Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Presentation (August 2016)
14 slides from Public Service Enterprise's investor presentation, Aug 11, 2016
Slide 1: Forward-Looking Statements
Forward-Looking Statements Certain of the matters discussed in this report 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 “forward-loo
Slide 2: GAAP Disclaimer
GAAP Disclaimer PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings and Adjusted EBITDA
Slide 3: Operating Earnings
Operating Earnings Disciplined investment program and focus on operational excellence have supported growth Power’s diverse fuel mix and dispatch flexibility continue to generate strong earnings and free cash flow in low price environment PSE&G’s investment program has resulted in an increased contr
Slide 4: PSE&G's 2016 earnings updated to reflect first-half 2016 results
PSE&G’s 2016 earnings updated to reflect first-half 2016 results, expanded investment programs and cost control over the balance of the year e =estimate. UPDATED AS OF JULY 29, 2016, 37
Slide 5: Power's 2016 operating earnings range adjusted for first half of 2016
Power’s 2016 operating earnings range adjusted to incorporate results from the first half of 2016 Power Operating Earnings* ($ Millions) *SEE SLIDE A FOR ITEMS EXCLUDED FROM NET INCOME TO RECONCILE TO OPERATING EARNINGS. E = ESTIMATE. UPDATED AS OF JULY 29, 2016. Net Income $760 Net Income $856 58
Slide 6: PSEG Power's revenue stream secured with over 70% hedged through 2018
PSEG Power’s revenue stream is secured with over 70% of the portfolio hedged through 2018 **Includes nJ units that CAN fuel switch to gas. Energy Produced in 2015 Average 3 Year Forward Revenue 2016-2018* n Gas n Nuclear n Coal** n <2% from Oil, Pumped Storage 55,213 GWH *FOR THREE YEARS ENDED INCLU
Slide 7: PSEG Operating Results
PSEG Operating Results $ Millions (except EPS) 2012 2013 2014 2015 2016E Guidance PSE&G $528 $612 $725 $787 $900 - $935 PSEG Power* $663 $710 $642 $653 $460 - $525 Enterprise/Other $45 ($13) $33 $36 $65 Operating Earnings* $1,236 $1,309 $1,400 $1,476 $1,425 - $1,525 Operating EPS* $2.44 $2.58 $2.76
Slide 8: Strong financial position to support our business initiatives in 2016 and beyond
Strong financial position to support our business initiatives in 2016 and beyond 2016 and Beyond Earnings Continuing strong earnings trend in 2016 with guidance of $2.80 to $3.00 per share Investment Deploying significant capital at PSE&G for projects with contemporaneous returns Pursuing Power proj
Slide 9: Annual Dividend Per Share and Payout Ratio
PSE&G EPS Annual Dividend Per Share (2011-2016 CAGR: 3.7%) Opportunity for meaningful and sustainable dividend growth given significant contribution from PSE&G earnings and Power’s strong financial profile Payout Ratio 50% 58% 56% 54% 54% 57% (1) 88 $1.84E $1.77E $1.64 $1.37 $1.42 $1.44 $1.48 $1.56
Slide 10: Longer-term outlook influenced by Power's hedge position and PSE&G investment
PSEG’s longer-term outlook is influenced by Power’s hedge position and increased investment at PSE&G 2016E 2017E Each $0.75/mcf Change in Natural Gas Each $2/MWh Change in Spark Spread Each $5/MWh Change in Dark Spread Each 1% Change in Nuclear Capacity Factor Segment EPS Drivers Each $100 Million o
Slide 11: PSEG Summary
PSEG Summary 2015 Operating Earnings of $2.91 were at the upper end of our upwardly revised guidance of $2.85 - $2.95 per share Forecast high single-digit rate base growth at PSE&G on five year basis from 2015 to 2020, driven by investment in transmission and approved programs Power’s investment pro
Slide 12: PSEG Financial Highlights
PSEG Financial Highlights * SEE SLIDE B FOR ITEMS EXCLUDED FROM NET INCOME TO RECONCILE TO OPERATING EARNINGS. Maintaining full-year 2016 Operating Earnings guidance of $2.80 - $3.00 per share* Reaching the upper end of our guidance range in 2016 will be difficult even with improvements seen in the
Slide 13: Items Excluded from Net Income to Reconcile to Operating Earnings (A)
Items Excluded from Net Income to Reconcile to Operating Earnings Please see Page 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income. A 2015 2014 2013 2012 Operating Earnings 1,476 $ 1,400 $ 1,309 $ 1,236 $ Gain (Loss) on Nucle
Slide 14: Items Excluded from Net Income to Reconcile to Operating Earnings (B)
Items Excluded from Net Income to Reconcile to Operating Earnings Please see Page 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income. B 2016 2015 2016 2015 2015 2014 Operating Earnings 289 $ 289 $ 752 $ 818 $ 1,476 $ 1,400 $ Ga
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