Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — FY2022 Earnings Presentation
25 slides from Public Service Enterprise's earnings presentation, Feb 21, 2023
Slide 1: Financial Results Presentation 4th Quarter & FY 2022
Public Service Enterprise Group Financial Results Presentation February 21, 2023 1st QUARTER 2022 NYSE: PEG 4th QUARTER & FY 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: 2022 Highlights
PSEG 2022 Highlights • Fourth Quarter and Full Year Results ꟷ Net Income of $1.58 per share in Q4; Net Income of $2.06 per share in FY 2022 ꟷ Non-GAAP Operating Earnings* of $0.64 per share in Q4; non-GAAP Operating Earnings* of $3.47 per share in FY 2022 ꟷ PSE&G full year Net Income results up 8.2%
Slide 5: 2022 Year in Review
PSEG 2022 Year in Review Operational Excellence Disciplined Investment PSE&G awarded EEI’s 2022 Edison Award Increased shareholder dividend $0.12 per share PA Consulting named PSE&G the most reliable electric utility in the Completed $500M share repurchase Mid-Atlantic Metropolitan Service A
Slide 6: Narrowing Full-Year 2023 Guidance by $0.10
PSEG – Narrowing Full-Year 2023 Guidance by $0.10 Non-GAAP Operating Earnings Guidance $3.40 – $3.50E 2023 Earnings Drivers vs. 2022 include: + Continued growth from T&D investment programs, As a result of a more partially offset by regulatory lag predictable business mix, the 2023 non-GAAP + Cost c
Slide 7: 2023 annual dividend increased $0.12 per share
2023 annual dividend increased $0.12 per share, building on a 116-year history of returning cash to our shareholders PSEG Dividend per Share $2.28* $2.16 $2.04 $1.96 $1.88 $1.80 Opportunity for consistent and $1.72 sustainable dividend growth $1.64 $1.56 $1.48 $1.44 2013 2014 2015 2016 2017 2018 201
Slide 8: Q4 & Full Year 2022 Review
PSEG Q4 & Full Year 2022 Review
Slide 9: Q4 Results
PSEG – Q4 Results PSEG EPS Summary – Three Months ended December 31 Net Income 2022 2021 Change PSE&G $ 0.70 $ 0.53 $ 0.17 CFIO $ 0.88 $ 0.35 $ 0.53 Total PSEG $ 1.58 $ 0.88 $ 0.70 Non-GAAP Operating Earnings* 2022 2021 Change PSE&G $ 0.70 $ 0.53 $ 0.17 CFIO $ (0.06) $ 0.16 $ (0.22) Total PSEG $ 0.6
Slide 10: EPS Reconciliation – Q4 2022 versus Q4 2021
PSEG EPS Reconciliation – Q4 2022 versus Q4 2021 $1.60 $1.10 $1.58 $1.00 $1.50 ~ ~ $0.90 $0.88 0.17 (0.22) $0.80 $0.69 $0.70 $0.64 $ / share Transmission 0.01 $0.60 Electric Margin 0.01 Electric Gross Margin (0.34) Capacity (0.13) Gas Margin 0.04 $0.50 Generation (0.11) Re-contracting & Market (0.09
Slide 11: Full Year Results
PSEG – Full Year Results PSEG EPS Summary – Twelve Months ended December 31 Net Income/(Loss) 2022 2021* Change PSE&G $ 3.12 $ 2.87 $ 0.25 CFIO $ (1.06) $ (4.16) $ 3.10 Total PSEG $ 2.06 $ (1.29) $ 3.35 Non-GAAP Operating Earnings** 2022 2021* Change PSE&G $ 3.12 $ 2.85 $ 0.27 CFIO $ 0.35 $ 0.80 $ (
Slide 12: EPS Reconciliation – Full Year 2022 versus Full Year 2021
PSEG EPS Reconciliation – Full Year 2022 versus Full Year 2021 $4.00 0.27 (0.45) $3.65 $3.47 $3.50 Transmission (0.02) Electric Gross Margin (1.15) Renewables & $3.00 Energy Efficiency 0.01 Capacity (0.54) Generation (0.38) Gas Margin 0.15 Sale of Solar Source (0.04) $2.50 Electric Margin 0.07 Re-co
Slide 13: PSE&G – Q4 Highlights
