Ppl Corporation · NYSE:PPL
Ppl — Barclays CEO Energy/Power Conference 2009
33 slides from Ppl's conference presentation, Sep 8, 2009
Slide 1: Barclays CEO Energy/Power Conference September 8-9, 2009
Barclays CEO Energy/Power Conference September 8 -9, 2009 Exhibit 99.1
Slide 2: Cautionary Statements and Factors That May Affect Future Results
Cautionary Statements and Factors That May Affect Future Results Any statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Actual results may
Slide 3: Supply Segment Asset Hedge Positions
Supply Segment Asset Hedge Positions 2009 2010 2011 2012 Baseload Expected Generation* (millions MWh) 52.1 51.8 51.7 52.9 East 43.4 43.2 43.3 44.5 West 8.7 8.6 8.4 8.4 Current Hedges (%) 98% 98% 80% 53% East 99% 100% 80% 50% West 94% 84% 81% 72% Average Price for Current Hedges (Energy Only) ($/MWh)
Slide 4: Supply Segment Marketing and Trading Overview
Supply Segment Marketing and Trading Overview Year-Over-Year Change Energy Demand for PPL EnergyPlus Load Following Contracts -12.0% -15.0% -16.0% -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% PJM MISO* NEPOOL Year-Over-Year Change (%) Average On-peak Electricity Prices ($/MWh) $81 $65 $90 $43 $
Slide 5: Current Fuel Hedge Positions
Current Fuel Hedge Positions *East wholly owned plants include Montour & Brunner Island but not Keystone & Conemaugh. **Excludes contracts subject to mining-related oil surcharges and/or price collars. Note: As of 6/30/2009 Base Prices for Wholly Owned Plants* -East only $35 $40 $45 $50 $55 Balance
Slide 6: Supply Segment Expected Gross Margin
784 718 137 2,227 70 $0 $1,000 $2,000 $3,000 2009 * 2010 $ Millions YTD June Capacity Baseload Marketing & Trading Intermediate & Peaking $2,937 $1,670 Supply Segment Expected Gross Margin *Reflects POLR revenues that are based on the contract price for supply. Energy and capacity components not ava
Slide 7: Liquidity Profile
Liquidity Profile (1) Reported as of 6/30/2009 (2) Expiration date has been extended to July 2010 (3) Facility was terminated in July 2009 and replaced with a new £210 million 3-year credit facility expiring in July 2012 Diverse bank group consisting of 23 banks committed under domestic facilities,
Slide 8: PPL Energy Supply Collateral Profile
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Available Credit Capacity Cash Posted Borrowings/CP Outstanding Letters of Credit PPL Energy Supply Collateral Profil
Slide 9: Free Cash Flow before Dividends Forecast
($605) $124 ($326) $524 $367 $272 ($30) ($180) $1 ($700) ($400) ($100) $200 $500 $800 2008A 2009E 2010E Supply Segment PA Delivery Segment International Delivery Segment Free Cash Flow before Dividends Forecast Millions 8
Slide 10: Capital Expenditures by Segment
Millions $939 $753 $891 $936 $809 $648 $286 $295 $576 $649 $504 $535 $278 $251 $428 $448 $460 $477 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 2008A 2009E 2010E 2011E 2012E 2013E Supply PA Delivery International Delivery $1,503 $2,033 $1,895 $1,299 Capital Expenditures by Segment $1,773 $1,660 9
Slide 11: Pennsylvania Delivery Rate Base
Millions $693 $811 $952 $1,221 $1,469 $1,528 $2,081 $2,207 $2,353 $2,513 $2,664 $2,803 $0 $1,000 $2,000 $3,000 $4,000 $5,000 2008A 2009E 2010E 2011E 2012E 2013E Transmission Distribution & Other Pennsylvania Delivery Rate Base $3,018 $3,305 $3,734 $4,133 $4,331 $2,774 10
Slide 12: Attractive Transmission Development Project
Attractive Transmission Development Project • PPL Electric to build Pennsylvania portion of the 150-mile Susquehanna to Roseland, NJ 500 kV transmission line. New Jersey portion of the line to be built by PSEG. • Project needed for reliability and is part of PJM’s Regional Transmission Expansion Pro
Slide 13: PPL Electric Utilities 2011 to 2013 Procurement Plan
• Residential load to be supplied under 12-and 24-month load-following contracts and block power purchases, 5-and 10-year fixed block products, and spot purchases • Small commercial and industrial to be supplied under 12-and 24-month load-following contracts, and spot purchases • Large commercial an
Slide 14: Strong Expected Earnings Growth
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2008A* 2009* 2010 Strong Expected Earnings Growth Forecast 13 * Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. $2.02 $3.50 Per Share $1.90 $1.60 $3.10
Slide 15: PPL
PPL
Slide 16: Market Prices
Market Prices ELECTRIC PJM On-Peak Off-Peak ATC(2) Mid-Columbia On-Peak Off-Peak ATC(2) GAS(3) NYMEX TZ6NNY PJM MARKET HEAT RATE(4) CAPACITY PRICES (Per MWD) EQA Actual 2008 2009 2010 2011 2012 $81 $46 $58 $63 $66 $49 $34 $41 $43 $46 $69 $40 $49 $52 $55 $65 $33 $48 $56 $58 $51 $28 $38 $45 $46 $59 $3
Slide 17: PPL's Generation Portfolio
PPL’s Generation Portfolio Total Domestic Generation: 12,166 MW Planned Uprate Projects or Additions: 208 MW (1) Reflects reduction of 60 MW expected loss due to increased plant usage during scrubber operation. (2) Includes tolling agreements (3) Includes MWs associated with the proposed sale of Sho
Slide 18: PPL Supply Business Overview
