Q3 2024 Constellation Energy Corp Earnings Call

Okay.

Operator: Thank you for standing by and welcome to Constellation Energy Corporation's third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. Instructions will follow at that time. As a reminder, this call may be recorded.

Speaker Change: Thank you for standing by and welcome to constellation Energy corporations third quarter 'twenty 'twenty four earnings conference call.

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

After the speaker presentation, there will be a question and answer session and instructions will follow at that time.

As a reminder, this call maybe recorded.

Emily Duncan: I would now like to hand the call over to Emily Duncan, Senior Vice President, Investor Relations and Strategic Growth. Please, you may begin.

Speaker Change: I'd now like to hand, the call over to Emily Duncan Senior Vice President Investor Relations and strategic Crooks. Please you may begin.

Emily Duncan: Thank you, Lateef.

Emily Duncan: Thank you Keith good morning, everyone and thank you for joining constellation energy corporations third quarter earnings Conference call.

Emily Duncan: Good morning, everyone, and thank you for joining Constellation Energy Corporation's third 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. We issued our earnings release this morning along with the presentation, all of which can be found in the investor relations section of Constellation's website.

Emily Duncan: The call today are Joe Domingos, constellation as President and Chief Executive Officer, and Dan Eggers, Constellation's, Chief Financial Officer.

Emily Duncan: They are joined by other members of the constellation Senior management team, who will be available to answer your questions. Following our prepared remarks, we issued our earnings release. This morning, along with the presentation all of which can be found in the Investor Relations section of Constellation's website.

Emily Duncan: The earnings release and other matters which we discussed 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 risk factors and other circumstances and considerations that may cause results to differ from management's projections, forecasts, and expectations.

Emily Duncan: The earnings release, and other matters, which we discussed during today's call.

Emily Duncan: 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 8-K and constellation's other.

Emily Duncan: <unk> SEC filings for discussions of 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 measures I'll now turn the call over to Joe Dominguez.

Joseph Dominguez: I'll now turn the call over to Joe Dominguez. Thanks, Emily. Good morning, everyone. Thank you for joining us today and a big thank you to our amazingly talented team at Constellation. Today, Dan and I once again have the privilege to share their results, results that outperform our plan, your expectations, and require us to raise guidance.

Joe Dominguez: Thanks, Emily and good morning, everyone. Thank you for joining us today and a big Thank you to our amazingly talented team at constellation.

Emily Duncan: Today, Dan and I once again have the privilege to share their results.

<unk> that outperform our plan your expectations and require us to raise guidance, but before I do that I wanted to touch upon Fridays FERC ruling that I know is top of mind for many folks.

Joseph Dominguez: But before I do that, I want to touch upon Friday's FERC ruling that I know is top of mind for many folks. In Constellation's view, the 2-1 ruling rejecting Talens ISA by a fraction of the commission is not the final word from FERC on co-location. The ruling, as many of you know, is very narrow, and we believe that all of the commissioners, including the two who recuse themselves from Friday's decision, understand the critical importance of providing additional guidance. Now, how that's going to come could occur in a number of different ways. We could see the commission take action, we could see PJM take action, or parties like ourselves could take action.

In Constellation's view, the two to one ruling rejecting talons ISI by a fraction of the commission is not the final word from FERC on co location.

Rolling as many of you know is very narrow and we believe that all of the commissioners, including the two who've recused themselves from Friday's decision understand the critical importance of providing additional guidance and how thats going to come could occur in a number of different ways. We could see the commission take action, we could see PJM.

Action or parties like ourselves could take action, it's premature at this point to say which of those pathways, we are going to pursue.

Joseph Dominguez: It's premature at this point to say which of those pathways we are going to pursue. But we know this, co-location in competitive markets remains one of the best ways for the U.S. to quickly build the large data centers that are necessary to lead on A.I. As Chairman Phillips explained, our nation's entire economy and national security is at stake if we do not lead in A.I. That sentiment is shared by both presidential candidates. As National Security Adviser Jake Sullivan warned just two weeks ago, quote, even if we have the best AI model, but our competitors are faster to deploy, we could see them seize the advantage in using AI capabilities against our people, our forces, and our partners and allies, close quote.

Emily Duncan: But we know this co location in competitive markets remains one of the best ways for the U S to quickly build a large data centers that are necessary to lead on AI.

Emily Duncan: Chairman Phillips explained our nation's entire economy and national security is at stake if we do not lead in AI.

That sentiment is shared by both presidential candidates as National Security adviser Jake solvent warrant just two weeks ago, well, even if we have the best AI models.

Emily Duncan: But our competitors are faster to deploy we could see then CSB advantage in using AI capabilities against our people.

Emily Duncan: Our forces and our partners and allies closed quote.

Joseph Dominguez: We all know that power has emerged as the key to America's ability to meet the challenge, and Constellation uniquely is positioned to help. There are multiple regulatory and commercial pathways to resolve the co-location issues, and we will work quickly with customers and other stakeholders to put these in place. At PJM, we have abundant baseload power almost all times of the year. We can power AI. I think sometimes we get sloppy and say we have energy issues with AI growth. We don't. We have a capacity issue that manifests itself just a few hours of the year.

Emily Duncan: We all know that power has emerged as the key to America's ability to meet the challenge and constellation uniquely is positioned to help there are multiple regulatory and commercial pathways to resolve the co location issues and we will work quickly with customers and other stake.

Emily Duncan: Holders to put these in place.

Emily Duncan: In PJM, we have abundant baseload power almost all times of the year.

Emily Duncan: We can power AI I think sometimes we get sloppy and say we have energy issues with AI growth we don't.

We have a capacity issue that manifest itself just a few hours of the year.

Joseph Dominguez: This problem is fairly simple to address with the man response, peakers, and batteries, all provided that we have the right market pricing. But to be fair, we have been a bit challenged on the issue of getting the capacity market moving. Now, we agree with PJM's decision to delay the latest option, and we encourage PJM to do that because we support changing the reference unit and addressing the RMR units. Those narrow reforms should provide clarity, fair pricing, and price stability for customers and generators alike. PJM should also proceed with streamlining the process for adding generation, like our crane restart.

Emily Duncan: This problem is fairly simple to address with demand response seekers and batteries all provided that we have the right market price signals, but to be fair, we have been a bit challenged on the issue of getting the capacity market moving.

Emily Duncan: We agree with Pjm's decision decision to delay the latest auction and we encourage PJM to do that because we support changing the reference unit and addressing the RMR units those narrower reforms should provide clarity fair pricing and price stability for customers generators.

Emily Duncan: Right.

Emily Duncan: T. J M should also proceed with streamlining the process for adding generation.

Emily Duncan: Like our crane restart we're happy to see PJM progressing on this front and we're working hard to bring crane on in 2027.

Joseph Dominguez: We're happy to see PJM progressing on this front, and we're working hard to bring crane on in 2027. We trust that FERC will prioritize these RPM matters and urge FERC to act on them quickly. The load is going up and the market needs the price signal to react. We note that the recent utility filings with PJM already indicate another 5 to 6 gigawatts of load in the next auction that we expect PJM to implement in its planning parameters. The PJM capacity market has a long track record of being able to deliver new capacity and to drive customer demand response, but we need to let it work.

Emily Duncan: We trust that FERC will prioritize these RPM matters and urge FERC to act on them quickly.

Emily Duncan: Load is going up and the market needs the price signal to react. We note that the recent utility filings with PJM already indicate another 5% to six gigawatts of load in the next auction that we expect PJM to implement and its planning parameters.

Emily Duncan: PJM capacity market has a long track record of being able to deliver new capacity and to drive customer demand response.

Emily Duncan: We need to let it work.

Joseph Dominguez: Co-location will add, not detract, from reliability in PJM. Here, Constellation's principles have been quite simple. First, in times of emergency, our power should support the grid. Be absolutely clear about what I am saying. That means that nuclear energy supporting a co-located load will be switched to the grid when needed to prevent the reliability crisis. And it should be fairly compensated when so called. Second, if the co-located load has backup power, it should be allowed to offer that power to the grid, subject, of course, to state and environmental permitting. Third, co-located load should pay its fair share of grid costs for what it uses.

Emily Duncan: Co location will add not detract from our reliability in PJM.

Emily Duncan: Year constellations principles have been quite simple.

Emily Duncan: First in times of emergency our power should support the grid.

To be absolutely clear about what I am saying that means that nuclear energy supporting our co located load will be switched to the grid when needed to prevent the reliability crisis crisis and it should be fairly compensated when so called <unk>.

Emily Duncan: Second we have the co located load has backup power it should be allowed to offer that power to the grid subject of course to state and environmental permitting rules.

Emily Duncan: Third co located load should pay its fair share of Greg Clos for what it uses these.

Joseph Dominguez: These issues should be brought together and advanced at first.

Emily Duncan: These issues should be brought together and advanced at FERC.

Joseph Dominguez: Frankly, I think part of the issue with the ISA proceeding is that it did not bring these issues together and understandably, some of the commissioners want to see the complete package. We will pursue this regulatory clarity while simultaneously pursuing commercial strategies for co-location that are permitted under existing rules.

Emily Duncan: Frankly, I think part of the issue with the RSA proceeding is that it did not bring these issues together and understandably some of the <unk> want to see the complete package. We will pursue this regular regulatory clarity while simultaneously pursuing commercial strategies for co location that are permitted under.

Emily Duncan: Our existing rules.

