Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q3 2021 Earnings Presentation
32 slides from Public Service Enterprise's earnings presentation, Nov 2, 2021
Slide 1: Public Service Enterprise Group Financial Results and Conference Call
Public Service Enterprise Group Financial Results and Conference Call 3rd QUARTER 2 NOV 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/(Loss) reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings and Adjusted
Slide 4: PSEG Q3 2021
PSEG Q3 2021 Ralph Izzo Chairman, President and Chief Executive Officer
Slide 5: PSEG Q3 2021 Highlights
PSEG Q3 2021 • Third Quarter Highlights ꟷ Net Loss of ($3.10) per share in Q3 2021 vs. Net Income of $1.14 per share in Q3 2020 ꟷ Non-GAAP Operating Earnings* of $0.98 per share in Q3 2021 vs. $0.96 in Q3 2020 ꟷ Raising full year 2021 non-GAAP Operating Earnings Guidance to $3.55 - $3.70 per share**
Slide 6: Regulatory and Policy Initiatives Update
Regulatory and Policy Initiatives Update State Regulatory Proceedings Federal Energy Regulatory Commission (FERC) / PJM • PSE&G intends to submit a jobs and economic stimulus focused • FERC approved settlement agreement on transmission ROE effective Infrastructure Advancement Program filing in Q4 20
Slide 7: Raising Full Year 2021 Guidance
PSEG – Raising Full Year 2021 Guidance Based on solid results at PSE&G and Power through the first nine months, and the cessation of Fossil depreciation with held for sale classification Non-GAAP Operating Earnings* Contribution by Subsidiary 2020 Actual and 2021E Guidance $3.43 $3.55 – $3.70E $2.82
Slide 8: Sustainability & ESG Summary
PSEG Sustainability & ESG Summary Leadership Policies & Goals Recognition & Scores • PSEG has joined the United Nations • PSEG is a vocal advocate for an economy-wide • Member of S&P Sustainability Yearbook 2021 Race to Zero and the Business Ambition price on carbon emissions and preserving nuclear
Slide 9: PSEG accelerates climate vision to Net-Zero 2030
PSEG accelerates climate vision to Net-Zero 2030 ~22% ~60% Methane New PSEG Original Original Methane Reduction Net-Zero PSEG Power PSEG Power Reduction Target* GHG Vision 80% Net-Zero Vision Target GHG Reduction Target 2023 2030 2030 2046 2050 PSEG’s Three-Pronged 2030 Climate Vision • Provide GHG-
Slide 10: PSEG delivering solid results and sustainable dividend growth
PSEG delivering solid results and sustainable dividend growth PSEG non-GAAP Operating Earnings* 2021 Financial Highlights • Raising full year 2021 non-GAAP Operating Earnings guidance to $3.55 - $3.70 per share from $3.50 - $3.65 per share • PSE&G expected to contribute ~80% of 2021 non-GAAP Operati
Slide 11: Q3 2021 Operating Company Review
PSEG Q3 2021 Operating Company Review Dan Cregg EVP and Chief Financial Officer
Slide 12: Q3 Results by Subsidiary
PSEG – Q3 Results by Subsidiary PSEG Q3 EPS Summary – Quarter ended September 30 Net Income/(Loss) 2021* 2020 Change PSE&G $ 0.77 $ 0.61 $ 0.16 PSEG Power $ (3.84) $ 0.51 $ (4.35) PSEG Enterprise/Other $ (0.03) $ 0.02- $ (0.05) Total PSEG $ (3.10) $ 1.14 $ (4.24) Non-GAAP Operating Earnings** 2021*
Slide 13: EPS Reconciliation – Q3 2021 versus Q3 2020
PSEG EPS Reconciliation – Q3 2021 versus Q3 2020 $1.20 $1.14 0.16 (0.10) (0.04) $0.96 $0.98 $1.00 Capacity (0.01) Transmission 0.01 Re-contracting & Higher Taxes Electric Margin 0.02 Market $0.80 (0.11) and O&M 2020 Gas Weather Normalization Clause Sale of Solar Reversal 0.04 Source (0.02) $0.60 Gas
Slide 14: YTD Results by Subsidiary
PSEG – YTD Results by Subsidiary PSEG YTD EPS Summary – Nine Months ended September 30 Net Income/(Loss) 2021* 2020 Change PSE&G $ 2.33 $ 2.04 $ 0.29 PSEG Power $ (4.48) $ 0.87 $ (5.35) PSEG Enterprise/Other $ (0.02) $ -- $ (0.02) Total PSEG $ (2.17) $ 2.91 $ (5.08) Non-GAAP Operating Earnings** 202
Slide 15: EPS Reconciliation – YTD 2021 versus YTD 2020
PSEG EPS Reconciliation – YTD 2021 versus YTD 2020 $3.50 0.28 (0.09) (0.01) $2.96 $2.91 $3.00 $2.78 Capacity 0.04 Higher O&M and Lower Interest Transmission 0.04 Re-contracting & $2.50 Market (0.17) Electric Margin 0.04 Gas Margin 0.04 Sale of Solar $2.00 Weather & 2020 Gas Source (0.03) Weather Nor
Slide 16: Public Service Electric & Gas Q3 2021 Review
Public Service Electric & Gas Q3 2021 Review
Slide 17: PSE&G EPS Reconciliation – Q3 2021 versus Q3 2020
