Q1 2024 Constellation Energy Corporation Earnings Call

Okay.

Good day, ladies and gentlemen, and welcome to the Constellation Energy Corporation first quarter earnings call.

Operator: Good day, ladies and gentlemen, and welcome to the Constellation Energy Corporation First Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. 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 and Strategic Growth. You may begin

Operator: At this time all participants are in a listen only mode.

Operator: We will conduct a question and answer session and instructions will follow at that time.

Operator: As a reminder, this call maybe recorded.

Emily Duncan: I would now like to introduce your host for today's call.

Operator: Emily Duncan Senior Vice President Investor Relations and strategic growth you may begin.

Emily Duncan: Thank you good morning.

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

Emily Duncan: Everyone and thank you for joining constellation Energy Corporation's first quarter earnings conference call, leading the call today are Joe Dominguez, constellations, President and Chief Executive Officer, and Dan Eggers, Constellation's, Chief Financial Officer, they're joined by other members of constellation Senior management team, who will be available to answer your questions. Following our prepared.

Emily Duncan: Third remarks.

Emily Duncan: Our earnings release this morning, along with the presentation all of which can be found in the Investor Relations section of Constellation's website, the earnings release and other matters, which we will discuss during today's call contain forward looking statements and estimates regarding constellation and its subsidiaries that are subject to various risks and uncertainties.

Emily Duncan: We issued our earnings release this morning, along with a presentation, all of which can be found in the investor relations section of Constellation's website. The earnings release and other matters which we will discuss during today's call contain forward-looking statements and estimates regarding Constellation and its subsidiaries that are subject to various risks and uncertainties. Actual results could differ from our forward-looking statements based on factors and assumptions discussed in today's material and comments made during this call. Please refer to today's 8K and Constellation's other SEC filings for discussions of the risk factors and other circumstances and considerations that may cause results to differ from management's projections, forecasts, and expectations.

Emily Duncan: Actual results could differ from our forward looking statements based on factors and assumptions discussed in today's material and comments made during this call.

Emily Duncan: Please refer to today's 8-K and constellation's other SEC filings for discussions of the risk factors and other circumstances and considerations that may cause results to differ from management's projections forecasts and expectations.

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

Emily Duncan: Today's presentation also includes references to adjusted operating earnings and other non-GAAP measures. Please refer to the information contained in the appendix of our presentation and our earnings release for reconciliations between the non-GAAP measures and the nearest equivalent GAAP measure. I'll now turn the call over to Joe Dominguez, CEO of Constellation. I wanted to thank you.

Joseph Dominguez: Now I'll turn the call over to Joe to make as CEO of constellation.

Joseph Dominguez: Wanda, thanks for getting us started this morning, and Emily, thanks for running through all that and laying out the agenda for today. Good morning, everyone.

Joseph Dominguez: Wanda Thanks for getting US started this morning, and Emily Thanks for running through all of that and laying out the agenda for today. Good morning, everyone. Thank you for joining US we had an excellent first quarter operationally and financially, we're making steady progress with technology customers on transactions that will power America into the <unk>.

Joseph Dominguez: Thank you for joining us. We had an excellent first quarter operationally and financially. We're making steady progress with technology customers on transactions that will power America into the future and employ thousands. And last week, we concluded meetings with our board where they authorized another billion dollars in stock buybacks because we believe in our strategy. This is the second buyback announcement in less than six months. Dan and I will cover all of those topics and more this morning.

Joseph Dominguez: <unk> employs thousands.

Joseph Dominguez: And last week, we concluded meetings with our board, where they authorized another $1 billion in stock buybacks, because we believe in our strategy.

Joseph Dominguez: This is the second buyback announcement in less than six months.

Joseph Dominguez: Dan and I will cover all of those topics and more this morning.

Joseph Dominguez: But I want to begin today with a celebration of Chris Kring, the former CEO of Exelon who passed suddenly last year. We appreciate all of you who reached out and shared your thoughts and fun memories of Chris. If there ever was one, Chris was nuked through and through.

Joseph Dominguez: But I want to begin today with a celebration of Chris Crane.

Joseph Dominguez: <unk> CEO of Exelon, who passed suddenly last months.

Joseph Dominguez: We appreciate all of you who reached out and shared your thoughts and fun memories of Chris.

Joseph Dominguez: If there ever was one Chris was a nuke through and through.

Joseph Dominguez: And as much as anyone, Chris deserves credit for the operational excellence of our fleet and improvements in other fleets around the industry. He was an operational genius. His reach was far, and he touched so many people.

Joseph Dominguez: And as much as anyone brisk deserves credit for the operational excellence of our fleet and improvements in other fleets around the industry. He was an operational genius is reach was far and he touched so many people.

Joseph Dominguez: He and I spoke regularly after Constellation launched. He was happy to see how we were doing, but his first thoughts were always about our people. He was always so proud of the folks here at Constellation and especially the women and men at the plant. They were his family.

Joseph Dominguez: DNI spoke regularly after constellation launched he was happy to see how well youre doing but its first thoughts were always about our people.

Joseph Dominguez: He was always so proud of the folks here at constellation and especially the women and men at the plants.

Joseph Dominguez: Were his family.

Joseph Dominguez: Many of US here worked with Chris for over 20 years, but you only have to be with them for about 20 minutes to know what he cared about.

Joseph Dominguez: Many of us here have worked with Chris for over 20 years, but you only have to be with him for about 20 minutes to know what he cared about. Safety and operational excellence were always number one, followed closely by the care and development of the women and men who we are all privileged to lead every day. Those two things were his North Star.

Joseph Dominguez: Safety and operational excellence was always number one.

Joseph Dominguez: Followed closely by the care and the development of the women and men who were all privileged to lead every day.

Joseph Dominguez: Those two things where his northstar.

Joseph Dominguez: He was a leader for the industry and had conviction encouraged or a lot of hard times.

Joseph Dominguez: He was a leader for the industry and had conviction and courage through a lot of hard times. He was an all-of-the-above energy thinker who cared about nuclear power because he was sure that you could not run a full-time clean energy economy just on part-time power. We've got a lot going for us here at Constellation, and we'll talk about that today. One of the most important things we have is Chris Kran in our DNA, who trained and mentored Bryan Hanson and Dave Rhodes and a lot of our other leaders. We're going to miss him, but you can be sure that his legacy of excellence will carry on.

Joseph Dominguez: He was in all of the above energy thinker, who cared about nuclear because he was sure.

Joseph Dominguez: You cannot run a full time clean energy economy, just on part time power.

Joseph Dominguez: We've got a lot going for us here at constellation and we'll talk about that today.

Joseph Dominguez: But one of the most important things we have as Chris Crane in our DNA.

Joseph Dominguez: He trained and mentored Bryan Hanson and Dave roads, and a lot of our other leaders.

Joseph Dominguez: We're going to Miss them, but you can be sure that his legacy of excellence will carry on here.

Joseph Dominguez: In February we gave you a very thorough update on the company and the opportunities that lie ahead of us to create value for you. Our owners. So we don't have to go through all of that again in detail, but I do want to reiterate a few points.

Joseph Dominguez: In February, we gave you a very thorough update on the company and the opportunities that lie ahead of us to create value for you, our owners. So we don't have to go through all of that again in detail, but I do want to reiterate a few points. Constellation will grow base earnings by at least 10% through the decade. And, importantly, we have a number of opportunities to generate base earnings above those levels.

Joseph Dominguez: Constellation will grow base earnings by at least 10% through the decade and.

Joseph Dominguez: And importantly, we have a number of opportunities to generate base earnings above those levels.

Joseph Dominguez: In the coming years, the demand for clean reliable megawatts will only grow and we think we're best positioned to meet growing demand for clean energy to tackle the challenge of the energy transition.

Joseph Dominguez: In the coming years, the demand for clean, reliable megawatts will only grow. We think we're best positioned to meet growing demand for clean energy to tackle the challenge of the energy transition, unlock value through compensation for the uniquely clean and reliable attributes of our 180 million megawatt-hour fleet, and to help America power the technologies of the future. Whether that be EVs, electric heating, and industrialization, where we've got a lot to go, or the booming demand for artificial intelligence technologies and other digital infrastructure projects. I'd like to drill down on that last point for a moment.

Joseph Dominguez: To unlock value through compensation for the uniquely clean and reliable attributes of our 180 million megawatt hour fleet.

Joseph Dominguez: And to help America power the technologies of the future whether that be Evs electric heating and industrialization, where we've got a lot to go.

Joseph Dominguez: Or in the booming demand for artificial intelligence technologies and other digital infrastructure projects.

Joseph Dominguez: I'd like to drill down on that last point for a moment.

Joseph Dominguez: Over the last few months, a lot has been written about power demands in the technology industry. But I want to assure you that these challenges will be overcome, as they have been in the past, because we all know here how imperative it is for America's national security and economic competitiveness that the U.S. leads the world in the development of these technologies. We're working hard every day to make that possible. The data economy and Constellation's nuclear energy go together like peanut butter and jelly.

Joseph Dominguez: Over the last few months a lot has been written about power demands in the technology industry.

Joseph Dominguez: But I want to assure you that these challenges will be overcome.

Joseph Dominguez: As they have in the past because we all know here how imperative is for America's National Security and economic competitiveness that the U S lead the world in the development of these technologies and we're working hard every day to make that possible.

Joseph Dominguez: The data economy, and constellations nuclear energy go together like peanut butter and jelly.

Joseph Dominguez: And as such, we're in advanced conversations with multiple clients, large, well-known companies that you all know, about powering their needs. Speed to execution is important to them as it is to us. These are large and complicated transactions that require diligence and time to finalize. Well, we're not done yet.

