Exelon (EXC -0.29%) announced first quarter results before the market opened this morning. The utility reported adjusted net income of $530 million, or $0.62 per share. While this was lower than the $602 million or $0.70 per share the company earned in last year's first quarter, it was within the company's guidance range. This was despite extreme weather conditions in the quarter, which did have an effect on results.
Exelon's results were primarily affected by lower realized energy prices along with higher procurement costs for replacement power. Its PECO subsidiary also experienced increased storm costs due to an ice storm in February. These negatives were only partially offset by increased capacity prices, increased distribution revenue, and some positive impact from the colder than normal winter weather.
Overall, Exelon's quarter was within its guidance range despite the extreme winter weather. CEO Christopher Crane noted in the company's earnings press release that Exelon's "Nuclear assets in particular contributed to grid reliability during the polar vortex." This enabled the company to capitalize on some of the increased volatility in the power markets.
In addition to announcing first-quarter results, Exelon also announced that it is acquiring Pepco Holdings (NYSE: POM) in an all-cash transaction. The $6.8 billion deal values Pepco at $27.25 per share, which is about a 20% premium to its closing price yesterday. The deal brings 2 million customers to Exelon and enhances the company's footprint in the Mid-Atlantic region.
