Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q2 2022 Earnings Presentation
26 slides from Public Service Enterprise's earnings presentation, Aug 2, 2022
Slide 1: Public Service Enterprise Group Financial Results Presentation
Public Service Enterprise Group Financial Results Presentation August 2, 2022 1st QUARTER 2022 NYSE: PEG 2nd QUARTER 2022 NYSE: PEG
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 in addition to its Net Income/(Loss) reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings is a non-GAAP financial measure that differs from Net Income/(Loss). Non-GAAP Operating Earnings
Slide 4: Q2 2022
PSEG Q2 2022 • Second Quarter Results – On track ꟷ Net Income of $0.26 per share in Q2 2022 ꟷ Non-GAAP Operating Earnings* of $0.64 per share in Q2 2022 ꟷ PSE&G Net Income per share results flat in Q2 2022 vs. Q2 2021, rate base growth offset by August 2021 FERC ROE settlement ꟷ CFIO non-GAAP Operat
Slide 5: Re-affirming Full-Year 2022 Guidance
PSEG – Re-affirming Full-Year 2022 Guidance Non-GAAP Operating Earnings* $3.65 $3.35 – $3.55E $3.35 – $3.55E Multi-year $3.01 $2.78 to PSE&G EPS • Includes PSEG Fossil’s $2.85 results excluding to $3.11 growth rate depreciation expense $2.90 of 5% - 7% which ceased when assets from the were moved to
Slide 6: Regulatory and Policy Initiatives Update
Regulatory and Policy Initiatives Update State Regulatory Proceedings • In June, the BPU approved a $511 million Infrastructure Advancement Program, a four-year investment that supports both PSEG’s and New Jersey’s clean energy goals, and focuses on “last mile” reliability and job creation • BPU pro
Slide 7: PSEG is delivering solid results and sustainable growth
PSEG is delivering solid results and sustainable growth Re-affirming full-year 2022 non-GAAP Operating Earnings guidance of $3.35 - $3.55 per share PSE&G expected to contribute ~90% of 2022 non-GAAP Operating Earnings PSEG’s 2021 – 2025 five-year capital spending forecast of $15B - $17B, with
Slide 8: Q2 2022 Review
#* PSEG PSEG Q2 2022 Review
Slide 9: PSEG Q2 Results
PSEG – Q2 Results PSEG EPS Summary – Quarter ended June 30 Net Income/(Loss) 2022 2021 Change PSE&G $ 0.61 $ 0.61 $ -- CFIO $ (0.35) $ (0.96) $ 0.61 Total PSEG $ 0.26 $ (0.35) $ 0.61 Non-GAAP Operating Earnings* 2022 2021 Change PSE&G $ 0.61 $ 0.61 $ -- CFIO $ 0.03 $ 0.09 $ (0.06) Total PSEG $ 0.64
Slide 10: EPS Reconciliation – Q2 2022 versus Q2 2021
PSEG EPS Reconciliation – Q2 2022 versus Q2 2021 $0.70 0.00 (0.06) $0.70 $0.64 Gas Margin 0.02 $0.60 Electric Margin 0.02 Electric Gross Margin (0.25) Other Margin 0.01 ZECs 0.01 $0.50 Distribution O&M Capacity (0.14) (0.04) Generation (0.06) $0.40 Distribution Interest (0.01) Sale of Solar
Slide 11: PSEG First Half Results
PSEG – First Half Results PSEG EPS Summary – Six Months ended June 30 Net Income/(Loss) 2022 2021 Change PSE&G $ 1.62 $ 1.55 $ 0.07 CFIO $ (1.36) $ (0.62) $ (0.74) Total PSEG $ 0.26 $ 0.93 $ (0.67) Non-GAAP Operating Earnings* 2022 2021 Change PSE&G $ 1.62 $ 1.55 $ 0.07 CFIO $ 0.35 $ 0.43 $ (0.08) T
Slide 12: EPS Reconciliation – First Half 2022 versus First Half 2021
PSEG EPS Reconciliation – First Half 2022 versus First Half 2021 $2.20 0.07 (0.08) $1.98 $1.97 $2.00 $1.80 Transmission (0.03) Electric Gross Margin (0.53) Gas Margin 0.10 ZECs 0.01 $1.60 Electric Margin 0.04 Capacity (0.27) Other Margin 0.03 Generation (0.15) $1.40 Distribution O&M Sale of
Slide 13: Typical residential combined electric and gas bill relative to median income has declined
Typical residential combined electric and gas bill relative to median income has declined from 4.5% to 2.6% since 2009 PSE&G Electric & Gas Combined Bill (1) Affordability of the % of New Jersey Household Income combined bill has Including Low-income Customers After Assumed Credits improved by over
Slide 14: Settlement of Infrastructure Advancement Program
