Constellation Energy Corp

We are a supplier of carbon-free energy. Our generating capacity primarily consists of nuclear, wind, solar, natural gas and hydroelectric assets. Through our integrated business operations, we sell electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, governmental, and residential customers in competitive markets across multiple geographic regions. We have five reportable segments: Mid-Atlantic, Midwest, New York, ERCOT and Other Power Regions. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations summarizes results for the year ended December 31, 2023 compared to the year ended December 31, 2022. For discussion of the year ended December 31, 2022 compared to the year ended December 31, 2021, refer to ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS in the 2022 Form 10-K, which was filed with the SEC on February 16, 2023.

Capital Allocation and Growth Announcements

We are announcing our capital allocation strategy for 2024 and 2025 supporting our core principles outlined in our Strategy and Outlook discussion. See ITEM 1. BUSINESS – Constellation's Strategy and Outlook for additional information about our strategy.

We will increase the quarterly dividend by 25% to $0.3525 per share starting in 2024, while targeting growth of 10% annually. We are allocating capital towards our best-in-class generation fleet by committing $875 million of growth capital expenditures over the next two years, including nuclear uprates and license renewals, wind repowering, and hydrogen with policy support. These organic growth opportunities are projected to exceed our double-digit return threshold. In our commitment to return value to shareholders, we have also approved an increase to our previously announced $1 billion share buyback program, authorizing the repurchase of up to an additional $1 billion of company stock. See Note 20 — Shareholders' Equity of the Combined Notes to the Consolidated Financial Statements for additional information on completed and authorized share buybacks.