Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q1 2020 Earnings Presentation
28 slides from Public Service Enterprise's earnings presentation, May 4, 2020
Slide 1: PSEG Earnings Conference Call 1st Quarter 2020
Public Service Enterprise Group PSEG Earnings Conference Call 1st Quarter 2020 May 4, 2020
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 2020 Review
PSEG Q1 2020 Review Ralph Izzo Chairman, President and Chief Executive Officer
Slide 5: Q1 2020 First Quarter Highlights
PSEG Q1 2020 First Quarter Highlights Net Income per share of $0.88 in Q1 2020 vs. $1.38 in Q1 2019 Non-GAAP Operating Earnings* per share of $1.03 in Q1 2020 vs. $1.08 in Q1 2019 PSE&G results benefited from ongoing investment in utility infrastructure PSEG Power results impacted by lower
Slide 6: Resiliency: COVID-19 Response
PSEG Resiliency: COVID-19 Response PSEG Response to COVID-19 Work continues in NJ with capital plan largely intact, given essential nature of businesses Activated pandemic response plan and senior-level, cross-functional team; dedicated workforce maintaining high service quality during recent st
Slide 7: Regulatory and Policy Objectives
PSEG - Regulatory and Policy Objectives Regulatory Agencies Continuing Operations NJBPU holding regular commission agenda meetings via internet teleconference FERC operating remotely; new commissioner installed, 4 of 5 commissioners seated PSEG’s Priorities Aligned with New Jersey’s Clean Energy
Slide 8: Re-affirming 2020 Guidance
PSEG – Re-affirming 2020 Guidance Drivers in 2020 include rate base growth, Q1 weather headwinds, potential margin impacts of COVID-19 on sales and load, and cost control Non-GAAP Operating Earnings* Contribution by Subsidiary 2019 Actual and 2020E Guidance $3.30 - $3.50E $3.28 $2.58 $2.46 To $2.70
Slide 9: Q1 2020 Operating Company Review
PSEG Q1 2020 Operating Company Review Dan Cregg EVP and Chief Financial Officer
Slide 10: Q1 Results by Subsidiary
PSEG – Q1 Results by Subsidiary PSEG Q1 EPS Summary – Quarter ended March 31 Net Income / (Loss) 2020 2019 Change PSE&G $ 0.87 $ 0.79 $ 0.08 PSEG Power $ 0.02 $ 0.59 $ (0.57) PSEG Enterprise/Other $ (0.01) $ - $ (0.01) Total PSEG $ 0.88 $ 1.38 $ (0.50) Non-GAAP Operating Earnings* 2020 2019 Change P
Slide 11: EPS Reconciliation – Q1 2020 versus Q1 2019
PSEG EPS Reconciliation – Q1 2020 versus Q1 2019 $1.50 $1.38 $1.25 (0.12) 0.08 $1.08 (0.01) $1.03 $1.00 Transmission 0.06 ZECs 0.07 Higher $0.88 Gas Margin 0.04 Taxes Capacity (0.11) $ / share Weather (0.02) $0.75 Re-contracting Distribution O&M (0.01) 0.02 Lower Volumes Distribution (0.01) $0.50 De
Slide 12: PSE&G Q1 2020 Review
PSE&G Q1 2020 Review
Slide 13: PSE&G EPS Reconciliation – Q1 2020 versus Q1 2019
PSE&G EPS Reconciliation – Q1 2020 versus Q1 2019 0.00 $0.87 $0.90 0.08 $0.79 Distribution O&M $0.75 0.02 Transmission Distribution 0.06 Depreciation & Interest $0.60 (0.02) Gas Margin 0.04 $ / share Distribution $0.45 Weather Non-Operating (0.02) Pension/OPEB 0.02 Distribution $0.30 Taxes & Other (
Slide 14: PSE&G – Q1 Weather Summary
PSE&G – Q1 Weather Summary Monthly Heating Degree Days (HDD) Q1 2020 vs. Q1 2019 vs. Normal 1,200 1,000 Heating Degree Days 800 600 1,010 1,003 858 400 805 814 732 734 692 540 200 0 January February March 2020 2019 normal Q1 2020 winter weather, as defined by heating degree days, was ~19% warmer tha
Slide 15: PSE&G T&D Margin Allocation
PSE&G T&D Margin Allocation PSE&G 2020E Margin Illustration • Transmission and Residential segments of Distribution expected to contribute 75% of total PSE&G margin • Transmission is fixed with no variable/ volume risk • Distribution margin is ~60% Residential • Significant portion of remaining marg
Slide 16: PSE&G – Q1 Highlights