Joseph Dominguez: Now turning to our results and guidance updates, in the third quarter, our 14,000-person team here at Constellation delivered gap earnings of $2.82 per share and adjusted operating earnings of $2.74 per share. Due to this strong performance, we are raising and narrowing our adjusted operating earnings guidance for the full year to $8 to $8.40 per share. This brings our midpoint to $8.20 per share, a whopping $0.60 per share above our original guidance midpoint, and we remain bullish on the balance of the year. Our core value proposition is strong, and our strategy remains on track. We will grow our base EPS by at least 13% through 2030, growth that is backstopped by nuclear production tax credit.

Emily Duncan: Now turning to our results and guidance updates in the third quarter. Our 14000 person team here at constellation delivered GAAP earnings of <unk>.

Emily Duncan: <unk> 82 per share and adjusted operating earnings of $2 74 per share.

Emily Duncan: Due to this strong performance, we are raising and narrowing our adjusted operating.

Emily Duncan: Earnings guidance for the full year, two 8% to $8 40 per share. This brings our midpoint to $8 20 per share a whopping 60.

<unk> per share above our original guidance midpoint.

Emily Duncan: And we remain bullish on the balance of the year.

Emily Duncan: Our core value proposition is strong and our strategy remains on track.

Emily Duncan: We will provide we will grow our base EPS by at least 13% through 2030.

Emily Duncan: Both that is backstopped by nuclear production tax credits, we have the best operated and largest fleet of carbon free reliable nuclear plants that run 24 seven.

Joseph Dominguez: We have the best operated and largest fleet of carbon-free, reliable nuclear plants that run 24-7. And we will be needed by the energy system for decades to come. These assets will benefit from both increasing demand for carbon-free electricity and reliable power. Through our industry-leading C&I business, we provide the innovative products and services our customers want. our strong investment grade balance sheet, along with strong free cash flows that can continue to be used for growth, meet our threshold, and provide valuable opportunities for you, our owners. And finally, as you've seen this year, we have the ability to do better than our base level of earnings through multiple paths, including optimizing our portfolio and getting better than average margins.

Emily Duncan: And we will be needed by the energy system for decades to come.

Emily Duncan: These assets will benefit from both increasing demand for carbon free electricity and reliable power through our industry, leading C&I business, we provide the innovative products and services our customers want.

Emily Duncan: Our strong investment grade balance sheet long with strong free cash flows that can continue to be used for growth.

Our threshold and provide valuable opportunities for you our owners and finally as you've seen this year, we have the ability to do better than our base level of earnings through multiple paths, including optimizing our portfolio and getting better than average margins.

Joseph Dominguez: It's been an incredible three years for Constellation. A remarkable journey that perhaps is best epitomized by the restart of the Crane Clean Energy Center that we announced in September. Crane validates three points that we have discussed many times. First, it's a powerful symbol of the rebirth of nuclear energy. And it happens at a location that once came to represent nuclear energy's demise. Second, it confirms our thesis that the most valuable energy commodity in the world today Clean and Reliable Electricity. And third, it underscores the growing demand for 24-7 clean energy driven by the data economy, on-shoring, and electrification.

Emily Duncan: It's been an incredible three years for constellation.

Emily Duncan: Remarkable journey that perhaps is best epitomize by the restart of the Crane Clean Energy Center that we announced in September.

Emily Duncan: <unk> validates three points that we have discussed many times before first it's a powerful symbol of the rebirth of nuclear energy.

Emily Duncan: And it happens at a location that once came to represent nuclear energy's demise.

Emily Duncan: It confirms our thesis that the most valuable energy commodity in the world today is clean and reliable electricity and third it underscores underscores the growing demand for $24 seven clean energy driven by the data economy onshoring and electrification.

Joseph Dominguez: All of these macro points benefit our own.

Emily Duncan: All of these macro points benefit our owners, we have talked about them before and I don't think we need to talk about them much more because by now these points have become self evident.

Joseph Dominguez: We have talked about them before and I don't think we need to talk about them much more because by now these points have become self-evident. In addition to crane, we have at least 1,000 megawatts of additional nuclear generation that we could bring onto the grid throughout. And I'm pleased to report to you that we are seeing a wave of it. from customers who are interested in these opportunities and in our relicensing and we are making significant progress on contract. the intensity of our negotiations with hyperscalers and others. going up and up. Our entire team is focused on executing transactions and supporting data center development anywhere in PJI.

Emily Duncan: In addition to Crane, we have at least 1000 megawatts of additional nuclear generation that we could bring onto the grid through operates and I am pleased to report to you that we are seeing a wave of interest from customers who are interested in these opportunities and in our re licensing and we are making.

Emily Duncan: Significant progress on contracting the intensity of our negotiations with hyper scale.

Emily Duncan: Others keeps going up and up our entire team is focused on executing transactions and supporting data center development anywhere in PJM.

Joseph Dominguez: Now, I want to emphasize the word anywhere. Recall that when Microsoft announced the Crane off-take agreement, they explained that their agreement with Constellation enables them to use the energy in four different states, not just Pennsylvania. That should tell you that Constellation easily can structure transactions. sell energy, capacity, and sustainability products to data economy customers anywhere in PJM, and in some cases, outside of PJM. And we can make those fixed price deals for as long as our counterparties desire. That's pretty unique to us. The governors in the states where we operate clean energy centers certainly understand the national security imperative and the value of economic development in their states.

Emily Duncan: Now I want to emphasize the word anywhere.

Emily Duncan: Call that when Microsoft announced the Crane Offtake agreement they explained that their agreement with constellation enables them to use the energy in four different states not just Pennsylvania.

Emily Duncan: That should tell you that constellation easily construct your transactions to sell energy capacity and sustainability products the data economy customers anywhere in PJM and in some cases outside of PJM.

Emily Duncan: And we can make those fixed price deck for as long as our Counterparties desire, that's pretty unique to us.

Emily Duncan: The governors in the states, where we operate clean energy centers, certainly understand the national security.

Emily Duncan: Paradise and the value of economic development in their states.

Joseph Dominguez: They want us to use the clean energy in their states, and we want that. But we will follow the customers to all utilities and regions that are working with us to advance economic development and meet the vital national security needs of the nation.

Emily Duncan: One is to use the clean energy in their states and we want that too.

Emily Duncan: But we will follow the customers to all utilities in regions that are working with us to advance economic development and meet the vital national security needs of the nation.

Joseph Dominguez: So as we look forward to the inevitable regulatory certainty and flexibility on co-location that Chairman Phillips emphasized in his dissent. Constellation is continuing to hit on all cylinders on co-location opportunities, grid sales, and in delivering new megawatts to the grid at attractive prices. We are proud that no one, no one, is doing more to sustain and increase clean and reliable energy for America than Constellation. And we continue to lead research on new nuclear energy designs, such as SMRs, and for natural gas with sequestration. Our partnership with Rolls-Royce Nuclear is advancing a very promising SMR design, and we are working with other SMR developers as well.

Emily Duncan: So as we look forward to the inevitable regulatory certainty and flexibility on co location that chairman Phillips emphasized in his descent.

Emily Duncan: Constellation is continuing to hit on all cylinders on co location opportunities grid sales and in delivering new megawatts to the grid at attractive prices. We are proud that no. One no one is doing more to sustain and increase clean and reliable energy for America.

Emily Duncan: And constellation.

Emily Duncan: And we continue to lead research on new nuclear energy designs, such as <unk> and for natural gas with sequestration, our partnership with Rolls Royce nuclear is advancing very promising at some of our design and we are working with other SLR developers as well.

Joseph Dominguez: Our pioneering investment in net power is poised to undergo advanced engineering tests at our facility in LaPorte, Texas. And we're partnering with GE on engineering tests. and a pre-feed study for CCUS at Colorado Bend. As I have said to you many times before, natural gas is a big part of our bridging strategy. And we continue to be a player in natural gas, provided we have a real pathway to sustainability.

Emily Duncan: Pioneering investment in net power is poised to undergo advanced engineering test at our facility in La Porte, Texas, and we're partnering with GE on engineering tests.

Emily Duncan: In a pre feed study for Cc U S pack, Colorado Bend as.

Emily Duncan: As I have said to you many times before natural gas is a big part of our bridging strategy and we continue to be a player in natural gas provided we have a real pathway to sustainability, because while powering the data economy is vital to our nation.

Joseph Dominguez: Because while powering the data economy is vital to our nation, Feeding the climate crisis is vital to the world.

Emily Duncan: Feeding the climate crisis.

Emily Duncan: Is vital to the world.

Joseph Dominguez: In conclusion, our people are leading on all fronts. The 13% compounded growth that we've committed to you through the end of the decade is secure. And we're very confident that we will outperform this target as we layer in new opportunities. just as you have seen us.

Emily Duncan: In conclusion, our people are leading on all fronts, the 13% compounded growth that we've committed to you through the end of the decade is secure.

Emily Duncan: And we're very confident that we will outperform this target as we layer in new opportunities.

As you have CNS continuously outperformed quarter to quarter and year to year.

Joseph Dominguez: Turning slides. Nuclear performance was once again strong. We produced more than 41 million megawatt-hours of a reliable, available, and carbon-free generation from our nuclear plants with a capacity factor of 95 percent. Our refueling outage performance was exceptional during the quarter. We completed two refueling outages during the quarter with each lasting less than 18 days on average. Great job to Bryan Hanson, David Rhodes, and that team. For the year, our average is under 20 days. tracking two days are almost 10% below our historical averages and well below the industry average of 40. Our renewables and natural gas fleets similarly performed very well with 96% renewable energy capture and 98.2% power dispatch management.

