Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q2 2023 Earnings Presentation
24 slides from Public Service Enterprise's earnings presentation, Aug 1, 2023
Slide 1: Public Service Enterprise Group 2nd Quarter 2023 Financial Results Presentation
Public Service Enterprise Group 2nd QUARTER 2023 NYSE: PEG Financial Results Presentation August 1, 2023
Slide 2: Forward-Looking Statements
PSEG 2nd Quarter 2023 Forward-Looking Statements Certain of the matters discussed in this presentation about our and our subsidiaries’ future • our ability to obtain adequate nuclear fuel supply; performance, including, without limitation, future revenues, earnings, strategies, prospects, • changes
Slide 3: GAAP Disclaimer
PSEG 2nd Quarter 2023 GAAP Disclaimer PSEG presents Operating Earnings in addition to its Net Net Income/(Loss), which is an indicator of financial Income/(Loss) reported in accordance with accounting principles performance determined in accordance with GAAP. In addition, generally accepted in the U
Slide 4: Q2 2023 Second Quarter Results – On track
PSEG 2nd Quarter 2023 PSEG Q2 2023 Second Quarter Results – On track • Net Income of $1.18 per share • Non-GAAP Operating Earnings* of $0.70 per share • PSE&G non-GAAP Operating Earnings* driven by T&D investments and timing of taxes • PSEG Power & Other non-GAAP Operating Earnings* on track Operati
Slide 5: Re-affirming full-year 2023 guidance
PSEG 2nd Quarter 2023 Re-affirming full-year 2023 guidance PSEG Non-GAAP Operating EPS 2023E Non-GAAP Operating EPS Drivers $3.40E - $3.50E • CIP stabilizes distribution margin from weather impacts and other volumetric variances $0.40 - $0.45 • PSE&G transmission formula rate and infrastructure inve
Slide 6: Regulatory and Policy Update
PSEG 2nd Quarter 2023 Regulatory and Policy Update NJ Board of Public Utilities Investment Priorities Aligned with NJ’s Clean • CEF-EE nine-month extension through June 30, 2024 Energy Agenda settled and approved for $280 million, increasing run rate • Incremental investments in existing PSEG progra
Slide 7: PSEG: An improved business mix and platform for predictable growth
PSEG 2nd Quarter 2023 PSEG: An improved business mix and platform for predictable growth • Re-affirming full-year 2023 non-GAAP Operating Earnings • PSEG’s solid balance sheet supports execution of 5-year guidance of $3.40 - $3.50 per share capital plan with no new equity or need to sell assets • PS
Slide 8: Q2 2023 Review
PSEG 2nd Quarter 2023 Q2 2023 Review 8
Slide 9: Q2 Results: PSEG EPS Summary
PSEG 2nd Quarter 2023 PSEG Q2 Results PSEG EPS Summary – Three Months ended June 30 Net Income/(Loss) 2023 2022 Change PSE&G $ 0.67 $ 0.61 $ 0.06 PSEG Power & Other $ 0.51 $ (0.35) $ 0.86 Total PSEG $ 1.18 $ 0.26 $ 0.92 Non-GAAP Operating Earnings* 2023 2022 Change PSE&G $ 0.68 $ 0.61 $ 0.07 PSEG Po
Slide 10: EPS Reconciliation – Q2 2023 versus Q2 2022
PSEG 2nd Quarter 2023 PSEG EPS Reconciliation – Q2 2023 versus Q2 2022 $1.05 $1.20 $1.18 $1.05 $0.90 ~ ~ $0.75 (0.01) 0.07 $0.70 $ / share $0.64 Gross Margin 0.05 $0.60 Re-contracting/Market 0.05 Transmission 0.02 Capacity (0.01) Electric Margin 0.01 Volume 0.01 $0.45 Gas Margin 0.01 O&M 0.01 Other
Slide 11: First Half Results: PSEG EPS Summary
PSEG 2nd Quarter 2023 PSEG First Half Results PSEG EPS Summary – Six Months ended June 30 Net Income/(Loss) 2023 2022 Change PSE&G $ 1.65 $ 1.62 $ 0.03 PSEG Power & Other $ 2.11 $ (1.36) $ 3.47 Total PSEG $ 3.76 $ 0.26 $ 3.50 Non-GAAP Operating Earnings* 2023 2022 Change PSE&G $ 1.67 $ 1.62 $ 0.05 P
Slide 12: EPS Reconciliation – First Half 2023 versus First Half 2022
