Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q3 2022 Earnings Presentation
27 slides from Public Service Enterprise's earnings presentation, Oct 31, 2022
Slide 1: Financial Results Presentation
Public Service Enterprise Group Financial Results Presentation October 31, 2022 1st QUARTER 2022 NYSE: PEG 3rd QUARTER 2022 NYSE: PEG
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain of the matters discussed in this presentation about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute “forwa
Slide 3: GAAP Disclaimer
GAAP Disclaimer PSEG presents Operating Earnings in addition to its Net Income/(Loss) reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings is a non-GAAP financial measure that differs from Net Income/(Loss). Non-GAAP Operating Earnings
Slide 4: PSEG Q3 2022
PSEG Q3 2022 • Third Quarter Results – On Track ꟷ Net Income of $0.22 per share in Q3 2022 ꟷ Non-GAAP Operating Earnings* of $0.86 per share in Q3 2022 ꟷ Narrowing full year non-GAAP Operating EPS guidance to $3.40 - $3.50 (from $3.35 - $3.55 prior) ꟷ PSE&G Net Income per share results up 3.9% drive
Slide 5: Narrowing Full-Year 2022 Guidance
PSEG – Narrowing Full-Year 2022 Guidance Based on strong T&D margin at PSE&G partly offset by higher interest costs at CFIO Non-GAAP Operating Earnings $3.35 – $3.55E $3.40 – $3.50E $1,510M $1,545M PSE&G to to $1,560M $1,575M (1) CFIO $170M to $220M $160M to $180M Prior Current 2022E 2022E (1) Guida
Slide 6: PSEG is delivering solid results and sustainable growth
PSEG is delivering solid results and sustainable growth and increasing the predictability of the business Narrowing 2022 non-GAAP Operating Earnings guidance to $3.40 - $3.50 per share from $3.35 - $3.55 per share PSE&G expected to contribute ~90% of 2022 non-GAAP Operating Earnings PSEG’s 202
Slide 7: PSEG Q3 2022 Review
#* PSEG PSEG Q3 2022 Review
Slide 8: PSEG Q3 Results
PSEG – Q3 Results PSEG EPS Summary – Quarter ended September 30 Net Income/(Loss) 2022 2021* Change PSE&G $ 0.80 $ 0.77 $ 0.03 CFIO $ (0.58) $ (3.87) $ 3.29 Total PSEG $ 0.22 $ (3.10) $ 3.32 Non-GAAP Operating Earnings** 2022 2021* Change PSE&G $ 0.80 $ 0.77 $ 0.03 CFIO $ 0.06 $ 0.21 $ (0.15) Total
Slide 9: EPS Reconciliation – Q3 2022 versus Q3 2021
PSEG EPS Reconciliation – Q3 2022 versus Q3 2021 $1.05 0.03 (0.15) $0.98 $0.90 Electric Margin 0.02 $0.86 Gas Margin 0.01 $0.75 Other Margin 0.01 Electric Gross Margin (0.29) Distribution O&M Capacity (0.14) (0.01) Generation (0.13) $0.60 Distribution Re-contracting & Market $ / share Interest
Slide 10: PSEG Year-to-Date Results
PSEG – Year-to-Date Results PSEG EPS Summary – Nine Months ended September 30 Net Income/(Loss) 2022 2021* Change PSE&G $ 2.42 $ 2.33 $ 0.09 CFIO $ (1.94) $ (4.50) $ 2.56 Total PSEG $ 0.48 $ (2.17) $ 2.65 Non-GAAP Operating Earnings** 2022 2021* Change PSE&G $ 2.42 $ 2.32 $ 0.10 CFIO $ 0.41 $ 0.64 $
Slide 11: EPS Reconciliation – YTD 2022 versus YTD 2021
PSEG EPS Reconciliation – YTD 2022 versus YTD 2021 $3.20 0.10 (0.23) $2.96 $2.83 $2.80 Transmission (0.03) Renewables & Electric Gross Margin (0.83) $2.40 Energy Efficiency 0.01 Capacity (0.41) Gas Margin 0.11 Generation (0.28) $2.00 Electric Margin 0.06 Sale of Solar Source (0.04) Other Margi
Slide 12: PSE&G's planned investments align with NJ's clean energy goals
PSE&G’s planned investments align with NJ’s clean energy goals PSEG’s Capital Spending Program Aligns with PSEG’s Net-Zero 2030 Goal PSE&G Capital Spending Carbon-Free 2021 – 2025E Nuclear Other Generation 1% 3% 4,000 3,500 Clean Transmission 3,000 Unapproved Energy Programs 23% 13% Over 90% 2,500 d
Slide 13: Expanded investment program firms 6% - 7.5% rate base growth
Expanded investment program firms 6% - 7.5% compound annual rate base growth from YE 2021 through 2025 PSE&G Year-End Rate Base 35,000 Unapproved Programs 30,000 25,000 20,000 ($ Millions) 15,000 10,000 5,000 - 2021 2022E 2023E 2024E 2025E Transmission Electric Distribution Gas Distribution Clean En
Slide 14: PSE&G's residential customer bills compare favorably
PSE&G’s residential customer bills compare favorably Regional gas bills lowest among peers; Regional electric bills lower than average Monthly Gas Bills Monthly Electric Bills $300 $160 $266 $136 $137 $140 $133 $134 $250 $217 $120 $201 $110 $200 $200 $190 $193 $97 $98 $103 Average = $103 Average = $