PPL Supply Business Overview 2009E Production GWh A-3 Gas/Oil 38% Coal 34% Nuclear 18% Hydro8% QFs 2% 2009E Installed Capacity MW Gas/Oil 10% Coal 50% Nuclear 32% Hydro 8% Note: Graphs include tolling agreements
Slide 19: Environmental Control Equipment
Environmental Control Equipment Keystone Conemaugh Control Device Removes Unit 1 Unit 2 Unit 3 Unit 1 Unit 2 Unit 1 & 2 Unit 3 & 4 Unit 1 & 2 Unit 1 & 2 Low Nox Burners NOx SCR NOx Scrubbers SO2 = Installed = Potential = Under Construction Brunner Island Montour Colstrip PPL has proactively complied
Slide 20: Continued Dividend Growth
$1.00 $1.10 $1.22 $1.34 $1.38 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 2005 2006 2007 2008 2009 $/Share Annualized Continued Dividend Growth A-5
Slide 21: Debt Maturities
Debt Maturities (1) PPL Capital Funding $201 million maturity paid off in March 2009 (2) PPL Electric Utilities prefunding done in 10/2008 and 5/2009 for 2009 maturity Note: As of 6/30/2009 A-6 2009 2010 2011 2012 2013 PPL Energy Supply $0 $0 $500 $0 $737 PPL Capital Funding 0 (1) 0 0 0 0 PPL Electr
Slide 22: PPL Electric Utilities 2011 to 2013 Procurement Plan Schedule
PPL Electric Utilities 2011 to 2013 Procurement Plan Schedule • Due dates for bids: August 11, 2009 July 19, 2011 October 20, 2009 October 18, 2011 January 19, 2010 January 9, 2012 April 20, 2010 April 3, 2012 July 20, 2010 July 17, 2012 October 19, 2010 October 16, 2012 April 18, 2011 January 22, 2
Slide 23: Supply Segment Reconciliation of Cash from Operations to Free Cash Flow
Supply Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-8 39216Asset Sales (203)Investment in Energy Project $524$124($605)Free Cash Flow before Dividends (61)(15)(58)Other Investing Activities-net (891)(753)(939)Capital Expenditures Increase/(Decrease)
Slide 24: PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-9 303Asset Sales & Other ($326)$272$367Free Cash Flow before Dividends (576)(295)(286)Capital Expenditures (293)Less Transition Bond Repayment Increase/(Decrease) in cash due to: $250$567$ 643C
Slide 25: International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-10 ($180)($ 30)$ 1Free Cash Flow before Dividends (428)(251)(278)Capital Expenditures Increase/(Decrease) in cash due to: $248$221$ 279Cash from Operations 201020092008 Actual Projec
Slide 26: Reconciliation of Reported Earnings and Earnings from Ongoing Operations
Reconciliation of PPL’s Reported Earnings and Earnings from Ongoing Operations High Low 2009 2009 2008 2007 Earnings from Ongoing Operations per share of common stock $1.90 $1.60 $2.02 $2.60 Special items (net of taxes) through June 30, 2009: economic hedges (0.10) (0.10) 0.67 0.08 Unrealized losses
Slide 27: Reconciliation of Second Quarter Operating Income and Energy Margins
Reconciliation of Second Quarter Operating Income and Energy Margins A-12 2009 2008 Change Per Share (after-tax) Eastern U.S., pre-tax $312 $379 ($67) ($0.10) Western U.S., pre-tax 77 68 9 0.01 Domestic gross energy margins, pre-tax $389 $447 ($58) ($0.09) 2009 2008 Operating Income $104 $385 Adjust
Slide 28: Reconciliation of Second Quarter Operating Income and Energy Margins (continued)
A-13 2009 2008 Revenue adjustments WPD utility revenue $ (155) $ (211) Domestic delivery component of utility revenue (293) (310) Other utility revenue (7) (14) Unrealized gains (losses) from economic hedge activity 111 617 Margins from Supply segment discontinued operations 7 10 Total revenue adjus
Slide 29: Credit Ratings
Credit Ratings A-14 BBB Issuer Rating AAAAaa Tax-Exempt Bonds* STABLE NEGATIVE NEGATIVE Outlook A-A-A3 Senior Secured Debt F-2A-2P-2 Commercial Paper BBBBBBBaa3 Preferred Stock BBBA-Baa1 Issuer Rating A-A-A3First Mortgage Bonds A/A-A3/Baa1 Tax-Exempt Bonds** BBBBBBBaa3 Preference Stock PPL Electric
Slide 30: Credit Ratings (cont.)
Credit Ratings (cont.) A-15 A-3Commercial Paper A-BBB+ Baa1Senior Unsecured Debt F2A-2P-2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook BBB+ BBB+ Baa1 Issuer Rating A-BBB+ Baa1 Senior Unsecured Debt F2A-2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook Western Power Distribution (South West) P
Slide 31: PPL Corporation company description
PPL Corporation (NYSE: PPL) is a Fortune 500 company with headquarters in Allentown, Pa. The Company’s diversified corporate strategy is to achieve growth in energy supply margins while limiting volatility in both cash flows and earnings and to achieve stable, long-term growth in regulated delivery
Slide 32: Forward-Looking Information Statement
Forward-Looking Information Statement A-17 Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins and sales, growth, revenues, expenses, credit profile, cash flow, liquidity, financing, asset disposition, marketing performance, hedging
Slide 33: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures A-18 “Earnings from ongoing operations” excludes the impact of special items. Special items include charges or credits that are unusual or nonrecurring. Special items also include unrealized gains or losses from energy-related and foreign currency-related,