PSE&G EPS Reconciliation – Q3 2021 versus Q3 2020 $0.80 0.08 $0.77 0.08 $0.61 $0.60 Distribution O&M 0.01 Transmission 0.01 Distribution Depreciation Electric Margin (0.01) 0.02 $ / share $0.40 Distribution 2020 Gas Weather Non-Operating Normalization Clause Pension/OPEB 0.02 Reversal 0.04 Distribut
Slide 18: PSE&G – Q3 Weather Summary
PSE&G – Q3 Weather Summary PSE&G Monthly Weather Summary Monthly Temperature Humidity Index – Total Hours 90°F or Greater – Q3 2021 vs. Q3 2020 vs. Normal YTD 2021 vs. YTD 2020 vs. Normal 7,500 6,854 125 6,238 5,796 6,000 5,313 5,315 100 96 4,752 80 4,500 71 75 62 2,845 51 3,000 2,198 50 2,159 34 30
Slide 19: Infrastructure Advancement Program
Infrastructure Advancement Program Investment $ millions Components 4-year distribution Underground cable replacement, spacer cable, pole upgrades, Last Mile - Reliability $206 investment program open wire secondary, etc. to improve reliability Last Mile - Make-ready to improve reliability, Investme
Slide 20: Electric Distribution - Last mile investment program
Electric Distribution - Last mile investment program Last mile electric system modernization investments: Focused Overhead Wire – Main circuit • Targeted asset replacements – investment stem Poles, overhead equipment, program with long n Sy Distr ibutio secondary lines, etc. runway will Buried Under
Slide 21: PSE&G – Q3 Highlights
PSE&G – Q3 Highlights Operations Financial • PSE&G OSHA Recordable Incident Rate and Days Away From • PSE&G invested approximately $670 million in Q3 and Work Severity Rate at top decile performance year-to-date $1.95 billion year-to-date September 30, on track to invest • For Q3 2021, residential e
Slide 22: PSEG Power Q3 2021 Review
#* PSEG PSEG Power Q3 2021 Review
Slide 23: Power EPS Reconciliation – Q3 2021 versus Q3 2020
PSEG Power EPS Reconciliation – Q3 2021 versus Q3 2020 $0.55 $0.45 $0.51 $0.50 $0.40 ~ ~ $0.33 $0.35 (0.16) $0.30 $0.25 0.06 $0.23 $0.20 $ / share $0.15 Capacity (0.01) O&M (0.01) Re-contracting & Depreciation & $0.10 Market (0.11) Interest 0.08 Sale of Solar Source Taxes & Other (0.01) $0.05 (0.02)
Slide 24: Power – Q3 & YTD Generation Measures
PSEG Power – Q3 & YTD Generation Measures PSEG Power – YTD Generation (GWh)* PSEG Power – Capacity Factors (%)* 45,000 Quarter ended Nine Months ended 40,819 40,760 September 30 September 30 2020 2021 2020 2021 16,816 17,164 58.4% 58.7% Combined Cycle** 49.0% 49.0% 30,000 95.7% 94.8% Nuclear 94.2% 9
Slide 25: Power – Gross Margin Performance and Hedging Update
PSEG Power – Gross Margin Performance and Hedging Update PSEG Power Gross Margin ($/MWh) Regional Performance Quarter ended September 30 Q3 Gross $40 Region Q3 2021 Performance $33 Margin ($M) $31 $28 Re-contracting at lower market prices and higher cost to $30 PJM $373 serve load $20 Lower capacity
Slide 26: Power – Q3 Highlights
PSEG Power – Q3 Highlights Operations Financial • Q3 2021 output flat compared to Q3 2020 • Total debt as a percentage of capitalization was 26% at • Nuclear fleet achieved a capacity factor of 94.8% in Q3 2021 September 30 • CCGT fleet capacity factor was 58.7% in Q3 2021 • Redeemed remaining $1.4
Slide 27: Appendix
#* PSEG APPENDIX
Slide 28: Raising Full Year 2021 Guidance
PSEG – Raising Full Year 2021 Guidance Segment Operating Earnings Guidance and Prior Year Results (non-GAAP, except as noted)* $ millions (except EPS) 2021E 2020 PSE&G (Net Income) $1,430 - $1,480 $1,327 PSEG Power $365 - $440 $430 PSEG Enterprise/Other ($20) ($16) Operating Earnings (non-GAAP)* $1,
Slide 29: PSEG maintains a solid financial position
PSEG maintains a solid financial position PSEG Public Service Electric & Gas Senior Unsecured Credit Ratings 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 Senior Notes Outstanding as of 9/3
Slide 30: 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 Year Ended Reconciling Items September 30, September 30, December 31, 2021 2020 2021 2020 2020 2019 2018 2017 (a
Slide 31: Reconciliation of Non-GAAP Operating Earnings and Non-GAAP 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 Nine Months Ended Year Ended Reconciling Items September 30, September 30, December 31, 2021 2020 2021 2020 2020
Slide 32: Thank You
Thank You 32
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