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Duke Energy Corp (DUK), Exelon Corporation (EXC): Are Mergers Worth It?

Exelon Corporation (NYSE:EXC)It’s been a year since Exelon Corporation (NYSE:EXC) merged with Constellation Energy to become the nation’s largest competitive integrated energy provider. Economies of scale can provide a simple solution to maximize margins, but synergies aren’t always what they’re made up to be. Let’s see how this utility’s union is doing.

Happy birthday to you(tilities)
Q1 results are in, marking the last quarter before Exelon Corporation (NYSE:EXC) stock put Constellation on its books. At the time of its merger, Exelon Corporation (NYSE:EXC) released a fact sheet comparing the two companies 2011 assets and revenues as a teaser for market share and profits to come:


According to 2011 statistics, Constellation’s addition would more than double sales, but also increase assets by a substantial 25%.

Before Merger ($B) After Merger ($B) % Increase
Assets 55.1 68.9 25%
Revenue 18.9 38.3 103%

With Q1 results in, here’s how
Exelon’s advancements actually stand:Source:, Author’s calculations. Note: 2011 assets and sales

Q1 2012 Before Merger ($B) Q1 2013 After Merger ($B) % Increase
Assets 77.6 78.2 1%
Revenue 4.69 6.89 47%

Source: SEC filings, e*, author’s calculations

Exelon Corporation (NYSE:EXC)’s March merger was followed close behind by Duke Energy Corp (NYSE:DUK)‘s Progress Energy merger. Another mega move, this merger turned Duke Energy Corp (NYSE:DUK) into the largest U.S. utility by asset class. Not to be left behind, the company produced its own fact-sheet for income-hungry investors:


Compared to Exelon Corporation (NYSE:EXC) stock, Duke’s merger went heavy on assets accumulation and light on revenue gains.

Before Merger ($B) After Merger ($B) % Increase
Assets 57.9 90.6 56%
Revenue 12.7 22.7 79%

Source:, author’s calculations. Note: 2010 assets, 2009 sales

With Q1 earnings hot off the press, Duke’s assets have progressed beyond Progress’ projections, but sales haven’t lived up to expectations.

Q1 2012 Before Merger ($B) Q1 2013 After Merger ($B) % Increase
Assets 61.8 113.7 84%
Revenue 3.63 5.89 62%

Source: SEC filings, e*, author’s calculations.