Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q1 2021 Earnings Presentation
30 slides from Public Service Enterprise's earnings presentation, May 5, 2021
Slide 1: PSEG Earnings Conference Call 1st Quarter 2021
Public Service Enterprise Group PSEG Earnings Conference Call 1st Quarter 2021 May 5, 2021
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 and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings and Adjusted EBITDA
Slide 4: Q1 2021 - Ralph Izzo, Chairman, President and CEO
PSEG Q1 2021 Ralph Izzo Chairman, President and Chief Executive Officer
Slide 5: First Quarter Highlights
PSEG Q1 2021 First Quarter Highlights Net Income of $1.28 per share in Q1 2021 vs. $0.88 in Q1 2020 Non-GAAP Operating Earnings* of $1.28 per share in Q1 2021 vs. $1.03 in Q1 2020 PSE&G results reflect ongoing investment in electric and gas infrastructure PSEG Power non-GAAP Operating Earn
Slide 6: Progress on strategic alternatives for non-nuclear fleet
Progress on strategic alternatives for non-nuclear fleet PSEG has entered into an agreement to sell Solar Source’s 467 MWDC portfolio of 25 projects to an affiliate of LS Power Furthers PSEG transformation into a primarily regulated electric and gas utility, intended to: Reduce overall busines
Slide 7: Regulatory and Policy Objectives
PSEG - Regulatory and Policy Objectives State Regulatory Proceedings NJBPU awarded continuation of $10/MWh Zero Emission Certificates for all three NJ nuclear plants through May 31, 2025 Resource Adequacy (FRR) recommendation and report by NJBPU Staff expected May 2021 NJBPU working together w
Slide 8: Re-affirming 2021 Guidance
PSEG – Re-affirming 2021 Guidance Non-GAAP Operating Earnings* Contribution by Subsidiary 2020 Actual and 2021E Guidance $3.43 $3.35 - $3.55E PSE&G $2.78 $2.62 to PSEG Power $2.90 PSEG Enterprise/Other $0.55 $0.84 to $0.73 2020 ($0.03) 2021E** ($0.03) E = Estimate. *See Slides A and B for Items excl
Slide 9: Sustainability & ESG Summary
PSEG Sustainability & ESG Summary Leadership Policies & Goals Recognition & Scores • Clean Energy Future: PSE&G has received • PSEG is a vocal advocate for an economy- • Member of S&P Sustainability Yearbook regulatory approvals to invest $2 billion 2021 to decarbonize the New Jersey economy wide pr
Slide 10: PSEG delivering solid results and sustainable dividend growth
PSEG delivering solid results and sustainable dividend growth 2021 Financial Highlights PSEG non-GAAP Operating Earnings* Re-affirming full-year 2021 non-GAAP Operating Earnings guidance of $3.35 - $3.55 per share PSE&G expected to contribute >80% of 2021 non-GAAP Operating Earnings PSEG’s 5-y
Slide 11: Q1 2021 Operating Company Review
PSEG Q1 2021 Operating Company Review Dan Cregg EVP and Chief Financial Officer
Slide 12: Q1 Results by Subsidiary
PSEG – Q1 Results by Subsidiary PSEG Q1 EPS Summary – Quarter ended March 31 Net Income/(Loss) 2021 2020 Change PSE&G $ 0.94 $ 0.87 $ 0.07 PSEG Power $ 0.32 $ 0.02 $ 0.30 PSEG Enterprise/Other $ 0.02 $ (0.01)- $ 0.03 Total PSEG $ 1.28 $ 0.88 $ 0.40 Non-GAAP Operating Earnings* 2021 2020 Change PSE&G
Slide 13: EPS Reconciliation – Q1 2021 versus Q1 2020
PSEG EPS Reconciliation – Q1 2021 versus Q1 2020 $1.35 0.03 $1.28 $1.28 0.15 $1.20 Higher Tax 0.07 Benefits $1.05 $1.03 Capacity 0.03 $0.88 Transmission 0.02 Re-contracting & $0.90 Market Gas Margin 0.03 0.03 Electric Margin 0.01 Volume 0.01 $0.75 Distribution O&M (0.02) Gas Operations $ / share Dis
Slide 14: PSE&G Q1 2021 Review
PSE&G Q1 2021 Review
Slide 15: PSE&G EPS Reconciliation – Q1 2021 versus Q1 2020
PSE&G EPS Reconciliation – Q1 2021 versus Q1 2020 $1.00 0.01 $0.94 0.06 $0.87 Distribution O&M $0.80 Transmission 0.02 (0.02) Gas Margin Distribution 0.03 Depreciation $0.60 (0.01) $ / share Electric Margin 0.01 Distribution Non-Operating Pension/OPEB 0.02 $0.40 Distribution Taxes & Other 0.02 $0.20
Slide 16: PSE&G – Q1 Weather Summary
PSE&G – Q1 Weather Summary Monthly Heating Degree Days (HDD) Q1 2021 vs. Q1 2020 vs. Normal 1,200 1,000 Heating Degree Days 800 600 1,004 952 891 400 805 838 732 693 603 540 200 0 January February March 2021 2020 normal Q1 2021 winter weather, as defined by heating degree days, was ~18% colder than
Slide 17: PSE&G Clean Energy Future Program Overview
PSE&G Clean Energy Future Program Overview $2.5B $300M $100M investment investment investment *CEF-EC/AMI Program is $707M, additional rate base is ~$600M given annual meter spend of ~$30M 17 C&I=Commercial & Industrial customers; DC=direct current.
