Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q3 2013 Earnings Presentation
36 slides from Public Service Enterprise's earnings presentation, Oct 30, 2013
Slide 1: PSEG Earnings Conference Call 3rd Quarter 2013
EXHIBIT 99.1 Public Service Enterprise Group PSEG Earnings Conference Call 3rd Quarter 2013 October 30, 2013
Slide 2: Forward-Looking Statement
Forward-Looking Statement Certain of the matters discussed in this communication about us and our subsidiaries • availability of capital and credit at commercially reasonable terms and conditions future performance, including, without limitation, future revenues, earnings, and our ability to meet ca
Slide 3: GAAP Disclaimer
GAAP Disclaimer PSEG presents Operating Earnings in addition to its Income from Continuing Operations/Net Income 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 because i
Slide 4: 2013 Q3 Review
PSEG 2013 Q3 Review Ralph Izzo Chairman, President and Chief Executive Officer
Slide 5: Q3 Earnings Summary
Q3 Earnings Summary Quarter ended September 30 $ millions (except EPS) 2013 2012 Operating Earnings $ 385 $ 382 Reconciling Items, Net of Tax 5 (35) Income from Continuing Operations/ $ 390 $ 347 Net Income EPS from Operating Earnings* $ 0.76 $ 0.75 * See Slide A for Items excluded from Income from
Slide 6: Year to Date Earnings Summary
Year to Date Earnings Summary Nine months ended September 30 $ millions (except EPS) 2013 2012 Operating Earnings $ 1,061 $ 1,029 Reconciling Items, Net of Tax (18) 22 Income from Continuing Operations/ $ 1,043 $ 1,051 Net Income EPS from Operating Earnings* $ 2.09 $ 2.03 * See Slide A for Items exc
Slide 7: Q3 2013 Highlights
PSEG – Q3 2013 Highlights Operating Earnings of $0.76 vs. $0.75 per share in Q3 2012 Delivered solid results in the quarter driven by Power’s locational value, and PSE&G’s continuing investment in transmission Raised 2013 full–year, operating earnings guidance to $2.40-$2.55 per share, from $2.25-$2
Slide 8: Raising 2013 Operating Earnings Guidance
PSEG – Raising 2013 Operating Earnings Guidance We have raised full-year 2013 Operating Earnings guidance to $2.40 - $2.55 per share from $2.25 - $2.50 per share $2.74 $2.44 $2.40 - $2.55E 2011 Operating Earnings* 2012 Operating Earnings* 2013 Operating Earnings Guidance * See Slide A for Items excl
Slide 9: 2013 Q3 Operating Company Review
PSEG 2013 Q3 Operating Company Review Caroline Dorsa EVP and Chief Financial Officer
Slide 10: Q3 Operating Earnings by Subsidiary
Q3 Operating Earnings by Subsidiary Quarter ended September 30 Operating Earnings Earnings per Share $ millions (except EPS) 2013 2012 2013 2012 PSEG Power $ 216 $ 217 $ 0.43 $ 0.43 PSE&G 168 155 0.33 0.30 PSEG Energy Holdings/ 1 10 - 0.02 Enterprise Operating Earnings* $ 385 $ 382 $ 0.76 $ 0.75 9 *
Slide 11: EPS Reconciliation – Q3 2013 versus Q3 2012
PSEG EPS Reconciliation – Q3 2013 versus Q3 2012 1.00 $0.75 0.00 0.03 (0.02) $0.76 0.75 Higher Capacity 0.11 Transmission 0.04 2012 Asset Sale and Market Pricing and Capital Impairment Lower Supply Infrastructure (0.01) 0.50 Costs 0.04 Program & Other 0.01 Other (0.01) Taxes & Other 0.01 Weather and
Slide 12: Year to Date Operating Earnings by Subsidiary
Year to Date Operating Earnings by Subsidiary Nine months ended September 30 Operating Earnings Earnings per Share $ millions (except EPS) 2013 2012 2013 2012 PSEG Power $ 580 $ 523 $ 1.14 $ 1.03 PSE&G 468 453 0.92 0.89 PSEG Energy Holdings/ 13 53 0.03 0.11 Enterprise Operating Earnings* $ 1,061 $ 1
Slide 13: EPS Reconciliation – YTD 2013 versus YTD 2012