PSEG 2nd Quarter 2023 PSEG EPS Reconciliation – First Half 2023 versus First Half 2022 $2.75 $4.00 $3.76 $3.75 $2.50 ~ ~ $2.25 0.07 $2.09 $1.97 0.05 $ / share $2.00 Transmission 0.03 Gross Margin 0.15 $1.75 Re-contracting/Market 0.22 Gas Margin 0.03 Capacity (0.03) Other Margin 0.03 Volume 0.01 $1.5
Slide 13: PSE&G Q2 Highlights
PSEG 2nd Quarter 2023 PSE&G Q2 Highlights Regulatory and Market Environment • PSE&G submitted annual BGSS filing to reduce the gas commodity charge to $0.40 per therm beginning October 1; the gas commodity charge was reduced twice during the prior winter Operations heating season from $0.65 per ther
Slide 14: PSEG Power & Other
PSEG 2nd Quarter 2023 PSEG Power & Other Nuclear Generation Measures Carbon-Free Contracted Energy Sales* Three Months Ended Six Months Ended June 30, June 30, Baseload 2023E 2024E Nuclear 2022 2023 2022 2023 Volume TWh 30 – 32 30 - 32 Capacity Factor 88.9% 91.2% 94.9% 95.8% % Hedged 95-100% 75-80%
Slide 15: Appendix
PSEG 2nd Quarter 2023 Appendix 15
Slide 16: Full Year 2023 Guidance by Business
PSEG 2nd Quarter 2023 PSEG – Full Year 2023 Guidance by Business PSEG Non-GAAP Operating Earnings Guidance $ millions (except EPS) 2023E PSE&G $1,500 - $1,525 PSEG Power & Other $200 - $225 PSEG Operating Earnings (non-GAAP) $1,700 - $1,750 PSEG Operating EPS (non-GAAP) $3.40 - $3.50 16
Slide 17: 2023 Pension Update
PSEG 2nd Quarter 2023 2023 Pension Update PSEG ($ Millions) 2022 2021 Discount Rate 5.20% 2.94% • Focused on increasing the predictability of future earnings by mitigating pension impacts Expected Rate of Return 7.2% 7.7% • In February, the BPU approved an order authorizing on Plan Assets (EROA) PSE
Slide 18: PSEG maintains a solid financial position
PSEG 2nd Quarter 2023 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 3
Slide 19: PSEG Liquidity as of June 30, 2023
PSEG 2nd Quarter 2023 PSEG Liquidity as of June 30, 2023 Expiration Total Available Company Facility Usage Date Facility Liquidity ($ millions) PSE&G Revolving Credit Facility March 2027 $1,000 $318 $682 PSEG Money Pool (A,B) PSEG/PSEG Power Revolving Credit Facility (PSEG) March 2027 $1,500 $152 $1
Slide 20: Sustainability and ESG Summary
PSEG 2nd Quarter 2023 PSEG Sustainability and ESG Summary PSEG Leadership Policies & Goals Recognition & Memberships • PSE&G’s Clean Energy Future programs • PSEG is a vocal advocate for an economy- • Named to Forbes List for America’s Best approved to invest $2B to decarbonize the wide price on car
Slide 21: Glossary of Terms
PSEG 2nd Quarter 2023 Glossary of Terms AMI Automated Metering Infrastructure PB Peach Bottom PSEG Investor Relations BGSS Basic Gas Supply Service PJM Pennsylvania New Jersey Maryland 80 Park Plaza BPU New Jersey Board of Public Utilities PTC Production Tax Credit Newark NJ 07102 CEF Clean Energy F
Slide 22: Reconciliation of Non-GAAP Operating Earnings
PSEG 2nd Quarter 2023 Reconciliation of Non-GAAP Operating Earnings Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (non-GAAP) Reconciliation Three Months Ended Six Months Ended Year Ended a) Includes the financial impact from positions with Reconciling Items June 30,
Slide 23: Reconciliation of Non-GAAP Operating Earnings
PSEG 2nd Quarter 2023 Reconciliation of Non-GAAP Operating Earnings PSE&G Operating Earnings (non-GAAP) Reconciliation Three Months Ended Six Month Ended Year Ended Reconciling Items June 30, June 30, December 31, 2023 2022 2023 2022 2022 ($ millions, Unaudited) Net Income $336 $305 $823 $814 $1,565
Slide 24: Thank you
PSEG 2nd Quarter 2023 Thank you 24
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