Joseph Dominguez: And as such we're in advanced conversations with multiple clients large well known companies that you all know about.

Joseph Dominguez: About powering their needs.

Joseph Dominguez: Speed to execution is important to them as it is to us, but these are large and complicated transactions that required diligence and time to finalize.

Joseph Dominguez: And while we're not done yet I do expect that we will finalize agreements that will have long term and transformational value <unk>.

Joseph Dominguez: I do expect that we will finalize agreements that will have long-term and transformational value. They'll ensure that our fleet and the jobs and economic community benefits that we already provide will be sustainable for decades to come. As demand grows, our nation's need for firm, clean power grows proportionately. As we add new clean power, the role and importance of nuclear power will only grow. We intend that Constellation will be a leader in adding new, clean, reliable megawatts to the grid to meet the needs of American families and businesses.

Joseph Dominguez: That will ensure that our fleet and the jobs and economic community benefits that we already provide will be sustainable for decades to come.

Joseph Dominguez: As demand grows our nation's need for firm clean power grows proportionately.

Joseph Dominguez: As we add new clean power the role and importance of nuclear will only grow.

Joseph Dominguez: We intend that constellation will be a leader in adding new clean reliable megawatts to the grid to meet the needs of American families and businesses.

Joseph Dominguez: We're going to do that in three ways. First, we're extending the lives of our existing sites to power the nation into 2060 and beyond, creating more clean energy than all of the renewables ever built in this country. You've already received or have announced license extensions at 5, and have more to come, assuming supportive policy.

Joseph Dominguez: We're going to do that in three ways.

Joseph Dominguez: First we're extending the lives of our existing sites to power the nation into 2060 and beyond.

Joseph Dominguez: Creating more clean energy then all of the renewables ever built in this country.

Joseph Dominguez: We've already received or have announced license extensions at five and have more to come assuming supportive policy.

Joseph Dominguez: Continuing to run these plants.

Joseph Dominguez: Continuing to run these plants through license extensions is quite simply the most important thing we can do for America's clean energy future. Second, we're adding megawatts by using upgrades to increase the output of our current machine. We already announced to you upgrades at Byron and Braidwood that will bring in 160 megawatts in the next few years. We're looking at many opportunities to do that at other plants.

Joseph Dominguez: Through license extensions is quite simply the most important thing we can do for America's clean energy future.

Joseph Dominguez: Second we're adding megawatts by using operates to increase the output of our current machines.

Joseph Dominguez: Now we already announced you operates a buyer and embraer with that we'll bring in 160 megawatts in the next few years.

Joseph Dominguez: We're looking at many opportunities to do that at other plants, we believe that the opportunities will add up to 1000 megawatts or perhaps more of clean firm power to the grid.

Joseph Dominguez: We believe that the opportunities will add up to a thousand megawatts or perhaps more of clean, firm power to the grid. This is in addition to the many hundreds of megawatts of renewables that Constellation is adding through core plus deals with customers and through our wind repowering. Third, we're looking to partner with others to locate new technologies, including new nuclear, at our existing site.

Joseph Dominguez: This is in addition to the many hundreds of megawatts of renewables that constellation is adding through core plus deals with customers and through our wind repowering.

Joseph Dominguez: Third we're looking to partner with others to locate new technologies, including new nuclear at our existing sites.

Joseph Dominguez: These sites already have, of course, community support and Existing Infrastructure for Nuclear Energy, and we think our simple thesis is this. If new nuclear power is going to be built anywhere where we do business, it's going to be built on sites where there already is existing nuclear power, because that's where communities love the technology and have the capability to support more. So we believe that we're uniquely suited to provide this value and grow the industry.

Joseph Dominguez: These sites already have of course community support and.

Joseph Dominguez: An existing infrastructure for nuclear energy and we think our simple thesis is this.

Joseph Dominguez: If new nuclear is going to be built anywhere where we do business, it's going to be built on sites, where there already is existing nuclear because that's where communities loved the technology and have the capability to support more.

Joseph Dominguez: So we believe that we're uniquely suited to provide this value and grow the industry.

Joseph Dominguez: Turning to the quarter, we delivered first-quarter GAAP earnings of $2.78 per share and adjusted operating earnings of $1.82 per share, driven by continued strong performance from the commercial business through better than historical customer margins and through optimizing our combined generation and customer business.

Joseph Dominguez: Turning to the quarter, we delivered first quarter GAAP earnings of $2 78 per share $2 78 per share and adjusted operating earnings of $1 82 per share driven by continued strong performance from the commercial business through better than historical customer margins.

Joseph Dominguez: And through optimizing our combined generation and customer business.

Joseph Dominguez: Given the performance, we're confident in our full-year outlook, and we look forward to another strong financial year. Our performance and creditworthiness are being recognized. Moody's upgraded our credit rating to BAA1, further recognition of our strong financial footing, and we issued the first green bond to fund nuclear power in the United States. I think that's really cool.

Joseph Dominguez: Given the performance we're confident in our full year outlook and we look forward to another strong financial year.

Joseph Dominguez: Our performance in credit worthiness is being recognized Moody's upgraded our credit rating to B double a one which is further recognition of our strong financial footing and we issued the first green bond to fund nuclear power in the United States I think that's really cool think about it.

Joseph Dominguez: In five years, the idea of using green bonds for nuclear power would have been something that people would have scratched their heads at. But it happened. And you can see the enthusiasm in our near and long-term outlook for our business through our continued share repurchase program, which now stands at 500 million shares today, with another $350 million of that coming since our end of the year February call. Looking at our strong free cash flows and near-term allocation opportunities, the board, as I mentioned previously, authorized an additional $1 billion in share repurchases, bringing our remaining authority, Authorized buyback capacity to $1.5 As Dan will explain, even after this new authorization, Constellation has ample cash available for growth investment, acquisitions, and returning even more value to you, our owners. Turning to slide six.

Joseph Dominguez: Five years, the idea of using green bonds for nuclear would've been something that people would have scratched their head at it happened.

Joseph Dominguez: And you can see the enthusiasm in our near and long term outlook for our business through our continued share repurchases buying 500 million shares.

Joseph Dominguez: To date.

Joseph Dominguez: With another $350 million of that coming since our end of the year February call.

Joseph Dominguez: Looking at our strong free cash flows and near term allocation opportunities. The board as I mentioned previously authorized an additional $1 billion in share repurchases, bringing our remaining authority.

Joseph Dominguez: Authorized buyback capacity to $1 $5 billion as Dan will explain even after this new authorization constellation has ample cash available for growth investments acquisitions, and returning even more value to you our owners.

Joseph Dominguez: Turning to slide six the.

Joseph Dominguez: The importance of nuclear energy to our economy, electric system, and meeting the country's environmental and clean energy goals was first recognized by states when they enacted zero-emission credit programs, and it's now been followed by the federal government through the nuclear production tax credit. Since then, the financial community has embraced nuclear energy, understanding its importance to our country's success. As I mentioned, we issued the first nuclear green bond in the U.S. There was significant demand for this product, and we were able to upsize our offering as a result.

Joseph Dominguez: The importance of nuclear energy to our economy electric system and meeting the country's environmental and clean energy goals was first recognized by states when they enacted zero emission credit programs and it's now been followed by the federal government through the nuclear production tax credits.

Joseph Dominguez: Since then the financial community has embraced nuclear energy understanding its importance to our country's success.

Joseph Dominguez: As I mentioned, we issued the first nuclear Green bond in the U S.

Joseph Dominguez: There was significant demand for this product and we were able to upsize our offering as a result, the strong demand from investors for our 30 year Green bond is recognition that clean reliable nuclear energy is critical to meeting the sustainability goals of the nation and will be beyond the present period of our.

Joseph Dominguez: Strong demand from investors for our 30-year green bond is recognition that clean, reliable nuclear energy is critical to meeting the sustainability goals of the nation and will be beyond the present period of our current licensed lives. I mentioned that we received a credit upgrade from Moody's. Importantly, included as part of that upgrade, Moody's improved our carbon transition score to its highest level, further recognition of the importance of nuclear energy to the energy transition.

Joseph Dominguez: Current license lives.

Joseph Dominguez: Mentioned that we received a credit upgrade from Moody's importantly included as part of that upgrade Moody's improved our carbon transition score to its highest level.

Joseph Dominguez: Further recognition of the importance of nuclear energy to the energy transition.

Joseph Dominguez: More and more customers are acknowledging that nuclear should be part of meeting their own clean energy needs. Our customers are signing deals for hourly carbon-free power from our existing plants, and we are talking to others about behind-the-meter opportunities at our site. Congress has passed legislation to provide the necessary funding for bringing more of the nuclear fuel chain into our country, ultimately reducing geopolitical risks in supply. We expect DOE to issue a request for proposals imminently.

Joseph Dominguez: More and more customers are acknowledging that nuclear should be part of meeting their own clean energy goals. Our customers are signing deals for hourly match carbon free power from our existing plants and we were talking to others about behind the meter opportunities at our sites.

Joseph Dominguez: Congress has passed legislation to provide the necessary funding for bringing more of the nuclear fuel chain into our country ultimately reducing geopolitical risks in supply we expect to issue a request for proposals imminently.

Joseph Dominguez: States across the country are taking action in favor of nuclear energy. State legislatures have 130 bills out there to support nuclear energy this year compared to 5 to 10 historically. States like Michigan and Minnesota have past laws moving.