Emily Duncan: Turning to slide six.

Emily Duncan: Nuclear performance was once again strong we produced more than 41 million megawatt hours of a reliable available and carbon free generation from our nuclear plants with a capacity factor of 95%.

Emily Duncan: Our refueling outage performance was exceptional during the quarter, we completed two refueling outages during the quarter with each lasting less than 18 days on average great job to Brian Hansen, David growths in that team.

Emily Duncan: For the year, our average is under 20 days tracking two days or almost 10% below our historical averages and well below the industry average of 40 days.

Emily Duncan: Our renewables and natural gas fleet, Similarly performed very well with 96% renewable energy capture and 98, 2% power dispatch matching.

Joseph Dominguez: Turning to slide 7, we talk a lot about the advantage of creating value between our best-in-class generation fleet and our exceptional commercial business. Our results this year are further proof of the strategic advantages of the combination of these businesses. This is an area where the numbers, not the words, do most of the talking, and you can see from the numbers just how spectacularly the commercial team has performed. We perform so well because our customer business is meeting demand in many ways, including through our Core Plus and CFE products, where we enable new renewable generation to be built and carbon-free electricity to be shared with our customers.

Emily Duncan: Turning to slide seven we talk a lot about the advantage of creating value between our best in class generation fleet and our exceptional commercial business. Our results. This year are further proof of the strategic advantages of the combination of these vessels.

Emily Duncan: Businesses excuse me. This is an area where the numbers not to words do most of the talking and you could see from the numbers just how spectacular way the commercial team has performed.

Emily Duncan: We performed so well because our customer business is meeting demand in many ways, including through our core plus and cfd products, where we enable new renewable generation to be built.

Emily Duncan: And carbon free electricity to be shared with our customers since 2020, our core plus business has grown by leaps and bounds as customers look for products to help them meet their energy and sustainability goals as I mentioned before through this product 2800 megawatts of wind.

Joseph Dominguez: Since 2020, our Core Plus business has grown by leaps and bounds as customers look for products to help them meet their energy and sustainability goals. As I mentioned before, through this product, 2,800 megawatts of wind and solar have been added to the system, helping to meet not only our customers' needs, but the CISH's. We think Pourre Plus is a great way for customers to move forward on their sustainability efforts and it's a complementary pathway to our elite CFE product that provides 24-7 time and geographically matched clean energy.

Emily Duncan: And solar have been added to the system, helping to meet not only our customers' needs, but the system States, we think core plus.

Speaker Change: Great way for customers to move forward on their sustainability efforts and it's a complementary pathway to our elite Cfe product that provides 24 seven times and geographically matched clean energy I am now going to turn the call over to Dan for the financial update Dan. Thank you, Joe and good morning, everyone begin.

Daniel Eggers: Now I'm going to turn the call over to Dan for the financial update. Dan? Thank you, Joe. And good morning, everyone. Beginning on slide 8, we earned $3.82 per share in GAAP earnings and $2.74 per share in adjusted operating. which was 61 cents higher than last year. Starting with generation, when we look at the quarter in the year, we've seen actual power prices materialize well below the outlook at the start of the year, largely given weather-driven declines in natural gas prices, as well as generally good renewables performance. Fortunately, with the nuclear PTC now in place, the means-based tax credit worked like it was supposed to, providing the revenue support as anticipated and helping us to meet our expectations.

Dan Eggers: On slide eight we earned $3 82 per share and GAAP earnings and $2 74 per share and adjusted operating earnings, which was <unk> 61 cents higher than last year.

Dan Eggers: Starting with generation when we look at the quarter and the year, we've seen actual power prices materialize well below the outlook at the start of the year largely given weather driven declines in natural gas prices as well as generally good renewables performance.

Dan Eggers: Fortunately with our nuclear PTC now in place the means base tax credit worked like it was supposed to adding the revenue support as anticipated and helping us to meet our expectations. We also benefited from the earnings contribution from our interest in the South Texas project, which we acquired late last year.

Daniel Eggers: We also benefited from the earnings contribution from our interest in the South Texas project, which we acquired late last year. Turning to commercial business, as Joe mentioned, we continue to perform exceptionally well. The team has done an excellent job managing the variability in loads and market prices, reinforcing how it thrives in volatile markets. We are also continuing to see margins above the long-term averages we used in our forecast and above the enhanced margins we disclosed in February. Finally, as we discussed last quarter, our financial results and our stock have continued to perform very well year-to-date, which results in higher employee compensation expense year-over-year.

Speaker Change: Turning to the commercial business as Joe mentioned, we continue to perform exceptionally well the team has done an excellent job managing the variability in loads and market prices reinforcing how it thrives in volatile markets. We are also continuing to see margins above the long term averages we used in our forecast and above the <unk>.

Speaker Change: <unk> margins, we disclosed in February.

Speaker Change: Finally, as we disclosed discussed last quarter, our financial results and our stock has continued to perform very well year to date, which results in higher employee compensation expense year over year altogether, we had a strong third quarter that is contributing to our improved outlook for the year.

Daniel Eggers: Altogether, we had a strong third quarter that is contributing to our improved outlook for the year.

Daniel Eggers: Before I turn to guidance, given the timing of our announced crane restart and where negotiations were during the quarter following our second quarter earnings call, we were unable to be in the market and unfortunately did not repurchase any shares during the quarter. We still have approximately $1 billion of share buybacks currently authorized by the board. As well as $1.8 billion of unallocated capital for the 2024-2025 period, which I should remind is not updated for the increase in 2024 earnings guidance or outlook for 2025. Moving to slide nine, we are raising the midpoint and narrowing the full year adjusted operating earnings guidance.

Emily Duncan: Before I turn to guidance given the timing of our announced crane restart and we're in negotiations were during the quarter. Following our second quarter earnings call. We were unable to be in the market and unfortunately did not repurchase any shares during the quarter.

Speaker Change: We still have approximately $1 billion of share buybacks currently authorized by the board.

Speaker Change: As well as $1 $8 billion of unallocated capital for the 2020 for 2025 period, which I should remind is not updated for the increase in 2024 earnings guidance or outlook for 2025.

Speaker Change: Moving to slide nine we are raising the midpoint and narrowing our full year adjusted operating earnings guidance. The updated midpoint goes from $8 per share to $8 20.

Daniel Eggers: The updated midpoint goes from $8 per share to $8.20 with a range of eight to 840. The new range is effectively above the top end of our original guidance range of 723 to 803 per share. The commercial business continues to outperform plan, allowing us to increase our earnings outlook for the year once again. As you can see in the appendix on slide 21, we increased our enhanced gross margin by $275 million. As a result of the commercial team's continued strong performance, create an additional value compared to plan through the optimization of our portfolio. As previously discussed, we are seeing higher O&M due to the strong earnings results in stock.

Speaker Change: With a range of $8 to 840.

Speaker Change: The new range is effectively above the top end of our guidance our original guidance range of 723 to $8 three per share and.

Speaker Change: The commercial business continues to outperform plan, allowing us to increase our earnings outlook for the year once again.

Speaker Change: As you can see in the appendix on slide 21, we increased our enhanced gross margin by $275 million as a result of the commercial team's continued strong performance created additional value compared to plan through the optimization of our portfolio as.

Speaker Change: As previously discussed we are seeing higher O&M due to the strong earnings results and stock comp.

Daniel Eggers: On the fourth quarter call, we will roll forward our earnings guidance and other disclosures to include 2026. As you think through your modeling, and as reflected in disclosures in this deck, I want to remind you that we'll have more refueling outages in 2026 than in 2025, and these outages will be longer than our average outages because we'll be installing the first of our planned upgrades at Byron and Brady. As a result, we will produce less electricity and have higher O&M. In addition, we expect the PTC floor to be flat in 2025. We still forecast at least 13% compound base EPS growth through 2030, and we'll look for ways to further enhance our opportunity from here.

Speaker Change: On the fourth quarter call, we will roll forward, our earnings guidance and other disclosures to include 2026 as you think through your modeling and as reflected in disclosures in this deck I want to remind you that we will have more refueling outages. In 2026, then in 2025 and these outages will be longer than our average outages.

Speaker Change: Because we'll be installing the first of our planned operated Byron and Braidwood.

Speaker Change: As a result, we will produce less electricity and have higher O&M.

Speaker Change: In addition, we expect the PTC floor to be flat in 2025, we still forecast at least 13% compound base EPS growth through 2030, and we'll look for ways to further enhance our opportunity from here.

Daniel Eggers: Thank you and I'll turn the call back.

Emily Duncan: Thank you and I'll turn the call back to Joe.

Joseph Dominguez: Thanks, Dan. Good job as always. Folks, Constellation is like no other company. We have a unique set of existing assets that creates opportunities that no one else has. As Dan and I both hit, we expect to see 13 percent compounded growth through the end of the decade. Uniquely, it's backstopped by the federal government. We're the best operator of nuclear plants in the world, and our plant's performance is only getting better. We have 20 percent market share with competitive C&I customers, and that's allowed us to have the products and services that now we are uniquely using with the data economy customers.

Joe: Thanks, Dan are as always folks constellation was like no. Other company, we have a unique set of existing assets that creates opportunity you said no one else has.

