portfolio Management Over Time
Bull Bear Program
Ability to exercise fundamental market views to
create value within the ratable framework
Modified timing of hedges versus purely
ratable
Cross-commodity hedging (heat rate
positions, options, etc.)
Delivery locations, regional and zonal
spread relationships
Exercising Market Views
Credit Rating
Capital
Structure
Capital &
Operating
Expenditure
Dividend
Protect Balance Sheet
% Hedged
High End of Profit
Low End of Profit
Open Generation
with LT Contracts
Portfolio Management &
Optimization
Ensure Earnings Stability
% Hedged
Purely ratable
Actual hedge%
Market views on timing, product
allocation and regional spreads
reflected in actual hedge %
Create Value
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