Joseph Dominguez: And states across the country are taking action in favor of nuclear energy state legislatures have a 130 bills out there to support nuclear energy this year compared to five to 10, historically states like Michigan or Minnesota pass laws moving.

Joseph Dominguez: Renewable standards to clean energy standards, which include nuclear energy. I was pleased to see that Governor Shapiro in Pennsylvania recently did the same thing. They're removing barriers to nuclear power by repealing moratoriums on building new nuclear plants, and they're developing regulations to support new development in the state. In places like Indiana and South Dakota, where there currently is no nuclear power, there are plans to build nuclear power plants. In six states, red and blue have created incentives in their state budgets to attract nuclear power to their states.

Joseph Dominguez: Renewable standards to clean energy standards, which include nuclear I was pleased to see that Governor Shapiro in Pennsylvania recently did the same thing.

Joseph Dominguez: They are removing barriers to nuclear by repealing moratoriums on building, new nuclear and Theyre developing regulations to support new development in the states.

Joseph Dominguez: In places like Indiana, and South Dakota, where there currently is no nuclear there are plans to build nuclear and six states red and Blue have created incentives in their state budgets to attract nuclear to their state.

Joseph Dominguez: The momentum behind nuclear energy, both existing and new, continues to build as more and more policymakers recognize exactly what Chris Crane believes: we can't power a full-time economy on clean energy that is only part-time. Turning to slide 7.

Joseph Dominguez: The momentum behind nuclear energy, both existing and new continues to build as more and more policy makers.

Joseph Dominguez: Makers recognize exactly what Chris Crane believed that you cant power a fulltime economy on clean energy that is only part time.

Joseph Dominguez: Turning to slide seven.

Joseph Dominguez: Nuclear performance was strong and ahead of plan for the quarter, we produced more than 41 million megawatts megawatt hours of reliable available and carbon free generation from our nuclear plants with an unplanned capacity factor of 93, 3%.

Joseph Dominguez: Nuclear performance was strong and ahead of plan for the quarter. We produced more than 41 million megawatt hours of reliable, available, and carbon-free generation from our nuclear plants, with an on-plan capacity factor of 93.3 percent. We completed three refueling outages during the quarter, with each lasting less than 22 days on average, and overall faster than we had planned. During our stay at Quad Cities, we anticipated a longer stay due to inspections on the low-pressure turbines that were installed as part of an upgrade. 2010.

Joseph Dominguez: We completed three refueling outages during the quarter with each lasting less than 22 days on average and overall faster than we had planned.

Joseph Dominguez: During her adage at Quad cities, we anticipated a longer outage due to inspections on the low pressure turbines that were installed as part of an upgrade.

Joseph Dominguez: In 2010.

Joseph Dominguez: But even with the additional work, we were able to complete that outage in 20 days, a full eight days faster than planned. Kudos to Nuclear and the entire team there. Our renewables and natural gas fleet also performed well, with 96.3% renewable energy capture and 97.9% power dispatch mass. The team is now completing our summer readiness work so that we're ready to go when the temperature turns up. Turning to slide eight, our commercial team is off to another great start.

Joseph Dominguez: But even with the additional work we were able to complete that outage and 20 days full eight days faster than planned kudos to nuclear and the entire team there.

Joseph Dominguez: Our renewables and natural gas fleet also performed well with 96, 3% renewable energy capture and 97, 9% power dispatch match. The team is now completing our summer readiness work. So that we're ready to go when the temperature turns out.

Joseph Dominguez: Turning to slide eight our commercial team is off to another great start we continue to see strong margins in our customer business. You know we talked about this in the last call our projections being based partly on the historical margins, we're continuing to see strong margins as we get into the beginning here of 2024.

Joseph Dominguez: We continue to see strong margins in our customer business. You know, we talked about this in the last call, our projections being partly based on historical margins. We're continuing to see strong margins as we get into the beginning of 2024.

Joseph Dominguez: They're also creating value because of our integrated generation and customer business, capturing value through optimizing our positions across the fleet. I talked a moment ago about customers choosing existing nuclear power to meet their energy demands, and we continue to meet our customers' need for hourly-matched clean energy. We recently signed two deals with two of our largest customers that I just want to briefly mention. In each case, we converted these customers from a renewable-only product to a product that now uses nuclear energy to fill in the gaps when renewables don't operate. Each will ensure that our customers have full-time power. We empower each and every watt that they are consuming.

Joseph Dominguez: There are also creating value because of our integrated generation and customer business capturing value through optimizing our positions across the fleet.

Joseph Dominguez: I talked a moment ago about customers choosing existing nuclear to meet their energy demands and we continue to meet our customers' need for hourly match clean energy. We recently signed two deals with two of our largest customers that I just want to briefly mention in each case, we converted these customers from.

Daniel L. Eggers: The first is with Comcast. It's a new deal that includes offtake from new solar facilities. The second, which will be announced in the coming weeks, converts an existing core deal, which again is Constellation's off-site renewables program, to now include hourly-matched carbon-free energy with energy from our nuclear program. So our customers are recognizing that in order to meet their goals and make a difference for their business, they need full-time clean power to run their full-time business. So now, with that, I'll turn it over to Dan for the financial update. Dan?

Daniel L. Eggers: Thank you, Joe. And good morning, everyone. Beginning on slide nine, we are in $2.78 per share in GAAP earnings and $1.82 per share in adjusted operating income. This is $1.04 per share higher than last year. As Joe mentioned, our commercial businesses continue to perform very well. They do this through our generation to load portfolio optimization strategy. We take advantage of our physical position in the markets to capture more value through the combined generation and customer business.

Daniel L. Eggers: On the margin front, we are seeing margins come in better than planned and continue to trend higher than our long-term averages that we use in forecasting, as we discussed with you all in the last call. In addition, we had more nuclear output year-over-year and saw lower costs for our refueling outages in the quarter. And as a reminder, this was the first full quarter with a contribution from our ownership share in the South Texas project.

Daniel L. Eggers: Renewable only product to a product that now uses nuclear energy to fill in the gaps when renewables don't operate each.

Daniel L. Eggers: Each will ensure that our customers have full time power.

Daniel L. Eggers: Clean power each and every hour that they are consuming the first is with Comcast. It's a new deal that includes offtake from new solar facility.

Daniel L. Eggers: Which will be announced in the coming weeks converts in the existing core deal, which again as constellation's off site renewables program to now include hourly matched carbon free energy.

Daniel L. Eggers: With energy from our nuclear plants. So our customers are recognizing that in order to meet their goals and make the difference for their business. They need full time clean power to run their full time businesses.

Daniel L. Eggers: Now with that I'll turn it over to Dan for the financial update Dan. Thank you Joe and good morning, everyone. Beginning on slide nine we earned $2 78 per share and GAAP earnings and a $1 82 per share and adjusted operating earnings which is a $1 four per share higher than last year as Joe mentioned, our commercial business.

Daniel L. Eggers: And speaking of firsts, this was the first quarter that the Nuclear Production Tax Credit was in effect, favorably contributing to our earnings, even after sharing some of the value of the PETC with our state. And as a reminder, we forecast the full-year PTC value for our business, based on the expected gross receipts at each plant, so as prices realized through the year differed from where we started the year. The value of the PTC can change relative to forecast, but the overall net earnings for Constellation should be the same, as the mix of energy revenues and PTCs will balance to get us to the same place.

Daniel L. Eggers: Our SOC performance year-to-date has resulted in higher compensation expense year-over-year. Due to the timing of how we book compensation expense, it results in higher O&M during the quarter, and it will for the full year as well.

Daniel L. Eggers: We remain very comfortable with our earnings guidance range of $723 to $803 per share. Turning to the financing and liquidity update on slide 10, I'm excited to expand upon some of the accomplishments that Joe mentioned in his opening remarks. As he said, firm, clean megawatts are the most valuable commodity in the market today, and we own more nuclear generation in competitive power markets than all of our peers combined. We look at the opportunities ahead of us and continue to view our stock as compelling at the current share price, even after the strong performance we have already enjoyed this year.

Daniel L. Eggers: <unk> has continued to perform very well they do this through our generation to load portfolio optimization strategy.

Daniel L. Eggers: Take advantage of our physical position in the markets to capture more value through the combined generation and customer businesses than they could if they were apart on the margin front, we're seeing margins come in better than plan and continue to trend higher than our long term averages that we use in forecasting as we discussed with you all.

Daniel L. Eggers: On the last call. In addition, we had more nuclear output year over year and saw lower cost for a refueling outages in the quarter and as a reminder, this was the first full quarter with contribution from our ownership share in the South Texas project and speaking of <unk>. This was the first quarter the nuclear production.

Daniel L. Eggers: <unk> tax credit was in effect.

Daniel L. Eggers: <unk> contributing to our earnings even after sharing some of the value of the PTC with our states and as a reminder, we forecast the full year PTC value for our business based on the expected gross receipts at each plant so as prices realized through the year different from where we started the year.

Daniel L. Eggers: Year, the value of the PTC can change relative to forecast, but the overall net earnings for constellation should be the same as the mix of the energy revenues and Ptc's will balance to get us to the same place.

Daniel L. Eggers: Finally.

Daniel L. Eggers: Our soft performance year to date has resulted in higher compensation expense year over year due to the timing of how we book compensation expense. It results in higher O&M during the quarter and it will for the full year as well.

Daniel L. Eggers: We remain very comfortable with our earnings guidance range of $7 23 to $8 three per share.

Daniel L. Eggers: Turning to the financing and liquidity update on slide 10, I'm excited to expand upon some of the accomplishments that Joe mentioned in his opening remarks.