Settlement of Infrastructure Advancement Program: 4-year investment program supporting both PSEG’s and NJ’s clean energy goals focused on last mile reliability and job creation Investment Settlement Filing Components • On June 29, BPU approved Reliability focused Last Mile the settlement of PSE&G’s
Slide 15: PSE&G's planned investments align with NJ's clean energy goals
PSE&G’s planned investments align with NJ’s clean energy goals PSEG’s Capital Spending Program Aligns with PSEG’s Net-Zero 2030 Goal PSE&G Capital Spending Carbon-Free 2021 – 2025E Nuclear Other Generation 1% 3% 4,000 3,500 Clean Transmission 3,000 Unapproved Energy 23% Programs 13% Over 90% 2,500 d
Slide 16: Expanded investment program firms 6% - 7.5% rate base growth
Expanded investment program firms 6% - 7.5% compound annual rate base growth from YE 2021 through 2025 PSE&G Year-End Rate Base 35,000 Unapproved 30,000 Programs 25,000 ($ Millions) 20,000 15,000 10,000 5,000 - 2021 2022E 2023E 2024E 2025E Transmission Electric Distribution Gas Distribution Clean En
Slide 17: PSE&G – Q2 Highlights
PSE&G – Q2 Highlights Operations Regulatory and Market Environment • PSE&G awarded EEI’s 2022 Edison Award, the electric utility • Conservation Incentive Program minimizes variations on electric industry's highest honor and gas revenues from the rollout of our energy efficiency programs and other im
Slide 18: Appendix
#* PSEG APPENDIX
Slide 19: Pension is measured annually, at year-end
Pension is measured annually, at year-end, in determining pension impact for the following year PSEG does not “smooth” the year-end asset value, instead, ($ Millions) 2021 2020 we will apply our EROA assumption (7.2% for 2022) to the Fair Value of Plan Assets at year-end in determining pension Dis
Slide 20: PSEG maintains a solid financial position
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 364-Day Term Loan Outst
Slide 21: PSEG Liquidity as of June 30, 2022
PSEG Liquidity as of June 30, 2022 Expiration Total Available Company Facility Usage Date Facility Liquidity ($ millions) PSE&G Revolving Credit Facility March 2027 $1,000 $18 $982 PSEG Money Pool (A,B) PSEG/PSEG Power Revolving Credit Facility (PSEG) March 2027 $1,500 $65 $1,435 (A) Revolving Credi
Slide 22: Q2 & First Half 2022 Generation Measures & Hedge Update
Q2 & First Half 2022 Generation Measures & Hedge Update Nuclear Generation Measures Carbon-Free Contracted Energy Sales* Quarter ended Six Months Jul – Dec June 30 ended June 30 2023E 2024E 2022E 2022 2021 2022 2021 Fuel Nuclear Nuclear Nuclear Capacity Factor 89.3% 85.7% 95.1% 92.1% Fuel Cost ($ mi
Slide 23: PSEG Sustainability and ESG Summary
PSEG Sustainability and ESG Summary PSEG Leadership Policies & Goals Recognition & Memberships • Joined the U.N.-backed Race to Zero and • PSEG is a vocal advocate for an economy-wide • PSE&G named the 2022 EEI Edison Award Business Ambition for 1.5°C campaigns price on carbon and preserving our exi
Slide 24: Glossary of Terms
Glossary of Terms AFUDC Allowance for Funds Used During Construction FERC Federal Energy Regulatory Commission AMI Automated Metering Infrastructure GSMP Gas System Modernization Program ASR Accelerated Share Repurchase GHG Greenhouse Gas BPU New Jersey Board of Public Utilities HC Hope Creek C&I Co
Slide 25: 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 Six Months Ended Year Ended (a) Includes the financial impact from positions with forward delivery months. Reconciling Items June 30
Slide 26: Reconciliation of Non-GAAP Operating Earnings
Reconciliation of Non-GAAP Operating Earnings CFIO Operating Earnings (non-GAAP) Reconciliation Three Months Ended Six Months Ended Year Ended (a) Includes the financial impact from positions with forward delivery months. Reconciling Items June 30, June 30, December 31, (b) Amount for the six months
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