Dan and I, both hit we expect to see 13% compounded growth through the end of the decade uniquely its backstopped by the federal government, where the best operator of nuclear plants in the world and our plants performance is only getting better.

Speaker Change: 20%.

Speaker Change: Market share and competitive with competitive C&I customers and Thats allowed us to have the products and services that now we are uniquely using with the data economy customers.

Joseph Dominguez: Our strategy from the beginning is to provide America solutions to its energy problems, and we're doing it.

Speaker Change: Our strategy from the beginning is to provide America solutions to its energy problems and we're doing that we're in.

Joseph Dominguez: We're not done as a company, not far from done. Power demand is growing, and at the same time, reliability is becoming a premium product. We don't need to look further than the recent capacity auctions and the load growth projections to see that. see increased demand from the data economy, but also from electrification and from onshoring. And it's going to mean that our resources are more important than that. We have opportunities in the data economy for front-of-the-meter deals. We've shown that through Crane. We've shown that through our CFE product. And we continue to see opportunities behind the meter in co-location.

Speaker Change: <unk> done it company that far from done.

Speaker Change: Our demand is growing and at the same time reliability is becoming a premium product we don't need to look further than the recent capacity auctions and the load growth projections to see that.

Speaker Change: We see increased demand from the data economy, but also from electrification and from onshore and it's going to mean that our resources are more important than ever.

Speaker Change: We have opportunities in the data economy for front of the meter deals we've shown that through claim we've shown that through our CFP products and we continue to see opportunities behind the meter and co location.

Joseph Dominguez: You've got 2,000 megawatts of new nuclear that we could bring to the grid beginning in 2027. So think about that. That's 2,000 megawatts, roughly the equivalent of Vogel, and we think we could get that done all within the next handful of years. We're going to benefit from government procurements from clean energy, and we're going to be able to capture energy and capacity prices above that.

Speaker Change: Got 2000 megawatts of new nuclear that we can bring to the spread beginning in 2027. So think about that that's 2000 megawatts roughly the equivalent of Vogel and we think we can get that done.

Speaker Change: All within the next handful of years.

Speaker Change: We're going to benefit from government procurements room, clean energy and we're going to be able to capture energy and capacity prices above the PTC floor.

Joseph Dominguez: Finally, I'd just like to say something about tomorrow's election and how it could impact us at Constellation. We're proud that nuclear energy has strong and bipartisan support from federal and state policy makers and from the American people. and, in fact, the majority of Americans support me. Congress has passed several pieces of pro-nuclear legislation in recent years, including the ADVANCE Act, which passed Congress with strong bipartisan support. You'll recall, and we've told you this before, that the origin... The production tax credit came from Republicans in the House and the Senate. And both Vice President Harris and former President Trump have been strong supporters of existing and new nuclear during their time in office.

Speaker Change: Finally, I'd, just like to say something about tomorrows election, and how it could impact us at constellation.

Speaker Change: We're proud that nuclear energy has strong bipartisan support from federal and state policymakers and from the American people.

Speaker Change: In fact, the majority of Americans support nuclear.

Speaker Change: Congress has passed several pieces of new legislation in recent years, including the advance Act, which passed Congress with strong bipartisan support you'll recall. We've told you. This before that the origins of the production tax credit came from Republicans in the house and the Senate.

Speaker Change: And both Vice President Harris, and former President Trump have been strong supporters of existing and new nuclear during their time in office.

Joseph Dominguez: politically, and unfortunately, there are deep divisions in the country. But all Americans want clean and reliable energy, and we're proud to provide what they want. We're proud to provide what our customers and our communities need. No matter who wins tomorrow, we're going to continue to do that.

Speaker Change: Politically and unfortunately, there are deep divisions in the country.

Speaker Change: But all Americans want clean and reliable energy and we're proud to provide what they want we're proud to provide what our customers and our communities one no matter, who wins tomorrow, we're going to continue to do that with that Latif will end, our prepared remarks and open it up for questions.

Joseph Dominguez: With that, Latif, we'll end our prepared remarks and open it up for questions. Thank you.

Operator: Ladies and gentlemen, if you have a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Please stand by while we compile the Q&A roster.

Speaker Change: Thank you ladies and gentlemen, if you have a question you will need to press star one on your telephone to remove yourself from the queue. You May press star one again.

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

Jeremy Tenet: Our first question. comes from the line of Jeremy Tenet of J.P. Morgan Securities. Please go ahead, Jeremy.

Speaker Change: Our first question.

Speaker Change: Comes from the line of Jeremy Tonet JP.

Speaker Change: J P. Morgan Securities. Please go ahead Jeremy.

Joseph Dominguez: Hi, good morning. Morning, Jeremy. Thanks for all the details on the call.

Jeremy Tonet: Hi, good morning.

Speaker Change: Good morning, Jeremy.

Jeremy Tonet: Thanks for all the details on the call just wanted to come back to.

Joseph Dominguez: Just wanted to, you know, come back to, you know, post-Berk here and thoughts. Just wondering if Constellation were to pursue more front-of-the-meter deals, how do you think that, I guess, impacts value creation and, you know, speed to market relative to, I guess, a behind-the-meter solution here? It seems like there's still an opportunity to get to the same place, but just wondering any other thoughts that you can share. Yeah, Jeremy, our foot is on the accelerator pressed all the way down on deals, whether they're front or behind the meter. And so we are, we're pursuing both.

Jeremy Tonet: Post for Kia and thoughts just wondering if constellation where to pursue more front of the meter.

Jeremy Tonet: Deals how do you think that I guess impacts value creation and <unk>.

Speaker Change: Speed to market relative to I guess.

Speaker Change: Behind the meter solution here. It seems like there is still an opportunity to get to the same place, but just wondering any other thoughts that you can share.

Speaker Change: Yes, Jeremy.

Jeremy Tonet: Foot is on the accelerator for us all the way down on deals whether they are frankfurt behind the meter and so we are we're pursuing both.

Joseph Dominguez: I think You know, we've we've, as I said, demonstrated through crane, our ability to use our power stations to support data center development. And so I think that's going to create some real opportunities for partnering with utilities that want to ensure that customers in their region or their utility get first access to clean and reliable power so that they can meet their growth objectives. And we look forward to partnering with them and customers who want to be in those areas.

Speaker Change: I think.

Speaker Change: We've as I said demonstrated through crane, our ability to use our power stations to support data center development anywhere and so I think that's going to create some real opportunities for partnering with utilities that want to ensure that customers in their region or their utility.

Speaker Change: Get first access to clean and reliable power so that they could meet their growth objectives, and we look forward to partnering with them and customers who want to be in those areas speed. The market is very clearly the most important thing for customers and so that's going to depend on the transmission configuration in different places in certain places.

Joseph Dominguez: Speed the market. very clearly the most important thing for customers. And so that's going to depend on the transmission configuration in different places, and certain places are going to be, frankly, more attractive to others for the data economy customers, and we're going to follow them where they need to go. Got it. That makes sense.

Speaker Change: Going to be frankly, more attractive to others for the data economy customers and we're going to follow them, where they need to go.

Speaker Change: Yes.

Speaker Change: Got it that makes sense. Thank you for that and then I guess also looking at the state level you see certain states out there really looking to promote the data economy development in their states and I think theres some actions coming out of the governors to really promote I guess us quicker speed to market interconnect.

Joseph Dominguez: Thank you for that.

Joseph Dominguez: And then I guess also looking at the state level, you see certain states out there really looking to promote the data economy development in their states. And I think there's some actions coming out of the governors to really promote, I guess, a quicker speech market interconnect queue timelines. And just wondering any other thoughts that you could share there as far as what could be done on the state level?

Speaker Change: Q timelines and just wondering any other thoughts that you could share there as far as what can be done on the state level.

Joseph Dominguez: Yeah, that's the irony of it. I have not, look, I've talked to every governor in states from which we operate clean energy centers, and I could assure you that they all want to get this economy going. They understand that it's important for national security, but it's also critically important for economic development in their states. And moreover, they understand this kind of fundamental point, that they are part of an interstate grid, so that if they don't build, the power from power plants that might be in their state is going to flow to different places where those data centers are going to be built, and those states are going to get the economic benefits, the jobs, the taxes, all the other things that come with it.

Speaker Change: Yes, that's the irony of it I have not look I've talked to every governor in states from which we operate clean energy centers and I can assure you.

Speaker Change: That they all want to get this economy going.

Speaker Change: Understand that it's important for national security, but it's also critically important for economic development in our state and Moreover, they understand this kind of fundamental point that they are part of an interstate grid. So that if they don't build the power from power plants that might be in their state is going to flow to different places where.

Speaker Change: Those data centers are going to be built and those states are going to get the economic benefits to jobs taxes, all the other things that come with it so I.

Joseph Dominguez: So. I see it as a circumstance where they're all leaning. And I think we will see more of them lean more aggressively into trying to advance rules at FERC and trying to do things that attract data center development to their jurisdictions, and that's Republicans and Democrats alike. So we're following that closely. We, as I said, will continue to meet with utilities that we have common interests with and want to really advance data economy development work in those states, and we could go anywhere. We have been selling hundreds of terawatt hours every year. customers across PJM and in other arts.

Speaker Change: I see it as a circumstance where theyre all leaning into this and I think we will see more of that lean more aggressively into trying to advance rules at FERC and trying to do things that attract datacenter development to their jurisdictions and that Republicans and Democrats alike. So were fall.

Speaker Change: Alan that closely.