Daniel L. Eggers: As he said firm clean megawatts are the most valuable commodity in the market today, and we earn more nuclear generation and competitive power markets than all of our peers combined.

Daniel L. Eggers: We look at the opportunities ahead of us and continue to view our stock is compelling at the current share price even after the strong performance we have already enjoyed this year.

Daniel L. Eggers: In March, we entered into a $350 million accelerated share repurchase agreement, bringing our total repurchases to $500 million year-to-date. We have now executed $1.5 billion of share repurchases since the first quarter of 2023, buying back approximately 13.5 million shares in total. Having completed half of the billion-dollar authorization from December, we're happy to announce that our board has authorized an incremental $1 billion, bringing the total program to $3 billion. We will remain optimistic with the remaining $1.5 billion authorization and still see our stock as a track.

Daniel L. Eggers: In March we entered into a $350 million accelerated share repurchase agreement, bringing our total repurchases to $500 million year to date, we have now executed $1 $5 billion of share repurchases since the first quarter of 2023 buying back approximately 13 five.

Daniel L. Eggers: Shares in total.

Daniel L. Eggers: Having completed half of the $1 billion authorization from December we're happy to announce that our board authorized an incremental $1 billion, bringing the total program to $3 billion, we will remain opportunistic with the remaining $1 5 billion.

Daniel L. Eggers: Authorization and still see our stock is attractive.

Daniel L. Eggers: Our high investment grade credit ratings are a core principle to our capital allocation strategy. Our ratings were further strengthened by Moody's upgrade to BAA1 in March, bringing them in line with S&P's Triple D Plus rating. The ratings action taken by Moody's recognizes the strong financial performance of the company and the stability provided by the nuclear PTC. Last, we issued the nation's first ever corporate green bond, including nuclear, with proceeds of $900 million.

Daniel L. Eggers: Our high investment grade credit ratings are a core principle to our capital allocation strategy.

Daniel L. Eggers: Our ratings are further strengthened by Moody's upgraded the beta of only one in March bringing it in line with S&P's Triple B plus rating.

Daniel L. Eggers: The ratings action taken by Moody's recognizes the strong financial performance of the company and the stability provided by the nuclear PTC.

Daniel L. Eggers: Last we issued the nation's first ever corporate green bond, including nuclear with proceeds of $900 million.

Daniel L. Eggers: The funds from the 30-year issuance will be used to finance green projects such as nuclear upgrades that will increase the production of clean, carbon-free energy. We saw significant demand despite pricing amid a busy window for corporate supply, allowing us to upsize from our initial target to $900 million but still within our full-year issuance plan. We also achieve very tight pricing when we look at both spreads and treasury, in line with 30-year holding company debt for regulated utilities.

Daniel L. Eggers: And the 30 year issuance will be used to finance green projects, such as nuclear off rates will increase the production of clean carbon free energy.

Daniel L. Eggers: <unk> significant demand despite pricing amid a busy window for corporate supply, allowing us to upsize from our initial target to $900 million, but still within our full year issuance plan. We also achieved very tight pricing when we look at the spreads in treasuries in line with 30 year holding company debt.

Daniel L. Eggers: For regulated utilities.

Daniel L. Eggers: This is the second 30-year offering we have done, and between the two, we have had $10 billion in demand, demonstrating the strong investor confidence in us as a company and a belief that our assets will be a critical part of the U.S. energy mix for a long time to come. Turning to slide 11, and our two-year view of free cash generation and planned use of the cash. We'll update this slide when we make meaningful updates to our allocation plans, like the increased share of purchase authorization we announced today or the FTP transaction last year. As you can see from the chart, even after the increase in share buyback authorization, we saw approximately $2.3 billion of unallocated capital in 2024 and 2025, providing considerable strategic flexibility for us to further benefit our owners. I'll now turn the call back to Joe for his closing. Thanks, Stan.

Daniel L. Eggers: This is the second and third year offering we have done in between the two have had $10 billion in demand demonstrating the strong investor confidence in us as a company and I believe that our assets will be a critical part of the U S energy mix for a long time to come.

Daniel L. Eggers: Turning to slide 11, and our two year view of free cash generation and planned use of the cash.

Daniel L. Eggers: We will update this slide we make meaningful updates for our allocation plans like the increased share repurchase authorization, we announced today or the STP transaction last year.

Daniel L. Eggers: As you can see from the chart, even after the increase in share buyback authorization, we still have approximately $2 $3 billion of unallocated capital in 2024, and 2025, providing considerable strategic flexibility for us to further benefit our owners.

Daniel L. Eggers: I'll now turn the call back to Joe for his closing remarks, thanks, Dan.

Joseph Dominguez: Constellation is like no other company; we have a unique set of existing assets that create opportunities that no one else has. At our core, we have visible base earnings growth of 10% through the decade that is backstopped by the federal government through the nuclear PTC and has a built-in inflation adjustment, and we are the largest and best operator of nuclear power plants in the United States. Our plants are especially well-positioned to meet the challenge of reliability and clean energy that U.S. electricity markets, more than 20% share of Competitive C&I, connects us to leaders in sustainability and the drivers of power demand, in particular demand for sustainability products. Our country needs what we have. Clean and Dependable Power Generation to Drive Economic Growth. Support our national security and our environmental good.

Daniel L. Eggers: Installations like no. Other company, we have a unique set of existing assets that create opportunities that no one else has.

Joseph Dominguez: At our core we have visible base earnings growth of 10% through the decade that is backstopped by the federal government through the nuclear PTC and has built an inflation adjuster.

Joseph Dominguez: We're the largest and best operator of nuclear power plants in the United States.

Joseph Dominguez: Our plants are especially well positioned to meet the challenge of reliability and clean that U S electricity market need.

Joseph Dominguez: Our more than 20% share.

Joseph Dominguez: Competitive C&I.

Joseph Dominguez: Excess to leaders in sustainability and the drivers of power demand in particular demand for sustainability products.

Joseph Dominguez: Our country needs, what we have clean and dependable power generation to drive economic growth support our national security and our environmental goals.

Joseph Dominguez: Power demand is growing, and at the same time, reliability is becoming a premium product, and there is no more reliable power source than nuclear. Increased demand combined with the change in the Electric System to be more dependent on intermittent, non-dispatchable resources means that we're going to see continued volatility and increased volatility for years to come. This presents an opportunity for us to drive additional value for our owners. In short, we think Constellation is... (inaudible] the solution to America's energy supply.

Joseph Dominguez: Power demand is growing and at the same time reliability is becoming a premium product and there is no more reliable power source the nuclear.

Joseph Dominguez: Increased demand combined with the change.

Joseph Dominguez: Of the electric system to be more dependent on intermittent non dispatched for resources means that we're going to see continued volatility and increased volatility for years to come.

Joseph Dominguez: This presents an opportunity for us to drive additional value for our owners.

Joseph Dominguez: Short, we think constellation is a big part.

Joseph Dominguez: The solution to America's energy supply, our clean reliable nuclear plants, coupled with our ability to offer customers what they need we will support the energy transition and our national security and.

Joseph Dominguez: Our clean, reliable nuclear plants, coupled with our ability to offer customers what they need, will support the energy transition and our national security. And that's why Republicans and Democrats recognize that nuclear power is the backbone of the electric system today and will be tomorrow, and that support continues to grow. On top of the opportunities we have from continued volatile power markets, and we've certainly seen movement in power markets, we have more than 180 million megawatt hours of carbon-free electricity that we produce annually that can receive additional compensation through 24-7 clean attributes.

Joseph Dominguez: And that's why Republicans and Democrats recognize that nuclear is the backbone of the electric system today and will be tomorrow.

Joseph Dominguez: And that support continues to grow.

Joseph Dominguez: On top of the opportunities we have from continued volatile power markets and we certainly seen movement in power markets, we have more than 180 million megawatt hours of carbon free electricity that we produce annually that can receive additional compensation through 'twenty four seven clean attributes behind them.

Joseph Dominguez: Behind the Meter Opportunities, Government Procurements for Clean Energy, and Capturing Prices Above the PTC Floor Levels as we see increases in power prices as demand continues to ramp. These opportunities are on top of the 10% growth we have in our plan. Our task is to capture the additional opportunities as they unfold and to do better than our plan for our owners. With that, I will open it up for questions. Thank you.

Joseph Dominguez: Peter opportunities government procurements for clean energy and capturing prices above the PTC floor levels as we see increases in power prices as demand continues to ramp.

Joseph Dominguez: These opportunities are on top of the 10% growth we have in our plan.

Joseph Dominguez: Our task is to capture the additional opportunities as they unfold and to do better than our plan for our owners with that let me open it up for questions.

Speaker Change: Thank you.

Operator: Ladies and gentlemen, to ask a question, please press star 11 on your telephone and then wait to hear your name announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A list. Our first question comes from the line of David Arcaro with Morgan Stanley. Your line is open.

Speaker Change: Ladies and gentlemen to ask a question. Please press star one on your telephone and then wait to hear your name announced.

Operator: To withdraw your question. Please press star one again please.

Operator: Please standby, while we compile the Q&A roster.

Operator: Our first question comes from the line of David Arcaro with Morgan Stanley. Your line is open.

David Keith Arcaro: Hey, good morning, Thanks, so much.

David Keith Arcaro: Oh, hey, good morning. Thanks so much. Morning, I appreciate the update.

David Keith Arcaro: Good morning, I appreciate the update Joe you mentioned that you were exploring the potential.

Joseph Dominguez: Joe, you mentioned that you're exploring the potential to locate next-generation nuclear units at your site. I was wondering if you could elaborate on that. Maybe what technology you're looking at. Where does that stand overall?

