Exelon announced a leadership transition on Wednesday and reported “solid” third-quarter financials on Thursday.
Current President and COO Calvin Butler Jr. will succeed Chris Crane when he steps down Dec. 30 as CEO and director of the board of the Chicago-based utility.
Crane, who has been Exelon’s CEO since 2012, said he had to accelerate his retirement plans because of significant health issues.
Butler has held a series of leadership roles since joining the company in 2008. He was named executive vice president and chief operating officer in February 2022 and was promoted to his current roles just two weeks ago.
Crane presided over his final quarterly earnings call Thursday, updating industry analysts on the company’s outlook and performance, which he described as “solid.”
For the third quarter of 2022, the company reported GAAP net income of $0.68 per diluted share and adjusted (non-GAAP) operating earnings of $0.75, up from $0.47 and $0.53, respectively, in the same quarter in 2021. For the first nine months of this year, Exelon reported $1.65/share, up from $1.33 in the same period of last year.
The company narrowed its guidance for the full 12 months of 2022 to $2.21-$2.29 in adjusted (non-GAAP) operating earnings per share.
Like the rest of the Nasdaq Composite, Exelon’s stock (NASDAQ:EXC) is near a 52-week low. The share price was down 2.84% in heavier-than-average trading on Thursday as the Nasdaq Composite declined 1.73%.
During Thursday’s conference call, Crane addressed the monumental transition to clean energy underway in the electric utility industry.
Exelon, he said, is well-positioned to lead and benefit from the shift.
“Exelon offers an unparalleled exposure to that opportunity,” Crane said. “We serve more electric and gas customers than any other utility in the country in some of the largest cities of the country. We have earned the trust of our customers and our commissions by consistently reliably providing top-notch operation performance.
“And we live our values with steady commitments to our path-to-clean goal as well as through environmental advocacy and support for our communities in a strong governance model. As a result, there is a tremendous demand and support for investments we expect to make in our communities, which, as I said earlier, totals $29 billion of capital from 2022 to 2025.”
‘Privilege and Responsibility’
Crane has spent his entire career in the energy industry, joining ComEd in 1998, shortly before it became part of Exelon.
He was named Exelon’s chief nuclear officer in 2004 and took over leadership of its fossil, hydro and renewables facilities in 2007.
Crane was named president in 2008 and CEO in 2012. Under his leadership, Exelon merged with Constellation Energy and Pepco Holdings in 2012 and 2016 to become the largest U.S. energy company by customer count.
Also on his watch, ComEd became embroiled in a multiyear bribery scandal at the Illinois Capitol, allegedly forking over $61 million in return for legislation that boosted its profits and bailed out its money-losing nuclear plants. A federal investigation ultimately led to the indictment of several former Exelon executives and a $200 million fine for the company in 2020.
Crane’s successor has three decades of experience in the utilities industry and in regulatory, legislative and public affairs.
Early in his career, Butler worked in government affairs at Central Illinois Light Company. He later had senior leadership roles with R.R. Donnelley, a print, digital and supply chain company. He joined Exelon in 2008 and held various leadership roles at ComEd and Baltimore Gas and Electric before becoming BGE’s CEO in 2014.
He holds a bachelor’s degree from Bradley University, a juris doctor degree from Washington University School of Law and an honorary doctorate of humane letters from Morgan State University.
“Leading Exelon is a privilege and responsibility that I take very seriously,” Butler said in a news release. “Chris is a tremendous leader, mentor and friend. As our world has been undergoing significant change, so too has the energy industry, and Chris has been at the forefront of that evolution. At Exelon, we are uniquely positioned to lead the nation and our industry to a clean energy future that is safe, reliable, affordable and equitable for all. I appreciate the Board’s confidence in me and will do everything I can to serve our customers and communities, keep our employees safe and move the energy industry forward.”