Speaker Change: As I said, we will continue to meet with utilities that we have common interest with and want to really advance data economy development work in those states and we could go anywhere.

Speaker Change: We have been selling hundreds of terawatt hours every year to customers across PJM and other artigas, we know how to do that we know how to manage the risks know what our costs are going to be 10 20 years from now we know how to get capacity to all places and as more transmission is.

Joseph Dominguez: We know how to do that. We know how to manage the risks. We know what our costs are going to be 10, 20 years from now. We know how to get capacity to all places. And as more transmission is built, we'll be able to move even more capacity to different places. So we'll follow the customers where they go.

Speaker Change: Phil will be able to move even more capacity in a different place. So we'll follow the customers where they go.

Joseph Dominguez: That's the entire focus of Jim's team and the work that Kathleen and others are doing right now. And that's what I have said before, that the discussion with hyperscalers is only ramping up. It's about this sort of thing. How do they buy the energy capacity that they could deploy wherever they want? Got it.

Speaker Change: The entire focus of Jim's team and the work that Kathleen and others are doing right now and that's what I have said before that the discussion with Hyperscale is only ramping up its about this sort of thing how do they buy the energy and capacity that they could deploy wherever they want.

Joseph Dominguez: That's very helpful.

Speaker Change: Got it that's very helpful. Thank you.

Joseph Dominguez: Thank Thank you.

Speaker Change: Thank you.

Shahriar Pourreza: Our next question comes from the line of Shahriar Pourreza of Guggenheim Partners. Please go ahead, Shahriar. Morning, Joe. Good morning, Dan.

Speaker Change: Our next question comes from the line of Shar <unk> of Guggenheim Partners. Please go ahead.

Shar <unk>: Good morning, Joe Good morning, Dan.

Joseph Dominguez: Appreciate sort of the the color you're giving around sort of the markets and stuff but maybe just if you could speak a little more to the transmission capacity within the Comet and Pico zones around your plants as you see it. I mean one of your peers has pitched capacity in its primary zone as kind of advantageous in the shift towards more front of the meter deals and obviously some of the stock reactions we're seeing this morning is is prompting that so I just want to get a little bit more color there. Thanks. Yeah, look, Shahriar, I think from a temporal standpoint, a long term standpoint, we happen to operate in markets that have fairly robust transmission capabilities, right?

Shar: Yes, I appreciate sort of the color, you're giving around sort of the markets and stuff, but maybe just if you could speak a little more to the transmission capacity within the comment in peak zones around your plans as you see it I mean, one of your peers has pitched capacity in its primary zone is kind of advantageous and a shift to.

Shar: Awards more front of the meter deals and obviously some of the stock reactions were seeing this morning as is prompting that so just wanted to get a little bit more color there. Thanks.

Speaker Change: Yes look sure I think about both from a temporal standpoint, a long term standpoint, we happen to operate in markets that have fairly robust transmission capabilities right. When you think about the comex Zona as an example, it has probably the most robust export capabilities of any zone within.

Joseph Dominguez: When you think about the ComEd zone, as an example, it has probably the most robust export capabilities of any zone within PJM. I think numerically, that's that. and we're seeing new transmission being built all over the place that's really expanding that. So the ability to move energy and capacity to different places is growing really, as these plans come into fruition and transmission is built. But there's a lot of lanes right now for us to move our power. So that's what we're Got it.

Speaker Change: In PJM I think numerically that's accurate.

Shar <unk>: And we're seeing new transmission being built all over the place that's really expanding that so the ability to move energy and capacity in a different places is growing really as these plans come into fruition when transmission is built but there is.

Shar <unk>: There's a lot of ways right now for us to move our power. So that's what we're exploring.

Joseph Dominguez: Okay, perfect.

Speaker Change: Got it okay, perfect and then just the pathways to getting.

Joseph Dominguez: And then just the pathways to getting some clarity on BTM tariffs. I guess, what do you see as kind of a realistic timeline? Had a conference on Friday, could be a new chair next year with the election tomorrow. I guess, what is the fastest this could get resolved at this point? Do you wait for a NOPR? Can you or PJM do something to expedite? I mean, there's a lot of options that are being thrown around, but nothing seems to be a quick fix besides shifting to sort of in front of the meter. Thanks. Yeah, look, I probably would agree with you that there's not a quick fix.

Speaker Change: Some clarity on btn tariffs I guess, what is the what do you see as kind of a realistic timeline had a conference on Friday, it could be a new chair and next year with the election Tomorrow I guess what is the fastest this could get resolved at this point do you wait for <unk>.

Speaker Change: Can you or PJM do something to expedite I mean, theres a lot of options that are being thrown around but nothing seems to be a quick fix besides shifting to sort of in front of the meter.

Speaker Change: Yes look I, probably would agree with you that there is not a quick fix but by that I mean, it's not going to happen tomorrow, but there are a lot of parties interested in moving this forward people are reacting to.

Joseph Dominguez: But by that, I mean, you know, it's not going to happen tomorrow. But there are a lot of parties interested in moving this forward. People are reacting to the tech conference. I think a bigger development wasn't the ISA, which was a narrow thing. But how do we deal with the comments that came out of the tech conference and craft something globally that addresses those comments? I've touched a little bit on that in terms of the principles that we think would be framework for a bigger deal. How that happens, I don't think we're, you know, we're literally what, 72 hours away from the tech conference and still putting that together.

Shar <unk>: The Tech conference I think a bigger development.

Speaker Change: The ISI, which was narrow thing, but how do we deal with the comments that came out of the Tech conference and craft something globally that addresses those comments I've touched a little bit on that in terms of the principles that we think would be the framework for a bigger deal how that happens I don't think we are.

Speaker Change: We're literally what 72 hours away from the Tech conference and still putting that together, we're meeting with Counterparties and we'll figure out how to move forward I don't know if FERC at this point is going to take the lead PJM, while our other party as well.

Joseph Dominguez: We're meeting with counterparties and we'll figure out how to move forward. I don't know if FERC at this point is going to take the lead, or other parties will. I think it's just too early in the game for us to say that. But look, I think there's a strong appetite. I don't care who's in the White House. AI is going to be of growing importance. fundamentally believe this. This is the issue of our time. transcends the energy. This is the issue that will define America's success in this century. lead or fall behind is going to be of critical importance.

Speaker Change: Too early in the game.

Speaker Change: For us to say that.

Speaker Change: But look I think there's a strong appetite I don't care who's in the White House.

Speaker Change: AI is going to be of growing importance.

Speaker Change: Fundamentally believe this sharp.

Speaker Change: This is the issue of our time.

Speaker Change: It transcends the energy business. This is the issue that will define Americas success in essentially whether we lead or fall behind it is going to be of critical importance that may not be universally known to others clearly chairman thoughts understood that.

Joseph Dominguez: That may not be universally known to others. Clearly, Chairman Phillips. I understood that with great clarity the other day in his comments, but not everybody does right now in November of 2024. Got it. Yeah. I think that whole picture will change and the energy around this issue is going to intensify and FERC and others will have to clear up these rules quickly. Got it, yeah, it's a national security issue. Appreciate it, thanks so much, Joe. See you soon. Thank you.

Speaker Change: Great clarity the other day in his comments, but not everybody does right now in November of 2024.

Speaker Change: A handful timelines into next year, I think that whole picture will change and the energy around most issue is going to intensify and FERC and others will have to clear up these roles quickly.

Speaker Change: Got it yes. It is a national security issue I appreciate it thanks, so much Joe.

Speaker Change: Yeah.

Steve Fleishman: Our next question comes from the line of Steve Fleishman of Wolf Research. Yeah, hey, good morning.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Steve Fleishman of Wolfe Research.

Speaker Change: Hey, Steve.

Steve Fleishman: Yeah, Hey, good morning so.

Steve Fleishman: So I guess I'd like to show you talked about some kind of Collocation brought thematics, including the first one being. that nuclear would be switched to the grid for emergencies. and Be Fairly Compensated. Could you just... Talk more to that, because that... It seems like a little different than at least the... you know, things that we've seen so far structurally. So I'd like to get more color on how that would work. And then tied in with that, the DR aspect. with the data center since that's, you know, been kind of a challenge since they run all the time.

Speaker Change: I'd like to show you just.

Steve Fleishman: You talked about some kind of.

Steve Fleishman: Colocation broad dramatics.

Speaker Change: Including the first one being.

Speaker Change: Nuclear would be switched to the grid for emergencies.

Speaker Change: Great and be fairly compensated could you just talk.

Speaker Change: Talk more to that because then.

Speaker Change: It seems like a little different than at least the.

Speaker Change: Yeah.

Speaker Change: Things that we've seen so far are structurally so I'd like to give more color on how that would work and then tied in with that the Dr aspect.

Speaker Change: With the data centers since Thats.

Speaker Change: And kind of it.

Speaker Change: <unk> since they run all the time.

Joseph Dominguez: If you could talk to those two issues, it would be helpful. Yeah, sure, Steve. Let me do it kind of backwards. I, you know, I think we've seen historically we've lots of megawatts show up of demand response. when the price signals within PJM are consistent and sufficiently robust for commercial industrial customers like ours. pull back energy consumption during peak hours. And the challenge, frankly, for that DR market isn't that the thesis doesn't work, it's that prices dropped so precipitously in capacity markets that it no longer made sense for businesses to participate, to be willing to disrupt their business.

Speaker Change: You could talk to those two.