Joseph Dominguez: So looking at next generation nuclear units that Youre, saying I was wondering if you could elaborate on that just maybe what technology, you're looking at where does that stand overall.

Joseph Dominguez: Yeah, David, here's what we've done so far on that. There was an RFI that was issued by three companies, Google, Microsoft, and Nucor Steel. And what these companies were looking for was power today but also some role in building new clean power supply in the future. And so, what we outlined in our response to that request for information is exactly what I said earlier on the call, that we think our existing sites are an incredibly valuable resource as we consider new firm clean energy, in particular from nuclear energy.

Joseph Dominguez: Yes, so David Here's here's what we've done so far on that there was a <unk>.

Joseph Dominguez: RFID that was issued by three companies, Google, Microsoft and Nucor steel.

Joseph Dominguez: And what these companies we're looking for is power today, but also.

Joseph Dominguez: Some role in building, new clean power supply in the future.

Joseph Dominguez: And so what we outlined in our response to that request for information.

Joseph Dominguez: Is exactly what I said earlier on the call that we think our existing sites are an incredibly valuable resource as we consider new firm clean energy in particular from nuclear energy.

Joseph Dominguez: And so we proposed a structure, kind of a multi-tiered structure, where we could begin flowing power today from our existing power plants on a long-term PPA. As part of that long-term PPA, we would work with our customers to begin to evaluate opportunities to add new firm energy. Now, a big part of that is subsequent license renewal of plants in our fleet, then upgrades, and other opportunities that we have organically to add additional megawatts to our fleet.

Joseph Dominguez: So we proposed a structure kind of a multi tiered structure, where we can begin flowing power today from our existing power plants.

Joseph Dominguez: On a long term PPA.

Joseph Dominguez: And then finally, to investigate different technologies for SMRs and actually other technologies as well that can be sited at our locations. And what we would anticipate doing over time is working with the customer to select that technology, and then the customer, through increases in the PPA, would begin to fund site development work, and construction, ultimately scaling up to the point where the PPA absorbs the full cost of an operating new unit.

Joseph Dominguez: As part of that long term PPA, we would work with our customer to begin to evaluate opportunities to add new firm.

Joseph Dominguez: Energy now big part of that is subsequent license renewal of plants in our fleet.

Joseph Dominguez: Then up rates and other opportunities that we have organically to add additional megawatts in our fleet and then finally to investigate different technologies for <unk> and actually other technologies as well that can be sited at our locations and what we would anticipate.

Joseph Dominguez: Doing over time is having some work with the customer to select that technology.

Joseph Dominguez: And then the customer through increases in the PPA would begin to fund site development work construction ultimately scaling up to the peak to the point, where the PPA absorbs the full cost of an operating new unit.

Joseph Dominguez: And so we would anticipate operating the unit for the owner because, obviously, it would be on our site, and we would have a slice of equity given our contribution in land and other things of value to the owner. So this is in the beginning stages, but what I can tell you is it's of great interest to a number of clients in this space that not only want to have immediate access to power today but want to have more clean power in the future. And so that's how we're walking through it.

Joseph Dominguez: And so we would anticipate operating the unit for the owner because obviously it would be on our site and we would have a slice of equity given our contribution in land and other things of value to the owners. So this is in the beginning stages, but what I can tell you is it's of great interest to a number of clients in this.

Joseph Dominguez: That not only wanted to have immediate access to power today, but want to have more clean power in the future and so that's that's how we're walking through it in terms of the technologies. We're looking at I think folks know generally that we have a small equity position and rolls Royce so that would be a technology that we.

Joseph Dominguez: In terms of the technologies we're looking at, I think folks know generally that we have a small equity position in Rolls-Royce, so that would be a technology that we would look at. But we would also look at other competing SMR technologies, and we'd work with the owner to figure out which technology best meets their future needs at the cost that's appropriate. So that's the work in that area. But again, look, I want to emphasize that the most important thing right now that customers could do in this space is make sure the existing fleet we have right now is ready and funded for subsequent licensing, contracts allow for that, and that's an important sustainability objective for our customers. Then upgrades and other opportunities, and finally new incremental clean generation, which I think could be brought online somewhere closer to the middle of the next decade.

David Keith Arcaro: Perfect. Yeah, that's really helpful, Kala.

David Keith Arcaro: We would look at but we would also look at other competing <unk> technologies and we'd work with the owner to figure out which technology best meets their future need at the cost that's appropriate. So that's the work in that area, but again look I want to emphasize that the most important thing right now that customer.

David Keith Arcaro: We could do in this space is make sure the existing fleet. We have right now is ready and funded for subsequent license renewable these contracts allow for that and that's an important sustainability objective for our customers than operates and other opportunities and finally, new incremental clean generation, which I think could be.

David Keith Arcaro: Broad online somewhere closer to the middle of the next decade.

Kala: Perfect. That's really helpful color very interesting, we'll stay tuned on that on how that opportunity.

Joseph Dominguez: Very interesting. We'll stay tuned on how that opportunity develops. And then I was wondering, as you're thinking about or talking to hyperscalers, big data center developers, are you seeing any discussions or opportunities evolve related to something like a supercomputer, a major multi-gigawatt data center like the Stargate idea we've seen in the media, something that could potentially use power from multiple nuclear plants? Is that an option that you're seeing being explored at this point?

Joseph Dominguez: Develops and then I was wondering as you're thinking about.

Joseph Dominguez: Talking to Hyperscale, There's big data center developers are you seeing any discussions or opportunities of call related to.

Joseph Dominguez: Something like a supercomputer a major multi gigawatt data center like the Stargate idea, we'd seen in the media something that could potentially use power from multiple nuclear plants is that an option that you are seeing being explored at this point.

Joseph Dominguez: I think we're just going to be careful here in terms of that because there's just a lot being reported about it in the press, and we don't want to be kind of linked to a particular project until it's time to announce something. But I think what I am comfortable saying is this, David, we're seeing interest in developing projects that are on a size and scale that presently don't exist but will be needed for training systems and other things to kind of build out and support the need for all these foundational models.

Joseph Dominguez: You know I think.

Joseph Dominguez: We're just going to be careful here in terms of that because there's just there's just a lot being reported about that in the press and we don't want to be kind of linked to a particular project until it's time to announce something but I think what I am comfortable saying is this david.

Joseph Dominguez: We're seeing interest in developing projects that are at a size and scale that presently don't exist, but will be needed for training systems and other things to kind of build out and support the need for all of these foundational models I think they're up to a 170 plus now foundational models.

Joseph Dominguez: That are going to require training data centers. These are things you know it could be aerodynamics or pharmaceuticals, but essentially these very very large computers that would do nothing more than train for a period of time on all of the learnings in every country in every language from the beginning of time until now.

Joseph Dominguez: I think there are up to 170 plus now foundational models that are going to require training data centers. These are things, you know, could be aerodynamics or pharmaceuticals, but essentially, these very, very large computers that would do nothing more than train for a period of time on all of the learnings in every country, in every language from the beginning of time until now would be positioned to answer the questions of the future to advance these different industries.

Joseph Dominguez: And be positioned to answer the questions in the future to advance these different industries. So we're seeing significant increases in the number of those training modules that customers need.

Joseph Dominguez: So we're seeing significant increases in the number of those training modules that customers need, and our understanding that in order to support the training, we're going to need data centers that are of size and dimension from a megawatt standpoint that are far beyond what currently exists out there.

Joseph Dominguez: It's our understanding that in order to support the training, we're going to need data centers that are of a size and dimension from a megawatt standpoint that is far beyond what currently exists out there in the market.

Speaker Change: Excellent very helpful. Thanks, so much for all the color.

David Keith Arcaro: Excellent. Very helpful. Thanks so much for all the color.

Speaker Change: Thank you.

Operator: Please stand by for our next question. Our next question comes from the line of Shah Pourreza with Guggenheim Partners. Your line is open.

Speaker Change: Please standby for all next question.

Shahriar Pourreza: Our next question comes from the line of Shopper Reza with Guggenheim Partners. Your line is open.

Shahriar Pourreza: Hey guys, morning. Morning. Morning, Joe.

Shahriar Pourreza: Hey, guys. Good morning, good morning, Good morning, Joe.

Shahriar Pourreza: Maybe just starting off on the disclosures I mean, obviously, we've seen some major moves in the curves in recent weeks you guys didn't really update the ranges on on the enhanced gross margin for 'twenty four 'twenty five.

Shahriar Pourreza: Maybe starting off on the disclosures. I mean, obviously, Dan, we've seen some major moves in the curves in recent weeks. You guys didn't really update the ranges on the enhanced gross margin for 24 and 25. I obviously realize you guys gave wide ranges, but I mean, where are you relative to those curves, these curves?

Shahriar Pourreza: Obviously realize you guys gave wide ranges, but I mean, where are you relative to those curves these curves.

Shahriar Pourreza: Yes.

Daniel L. Eggers: Yes, we gave a huge amount of disclosure, as you noted on the last call. Our approach to updating those is really going to be when we do a more comprehensive revisit of our guidance, right? What goes into enhance is more than just a power price. There's a lot going on in the commercial business and other positioning. So I think when you see us, you know, assuming we update our earnings guidance or our range a year from now, I think that's a good opportunity to refresh the disclosures we have, including our expectations for enhanced.

Shahriar Pourreza: Give us a huge amount of disclosures as you captured.

Daniel L. Eggers: On the last call.

Daniel L. Eggers: Our approach to updating those is really going to be when we do a more comprehensive.