PSEG EPS Reconciliation – YTD 2013 versus YTD 2012 2.50 0.11 0.03 (0.08) $2.09 $2.03 2.00 Transmission 0.10 Absence of Tax Higher Capacity 0.23 Settlement Capital Infrastructure (0.07) Market Pricing and Lower Supply Program 1.50 & Other 0.01 Asset Sales Costs 0.04 and Other Taxes and (0.01) Gas Sen
Slide 14: Power 2013 Q3 Review
PSEG Power 2013 Q3 Review
Slide 15: Power – Q3 Earnings Summary
PSEG Power – Q3 Earnings Summary $ millions (except EPS) Q3 2013 Q3 2012 Variance Operating Revenues $ 1,169 $ 1,038 $ 131 Operating Earnings 216 217 (1) NDT Funds Related Activity, Net of Tax 12 40 (28) Mark-to-Market, Net of Tax** 3 (76) 79 Storm O&M, Net of Insurance (10) - (10) Recoveries Income
Slide 16: Power EPS Reconciliation – Q3 2013 versus Q3 2012
PSEG Power EPS Reconciliation – Q3 2013 versus Q3 2012 0.60 0.50 0.03 (0.03) $0.43 $0.43 0.40 Higher Capacity 0.11 O&M (0.04) Market Pricing Taxes and and Lower Supply Other 0.01 0.30 Costs 0.04 Lower Hedge Pricing (0.10) 0.20 Lower Volume (0.02) 0.10 0.00 Q3 2012 Q3 2013 Operating Operating Earning
Slide 17: Power – Generation Measures
PSEG Power – Generation Measures PSEG Power – Generation (GWh) PSEG Power – Capacity Factors (%) Quarter ended September 30 Quarter ended September 30 14,919 15,000 2012 2013 14,111 Combined Cycle 5,289 4,677 PJM and NY 67.1% 60.4% Coal 2,071 1,936 7,500 NJ (Coal/Gas) 26.6% 16.3% PA 79.0% 83.1% 7,55
Slide 18: Power – Generation Measures
PSEG Power – Generation Measures PSEG Power – Generation (GWh) PSEG Power – Capacity Factors (%) Nine Months ended September 30 Nine Months ended September 30 45,000 40,769 40,986 2012 2013 Combined Cycle 13,509 12,677 30,000 PJM and NY 60.3% 57.0% 4,656 5,526 Coal* NJ (Coal/Gas) 14.2% 14.2% 15,000
Slide 19: Power – Fuel Costs
PSEG Power – Fuel Costs PSEG Power – Fuel Costs Nine months ended Quarter ended September 30 September 30 ($ millions) 2012 2013 ($ millions) 2012 2013 Coal 64.9 45.1 Coal 142.4 141.3 Oil & Gas 166.7 146.1 Oil & Gas 407.8 483.8 Total Fossil 231.6 191.2 Total Fossil 550.2 625.1 Nuclear 52.7 56.5 Nucl
Slide 20: Power – Gross Margin Performance
PSEG Power – Gross Margin Performance Margins aided by higher capacity pricing through mid-2014 Higher year-over-year spot market prices continued in Q3 Lower cost Marcellus gas contributing to fuel cost savings PSEG Power Gross Margin ($/MWh) Regional Performance Quarter ended Nine months ended Q3
Slide 21: PSEG's locational advantage and gas basis
PSEG’s locational advantage and gas basis • Lower cost supplies of shale gas have been beneficial to both PSE&G customers and PSEG Power • Over 50% of our available pipeline capacity can access market area Albany supplies of shale gas • Power’s generating units sit in close proximity to the Marcellu
Slide 22: Hedging Update
Hedging Update… Contracted Energy* Oct -Dec 2013 2014 2015 Volume TWh 8 35 35 Base Load % Hedged 100% 100% 55-60% (Nuclear and Base Load Coal) Price $/MWh $50 $48 $48 Volume TWh 5 18 17 Intermediate Coal, Combined % Hedged 30-35% 5-10% 0% Cycle, Peaking Price $/MWh $50 $48 $48 Volume TWh 13-14 53-55
Slide 23: Power – Q3 2013 Operating Highlights
PSEG Power – Q3 2013 Operating Highlights Operations Power met all demand requirements during the hottest days of July Q3 output declined by 5.4% from the Q3 2012 reflecting maintenance at NY CCGT Strong nuclear performance has resulted in a YTD nuclear capacity factor of 93.2% Hope Creek refueling
Slide 24: PSE&G 2013 Q3 Review
PSE&G 2013 Q3 Review
Slide 25: PSE&G – Q3 Earnings Summary