Speaker Change: Issues would be helpful.

Speaker Change: Yeah sure Steve Let me do a kind of backwards I think we've seen historically with lots of megawatts show up demand response, when the price signals within PJM are consistent and sufficiently robust for our commercial industrial customers like ours too.

Speaker Change: Pullback energy consumption during peak hours.

Speaker Change: And the challenge frankly for that Dr market isn't that the thesis doesn't work, it's that prices dropped so precipitously and capacity market that it no longer made sense for businesses to participate to be willing to disrupt their business, but at the price levels. We saw in the last auction to the extent that prices in.

Joseph Dominguez: But at the price levels we saw in the last auction, to the extent that prices in that vicinity are sustained, I see a reemergence of DR as an immediate resource that's going to address some of these hours of peak demand. That's what I was talking about. I think we're in a good spot because we have, as customers, those clients that could respond. And so I happen to know from our commercial team that we believe that those folks will respond if the price signal is right. So that's kind of the answer to that. But we've got to get this capacity market up and running.

Speaker Change: That vicinity are sustained.

Speaker Change: See a reemergence of Dr. As an immediate resources.

Speaker Change: Can address some of these hours of peak demand. That's what I was talking about I think we're in a good spot because we have those customers those clients that could respond and so I happen to know from our commercial team that we believe that those folks will respond if the price signals right. So that's.

Speaker Change: The answer to that but we've got to get this capacity market up and running.

Joseph Dominguez: You know, we can't be doing hand-wringing about capacity. And then at the same time, keep tweaking and delaying auctions that send the price signals to the market so that the market will respond. We know historically the market always responds, so that's point one.

Speaker Change: We can't be doing hand, wringing about capacity.

Speaker Change: And then at the same time keep tweaking and delaying auctions that setting the price signals to the market so that the market will respond.

Speaker Change: The market always respond so that's 0.1.

Joseph Dominguez: Point two, what I'm talking about in terms of the nuclear units returning is, and I think we're seeing some of this in ERCA, at some level, right, of advanced warning when the grid reaches some level in its kind of multi-step hierarchy of a grid crisis, the nuclear unit will shut down the co-located load and come back to the grid. And so, you know, we could get some legs under that exactly when it will happen, but that's something we're absolutely willing to do, and our customers understand we will So this kind of notion that we're taking the energy off the grid and it never comes back or some kind of unrealistic fantasy that the grid is down, data center is up, surrounding the nuclear plant is just, you know, it's a poor narrative.

Speaker Change: To what I'm talking about in terms of the nuclear units returning is and I think we're seeing some of those aircraft at some level rate of advanced warning when the grid reaches some level and it's kind of multi step hierarchy.

Speaker Change: Of a great crisis, the nuclear unit will shut down the co located loading cut back to the grid.

Speaker Change: So we could get some legs under that exactly when it will happen.

Speaker Change: But thats something we are absolutely willing to do and our customers understand we will do.

Speaker Change: So this kind of notion that we're taking the energy off the grid and it never comes back or some kind of unrealistic fantasy that the grid is down datacenter is op surrounding the nuclear plant.

Speaker Change: Yes, it's a poor narrative, it's that doesn't accurately reflect what will happen. We will always go back to the grid as privacy in terms of being compensated.

Joseph Dominguez: It's not, doesn't accurately reflect what will happen. We will always go back to the grid as privacy. In terms of being compensated, We have offered solutions that allow us to continue to participate in the capacity. and return to the grid in all configurations when needed. Now, unfortunately, in the past, as an isolated issue, that didn't make its way through the PJM committee process.

Speaker Change: We have offered solutions that allow us to continue to participate in the capacity market and return to the grid in all configurations when needed.

Speaker Change: Unfortunately in the past as an isolated issue that didn't make it make its way through the PJM Committee process, but my point in my opening comments is we've got to bring all of this back together in response to what we heard at the Tech talent base and provide a credible and viable pathway for them.

Joseph Dominguez: But my point in my opening comments is we've got to bring all of this back together in response to what we heard at the tech conference. and provide a credible and viable pathway for the nukes to come back when needed but also to serve the co-located. Vital for this AI.

Speaker Change: To come back, but also to serve the co located load that is vital for this AI development.

Steve Fleishman: Thanks. One other, I guess.

Speaker Change: Okay. Thanks, one other I guess.

Joseph Dominguez: A follow-up question, just in the event that you wanted to shift to co-located structures that are more, I guess, front of the meter. Could you give us a sense of just of the timeline that delay that that would cause in your kind of key. regions relative to being able to do it behind the meter. Yeah, look, I don't know, Steve, it'll probably require some more study process. But I think we've got It's going to depend on what the transmission is around the site and how long that study process will be. I think it is a bit of a longer solution, but I think it could be staged cooperatively in a manner that really doesn't cost that much time.

Speaker Change: Follow up question just in the event that you.

Speaker Change: Wanted to shift to.

Speaker Change: Co located structures that are more.

Speaker Change: I guess front of the meter.

Speaker Change: Could you give us a sense of just.

Speaker Change: The timeline.

Speaker Change: Delay that that would cause in your kind of key.

Speaker Change: Regions relative to being able to do it.

Speaker Change: And the meter.

Speaker Change: Okay.

Speaker Change: Yeah look I don't know, Steve It will probably require some more study process, but I think we've got it.

Speaker Change: Going to depend on what the transmission.

Speaker Change: How long that starting process for Bay I think it is a bit of a longer solution, but I think it could be staged co.

Speaker Change: Cooperatively in a manner that really doesn't.

Speaker Change: Cost that much time.

Joseph Dominguez: We have some ideas about how we will do that in accordance with the existing tariffs that allow us to get to the end state fairly quickly.

Speaker Change: We have some ideas about how we will do that in accordance with the existing tariffs that allow us to get to the end state.

Speaker Change: Fairly quickly.

Joseph Dominguez: We're probably going to be a little careful here on an earnings call spelling out exactly how that works. Got it. Thank you for the call. Appreciate it. Thank you.

Speaker Change: We're probably going to be a little careful here on an earnings call spelling out exactly how that will work.

Speaker Change: Got it thank you for the color I appreciate it.

Speaker Change: Thank you.

Paul Zimbardo: Our next question comes from the line of Paul Zimbardo of Jefferson.

Speaker Change: Our next question comes from the line of Paul Zimbardo of Jefferies.

Paul Zimbardo: Hey, good morning team. It's Julian. Thanks for the time. I appreciate it.

Paul Zimbardo: Hey, good morning team as Julian Thanks for the time I. Appreciate it just wanted to follow up a little bit on the sort of the cadence over the last few questions and asking how do you think about that.

Joseph Dominguez: I just wanted to follow up a little bit on the sort of the cadence of the last few questions and asking how do you think about Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host of the Goldstein on Gelt radio show. He is a licensed financial professional both in the U.S. and Israel. Look, I think Friday is just what I said. I think it's a narrow ruling by three commissioners. I'm not even sure that's the ruling we would have seen if the two commissioners didn't recuse themselves. So it's going to be dependent on how fast.

Paul Zimbardo: Confidence is probably pretty key right now how do you think about being able to come to market with whatever it is whether it's the behind the meter type arrangement or some sort of portfolio in front of the meter.

Speaker Change: How do you think about Friday, representing any kind of setback in timeline on your front or do you think that youre still.

Speaker Change: Front foot here in terms of being able to bring something to market sooner than later.

Speaker Change: Look I think Friday.

Speaker Change: Just what I said I think it's a narrow ruling by three commissioners I'm not even sure. That's the rolling we would've seen if the two commissioners to recuse himself. So.

Speaker Change: It's going to be dependent on how fast we always anticipated after the Tech conference there will be a process to deal with issues that came up so that has been in our thinking from a strategic standpoint and in the thinking of our customers.

Joseph Dominguez: We always anticipated after the tech conference there'd be a process to deal with issues that came up. So that has been in our thinking from a strategic standpoint and in the thinking of our customers. And I just don't over rotate on what happened on Friday in the ISA, because I don't think that really brought the issues together in the most favorable way. So. My point is, from our internal planning, it's kind of the same thing. In terms of front-of-the-meter deals, we're doing that already. We've done it with dozens and dozens of customers already in PJM, and you'll see those numbers in our disclosures.

Speaker Change: Just don't over rotate on what happened on Friday in the I would say because I don't think that really brought the issues together in the most favorable way so.

Speaker Change: My point is from our internal planning, it's kind of the same thing in terms of front of the meter deals. We are doing that already we've done it with dozens and dozens of customers already.

Speaker Change: PJM and Youll see those numbers in our disclosures so.

Joseph Dominguez: So, and as well as, you know, the upgrades and other opportunities. Those things are moving along at pace, and if anything, you have intense. After the Microsoft deal with Crane, the appetite and desire to talk to us about the upgrades has gone up pretty considerably. So we're moving at pace on all of those things, and I think they're all going to be additive to the 13%. We've just got to get the deals done and incorporate them. into our numbers, and you'll see it.

Speaker Change: And as well as.

Speaker Change: The op rates and other opportunities those things are moving along at pace and if anything have intensive.

Speaker Change: After the Microsoft deal with Crane, the appetite and desire to talk to us about the up rates.

Speaker Change: Yes.

Speaker Change: Has gone up pretty considerably so we're moving at.

Speaker Change: Based on all of those things and I think they're all going to be additive to the 13%. We just got to get the deals done and incorporate them.