Daniel L. Eggers: Revisit of our guidance right what goes into enhance is more than just a power price. There's a lot going on in the commercial business and other positioning so I think when you see us.

Daniel L. Eggers: Assuming we update our earnings guidance or a range for the year goes on I think that's a good opportunity to refresh.

Daniel L. Eggers: The disclosures, we have including our expectations for enhanced in 'twenty four 'twenty five I think when you look at the curves and Jim can share more thoughts on this right but.

Daniel L. Eggers: I think when you look at the curves, and Jim can share more thoughts on this, but there's been a lot of movement, depending on what day you pick, the price has been a lot of different prices. The near end of the curve, particularly in our markets, has probably been more muted, right? It's the back end where you're seeing a lot of the move. So I don't know that within the range that you laid out, there's a lot of movement compared to what we shared with you for 24 or 25 at this point in time.

Daniel L. Eggers: There's been a lot of movement, depending on what day you pick there as the price has been a lot of inland prices.

Daniel L. Eggers: The near end of the curve, particularly in our markets.

Daniel L. Eggers: Has been probably more muted right is the back end, where you're seeing a lot of the news.

Daniel L. Eggers: Largely so I don't know that within the range that you laid out that there's a lot of movement. What we shared with you for 'twenty four 'twenty five at this point.

Daniel L. Eggers: Jim you were talking about markets I think you hit it I think the if you look out at more than 27, 28, 2009 timeframe. The market run up we saw during the fourth first quarter has kind of held on and maybe.

Daniel L. Eggers: I think you've hit it. I think if you look at more of the 27, 28, 29 timeframe, the market run-up we saw during the first quarter has kind of held on and maybe gone a little higher. The 25, 26 timeframe has been a little bit more volatile in both directions. And that volatility is what Joe spoke of, right? When we see the continued base load retirements and renewable penetration with energy demand, we're going to see volatility up and down. The out-year strength, I think, is certainly reflective of some of this increased demand that we're talking about. It's not a real liquid out there.

Daniel L. Eggers: <unk> gone a little higher to 'twenty four 'twenty 'twenty five 'twenty six timeframe has been a little bit more volatile in both directions, and Volatilities, which I spoke to re win when we see the continued base load retirements and renewable penetration with energy demand, we're going to see volatility up and down the out year strength I think is certainly.

Daniel L. Eggers: <unk> of some of this increased demand that we're talking about it's not real liquid out there there's not a lot of trading volumes that can be done out in that timeframe.

Daniel L. Eggers: There's not a lot of trading volumes that can be done out in that timeframe, you know, and as Dan mentioned, you know, in our last call, we provided, you know, the attribute value side. I think that's a good proxy for how price movements, whether it's energy prices or attributes or whatever, could be picked up in some of our enhanced earnings. So there's some data from the last call that you can pick up there.

Daniel L. Eggers: And as Dan mentioned.

Daniel L. Eggers: In our in our last call we provided.

Daniel L. Eggers: I attribute value side, I think that's a good proxy for how price movements, whether it's energy prices or attributes or whatever could be picked up in some of our enhanced earnings. So there's there's some data I think from the last call that you can pick up there.

Shahriar Pourreza: Okay, it's perfect. So I guess for 26, 27, 28, whatever, are you still within that 10 to 20 percent of consolidated range as the general rule of thumb?

Daniel L. Eggers: Okay perfect. So I guess for 26 27 28 whatever.

Shahriar Pourreza: You're still within that 10% to 20% of consolidated range.

Shahriar Pourreza: The general rule of thumb.

Daniel L. Eggers: I think we use that as a rule of thumb, and I don't want to mark to market, but you know, Shahriar, if you go back to the slide we had on attribute value in 28 and you know you had $10, which like the curve might have moved depending on the market in that range, you can see those numbers get Speaker will inevitably push you out of that 10% to 20% if you're just going to market.

Shahriar Pourreza: I think we use that as a rule of thumb in Idaho, when a mark to market, but if you go back to the slide we had on attribute value and 28, Yeah, you got $10, which like the curve might have moved depending on market in that range.

Daniel L. Eggers: You can see those numbers get bigger.

Daniel L. Eggers: Bigger inevitably push you out of that 10% to 20%. If you were just going to mark that one variable right now.

Shahriar Pourreza: Okay, perfect. And then, Joe. And lastly, it's Joe.

Speaker Change: Okay, Perfect and then Joe Lastly.

Shahriar Pourreza: It's Joe I, just wanted to reiterate the point that I think Jim and Dan are making there's definitely we are certainly seeing upside. If you were to freeze. This moment in time in terms of the power prices later in the decade, but not all that liquid right now so.

Joseph Dominguez: I just want to reiterate the point that I think Jim and Dan are making. There's definitely, we're certainly seeing upside if you were to freeze this moment in time in terms of power prices later in the decade. So, you know, we'll see how it kind of evolves over time. And the right point for you to look at us is when we talk about guidance ranges again. As we get through the year, we'll provide some more data points on that stuff.

Joseph Dominguez: We'll see how it kind of evolves over time and the right point for you to look at US is when we talk about guidance ranges again as we get through the year, we'll provide some more data points on that stuff, but I think it's exciting to see all of that it also isn't a liquid market out there.

Joseph Dominguez: But I think it's exciting to see all of that. It also is an illiquid market out there. Yeah, no, I appreciate you addressing that because, I mean, that's one of the key questions coming in to us is, why didn't you mark like some of your other peers? So appreciate the color there, Joe.

Shahriar Pourreza: And then just a note, lastly, for me, there's been a lot of industry chatter about this. Are you considering a TMI restart at this time? If so, can you maybe talk a little bit about the capital involved in that and the timeline? Thanks.

Speaker Change: Yes, no I appreciate you addressing that because I mean, that's been one of the key questions coming into us as why Didnt you Mark like some of your other peers. So I appreciate the color there Joe and then just lastly for me there's been a bunch of industry chatter on this are you considering a TMI restart at this time, if so can you.

Shahriar Pourreza: Talk a little bit about the capital involved in that and the timeline. Thanks.

Speaker Change: Yes, sure what we'll say is that we have.

Joseph Dominguez: What we'll say is that we've obviously seen what happened with Palisades. I think that was brilliant, brilliant for the nation, and received great support from Michigan, and great support from the federal government.

Joseph Dominguez: Obviously seen what happened with Palisades I think that was brilliant.

Joseph Dominguez: Brilliant for the nation saw great support out of Michigan, Great support out of the federal government and we're not unaware that that opportunity exists for us so well.

Joseph Dominguez: And we're not unaware that that opportunity exists for us. So we'll, you know. We're doing a good bit of thinking about a number of different opportunities, and that would probably be one of those that we would think about, but we're not there yet to start disclosing capital and other things relating to that opportunity. There are a lot of exciting things for us to do in the upgrade space as well, and I think you could kind of, if these things fall into place, you could kind of see where Constellation might be And so these things are huge, chunky things that really position America for the future.

Joseph Dominguez: We're doing a good bit of thinking about a number of different opportunities and that would probably be certainly one of those that we would think about but we're not there yet to start disclosing capital and other things relating to that opportunity lot of exciting things for us to do and operate space as well and I think you could kind.

Joseph Dominguez: If these things fall into place you could kind of see where constellation might be the nation's leader in adding firm clean energy to the grid and so these things are huge chunky things that really position America for the future. So we're going to stick with that until we have something more specific to report.

Shahriar Pourreza: So we're going to stick with that until we have something more specific to report. No. Sorry.

Operator: Yep, fair enough, and I'm looking forward to it. Thank you guys. I appreciate it.

Speaker Change: Fair enough and looking forward to it. Thank you guys appreciate it.

Speaker Change: Thank you.

Operator: Please stand by for our next question. Our next question comes from the line of Steve Fleishman with Wolf Research. Your line is open. Good morning, Steve.

Speaker Change: Please standby for our next question.

Operator: Our next question comes from the line of Steve Fleishman with Wolfe Research. Your line is open.

Steven Isaac Fleishman: Good morning, Steve.

Steven Isaac Fleishman: Good morning, I'm, a little more of a peanut butter and chocolate Reese's fan but.

Steven Isaac Fleishman: Good morning! I'm a little more of a peanut butter and chocolate Reese's fan, but I like the peanut butter and jelly reference.

Steven Isaac Fleishman: I'd like to peanut butter jelly referenced.

Steven Isaac Fleishman: Yeah.

Joseph Dominguez: [inaudible] The, uh, just on the data center opportunity. Maybe you could just give us a little more color because there are a lot of utilities talking about data center growth and even some companies talking about data centers related to gas plants. So just... First of all, just to touch on the demand that you're seeing, but then, maybe more importantly, you know, any sense of kind of timing and just other things to execute beyond just customer demand? Like, are there hurdles you need to get through on permitting siting, other things that set timing.

Steven Isaac Fleishman: Yes.

Steven Isaac Fleishman: Just on.

Joseph Dominguez: The data center opportunity.

Joseph Dominguez: Maybe you could just give us a little more color because there's a lot of you.

Joseph Dominguez: Utilities talking about data center growth.

Joseph Dominguez: And even some of the.

Joseph Dominguez: Companies talking about data centers related to gas plants. So just.

Joseph Dominguez: First on just the thoughts.

Joseph Dominguez: Tom the demand.

Joseph Dominguez: That you are seeing but then maybe more importantly.

Joseph Dominguez: Any sense of kind of timing and just other things to execute beyond just customer demand like other.

Joseph Dominguez: Hurdles you need to get through on permitting citing.

Joseph Dominguez: Other things that set timing here.

Speaker Change: Yes, Steve I think the interest is.

