Reaffirms Outlook for Third Quarter Earnings of $0.83 to $0.99 Per Share;
Full-year 2008 Earnings Guidance of $5.25 to $5.75 Per Share
BALTIMORE, Sept. 17 /PRNewswire-FirstCall/ -- Constellation Energy
(NYSE: CEG) today announced that the sponsoring banks have confirmed that
the firm, underwritten commitment for an additional $2 billion credit
facility announced on Aug. 27, 2008, remains in effect. The terms of the
commitment include a material adverse change condition, defined as "a
material adverse change in the business, financial condition or financial
results of operations of the company and its material subsidiaries, taken
as a whole on a consolidated basis."
Constellation Energy also confirmed that it has retained Morgan Stanley
and UBS to act in an advisory capacity to evaluate strategic alternatives.
The company and its advisors are in active discussions with potential
strategic partners.
Constellation Energy also reinforced that its credit exposure to
financial institutions is limited. The following table provides an estimate
of the company's wholesale credit risk sector concentrations:
Total Wholesale Credit
Risk Exposure (net of
Counterparty collateral)
Coal 38%
Utilities / Municipalities /
Cooperatives 24%
Power 23%
Freight 6%
Gas 6%
Financial Institutions 2%
Other 1%
Total Credits Exposure (net of
collateral) 100%
Note: As of September 15, 2008
As of Sept. 15, 2008, Constellation Energy had net credit exposure to
14 financial institutions. The company's estimated aggregate credit
exposure, net of collateral, to these financial institutions was
approximately $120 million, with no single financial institution
representing more than $28 million of net credit risk exposure.
Constellation Energy reaffirmed its third quarter 2008 outlook of $0.83
to $0.99 per share and full-year 2008 earnings guidance of $5.25 to $5.75
per share.
Forward-Looking Statements
We make statements in this news release that are considered
forward-looking statements within the meaning of the Securities Exchange
Act of 1934. These statements are not guarantees of our future performance
and are subject to risks, uncertainties and other important factors that
could cause our actual performance or achievements to be materially
different from those we project. For a full discussion of these risks,
uncertainties and factors, we encourage you to read our documents on file
with the Securities and Exchange Commission, including those set forth in
our periodic reports under the forward-looking statements and risk factors
sections. Except as required by law, we do not intend to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
Constellation Energy (http://www.constellation.com), a FORTUNE 125
company with 2007 revenues of $21 billion, is the nation's largest
competitive supplier of electricity to large commercial and industrial
customers and the nation's largest wholesale power seller. Constellation
Energy also manages fuels and energy services on behalf of energy intensive
industries and utilities. It owns a diversified fleet of 83 generating
units located throughout the United States, totaling approximately 9,000
megawatts of generating capacity. The company delivers electricity and
natural gas through the Baltimore Gas and Electric Company (BGE), its
regulated utility in Central Maryland.
SOURCE Constellation Energy
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Related links:
http://www.constellation.com
http://www.prnewswire.com/comp/084087.html/
CONTACT:
Media: Robert L. Gould, Debra Larsson, or
Lawrence McDonnell, all at +1-410-470-7433; or Investors: Kevin
Hadlock, +1-410-470-3647, or Janet Mosher, +1-410-470-1884, all
of Constellation Energy
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