Speaker Change: Into our numbers and you'll see it.

Joseph Dominguez: Yeah, thanks, Joe. And I appreciate all this takes some time, right? I mean, obviously, TMI took a lot of planning. How do you think about the the upgrade structures here? I mean, obviously, you know, there's there's incremental megawatt potential here. But as you think about contracting here, would you think of that as being kind of an opportunity to recontract entire plants? Or would you think about this being more discreet to the additionality provided by the specific megawatt upgrade? All of the above, but guys, I think, you know, we're seeing such interest in the upgrades that we want to package it with other opportunities, okay?

Speaker Change: Yeah. Thanks, John I. Appreciate all this takes some time right I mean, obviously you Tim I took a lot of planning how do you think about the upgrade structures here I mean, obviously.

Speaker Change: Incremental megawatt potential here, but as you think about contracting here would you think of that as being kind of an opportunity to re contract the entire plants or would you think about this being more discrete to the additionality provided by the specific megawatt upgrades.

Speaker Change: When you think about the structure of that timing.

Speaker Change: All of the above but guys I think we're seeing such interest in the operator that we want to package it with other opportunities or Gary I think I have fewer operates than I have customers to sell them to.

Joseph Dominguez: I think I have fewer upgrades than I have customers to sell them to. So there's a scarcity of that product, and so that tells us we should pair it with other things that we care about. Relicensings are another thing that hyperscalers want to be a part of and support, right? So that makes a good pairing. So I think about the upgrades as a scarce opportunity that we have at Constellation and an opportunity we want to share with customers that are interested in a broader more strategic relationship than perhaps just Got it.

Speaker Change: There is a scarcity of that product and so that tells US we should pair it with other things that we care about re licensing or another thing that hyperscale is want to be a part of and support right. So that makes it good pairing.

Speaker Change: I think about the operates as a scarce opportunity that we have at constellation and an opportunity we want to share with customers that are interested in a broader more strategic relationship than perhaps just the operators.

Joseph Dominguez: Hey, thanks, team. Good luck. Thank you.

Speaker Change: Got it hey, thanks, Steve Good luck.

Speaker Change: Thanks.

Speaker Change: Thank you.

David Arcaro: Our next question comes from the line of David Arcaro of Morgan Stanley. Hey, David. Hey, thanks so much. Good morning.

Speaker Change: Our next question comes from the line of David Arcaro of.

Speaker Change: Organ Stanley.

Speaker Change: Hey, David.

David Arcaro: Hey, thanks, so much good morning.

Joseph Dominguez: Hey, wondering, what's the perspective that you're hearing from the hyperscalers? You know, what's the urgency level? Are they worried about regulatory issues in PJM? Are they sticking with PJM and still, you know, looking for a behind-the-meter approach? Any changes in there? David, where are they getting... Right, it's not like it's a lot better anywhere else. I think the reality everyone is facing is simple. This power issue has become the key to unlocking the whole. They're investing billions, and as you can see from their disclosures, they're not slowing the pace of their investment. But what they're saying is that there's no nirvana.

David Arcaro: Wondering what's the perspective that youre hearing from the Hyperscale.

David Arcaro: What's the what's the urgency level are they worried about regulatory issues in PJM are they sticking with PJM and still looking for behind the meter approach any changes in their thinking.

Speaker Change: David where theyre getting go.

Speaker Change: Right.

Speaker Change: Not like it's a lot better or anywhere else then PJM I think the reality everyone is facing is simply this this power issue has become the unlocking the whole deal.

Speaker Change: They are investing billions and as you can see from their disclosures, they're not slowing the pace of their investment, but what they are saying is that there is no nirvana out there.

Joseph Dominguez: There's no place where you could easily hook up the amount of energy that they're looking to hook up. So, no, I don't see them as saying, oh, no, PJM is not the place to go. I think competitive markets and PJM very much remain on their list of priority sites.

Speaker Change: No place, where you could easily hook up the amount of energy that they are working to hook up so no I don't I don't see them as saying Oh no PJM is not the place to go I think competitive markets and PJM very much remain on their list of priorities sites, but.

Joseph Dominguez: But the truth of all of this, and I think Philip said it exactly right, is... This is going to require a degree of regulatory flexibility and creativeness that's going to stretch everything. And that's no less true, by the way, in vertically integrated markets than it is here. And you see that time and again.

Speaker Change: The truth of all of this and I think Phil upside it exactly right is.

Speaker Change: This is going to require a degree of regulatory flexibility.

Speaker Change: And create a test that's going to stretch everybody and that's no longer true by the way and vertically integrated markets than it is here and you see that time and again.

Joseph Dominguez: What won't, I'll tell you what won't be the solution. And I know this with absolute certainty. We're not going to wait around for 10 years until somebody builds a power plant, transmission lines to power the data economy. If that's the U.S. plan... then we've got bigger problems than picking the right art. Yeah, gotcha. No, I appreciate that. That makes a lot of sense.

Speaker Change: I'll tell you what won't be the solution and I know this with absolute certainty, we're not going to wait around for 10 years until somebody builds a power plant and transmission lines to powering the data economy. If that's if that's the U S plan.

Speaker Change: Then we've got bigger problems than picking the right RTL.

Speaker Change: Yeah got you I appreciate that that makes a lot of sense.

Joseph Dominguez: And then maybe thinking about the PJM market broadly to appreciate your comments before, and we're still waiting. All right. Jason was sitting there, wooing women over the ice but the ice is frozen and there's no water back here. And no one says a thing. That's the only reason he's in that water.

Speaker Change: And then maybe thinking about the PJM market broadly to appreciate your comments before and we're still waiting for this kind of supply response, but theres. Some stakeholders that may not be as patient here you mentioned demand response, but.

Speaker Change: What are you thinking there about potential major market changes or like subsidize new generation or reregulation, just some of these broader.

Joseph Dominguez: broader approaches that have started to pick up. Yeah, I'd give you the same answer I gave you last quarter. I don't think that's realistic. I don't think it's lost on governors or stakeholders that we've had one auction and we've now delayed the second auction. We don't have final rules. We have a reference unit that was creating, really, this enormous variability in pricing against very few megawatts. That was the wrong decision. PJM is going to revisit that decision. They're going to do what they're going to do with the RMR units, and what I think the combination of those things is going to create is a more realistic pattern of pricing that's going to incentivize demand response and incentivize competitive supply options.

Speaker Change: Approaches that have started to pick up.

Speaker Change: In PJM discussions.

Speaker Change: Yes, I give you the same answer I gave you a latest quarter I don't think that's realistic.

Speaker Change: Sure.

Speaker Change: I don't think it's lost on governors are stakeholders that we have had one auction. We've now delayed the second launch we don't have final rules.

Speaker Change: We have a reference unit that was creating really this enormous variability in pricing against very few megawatts that was the wrong decision PJM is going to revisit that decision, they're going to do what theyre going to do with the our RMR units and what I think the combination of those things it is a more realistic.

Speaker Change: Pattern of pricing, that's going to incentivize demand.

Speaker Change: Response.

Speaker Change: Incentivize competitive supply options. So look I know people talk about these things <unk> been talking about these things for 20 years and they haven't made any significant progress on these fronts, but it's not the first time, we've seen high prices result in utility, saying, Oh, we want to build.

Joseph Dominguez: So look, I know people talk about these things. They've been talking about these things for 20 years, and they haven't made any significant progress on these fronts, but it's not the first time we've seen high prices result in utilities saying, oh, we want to... We welcome them into the water anytime they want to create a merchant part of their business and invest in power plant generation. We've got to kind of let this market work, and I think folks... Understood.

Speaker Change: We welcome them into the water anytime they want to create emerging.

Speaker Change: Part of their business and invest in power plant generation, but.

Speaker Change: We got to kind of let this market work and I think folks on what the market work.

Joseph Dominguez: Okay, great. Thank Thank you.

Speaker Change: Yeah understood Okay, great. Thank you.

Speaker Change: Thank you.

Nick Campanella: Our next question. comes from the line of Nick Campanella of Barclays. Hey, thanks for the time and good morning. Hey, so a lot of questions been answered, but I think a couple of quarters ago, or I think it was even in the second quarter, you talked about grid charges. This is more in the face of the protest that was filed. And, you know, you argued these were in kind of like the low single digits on a dollar per megawatt hour basis. But just if we are shifting towards front of the meter, I'm also kind of acknowledging that, you know, every T&D operator has increased their visibility to the gigawatts that they're seeing on the grid.

Speaker Change: Our next question.

Speaker Change: It comes from the line of Nick Campanella of Barclays.

Nick Campanella: Hey, Thanks for the time and good morning.

Hey, so a lot of questions have been answered, but I think a couple of quarters ago or I think it was even in the second quarter, you talked about grid charges.

Nick Campanella: More on the face of the protest that was filed and you argue these were in kind of like the low single digits on a dollar per megawatt hour basis, but just if we are shifting towards the front of the meter I'm also kind of acknowledging that every T&D operator has increased our visibility to the gigawatt that they're seeing on the grid. They are accused are becoming more valuable and just.

Joseph Dominguez: That their cues are becoming more valuable. And just, you know, do you see that impacting the overall front of the meter charge? And how do we kind of think about how that impacts the economics and the return hurdles you're targeting? If you could just update us on what you think those front of the meter charges actually are now. Thanks.

Speaker Change: Do you see that impacting the overall front of the meter charge.