Joseph Dominguez: Yeah, Steve, I think the interest is like nothing else we've seen in 20 years, in terms of the number of clients that are coming to us, the size and scale of the opportunity. So I would say that, you know, kind of the, you know, what you're hearing in the market is certainly accurate in terms of the inbounds that we're getting from an origination team perspective and, frankly, some of the outreach we're doing so. That all seems to be right.

Joseph Dominguez: Like nothing else, we've seen in 20 years in terms of the number of clients that are coming to us the size and scale of the opportunity. So I would say that you know kind of what's.

Joseph Dominguez: What youre hearing in the market is certainly accurate in terms of.

Joseph Dominguez: The inbounds that we're getting from an origination team perspective, and frankly some of the outreach for doing so.

Joseph Dominguez: That's all seems to be right right now it's focused on nuclear because the clients, we're dealing with aren't interested as a general rule in the meeting.

Joseph Dominguez: Right now, it's focused on nuclear because the clients we're dealing with aren't interested, as a general rule, in emitting technologies. They have sustainability goals, they have 24-hour clean goals, and they want to stay on that path. So we're focused right now on the nuclear plant opportunity and monetizing the value of the attribute that we have. But these are, as I mentioned earlier, very complicated. What's apparent to me is that our prospective customers in this space are all in a hot competition, one against another, to grow this kind of capability, and there is a clear view out there that those companies that move most quickly will be the companies that get a durable advantage in this, So they're in the Senate to move very quickly. And we are too.

Joseph Dominguez: Allergies, they have sustainability goals. They have 24, seven clean goals and they want to stay on that path. So we're focused right now on the nuclear plant opportunity in monetizing the value of the attributes that we have.

Joseph Dominguez: But these are as I mentioned earlier very complicated.

Joseph Dominguez: What's apparent to me is that our perspective customers in this space are all in a hot competition one against another.

Joseph Dominguez: Book grow this kind of capability and there is a there's a clear view out there that are those companies that move.

Joseph Dominguez: Most quickly will be the companies that get a durable advantage in this in this space so their incentive.

Joseph Dominguez: We want to get this business going and to show the results to our own. But with that said, Steve, there is complexity to these transactions. These are transactions that are longer in duration than any of the power contracts that we're used to talking about in this business and involve notional values that are quite a bit higher. So there's work that needs to be done, diligence that needs to be done. In terms of things that are connected in front of the meter, and if we're gonna talk about PJM, for example, there's a load integration process that people have to get through in order to site a data center on the grid.

Joseph Dominguez: To move very quickly.

Joseph Dominguez: And we are too we want to get this business going in to show the results to our owners, but with that said Steve. There is complexity to these transactions. These are transactions that are longer in duration than any of the power contracts that were used to talking about this business and involve notional values that are key.

Joseph Dominguez: A bit higher so.

Joseph Dominguez: There's work that needs to be done diligence that needs to be done.

Joseph Dominguez: In terms of things.

Joseph Dominguez: Things that are connected in front of the meter and if we're going to talk about PJM. For example, there's a load integration process that people have to get through in order to side of data center on the grid and this is a network integration service study that could take months at best and.

Joseph Dominguez: And this is a network integration service study that could take months at best and years at worst. So a number of these customers are looking at co-location opportunities, which has become operational. So if you're looking behind the fence line of the plan or a co-located opportunity, there's a necessary study process. It's another PJM process, and PJM was clear in its amendments to its documents most recently that you could go either on the grid or behind the fence line, but there's a different process.

Joseph Dominguez: Years at worst so a number of these customers are looking at co location opportunities to hasten the speed in which they could become operational.

Joseph Dominguez: So if youre looking behind the fence line of the plant or a co located opportunity. There's a necessary study process. It's another PJM process and PJM was clear and its and its amendments to its documents. Most recently that you could go either on the grid.

Joseph Dominguez: Behind the fence line, but there's a different process.

Joseph Dominguez: We have become quite good at using the tools that PJM uses in their necessary study work so that we can look across our fleet at places where we think we could add the load behind the fence line. We went through a necessary study process at LaSalle, and as it so happens, we were doing that in the case of the hydrogen hub that was intended to be built out there. So we did a study for 900 megawatts, and we were able to match up very closely our ability to model PJM's work and be able to simulate that here at Constellation.

Joseph Dominguez: We have become quite good at.

Joseph Dominguez: Using the tools that PJM users in their necessary study work. So that we could look across our fleet at places, where we think we could add load behind the fence line.

Joseph Dominguez: We went through unnecessary study process at Lasalle and as it. So happens we were doing that in the case of the hydrogen hub that was intended to be built out there. So we did a study for 900 megawatts and we were able to match up very closely our ability to model Pjm's work and.

Joseph Dominguez: Are you able to simulate that here at constellation. So I would say that we know very well, where we could co located data centers and get through the PJM process, but that's a necessary study process that could take anywhere from six months to a year are to resume and once you have that it goes through.

Joseph Dominguez: So I would say that we know very well where we could co-locate data centers and get through the PJM process. But that's a necessary study process that could take anywhere from six months to a year to complete.

Joseph Dominguez: And once you have that, it goes through, I don't want to say perfunctory, but a fairly routine FERC approval process. And that would be the starting point. So if you have a necessary study done, what you're really talking about is having the transformers and the infrastructure, but you could kind of break ground pretty quickly. But if you don't have a necessary study done, you're gonna have to wait a year to figure out where you could co-locate.

Joseph Dominguez: I don't want to say perfunctory, but a fairly routine FERC approval process and that's that would be the starting point. So if you haven't necessary study done what you're really talking about is having the tranche transformers and the infrastructure that you could kind of break ground pretty quickly you don't have a necessary study done.

Joseph Dominguez: Youre going to have to wait a year to figure out where you can co locate and then on the data company side. They also have the time that they need to build out the shell the infrastructure supporting all of the equipment inside cooling and likewise, and then actually build out the servers inside of it. So you have to anticipate.

Joseph Dominguez: And then on the data company side, they also have the time that they need to build out the shell, the infrastructure, supporting all of the equipment inside, cooling, and likewise, and then actually build out the servers inside of it. So you have to anticipate a ramp.

Joseph Dominguez: A ramp rate.

Joseph Dominguez: So from my perspective.

Joseph Dominguez: Perspective.

Joseph Dominguez: This isn't something youre going to see people plop into service in 'twenty four 'twenty five challenged ahead of others because they started earlier, but this is more stuff that begins in 'twenty six 'twenty 728, and it ramps over time.

Joseph Dominguez: This isn't something you're going to see people plop into service in 24, 25 towns ahead of others because they started earlier. But this is more stuff that begins in 26, 27, 28, and it ramps up over time as data centers are built. No one is plopping down a one gigawatt data center, and I've read reports of this; no one's plopping down a one gigawatt data center in six months. To believe that completely and thoroughly misunderstands the amount of work needed to get this stuff done. So the contracts have a scaling component to them. You saw kind of an example of that in the Talon, the Susquehanna deal that was done.

Joseph Dominguez: Data centers are built no one is plopping down a one gigawatt Dan I've read reports of this no one's plopping down a one gigawatt datacenter in six months to believe that completely and thoroughly misunderstand the amount of work needed to get this stuff done so the contracts.

Joseph Dominguez: A scaling component to them you saw kind of an example of that and the talent and the Susquehanna deal that was done that's similar to ramp rates that you would see in other things and that's why I'm pretty confident we'll be able to manage the energy demands on the system because you'd be likewise will ramp into this flowed so.

Joseph Dominguez: That's similar to ramp rates that you would see in other things. And that's why I'm pretty confident we'll be able to manage the energy demands on the system because you likewise will ramp up to this load. So yeah, that's what I'm seeing here. A couple of years before you're able to really start delivering the megawatts, and then it ramps steadily after that. What we're trying to do is get the contracts done that lay out the gross amount of megawatts that are going to be needed, the timeframe over which they're going to be needed, and allows us to begin the necessary infrastructure work with an understanding that we're doing the PKM study and other things on a parallel path even as we speak here today.

Joseph Dominguez: That's what I'm seeing here a couple years before you're able to really start delivering the megawatts and then it ramps steadily after that but we're trying to do is get the contracts done that lay out the gross amount of megawatts that are going to be needed the timeframe over which they're going to be needed and allows us to begin necessary.

Joseph Dominguez: <unk> work with an understanding that we're doing the PJM study and other things on a parallel path even as we speak here. This morning.

Speaker Change: Okay is it do you think youll be able to have something to announce by the end of the year.

Joseph Dominguez: Okay, is it, do you think you'll be able to have something to announce by the end of the year?

Joseph Dominguez: Look, I'll stick with this. We are working fast. Our clients want to work fast. For competitive reasons, I don't want to lay out when we think announcements are going to come. And I don't think it would be fair to our clients to do that, either at the work that is underway. We've got a lot of folks thinking about it and working on it, again, you know, as this call is progressing. I'm confident that we are going to be able to get to the finish line on these things, but we still have some work to do, and I don't want to lay out a time frame for anything.

Speaker Change: Outlook I'll stick with with this we are working fast our clients want to work fast.

Joseph Dominguez:

Joseph Dominguez: For competitive reasons I don't want to lay out when we think announcements are going to come and I don't think it would be fair to our clients to do that either at this point. There's work that is underway got a lot of folks thinking about it and working on it again this call's progressing so.

Joseph Dominguez: We are going to be able to get to the finish line on these things, but we still have some work to do and I don't want to lay out a timeframe for announced.

Speaker Change: Okay, just one other quick question.

