Constellation: At a Glance

Energy Market Fundamentals Update October 10, 2019 Weather September 2019 Review September 1 - 30, 2019 September came in with 258.25 PWCDDs. This is the warmest September on record (since 1950) and smashed the old record set just last year (2018 had 234.45 PWCDDs)

A majority of the population centers in the Midwest, South and East averaged strong above normal (5+ degrees above normal) Even the West Coast population centers came in above normal. The top 4 hottest Septembers have occurred in the past 5 years and 8 of the to 10 hottest Septembers have occurred since 2000.

In contrast, Browning, MT picked up 4 feet of snow last weekend as a strong cooling trough dug into the interior West. Sources: MAXAR Technologies 3 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All Air Conditioning Season 2019 Recap May 1 to September 30, 2019

Nationally, May thru September came is as the 4th hottest on record with 1,361.63 PWCDDs. Hottest year was 2018 with 1,435.34 PWCDDs. 9 of the top 10 hottest cooling seasons have occurred since 2000 with 1998 being the lone holdover. PJM had their 5th hottest season with 243.14 PWCDDs, while the East region was 4th hottest on record with 571.7 PWCDDs.

The Mountain and West regions were the only areas to come in cooler than their 10Y normal, but the West Coast itself experienced periods of extreme heat. San Francisco hit 100 degrees in June. Sources: MAXAR Technologies 4 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All Constellation 11-15 Day Outlook

5 Winter 2019-20 Outlook (Dec-Feb) The latest forecast from NOAA calls for a mild winter from the East Coast down across the South and into the western United States and gives equal chances for mild or colder than normal in the upper Midwest and northern Plains. This is not too far off from our in-house expectations. This scenario would yield than 2,500 PWHDDs. The main long-term driver for seasonal forecasting is the

ENSO (El Nino/La Nina). Currently this region is weakly positive phase and is forecasted to remain in this state. A weak ENSO signal allows other atmosphere conditions, such as blocking and influences from the Pacific/Atlantic water temperatures to have bigger influences. The NOAA forecast would be based on warm oceans, both Atlantic and Pacific that affect the winter more than blocking (colder signal).

Market vendors have a colder outlook in the northern and eastern United States. NOAA Winter 2019-20 Outlook Favored Analog Years October Source: NOAA 6 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All The Risk What are the Market Vendors Seeing? Based more on neutral to weak El Nino conditions, sunspots and potential blocking parameters, a

much colder outcome surfaces from western Canada through the Plains and Midwest into the East. This scenario brings an average of 2731 PWHDD, or the 23rd coldest on record and the coldest since the polar vortex winter of 2013-14. Market vendors are not as cold as this map, but given the chance, they will go more toward this outcome. There is considerable evidence that the winter will not likely be normal, but rather polarizing, as either the warm signals prevail strong in one direction or the opposite in which the pattern is overwhelmed by colder signals to yield a much colder outcome. Sources: MAXAR Technologies 7 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All Economy ISM Manufacturing Index Falls To 10-Year Low

The Institute for Supply Management's factory index fell to 47.8 points, down from 49.1 points in August and the lowest level since June 2009. The figure missed all estimates in a Bloomberg survey that had called for an increase from August's 49.1. A mark below 50 points typically indicates contraction, and follows similarly weak readings in Europe and China for the month of September

The employment measure dropped to the lowest since January 2016. to 46.3 from 47.4. That's a worrying sign before a jobs report Friday that's forecast to show limited US Manufacturing PMI Increased to 5manufacturing payroll growth. month high of 51.1 in September (Aug 50.3), but still signaling only a marginal improvement in business conditions. Output and new orders rose at quicker rates but employment grew only fractionally. Data sourcesISM

9 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights Supply & Demand Fundamentals Storage on Pace to Finish at 3.8 Tcf For the week ending Sept 27th, EIA reported an injection of +112 Bcf. Last years injection for the same week was 91 Bcf and the five year average is 83 Bcf.. Storage stands at 3,317 Bcf and sets the stage for 3.8 TCF at the end of October. YOY Storage was 3.1 TCF end of October 2018 3.8 TCF end of October 2019

Data sources: EIA, Platts 11 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights Production Climbs to New High In September but backing off in October Lower 48 dry gas production broke above 93 Bcf/d averaging 93.1 Bcf/d for the week ending September 25. Through the first week of October Production has moved closer to 91 Bcf per day.

YOY Production October 2018 was 87.5 Bcf per day On Tuesday production was 90.5 Bcf per day. Data sources: EIA, Baker Hughes, 12 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights YOY Power Burns Continue to Increase 13 Exports --U.S. LNG Export Capacity to Double YOY by End of 2019

U.S. LNG export capacity is set to double to 8.9 Bcf/d by the end of 2019, per EIA forecasts. Current gas demand for LNG production totals 4.5 Bcf/d with several new liquefaction trains currently in the commissioning phase. U.S. LNG exports set a new record in November with 31 cargoes loaded at Sabine Pass and Cove Point. Total U.S. net exports (via LNG and pipeline) are expected to grow by 4.2 Bcf/d y-o-y in 2019. Data sources: EIA, DOE 14 2018 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc.,

affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All EXPORTS -- New Pipeline Capacity Supporting U.S. NG Export Growth to Mexico Source: EIA, 15 2018 Constellation Energy Resources, LLC. The offerings described herein are those of Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights YOY Crude Oil Production Continues to Increase Prices Down September 2018 Crude Oil Production 11.5 million bbls per day.(EIA) September 2019 Crude Oil Production 12.4 million bbls per day. (EIA)