PSE&G – Q3 Earnings Summary $ millions (except EPS) Q3 2013 Q3 2012 Variance Operating Revenues $ 1,666 $ 1,683 $ (17) Operating Expenses Energy Costs 661 756 (95) Operation & Maintenance 408 366 42 Depreciation & Amortization 236 216 20 Taxes Other than Income Taxes 15 24 (9) Total Operating Expens
Slide 26: PSE&G EPS Reconciliation – Q3 2013 versus Q3 2012
PSE&G EPS Reconciliation – Q3 2013 versus Q3 2012 0.35 0.01 0.03 (0.01) $0.33 $0.30 0.30 O&M and D&A Interest and Transmission 0.04 Other 0.25 Capital Infrastructure Program 0.20 and Other 0.01 Weather 0.15 and Demand (0.02) 0.10 0.05 0.00 Q3 2012 Q3 2013 Operating Operating Earnings Earnings 25
Slide 27: PSE&G – Monthly Summer Weather Data
PSE&G – Monthly Summer Weather Data PSE&G Monthly Temperature Humidity Index (THI) 2013 vs. 2012 vs. Normal 6,977 7,000 6,183 -8.0% Q3 2013 vs. Q3 2012 6,000 5,196 +7.4% Q3 2013 vs. Normal 5,111 5,000 4,502 4,000 3,691 3,000 2,054 1,895 2,000 1,687 1,000 0 July August September 2013 2012 Normal 26
Slide 28: PSE&G – Q3 Operating Highlights
PSE&G – Q3 Operating Highlights Operations Weather in Q3 2013 warmer than normal but cooler than Q3 2012 Transmission revenues added $0.04 per share over Q3 2012 O&M remains under control Regulatory and Market Environment All five major Transmission projects on schedule and on budget BPU review of E
Slide 29: Energy Holdings/Enterprise 2013 Q3 Review
PSEG Energy Holdings/Enterprise 2013 Q3 Review
Slide 30: Energy Holdings/Enterprise – Q3 Earnings Summary
PSEG Energy Holdings/Enterprise – Q3 Earnings Summary $ millions (except EPS) Q3 2013 Q3 2012 Variance Operating Earnings $ 1 $ 10 $ (9) Lease Related Activity - 1 (1) Net Income $ 1 $ 11 $ (10) EPS from Operating Earnings* $ 0.00 $ 0.02 $ (0.02) * See Slide A for Items excluded from Income from Con
Slide 31: Energy Holdings/Enterprise – Q3 Operating Highlights
PSEG Energy Holdings/Enterprise – Q3 Operating Highlights Financial LIPA – Amended Operating Services Agreement will begin January 1, 2014 subject to LIPA receiving IRS ruling on tax status of debt • Increases PSEG-Long Island’s management responsibility to operate and maintain the LIPA T&D system •
Slide 32: PSEG
PSEG
Slide 33: Financial Highlights
PSEG Financial Highlights 2013 operating earnings guidance raised to $2.40 - $2.55 per share Focused on maintaining operating efficiency and customer reliability PSE&G’s operating earnings on track to grow at double-digit rate in 2013 Executing PSE&G’s existing $3.4 billion Transmission capital spen
Slide 34: 2013 Operating Earnings Guidance - By Subsidiary
PSEG 2013 Operating Earnings Guidance - By Subsidiary $ millions (except EPS) 2013E 2012A PSEG Power $630 – $685 $644 PSE&G $585 – $600 $528 PSEG Energy $0 – $10 $64 Holdings/Enterprise Operating Earnings* $1,215 – $1,295 $1,236 Earnings per Share $2.40 – $2.55 $2.44 * See Slide A for Items excluded
Slide 35: Liquidity as of September 30, 2013
PSEG Liquidity as of September 30, 2013 Expiration Total Available Company Facility Date Facility Usage Liquidity ($Millions) PSE&G 5-year Credit Facility Mar-18 $600 1 $13 $587 PSEG / 5-Year Credit Facility (Power) Mar-17 $1,600 58 $1,542 Power 5-Year Credit Facility (Power) Mar-18 $1,000 2 0 $1,00
Slide 36: Items Excluded from Income from Continuing Operations to Reconcile to Operating Earnings
Items Excluded from Income from Continuing Operations to Reconcile to Operating Earnings PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Reconciling Items Excluded from Income from Continuing Operations/Net Income to Compute Operating Earnings (Unaudited) Three Months Ended Nine Months Ended Year Ended
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