Nick Campanella: And how do we kind of think about how that impacts the economics and the return home or hurdles you are targeting if you could just update us on what you think those front of the meter charges actually are now thanks.

Joseph Dominguez: Yeah, Nick, I haven't changed my view on what they should be. I think if they, if They're charged for when they use the grid. I think the ranges I gave you before are still the same ranges. So that's, you know, there's nothing really that has changed that. I think what's kind of misunderstood here is the... As long as the interconnection is done efficiently, the more people you have using the transmission system, the more that cost will be broadly shared and that will be a mitigation. And that means that you have to get the connection. You can't spend a boatload of dough locating some of these projects in places that are completely unreasonable and then trying to socialize all of those costs.

Speaker Change: Nick I haven't changed my view on what they should be.

Speaker Change: I think if they if if they are charged.

Speaker Change: For when they use the grid I think the the.

Speaker Change: The ranges I gave you before.

Speaker Change: The same ranges.

Speaker Change: So.

Speaker Change: Theres nothing really that has changed that.

Speaker Change: Look.

Speaker Change: I think what's kind of misunderstood here is the <unk>.

Speaker Change: As long as the interconnection is done efficiently. The more people you have using the transmission system the more of that.

Speaker Change: Cost will be broadly shared and that'll be a mitigate.

Speaker Change: And that means that you have to write that means you have to get the connection rate to begin with you can't spend a boatload of Doe locating some of these projects in places that are completely unreasonable and then trying to socialize all of those costs, maybe go to the utility, but it's not good for customers, but if you locate these.

Joseph Dominguez: That may be good for the utility, but it's not good for customers. But if you locate these things very near the data centers, or very near the power sources on a co-located basis, you shouldn't see huge interconnection costs. And as a result, you're not gonna see much higher prices than what I shared with you previously. I think I laid this out in what you're referencing, that this is not a dollars issue, this is a speed issue. And if you listen very carefully to the tech conference the other day, that's what the data economy customers are saying.

Speaker Change: Things very near the Datacenters or very near the power sources on a co located basis, you shouldnt see huge interconnection costs and as a result, we're not going to see much higher prices than what I shared with you previously thought.

Speaker Change: I think I laid this out in what you're referencing but this is not a dollars issue. This is a speed issue and if you've listened very carefully to the Tech conference. The other day, that's what the data economy customers are saying, they're not saying, they're not willing to pay their fair share what they don't want to get stuck in as being Meyer.

Joseph Dominguez: They're not saying they're not willing to pay their fair share. What they don't want to get stuck in is being mired in years of study projects. And I think some utilities are going to be able to distinguish themselves and get these things done faster.

Speaker Change: And yourself.

Speaker Change: Study processes and I think some utilities are going to be able to distinguish themselves and get these things done faster than others.

Daniel Eggers: Hey, I appreciate those thoughts. And then just one follow-up on the capital allocation. Do you see yourself leaning on the buyback more this year now that we've moved past this crane announcement? And then just set the table on what you're expecting to bring in the fourth quarter. Are you going to wrap in the earnings guidance to that $1.8 billion figure? And, you know, should we have kind of a wider update in the fourth quarter? Thank you. Yeah, Nick. So just kind of our cadence now, right, is we provide a pretty comprehensive update on our financials on the fourth quarter earnings call.

Speaker Change: Hey, I appreciate those thoughts and then just one follow up on the allocated capital allocation do you see yourself winning on the buyback more of this year now that we've moved past. This crane announcement and then just set the table on what you are expecting to bring in the fourth quarter are you going to ramp in.

Speaker Change: The earnings guidance to that $1 $8 billion figure and how should we have kind of a wider update in the fourth quarter. Thank you.

Speaker Change: Yes, so just to kind of our cadence now right as we provide a pretty comprehensive update on our financials in the fourth quarter earnings call.

Daniel Eggers: We'll roll forward, right, give formal 25 guidance. We'll give you the same significant inputs for 26 as we have for 25 today. We'll refresh the extended version of those numbers in the appendix, so we kind of go out to 28 now, so we'll probably add another year there, so you'll see even further horizon to keep supporting, getting back to the growth rate we talked about out to 2030. On the two-year cash available slide, yeah, we'll update that for where we are closing that year on cash, and then our outlook for 2025 and 2026 will all go into that map, so you'll see a full new update on all those numbers, and reflective of all of our CapEx plans and any growth opportunities that we haven't talked about with you guys at this point in time.

Speaker Change: Roll forward right give formal 25 guidance, we will give you the same.

Speaker Change: Significant inputs for 2006, as we have for $25 today to give you some visibility.

Speaker Change: And does that multiyear view.

Speaker Change: We have refreshed the kind of the extended version of those numbers in the appendix rates. So we kind of go out to 2008 now so we'll probably add another year. There so you'll see even further horizon to keep supporting yes.

Speaker Change: Back to the growth rate, we talk about out to 2030.

Speaker Change: On the two year cash available slide yes, we'll update that for where we are closing out the year on cash and then our outlook for 2005, and 2006, where I'll go into that math Youll see.

Speaker Change: Full new update on all of those numbers and reflective of all of our Capex plans and any growth opportunities that we haven't talked about with you guys. At this point in time on the buyback.

Daniel Eggers: On the buyback, you know, we... Like you, as long as we are not burdened by any material non-public information, we'll look to be in the market. We were bummed we weren't able to do it last quarter when the stock was lower, and certainly we see opportunity. So as we're allowed to, we'll be there.

Speaker Change: Like you as long as we are not burdened by any material nonpublic information, we'll look to be in the market.

Speaker Change: We were bombed we weren't able to do it last quarter.

Speaker Change: The stock was lower than certainly we see opportunity. So as we are allowed to will be there.

Operator: Thank you.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: Thank you.

Durgesh Chopra: Our next question. comes from the line of Durgesh Chopra of Evercore ISI. Hey, hey, good morning, Joe. Thanks. Thanks for giving me time. Hey, I just had one question. Joe, I appreciate all the color, you know, on the FERC decision you shared. You mentioned the decision being narrow. When we read through the order, there's clearly a willingness from one of the commissioners to get it right. They talk about not setting a precedent.

Speaker Change: Our next question comes.

Speaker Change: From the line of <unk> Chopra of Evercore ISI.

Speaker Change: Good morning, Hey, Hey, good morning, Joe Thanks, Thanks for giving me time.

Chopra: I just had one question Joe appreciate all the color.

Speaker Change: On the PERC decision you shared you mentioned that this isn't being narrow when we read through the order. This clearly willingness from one of the commissioners to get it right. They talk about not setting a precedent.

Joseph Dominguez: Just do you expect FERC to start a process or some sort of a docket following the technical session on Friday? Or does something have to be has to be initiated by you or your peer IPPs? Yeah, I look, I think that's one of the things we still don't know, right? Because there's not clarity on where FERC goes. But we could drive the agenda here. If we're unsatisfied with progress, and we know that. And so, but we're not going to do that by ourselves. We'll do that with others that are of a similar mind. And we'll get that proceeding going.

Speaker Change: Do you expect to start a process or some sort of a docket following that.

Speaker Change: The technical session on Friday, or does something have to be has to be initiated by you or your your.

Speaker Change: <unk>.

Speaker Change: Yes look I think that's one of the things we still don't know because there's not clarity on where FERC goes.

Speaker Change: But we could drive the agenda here.

Speaker Change: If we are unsatisfied with progress and we know that.

Speaker Change: And so, but we're not going to do that by ourselves, we will do that with others are better.

Speaker Change: Similar mind, and we will get that proceeding going but I wanted to see what PJM is going to be we want to see where FERC is going to be.

Joseph Dominguez: But we want to see where PJM is going to be. We want to see where FERC is going to be. It's one where, without hearing really from these other two commissioners who recused themselves on it, it's kind of hard to gauge based on the opinion, because we obviously didn't see their words.

Speaker Change: It was it's one where without hearing really from these other two commissioners who reduce themselves on it it's kind of hard to gauge.

Speaker Change: Based on the opinion, because we obviously didn't see their words.

Joseph Dominguez: So we've got a little bit of work to do to understand it, and we're going to be doing that this week and formulating a plan over the next couple of weeks. Okay, that's helpful.

Speaker Change: So we got a little bit of work to do to understand it and we're going to be doing that this week in formulating a plan over the next couple of weeks.

Speaker Change: Okay. That's helpful. That's all I had thank you.

Joseph Dominguez: That's all I had. Thank you.

Joseph Dominguez: I would now like to turn the conference back to Joe Dominguez for closing remarks, sir. Well, listen, I appreciate all of the good questions today in the discussion. We're charging forward on all fronts, as I said. We think we have a pretty unique value proposition here with the 13% compounded growth and many, many opportunities not yet realized. And we're quite excited for the future. So thanks again for your interest.

Speaker Change: Thank you I would now like to turn the conference back to Joe Domingos for closing remarks, Sir.

Joe Domingos: Well listen I appreciate all of the good questions today and the discussion.

Joe Domingos: We're charging forward on all fronts as I said.

Joe Domingos: We think we have a pretty unique value proposition here with a 13% compounded growth in many many opportunities yet realized.

Speaker Change: And.

Speaker Change: We are quite excited for the future. So thanks again for your interest and with that I'll conclude the call.

Operator: And with that, I'll conclude the call. This concludes today's conference call. Thank you for participating. You may now disconnect. Have a great day.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect have a great day.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Thank you.

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.