Slide 15: PSE&G – Q3 Highlights
PSE&G – Q3 Highlights Operations Regulatory and Market Environment • SAIFI and CAIDI year-to-date metrics are performing better than • Submitted regulatory filing with the BPU in early September year-to-date 2021 requesting an order to modify PSE&G’s pension accounting for ratemaking purposes; reque
Slide 16: APPENDIX
#* PSEG APPENDIX
Slide 17: Narrowing Full Year-2022 Guidance
PSEG – Narrowing Full Year-2022 Guidance Non-GAAP Operating Earnings Guidance Prior Current $ millions (except EPS) 2022E 2022E Guidance Guidance PSE&G $1,510 - $1,560 $1,545 - $1,575 CFIO $170 - $220 $160 - $180 Operating Earnings (non-GAAP) $1,680 - $1,780 $1,705 - $1,755 Operating EPS (non-GAAP)
Slide 18: Inflation Reduction Act of 2022 supports de-carbonization efforts
Inflation Reduction Act of 2022 supports de-carbonization efforts and establishes a nuclear power production tax credit, expands incentives and promotes carbon-free generation IRA 2022 Provision PSEG PSE&G Enacts a nuclear power PTC for existing generation PSEG qualifies for up to $15/MWh subject to
Slide 19: State Regulatory and Policy Initiatives Update
State Regulatory and Policy Initiatives Update Regulatory Proceedings • PSE&G submitted a regulatory filing with the BPU in early September requesting an order to modify PSE&G’s pension accounting for ratemaking purposes – Requested effective date of January 1, 2023, which would reduce future variab
Slide 20: Pension is measured annually, at year-end
Pension is measured annually, at year-end, in determining pension impact for the following year PSEG does not “smooth” the year-end asset value, instead, ($ Millions) 2021 2020 we will apply our EROA assumption (7.2% for 2022) to the Discount Rate 2.94% 2.61% Fair Value of Plan Assets at year-end
Slide 21: PSEG maintains a solid financial position
PSEG maintains a solid financial position PSEG Public Service Electric & Gas PSEG Senior Unsecured Credit Ratings PSE&G Senior Secured Credit Ratings Moody’s = Baa2 / Outlook = Stable S&P = BBB / Outlook = Stable Moody’s = A1 / Outlook = Stable S&P = A / Outlook = Stable PSEG 364-Day Term Loan Outst
Slide 22: PSEG Liquidity as of September 30, 2022
PSEG Liquidity as of September 30, 2022 Expiration Total Available Company Facility Usage Date Facility Liquidity ($ millions) PSE&G Revolving Credit Facility March 2027 $1,000 $18 $982 PSEG Money Pool (A,B) PSEG/PSEG Power Revolving Credit Facility (PSEG) March 2027 $1,500 $237 $1,263 (A) Revolving
Slide 23: Q3 & Year-to-Date 2022 Generation Measures & Hedge Update
Q3 & Year-to-Date 2022 Generation Measures & Hedge Update Nuclear Generation Measures Carbon-Free Contracted Energy Sales* Quarter ended Nine Months ended Oct – Dec September 30 September 30 2023E 2024E 2022E 2022 2021 2022 2021 Fuel Nuclear Nuclear Nuclear Capacity Factor 93.2% 94.8% 94.3% 93.0% Fu
Slide 24: Sustainability and ESG Summary
PSEG Sustainability and ESG Summary PSEG Leadership Policies & Goals Recognition & Memberships • Joined the U.N.-backed Race to Zero and • PSEG is a vocal advocate for an economy-wide • MSCI raised PSEG’s corporate ESG rating to Business Ambition for 1.5°C campaigns price on carbon and preservation
Slide 25: Glossary of Terms
Glossary of Terms AFUDC Allowance for Funds Used During Construction LDC Local Distribution Company AMI Automated Metering Infrastructure M&R Metering and Regulating BPU New Jersey Board of Public Utilities MHDV Medium and Heavy-Duty Electric Vehicles C&I Commercial and Industrial OSW Offshore Wind
Slide 26: Reconciliation of Non-GAAP Operating Earnings
Reconciliation of Non-GAAP Operating Earnings PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Consolidated Operating Earnings (non-GAAP) Reconciliation Three Months Ended Nine Months Ended (a) Includes the financial impact from positions with forward delivery months. Reconciling Items September 30, Sep
Slide 27: Reconciliation of Non-GAAP Operating Earnings
Reconciliation of Non-GAAP Operating Earnings CFIO Operating Earnings (non-GAAP) Reconciliation (a) Includes the financial impact from positions with forward delivery months. Three Months Ended Nine Months Ended (b) Nine months ended September 30, 2022 includes the results for fossil generation sold
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