Steven Isaac Fleishman: Okay. Just one other quick question. The law that passed on the... Russia limits on nuclear, on enriched nuclear and then investing in U.S. enrichment. Can you just talk about your nuclear fuel, an update on your nuclear fuel position and the impact of that law? Yeah, Steve. I think on this one, there's...

Steven Isaac Fleishman: Lauder passed on the.

Speaker Change: Russia limits on nuclear on rich nuclear and.

Steven Isaac Fleishman: And then investing in U S. Richmond can you just talk about your nuclear fuel.

Steve: On your nuclear fuel positioning and the impact of that law.

Joseph Dominguez: Yeah, Steve, I think on this one there's not a whole lot more to report. In effect, we, when we took the actions we took a couple of years ago, you know, over a year ago now, we were anticipating the passage of a ban, as we reported at the time. It took a little bit longer to get through Congress, but it's now there, and it's now realized. So I think it just simply supports the strategy that we put in place a year ago.

Steven Isaac Fleishman: Yeah, Steve I think on this one there's not a whole lot more to report and in fact, we when we took the actions we took.

Joseph Dominguez: A couple of years or over a year ago now we were anticipating.

Joseph Dominguez: <unk> the passage of a band as we as we reported at the time it took a little bit longer to get through Congress, but it's now there. It's now realized so I think it just simply supports the strategy that we put in place a year ago. We think we are in very solid position.

Joseph Dominguez: We think we are in a very solid position, kind of an industry-leading solid position with regard to fuel. And we're also happy to see investments in this domestic supply chain, which means that, you know, after this period of time where we've grown inventory, we're confident that we're going to have available and reasonably priced fuel to run this fleet for the next decade.

Joseph Dominguez: Industry, leading solid position with regard to fuel and.

Joseph Dominguez: We also are happy to see now investments in this domestic supply chain, which means that.

Joseph Dominguez: After this period of time, where we've grown inventory, we're confident that we're gonna have available and really simply price fuel to run this fleet for the next decade.

Speaker Change: Great. Thank you.

Speaker Change: Thank you.

Speaker Change: Please standby for our next question.

Operator: Please stand by for our next question. Our next question comes from the line of Durgesh Chopra with Evercore ISI. Your line is open.

Durgesh Chopra: Our next question comes from the line of the guess Chopra Evercore ISI. Your line is open.

Durgesh Chopra: Good morning.

Durgesh Chopra: Hey, good morning. Thanks for giving me time.

Durgesh Chopra: Hey, good morning, Thanks for giving me time.

Durgesh Chopra: Maybe just you obviously.

Durgesh Chopra: Theres no $1 billion in share buybacks I know there is no direct answer those but can you just help us kind of the.

Joseph Dominguez: Maybe you just obviously authorize additional billions in share buybacks. I know there's no direct answer to this, but can you just help us kind of think through what your calculus is when you're thinking about incremental investment opportunities versus deploying capital on share buybacks and considering M&A in the future?

Joseph Dominguez: Through what is the calculus when youre thinking about.

Joseph Dominguez: Incremental investment opportunities versus deploying capital on share buybacks.

Joseph Dominguez: And considering M&A in the future.

Joseph Dominguez: Yeah, I don't mind talking about it at all. It really is a summation of everything we talked about in the call. We think we have a very good strategy here. We think as we compare it to M&A opportunities, the unrealized value in Constellation seems to be the best place for us to put our investment dollars right now. We've been buying shares of this company since we were what, in the $80s? And we saw a little bit of a drop in prices. We had some kind of negative, I would say, analyst reports at that point in time, but we didn't believe them. We told you we didn't believe it.

Speaker Change: Yeah, I don't I don't mind talking about it at all it really is a summation of everything we've talked about in the call. We think we have a very good strategy here.

Joseph Dominguez: We think as we compare that to M&A opportunities the unrealized value in constellation seems to be the best place for us to put our investment dollar right now if we had been buying shares of this company since we were what in the $80.

Joseph Dominguez: And we saw it we saw a little bit of a drop in prices. We had some kind of a negative I would say analysts reports at that point in time, we didn't believe it. We told you we didn't believe it we told you we'd buy the company all day long, we still feel that way today, because what we're looking at is the potential growth in our business the.

Joseph Dominguez: We told you we'd buy the company all day long. We still feel that way today because what we're looking at is the potential growth in our business, the opportunities that we know we're working on, the fundamentals and power markets, and the sustainability goals that I talked about earlier. I think that unrealized value is the best thing out there to go buy into. And so when we have extra cash, we're going to buy into that, and that's precisely what we're doing.

Joseph Dominguez: <unk> that we know were working on the fundamentals and power markets and sustainability goals that I talked about earlier I think that unrealized value is the best thing out there to go buy into.

Joseph Dominguez: So when we have extra cash we're going to buy into that and that's precisely what we're doing the only thing that will like better than that is.

Joseph Dominguez: The only thing that we'll like better than that is making ourselves bigger and better. So these up-rate opportunities or other things where we could add megawatts of scale give us a great position and are actually supportive of the work we're doing with the data companies. So that's where I think you're going to see our deployment of capital. We'll continue to look at reinvesting in ourselves and investing in these organic opportunities. Presently, I don't see an M&A opportunity on the horizon that is at the scale that we are going to enter into this conversation because I don't think those opportunities provide equivalent value to our owners as investing in ourselves or the organic growth opportunities that we have here.

Joseph Dominguez: Just making ourselves bigger and better so these operate opportunities or other things, where we could add megawatts of scale gives us a great positioning and are actually supportive of the work we're doing with the data companies. So that's where I think youre going to see our deployment in capital will continue to look at.

Joseph Dominguez: <unk> and ourselves and investing in these organic opportunities.

Joseph Dominguez: Lee I don't see an M&A opportunity on the horizon is at a scale that is going to enter into this conversation.

Joseph Dominguez: Because I don't think those opportunities provided equivalent value to our owners is investing in ourselves for the.

Joseph Dominguez: Growth organic growth opportunities that we have here.

Speaker Change: That's very clear Joe.

Durgesh Chopra: That's very clear, Joe. I appreciate all that color.

Speaker Change: Appreciate all that color and then can I just switch gears quickly follow up.

Durgesh Chopra: And then can I just switch gears and quickly follow up? In regards to the nuclear PTC guidance, what is the key, what are the key items for us to look at there? Is it the definition of grocery seats, and just how do you see that playing out?

Durgesh Chopra: In regards to the nuclear PTC guidance what is the key.

Durgesh Chopra: The key items for us to look there is it the definition of grocery receipts and just how do you see that playing out anything you can share there.

Joseph Dominguez: Anything you can share there?

Joseph Dominguez: Well, I wish I could. We're waiting for Treasury guidance. We've probably said this on four calls, but it is not, as far as we can tell, a high-priority item for Treasury because it has a narrow application out there. It's really just nuclear owners that are looking. We think spot is most likely gonna be the thing that prevails. So the spot price over the year at the bust of the plant, that's gonna be energy and capacity coupled together, are going to be the measuring stick that the treasury will use for the application of the PTC.

Joe: Well I wish I could we are waiting for treasury guidance.

Joseph Dominguez: You know as we've probably said this on four calls, but it is not.

Joseph Dominguez: As near as we can tell a high priority item for treasury because it has.

Joseph Dominguez: Narrow.

Joseph Dominguez: Application out there it's really just nuclear owners that are that are looking for we think spot is most likely going to be the thing that prevails. So the spot price over the year at the bus to the plant that's gonna be energy and capacity, coupled together are going to be the measuring stick that the treasury.

Joseph Dominguez: We will use for the application of the P. T. SEC, that's kind of consistent with the vast majority of the comments in this area and.

Joseph Dominguez: That's kind of consistent with the vast majority of the comments in this area, and certainly, we think that's where they're going, but we just don't know yet because they haven't announced anything, and we'll wait. But our planning is based on that interpretation, as we've outlined previously.

Joseph Dominguez: Certainly, we think that's where they're going but we just don't know yet because they haven't announced anything and we're waiting on that but our planning is based on that spot interpretation as we've outlined previously.

Speaker Change: Excellent. Thank you for giving me time I appreciate it.

Durgesh Chopra: Excellent. Thank you for giving me time. I appreciate it.

Speaker Change: You're very welcome.

Speaker Change: Thank you.

Durgesh Chopra: At this time I would now like to turn the call back over to Joe for closing remarks.

Joseph Dominguez: At this time, I would now like to turn the call back over to Joe for his closing remarks.

Joe: Well again want to thank you for kicking us off this morning. Thanks to all of you. We very much appreciate your interest in constellation I want to thank our women and men for a fantastic quarter.

Joseph Dominguez: Well, again, Tawana, thank you for kicking us off this morning. Thanks to all of you. We very much appreciate your interest in Constellation. I want to thank our women and men for a fantastic quarter. We look for more to come as the year goes forward. You know, we're working on a lot of different things here at the company. The wind is at our backs. We feel very confident about the future and the fact that our best days are ahead. So I look forward to catching up with you again on the next quarterly earnings call. With that, I'll close the call.

Joseph Dominguez: We look for more to come.

Joseph Dominguez: As the year goes forward you know, we're working on a lot of different things here at the company are the wind is at our backs, we feel very confident about the future and the fact that our best days are ahead. So I look forward to catching up with you again on <unk>.

Joseph Dominguez: <unk> quarterly earnings call with that I'll close the call.

Joseph Dominguez: Yeah.

Speaker Change: Ladies and gentlemen that concludes today's conference call. Thank you for your participation you may now disconnect everyone have a great day.

Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a great day.

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