PSE&G – Q1 Highlights Operations For the trailing 12 months ended March 31, weather-normalized electric and gas sales were each ~1% lower Residential customer growth continues to be just under 1% per year PSE&G temporarily suspended certain non-critical repair work inside customer homes and bu
Slide 17: PSEG Power Q1 2020 Review
PSEG Power Q1 2020 Review
Slide 18: PSEG Power EPS Reconciliation – Q1 2020 versus Q1 2019
PSEG Power EPS Reconciliation – Q1 2020 versus Q1 2019 $0.59 $0.60 ~ ~ $0.30 $0.29 (0.10) $0.20 (0.02) $ / share $0.17 ZECs 0.07 Capacity (0.11) O&M (0.01) Re-contracting Interest Expense (0.01) $0.10 (0.01) Lower Volumes (0.01) Lower $0.02 Gas Sendout (0.04) $0.00 Q1 2019 Q1 2019 Q1 2020 Q1 2020 Ne
Slide 19: PSEG Power – Q1 Generation Measures
PSEG Power – Q1 Generation Measures PSEG Power – Generation (GWh)* PSEG Power – Capacity Factors (%)* PSEG Power – Fuel Costs* Quarter ended Quarter ended 15,000 14,094 March 31 March 31 13,178 2019 2020 ($ millions) 2019 2020 12,500 Combined Gas*** $ 157 $ 103 4,447 43.5% 44.9% Cycle** Coal 32 - 5,
Slide 20: PSEG Power – Gross Margin Performance
PSEG Power – Gross Margin Performance ZEC revenue earned for full first quarter, slightly impacted by Salem 1 outage Lower PJM capacity prices vs Q1 2019; Lower ISO-NE capacity prices partly offset by addition of BH5 Sale of Keystone and Conemaugh in prior year reduced capacity revenue and vol
Slide 21: Hedging Update
Hedging Update Contracted Energy* Apr - Dec 2020 2021 2022 Volume TWh 22 31 30 Nuclear % Hedged 100% 95-100% 40-45% Price $/MWh $36 $35 $35 Volume TWh 15-17 19-21 20-22 Combined Cycle % Hedged 90-95% 0% 0% Price $/MWh $36 $- $- Volume TWh 37-39 50-52 50-52 Total % Hedged 95-100% 55-60% 25-30% Price
Slide 22: PSEG Power – Q1 Highlights
PSEG Power – Q1 Highlights Operations Q1 total output down 6% vs Q1 2019 primarily due to sale of Keystone and Conemaugh Nuclear fleet achieved a capacity factor of 95% in Q1, producing 8.0 TWh; nuclear output down 2% vs Q1 2019 due to Salem 1 outage CCGT fleet capacity factor of 45% in Q1, pr
Slide 23: PSEG
PSEG
Slide 24: PSEG Financial Highlights
PSEG Financial Highlights Re-affirming 2020 non-GAAP Operating Earnings guidance of $3.30 - $3.50 per share reflecting rate base growth; Q1 weather headwinds; potential margin impacts of COVID-19 on sales and load; and cost control Business mix anticipates PSE&G contribution approaches 80% of Op
Slide 25: 2020 Guidance Re-affirmed - By Subsidiary
PSEG 2020 Guidance Re-affirmed - By Subsidiary Segment Operating Earnings Guidance and Prior Year Results (non-GAAP, except as noted)* $ millions (except EPS) 2020E 2019 PSE&G (Net Income) $1,310 - $1,370 $1,250 PSEG Power $345 - $435 $409 PSEG Enterprise/Other ($5) $7 Operating Earnings (non-GAAP)*
Slide 26: Liquidity as of March 31, 2020
PSEG Liquidity as of March 31, 2020 Expiration Total Available Company Facility Date Facility Usage Liquidity ($ Millions) PSE&G 5-year Credit Facility Mar-24 $600 (A) $17 $583 PSEG Money Pool PSEG / PSEG Power 5-year Credit Facilities (PSEG) Mar-24 $1,500 (B) $806 $694 5-year Credit Facilities (PSE
Slide 27: Reconciliation of Non-GAAP Operating Earnings
Reconciliation of Non-GAAP Operating Earnings PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Consolidated Operating Earnings (non-GAAP) Reconciliation Three Months Ended Year Ended Reconciling Items March 31, December 31, 2020 2019 2019 ($ millions, Unaudited) Net Income $ 448 $ 700 $ 1,693 (Gain) Los
Slide 28: Reconciliation of Non-GAAP Operating Earnings and Adjusted EBITDA
Reconciliation of Non-GAAP Operating Earnings and Non-GAAP Adjusted EBITDA PSEG Power Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) Reconciliation Three Months Ended Year Ended Reconciling Items March 31, December 31, 2020 2019 2019 ($ millions, Unaudited) Net Income $ 13 $ 296 $ 468
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