16 Natural Gas Liquids Prices YOY Decline 50% 17 Shale Producers Limited Return on Investment: What it Could Mean Going Forward Return on Equity for Shale Drillers Has Been Subpar Until 2018 Source: ERCOT 19

2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All Limited Positive Cash Flow Will Compete to Pay Debt and Please Investors In the first quarter of 2019, only 10% of shale producers had positive cash flows. Source: ERCOT 20 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All

News Headlines Highlight Industry Shift WSJ: Wall Street Tells Frackers to Stop Counting Barrels, Start Making Profits (12/13/17) The shale-oil revolution produces lots of oil but not enough upside for investors WSJ: Frackers, Chasing Fast Oil Output, Are on a Treadmill (4/8/19) With more oil wells front-loaded to boost output, many companies will have to drill again soonand find new capital to keep production up WSJ: Chevron, Exxon Tighten Their Grip on Fracking (3/5/19) Chevron to double production in Permian Basin in next five years, Exxon to boost Permian output to 1 million barrels a day by early as 2024

WSJ: Frackers Scrounge for Cash as Wall Street Closes Doors (6/7/19) With traditional financing options dwindling, shale companies explore costlier alternatives Reuters: Value of U.S. oil deals plunges 93 percent in first quarter as investors demand higher returns (4/4/19) The value of U.S. oil and gas mergers and acquisitions fell to a 10-year low in the first quarter, according to data released on Thursday Fact: If you had put $100 into the S&P 500 Oil & Gas Exploration & Production Index in 2013, it would be currently worth approximately $59. Source: WSJ, Reuters 21

2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All YOY Gas Rig Count Down 22 Natural Gas and Power Pricing Trends NYMEX Prompt-Month Pulls Back Source: CQG 24

2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights NYMEX Cal Strips $/MMBtu Current 1-Year Avg vs. Avg Vs. High Vs. Low Bal 19 Cal 2020 Cal 2021 Cal 2022 Cal 2023 $2.42 $2.42

$2.45 $2.51 $2.58 $ 2.73 $ 2.64 $ 2.60 $ 2.62 $ 2.68 -11% -9% -6% -4% -4% -21% -13% -9% -7%

-7% 10% 2% 1% 3% 2% Source: NYMEX 25 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights Y-o-Y Change in Power Forwards Note: These energy-only power prices are an indicative, non-transactable snapshot of the wholesale market as of COB 9/30/19

Source: Constellation 26 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights Forward Power Price Trends (6-Month History) Note: These energy-only power prices are an indicative, non-transactable snapshot of the wholesale market as of COB 9/30/19 Source: Constellation 27 2019 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc.,

affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights THANK YOU If You Would Like to Know More or Speak to Us Brian A. Habacivch Principal, Commodities Management Group Constellation, An Exelon Company Cell 502-341-1648 Email [email protected] Contact on Linkedin 28 Disclaimer The information contained herein has been obtained from sources which Constellation NewEnergy, Inc. (CNE) believes to

be reliable. CNE does not represent or warrant as to its accuracy or completeness. All representations and estimates included herein constitute CNEs judgment as of the date of the presentation and may be subject to change without notice. This material has been prepared solely for informational purposes. CNE does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein. CNE shall not be responsible for any reliance upon any information, opinions, or statements contained herein or for any omission or error of fact. Constellation trademark and associated logo for marketing and advertising purposes only. No obligation on the part of any Constellation Entity should be deemed to arise through the use of such names or marks and nothing in this material is intended to override the legal separateness of each of the Constellation Entities. Statements made may reflect the combined experience or offerings of one or more of the Constellation Entities and not necessarily each or any specific Constellation Entity. Nothing in these materials constitutes an offer to sell or purchase regulated products or services by any Constellation Entity in any jurisdiction in which the purchase or sale of such regulated products or services by such entity is prohibited. No claim is made that the electricity supplied in any transaction described or proposed was generated from a specific or renewable resource. By Receiving this information and data, you acknowledge and agree that: 1) you are receiving no guaranty, representation or warranty of any kind from CNE; 2) CNE is not acting as your consultant or advisor for any purpose, and you will not construe or rely upon any

information provided or statements made by CNE, including without limitation as to the advantages or disadvantages of any specific product or service, predictions about future energy prices, or any other statements, information or data, as advice or representations of any sort; 3) you are making your own decisions based solely upon your own analysis and the advice of your own advisors, if any, and are not relying on CNE in any way in making any decision or taking any other action in response to the information and data or statements contained herein; 4) some of the information and data being provided to you is proprietary and may be confidential and you agree to maintain such information and data in strict confidence; and 29 5) CNE is not providing advice regarding the value or advisability of trading in commodity interests as defined in the Commodity Exchange Act, 7 U.S.C. 1-25, et seq., as amended (the CEA), including futures contracts and commodity options or any other activity which would cause CNE or any of its affiliates to be considered a 2019 Constellation commodity Energy Resources,

trading LLC. Theadvisor offerings described under herein the are those CEAof either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights Other things #1. Tic Tacs are good for your breath --- but not necessarily good for Brians UFO/ Time Space Continuum theory Nonetheless Im sticking with the general theory. #2 Despite nagging troubles with tic tacs, Im hanging tough on no Loch Ness Monster and no Big Foot. #3 Stonehenge is over-rated: Or how historians, university professors, and

ancient alien enthusiasts underestimate the power of levers, pulleys, sledges and forced labor in the transport and arrangement of impossibly large stones. 30

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