PSE&G – Q4 Highlights Operations Regulatory and Market Environment • Top decile performance in OSHA Recordable Incidence Rate and • PSE&G reduced the gas commodity charge to $0.50 per therm which electric reliability (SAIDI, SAIFI & CAIDI) will result in a bill reduction of ~11.5% per month for a ty
Slide 14: PSEG is advancing a predictable growth platform
PSEG is advancing a predictable growth platform PSEG has met or exceeded its non-GAAP Operating Earnings guidance for 18 years in a row Narrowing 2023 non-GAAP Operating Earnings guidance by $0.10 to $3.40 - $3.50 per share (from $3.35 - $3.55 per share) PSE&G expected to contribute ~90% of co
Slide 15: Appendix
#* PSEG APPENDIX
Slide 16: Full Year-2023 Guidance
PSEG – Full Year-2023 Guidance Non-GAAP Operating Earnings Guidance Original Narrowed $ millions (except EPS) 2023E 2023E Guidance Guidance PSE&G (Net Income) $1,490 - $1,540 $1,500 - $1,525 CFIO $185 - $235 $200 - $225 PSEG Operating Earnings (non-GAAP) $1,675 - $1,775 $1,700 - $1,750 PSEG Operatin
Slide 17: PSE&G’s residential customer bills compare favorably
PSE&G’s residential customer bills compare favorably Regional gas bills lowest among peers; Regional electric bills lower than average Monthly Gas Bills Monthly Electric Bills $300 $160 $268 $136 $137 $140 $133 $134 $250 $212 $120 $207 $110 $200 $190 $97 $98 $103 $186 Average = $103 Average = $181 $
Slide 18: 2023 Pension Update
2023 Pension Update PSEG ($ Millions) 2022 2021 As of 12/31/2022, PSEG’s Funded Status was ~87%; No cash contributions Discount Rate 5.20% 2.94% are anticipated in the near-term Expected Rate of Return on Plan Assets (EROA) 7.2% 7.7% The BPU has approved an order authorizing PSE&G to modify its
Slide 19: 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 20: PSEG Liquidity as of December 31, 2022
PSEG Liquidity as of December 31, 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 $202 $1,298 (A) Revolving
Slide 21: Q4 & Full Year 2022 Generation Measures & Hedge Update
Q4 & Full Year 2022 Generation Measures & Hedge Update Nuclear Generation Measures Carbon-Free Contracted Energy Sales* Three Months Twelve Months ended ended December 31 December 31 2023E 2024E 2021 2022 2021 2022 Fuel Nuclear Nuclear Capacity Factor 88.5% 85.8% 91.9% 92.2% Fuel Cost ($ millions) $
Slide 22: 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 • Named to 2023 JUST 100 list of America’s Most Business Ambition for 1.5°C campaigns price on carbon and preservati
Slide 23: Glossary of Terms
Glossary of Terms AMI Automated Metering Infrastructure MSCI Morgan Stanley Capital International BGS Basic Generation Service OSHA Occupational Safety & Health Administration BPU New Jersey Board of Public Utilities OSW Offshore Wind C&I Commercial and Industrial PB Peach Bottom CAIDI Customer Aver
Slide 24: 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 (a) Effective January 1, 2018, unrealized gains Year Ended (losses) on equity securities are recorded in Reconciling Items Decembe
Slide 25: Reconciliation of Non-GAAP Operating Earnings (CFIO)
Reconciliation of Non-GAAP Operating Earnings CFIO Operating Earnings (non-GAAP) Reconciliation Three Months Ended Year Ended (a) Includes the financial impact from positions with forward delivery months. Reconciling Items December 31, December 31, (b) Full year 2022 includes the results for fossil
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