Ppl Corporation · NYSE:PPL
Ppl — Barclays Capital Conference 2011
22 slides from Ppl's conference presentation, Sep 7, 2011
Slide 1: PPL Corporation Barclays Capital Conference September 8, 2011
PPL Corporation Barclays Capital Conference September 8, 2011 Exhibit 99.1
Slide 2: Cautionary Statements and Factors That May Affect Future Results
Cautionary Statements and Factors That May Affect Future Results Any statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Actual results may
Slide 3: Investment Highlights
PPL has a highly attractive and differentiated position in the electric industry Investment Highlights § Predominantly rate-regulated business mix with significant growth prospects § Operations in constructive jurisdictions § Approximately two-thirds of regulated capital expenditures earn real-time
Slide 4: Dividend Profile
Dividend Profile $/Share Annualized A significantly more rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Ongoing EPS based on mid-point of forecast. Annualized dividend based on 4 th quarter declaration. Actual dividends to be determined
Slide 5: Our Strengths
Our Strengths § Strong regulatory relationships § Best in class reliability, customer service § Strong operating performance - regulated and competitive § Strong environmental position by competitive generation fleet § Excellent cost-management § Knowledgeable, dedicated employees
Slide 6: International: Midlands Integration Update
International: Midlands Integration Update § Synergy plan for Midlands integration on track § Road shows completed for 3,900 Midlands staff setting out WPD background values and approach to integration - 36 presentations over 9 days § 85% of union members from the four unions voted to move to single
Slide 7: Kentucky: 2011 ECR Plan - Summary
Kentucky: 2011 ECR Plan - Summary § Total Capital Expenditures - $2,500M § LG&E - capital projects totaling $1,392M § Mill Creek Air Compliance - $1,268M § FGD upgrade/replacement, Baghouse Systems, SCR Turn-downs § Trimble County Unit 1 Air Compliance - $124M § Baghouse System § KU - capital projec
Slide 8: Pennsylvania: Susquehanna-Roseland Transmission Line
Pennsylvania: Susquehanna-Roseland Transmission Line § Positive momentum on approval process for Susquehanna-Roseland line: § Favorable Commonwealth Court decision in Pennsylvania. § Working with National Park Service (NPS) to eliminate any further delay in Environmental Impact Statement process. §
Slide 9: Pennsylvania: Alternative Rate Making
Pennsylvania: Alternative Rate Making § HB1294 voted out of Consumer Affairs Committee § Expected to be considered by House of Representatives in fall § Bill provides for the recovery of a broad range of capital projects geared toward improving and maintaining safety and reliability
Slide 10: Supply: Market Fundamentals
Supply: Market Fundamentals § Coal Retirements in PJM § In light of multiple EPA regulations, 7 - 17 GWs of PJM coal-fired capacity is at- risk for retirement by 2019. § Bulk of the units have an average age over 50 years, are under 500 MWs, and have capacity factors around 30%. § Nearly half of the
Slide 11: Appendix
Appendix
Slide 12: 2011 Earnings from Ongoing Operations Forecast
$2.50 2011 Earnings from Ongoing Operations Forecast $3.13 $2.75 $/Share (1) Based on mid-point of forecasted earnings range. Note: See appendix for reconciliation of earnings from ongoing operations to reported earnings. (1) 2010A 2011E
Slide 13: Free Cash Flow before Dividends
Free Cash Flow before Dividends Millions of Dollars (1) 2010 Free Cash Flow includes two months of the results of the Kentucky Regulated segment. Note: See Appendix for reconciliation of free cash flow before dividends to cash from operations. (1) Forecast
Slide 14: Regulated Rate Base Growth
Regulated Rate Base Growth ($ in billions) (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. (2) Includes RAV for WPD Midlands. Figures based on assumed exchange rate of $1.60 / GBP and are as of year-e
Slide 15: Capital Expenditures
Capital Expenditures ($ in billions) (1) Includes capex for WPD Midlands. Figures based on assumed exchange rate of $1.60 / GBP. (2) Expect approximately 85% to receive timely returns via ECR mechanism based on historical experience. (1) (2) $2.8 $3.7 $4.3 $4.1 $3.7
Slide 16: 2011 ECR Plan - Procedural Schedule
2011 ECR Plan - Procedural Schedule § July 16 - Filed Application for ECR Plan § Discovery began in July; LG&E and KU filed responses to data requests between July 25 and August 10 § Early September § Public Meetings to be held in Louisville, Lexington, Henderson and Corbin areas § September 1 § LG&
Slide 17: Enhancing Value Through Active Hedging
2011 (4) 2012 2013 Baseload Expected Generation (1) (Million MWhs) 47.9 54.7 54.4 East 40.1 46.2 46.0 West 7.8 8.5 8.4 Current Hedges (%) 98% 97% 69% East 99% 98% 69% West 97% 95% 72% Average Hedged Price (Energy Only) ($/MWh) (2) (3) East $57 $54-55 $53-56 West $54 $53-54 $50-51 Current Coal Hedges
Slide 18: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 6/30/2011. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. Balance of 2011 2012 2013 ELECTRIC PJM On-Peak $54 $54 $55 Off-Peak $38 $39 $41 ATC (1) $46 $46 $48 Mid-Columbia On-Peak $38 $39 $44 Of
Slide 19: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share) Forecast Actual High Low 2011 2011 2010 2009 Earnings from Ongoing Operations $ 2.75 $ 2.50 $ 3.13 $ 1.95 Special Items: Energy-related economic activity 0.01 0.01 (0.27) (0.59) Sales of assets: Maine hydroelec
Slide 20: Reconciliation of Cash from Operations to Free Cash Flow before Dividends
2009 2010 2011 Cash from Operations $1,852 $2,034 $2,020 Increase (Decrease) in cash due to: Capital Expenditures (1,265) (1,644) (2,805) Sale of Assets 84 161 384 Other Investing Activities - Net (71) (20) 111 Free Cash Flow before Dividends $ 600 $ 531 $ (290) PPL Corporation Reconciliation of Cas
Slide 21: Forward-Looking Information Statement
Forward-Looking Information Statement Statements contained in this presentation, including statements with respect to future earnings, cash flows, financing, regulation and corporate strategy are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation
Slide 22: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures “Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAA