Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q2 2013 Earnings Presentation
34 slides from Public Service Enterprise's earnings presentation, Jul 30, 2013
Slide 1: PSEG Earnings Conference Call 2nd Quarter 2013
Public Service Enterprise Group PSEG Earnings Conference Call 2nd Quarter 2013 July 30, 2013 Exhibit 99.1
Slide 2: Q2 Earnings Summary
Q2 Earnings Summary $ millions (except EPS) Operating Earnings $ 243 $ 215 Reconciling Items, Net of Tax (4) Income from Continuing Operations/Net Income $ 333 $ 211 EPS from Operating Earnings * $ 0.48 $ 0.43 Quarter ended June * See Page A for Items excluded from Income from Continuing Operations/
Slide 3: First Half 2013 Earnings Summary
First Half 2013 Earnings Summary $ millions (except EPS) Operating Earnings $ 676 $ 647 Reconciling Items, Net of Tax (23) Income from Continuing Operations/ Net Income $ 653 $ 704 EPS from Operating Earnings * $ 1.33 $ 1.28 Six months ended June 30 * See Page A for Items excluded from Income from C
Slide 4: Q2 2013 Highlights
PSEG – Q2 2013 Highlights Strong Earnings Operating earnings of $0.48 vs. $0.43 per share in Q2 2012 Power benefitted from higher PJM capacity prices and an improvement in market prices for energy Increased contribution to earnings from PSE&G’s investment in transmission Operational Excellence PSEG
Slide 5: Maintaining 2013 Guidance
$2.25 - $2.50E PSEG – Maintaining 2013 Guidance $2.74 * See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings. E = Estimate. $2.44 Based on our performance year-to-date, we expect operating earnings for the full year to be at the upper en
Slide 6: 2013 Q2 Operating Company Review
PSEG 2013 Q2 Operating Company Review Caroline Dorsa EVP and Chief Financial Officer
Slide 7: Q2 Operating Earnings by Subsidiary
Q2 Operating Earnings by Subsidiary Operating Earnings Earnings per Share $ millions (except EPS) PSEG Power $ 114 $ 110 $ 0.22 $ 0.22 PSE&G 0.24 0.20 PSEG Energy Holdings/ Enterprise 0.02 0.01 Operating Earnings* $ 243 $ 215 $ 0.48 $ 0.43 Quarter ended June 30 * See Page A for Items excluded from I
Slide 8: EPS Reconciliation – Q2 2013 versus Q2 2012
PSEG EPS Reconciliation – Q2 2013 versus Q2 2012 Capacity 0.07 Market Prices on Un-hedged Generation 0.04 Lower Pricing on Hedged Generation (0.11) Transmission 0.04 Taxes and Other 0.01 Net Weather (0.01) Q2 2013 Operating Earnings* Q2 2012 Operating Earnings* PSEG Power PSE&G Energy Holdings/ Ente
Slide 9: First Half Operating Earnings by Subsidiary
First Half Operating Earnings by Subsidiary Operating Earnings Earnings per Share $ millions (except EPS) PSEG Power $ 364 $ 306 $ 0.71 $ 0.60 PSE&G 0.59 0.59 PSEG Energy Holdings/ Enterprise 0.03 0.09 Operating Earnings * $ 676 $ 647 $ 1.33 $ 1.28 Six months ended June 30 •See Page A for Items excl
Slide 10: EPS Reconciliation – YTD 2013 versus YTD 2012
PSEG EPS Reconciliation – YTD 2013 versus YTD 2012 YTD 2013 Operating Earnings* YTD 2012 Operating Earnings* Capacity 0.12 Net Price (0.05) Volume 0.02 Gas Send-Out and Fixed Cost Recovery 0.04 O&M (0.01) D&A (0.01) PSEG Power Transmission Net Earnings 0.07 Distribution O&M (0.02) Net Weather 0.01 T
Slide 11: Power – 2013 Q2 Review
PSEG Power 2013 Q2 Review
Slide 12: Power – Q2 2013 EPS Summary
PSEG Power – Q2 2013 EPS Summary * See Page A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings. **Includes the financial impact from positions with forward delivery months. $ millions (except EPS) Q2 2013 Q2 2012 Variance Operating Revenues $ 1,
Slide 13: PSEG Power EPS Reconciliation – Q2 2013 versus Q2 2012
$0.22 $0.22 0.00 0.10 0.20 0.30 Capacity 0.07 Market Prices on Un-hedged Generation 0.04 Lower Pricing on Hedged Generation (0.11) PSEG Power EPS Reconciliation – Q2 2013 versus Q2 2012 Q2 2013 Operating Earnings* Q2 2012 Operating Earnings* * See Page A for Items excluded from Income from Continuin
Slide 14: Power – Q2 2013 Generation Measures
PSEG Power – Q2 2013 Generation Measures 7,075 7,147 4,177 4,187 1,454 1,384 7,500 15,000 Quarter ended June Total Nuclear Total Coal* Oil & Natural Gas * Includes figures for Pumped Storage. Includes Hudson and Mercer when run on gas. PSEG Power – Generation (GWh) 12,706 12,718 Quarter ended June P
Slide 15: Power – YTD 2013 Generation Measures
PSEG Power – YTD 2013 Generation Measures 15,045 15,284 8,001 2,585 3,590 8,219 10,000 20,000 30,000 Six Months ended June Total Nuclear Total Coal* Oil & Natural Gas * Includes figures for Pumped Storage. Includes Hudson and Mercer when run on gas. PSEG Power – Generation (GWh) 25,849 26,875 Six Mo
Slide 16: Power – Fuel Costs
PSEG Power – Fuel Costs PSEG Power – Fuel Costs Quarter ended June 30 ($ millions) Coal $39 $30 Oil & Gas Total Fossil Nuclear Total Fuel Cost $200 $242 Total Generation (GWh) 12,706 12,718 $ / MWh 15.74 19.03 YTD June 30 ($ millions) Coal $77 $96 Oil & Gas Total Fossil Nuclear Total Fuel Cost $416
Slide 17: PSEG Power – Gross Margin Performance
$0 $10 $20 $30 $40 $50 $60 $49 $43 $43 PSEG Power – Gross Margin Performance Locational advantage of generating portfolio offset lower prices in hedged products Q2 spot prices higher across PJM-W, PS Zone, ISO-NE and NYISO Margins stable with higher capacity pricing offsetting lower net pricing Migr
Slide 18: Hedging Update
Hedging Update… Contracted Energy* * Hedge percentages and prices as of June 28, 2013. Revenues of full requirement load deals based on contract price, including renewable energy credits, ancillary, and transmission components but excluding capacity. Hedges include positions with MTM accounting trea
Slide 19: Power – Q2 2013 Highlights
PSEG Power – Q2 2013 Highlights Q2 output was flat year-over-year, reflecting Salem 1 extended refueling and a 6 day forced outage at Hope Creek Nuclear capacity factor was 87.9% for Q2 and 94.4% for the YTD Equivalent availability factors for CCGT units restored to pre-Sandy levels near 90% Output
Slide 20: PSE&G – 2013 Q2 Review
PSE&G 2013 Q2 Review
Slide 21: PSE&G – Q2 Earnings Summary
PSE&G – Q2 Earnings Summary $ millions (except EPS) Q2 2013 Q2 2012 Variance Operating Revenues $ 1,423 $ 1,407 $ 16 Operating Expenses Energy Costs (42) Operation & Maintenance Depreciation & Amortization Taxes Other than Income Taxes (6) Total Operating Expenses 1,170 1,180 (10) Operating Earnings
Slide 22: PSE&G EPS Reconciliation – Q2 2013 versus Q2 2012
PSE&G EPS Reconciliation – Q2 2013 versus Q2 2012 Q2 2013 Operating Earnings Q2 2012 Operating Earnings Transmission Net Earnings Taxes and Other 0.01 Net Weather (0.01) $0.24 0.00 0.04 $0.20 0.00 0.10 0.20 0.30
Slide 23: PSE&G – Monthly Summer Weather Data
PSE&G – Monthly Summer Weather Data 1,242 3,330 1,331 2,718 3,023 April May June Normal 2013 vs. 2012 vs. Normal PSE&G Monthly Temperature Humidity Index (THI) + 10% Q2 2013 vs. Q2 2012 + 18% Q2 2013 vs. Normal
Slide 24: Capital Expenditures 2013-2015
PSEG Capital Expenditures 2013-2015 Capital Spending ($ Millions) Prior 2013-2015E Updated 2013-2015E PSE&G Transmission $3,430 $3,430 Distribution 1,330 1,330 Renewables PSE&G Total $4,900 $5,115 Power 1,070 1,070 Other-Renewables Other PSEG Total $6,135 $6,350 Revised PSE&G 2013-2015 Capital Spend
Slide 25: PSE&G – Q2 2013 Highlights
PSE&G – Q2 2013 Highlights Operations BPU approved Solar Agreement to spend up to $247 million on Solar 4 All extension and up to $199 million on Solar Loan III program Continuing regulatory process on Energy Strong infrastructure proposal to invest $3.9 billion over the next ten years on electric a
Slide 26: Energy Holdings/Enterprise – 2013 Q2 Review
PSEG Energy Holdings/Enterprise 2013 Q2 Review
Slide 27: Energy Holdings/Enterprise – Q2 2013 Earnings Summary
PSEG Energy Holdings/Enterprise – Q2 2013 Earnings Summary $ millions (except EPS) Q2 2013 Q2 2012 Variance Operating Earnings $ 8 $ 4 $ 4 Lease Related Activity - (2) Income from Continuing Operations/ Net Income $ 8 $ 6 $ 2 EPS from Operating Earnings* $ 0.02 $ 0.01 $ 0.01 * See Page A for Items e
Slide 28: Energy Holdings/Enterprise EPS Reconciliation – Q2 2013 versus Q2 2012
PSEG Energy Holdings/Enterprise EPS Reconciliation – Q2 2013 versus Q2 2012 0.00 0.05 Q2 2013 Operating Earnings* Q2 2012 Operating Earnings* * See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings. $0.02 0.01 $0.01 Asset Sale
Slide 29: Energy Holdings/Enterprise – Q2 2013 Highlights
PSEG Energy Holdings/Enterprise – Q2 2013 Highlights Financial Expanded LIPA management agreement under consideration Edison Mission Energy agreement to defer lease decisions until late September Badger 1 (19 MW) solar farm scheduled to be in service this Fall Continuing to monetize non-core assets
Slide 30: PSEG
PSEG
Slide 31: Financial Highlights
PSEG Financial Highlights Maintaining operating earnings guidance of $2.25 - $2.50 per share Based on financial results to date, we expect operating earnings for the full year to be at the upper end of our guidance range assuming normal weather and unit operations Focused on maintaining operating ef
Slide 32: 2013 Operating Earnings Guidance - By Subsidiary
PSEG 2013 Operating Earnings Guidance - By Subsidiary $ millions (except EPS) 2013E 2012A PSEG Power $535 – $600 $644 PSE&G $580 – $635 $528 PSEG Energy Holdings/Enterprise $25 – $35 $64 Operating Earnings* $1,140 – $1,270 $1,236 Earnings per Share $2.25 – $2.50 $2.44 * See Slide A for Items exclude
Slide 33: Liquidity as of June 30, 2013
PSEG Liquidity as of June 30, 2013 Expiration Total Available Company Facility Date Facility Usage Liquidity ($Millions) PSE&G 5-year Credit Facility Mar-18 $600 $170 $430 5-Year Credit Facility (Power) Mar-17 $1,600 $54 $1,546 5-Year Credit Facility (Power) Mar-18 $1,000 $0 $1,000 5-Year Bilateral
Slide 34: Items Excluded from Income from Continuing Operations/Net Income
Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings Please see Page 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Income from Continuing Operations/Net Income. A Earnings Impact ($ Mill
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