Slide 18: Driving innovation and efficiency for our customers through investments in technology
Driving innovation and efficiency for our customers through investments in technology Advanced Metering 360° View of the Mobile Outage and Asset and Work Mobile Geographic Infrastructure Customer Access Distribution Management Information System Management Providing real-time Creating a holistic Pro
Slide 19: PSE&G – Q1 Highlights
PSE&G – Q1 Highlights Operations For the trailing 12 months ended March 31, weather normalized electric sales declined by 2%; Residential sales increased by 7%, more than offset by Commercial and Industrial sales decline of 6% For the trailing 12 months ended March 31, weather normalized gas sal
Slide 20: PSEG Power Q1 2021 Review
PSEG Power Q1 2021 Review
Slide 21: PSEG Power EPS Reconciliation – Q1 2021 versus Q1 2020
PSEG Power EPS Reconciliation – Q1 2021 versus Q1 2020 $0.35 0.04 $0.32 $0.32 $0.30 0.11 O&M 0.03 $0.25 Depreciation & Interest 0.01 $0.20 $ / share $0.17 $0.15 Capacity 0.03 Re-contracting & Market 0.03 $0.10 Volume 0.01 Gas Operations 0.04 $0.05 $0.02 $0.00 Q1 2020 Q1 2020 Q1 2021 Q1 2021 Net Oper
Slide 22: Power – Q1 Generation Measures
PSEG Power – Q1 Generation Measures PSEG Power – Capacity Factors (%)* PSEG Power – Generation (GWh)* Quarter ended March 31 15,000 2020 2021 13,178 13,257 Combined 44.9% 41.7% Cycle** 12,000 Coal -% 31.7% 5,150 4,764 Nuclear 94.9% 98.8% 9,000 248 PSEG Power – Fuel Costs* (7) Quarter ended March 31
Slide 23: Power – Gross Margin Performance
PSEG Power – Gross Margin Performance Capacity revenues rose in 2021: Average price in PJM is $168 MW/day and in ISO-NE is $195 MW/day through May 31; Bridgeport Harbor 5 locked in at $231 MW/day* Higher Q1 2021 market prices due to weather PSEG Power Gross Margin ($/MWh) Regional Performance Qu
Slide 24: Power – Q1 Highlights
PSEG Power – Q1 Highlights Operations Q1 2021 generation output up 1% vs Q1 2020 due to outage at Salem 1 in 2020 Nuclear fleet achieved a capacity factor of 98.8% in Q1 2021 CCGT fleet capacity factor was 41.7% in Q1 2021 Nuclear fleet produced 8.2 TWh, up 3% from last year due to Salem 1 o
Slide 25: PSEG
PSEG
Slide 26: Re-affirming PSEG 2021 Guidance - By Subsidiary
Re-affirming PSEG 2021 Guidance - By Subsidiary Segment Operating Earnings Guidance and Prior Year Results (non-GAAP, except as noted)* $ millions (except EPS) 2021E 2020 PSE&G (Net Income) $1,410 - $1,470 $1,327 PSEG Power $280 - $370 $430 PSEG Enterprise/Other ($15) ($16) Operating Earnings (non-G
Slide 27: Appendix
APPENDIX
Slide 28: PSEG maintains a solid financial position
PSEG maintains a solid financial position PSE&G Senior Secured Credit Ratings PSEG Senior Unsecured Credit Ratings Moody’s = Aa3 / Outlook = Stable Moody’s = Baa1 / Outlook = Stable S&P = A / Outlook = Stable S&P = BBB / Outlook = Stable 2021 PSE&G Debt Issuances Senior Notes Outstanding as of 3/31/
Slide 29: Reconciliation of Non-GAAP Operating Earnings
Reconciliation of Non-GAAP Operating Earnings Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (Non-GAAP) Reconciliation Three Months Ended Year Ended Reconciling Items March 31, December 31, 2021 2020 2020 2019 2018 2017 ($ millions, Unaudited) Net Income $ 648 $ 448 $
Slide 30: Reconciliation of Non-GAAP Operating Earnings and Adjusted EBITDA
Reconciliation of Non-GAAP Operating Earnings and Non-GAAP Adjusted EBITDA PSEG Power LLC Operating Earnings (Non-GAAP) and Adjusted EBITDA (non-GAAP) Reconciliation Three Months Ended Year Ended Reconciling Items March 31, December 31, 2021 2020 2020 ($ millions, Unaudited) Net Income $ 161 $ 13 $
Public Service Enterprise Group — Q1 2021 Earnings Presentation on 6ix