Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q1 2008 Earnings Presentation
27 slides from Public Service Enterprise's earnings presentation, May 6, 2008
Slide 1: PSEG Earnings Conference Call 1st Quarter 2008
Public Service Enterprise Group PSEG Earnings Conference Call 1 st Quarter 2008 May 6, 2008
Slide 2: Forward-Looking Statement
Forward-Looking Statement Readers are cautioned that statements contained in this presentation about our and our subsidiaries’ future performance, including future revenues, earnings, strategies, prospects and all other statements that are not purely historical, are forward-looking statements for pu
Slide 3: GAAP Disclaimer
GAAP Disclaimer PSEG presents Operating Earnings in addition to its 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 it excludes the impact of the sale
Slide 4: 2008 Q1 Review
PSEG 2008 Q1 Review Ralph Izzo Chairman, President and Chief Executive Officer
Slide 5: Q1 2008 EPS Summary
Q1 2008 EPS Summary $ 8 $ 14 Discontinued Operations $ 0.63 $ 0.85 EPS from Operating Earnings $ 329 $ 448 Net Income $ 321 $ 434 Income from Continuing Operations -- ($ 1) Impact of Asset Sales (Bond Premiums) $ 321 $ 435 Operating Earnings Q1 2007 Q1 2008 $ millions (except EPS)
Slide 6: Q1 2008: Accomplishing goals
PSEG – Q1 2008: Accomplishing goals Operations Regulatory and Market Environment Financial Salem 2 refueling and steam generator replacement underway – on time Nuclear fleet operating in line with expectations FERC approved incentive rate treatment for 500kV Susquehanna line NJ Board of Public Utili
Slide 7: Earnings – Maintaining guidance
Earnings – Maintaining guidance $0.00 $1.00 $2.00 $3.00 $4.00 2007 Operating Earnings 2008 Guidance 2009 Guidance $2.71 $2.80 – $3.05 $3.05 – $3.35
Slide 8: 2008 Q1 Review
PSEG 2008 Q1 Review Tom O’Flynn Executive Vice President and Chief Financial Officer President – PSEG Energy Holdings
Slide 9: Q1 Operating Earnings by Subsidiary
Q1 Operating Earnings by Subsidiary $ 321 (18) (11) $ 219 $ 435 (5) $ 275 Operating Earnings Earnings per Share (0.04) (0.01) Enterprise $ 0.63 $ 0.85 Operating Earnings (0.02) 0.06 PSEG Energy Holdings 0.26 0.26 PSE&G $ 0.43 $ 0.54 PSEG Power YTD March 31 $ Millions (except EPS)
Slide 10: PSEG EPS Reconciliation – Q1 2008 versus Q1 2007
$0.63 .11 .00 .08 .03 $0.85 0.00 0.25 0.50 0.75 1.00 Taxes .04 Weather (.02) O&M / Other (.02) PSEG EPS Reconciliation – Q1 2008 versus Q1 2007 Q1 2008 operating earnings Q1 2007 operating earnings Interest expense Re-contracting / Strong markets .15 MTM .01 Global Effective tax rate ..06 Texas - MT
Slide 11: Power
PSEG Power 2008 Q1 Review
Slide 12: Power - Q1 2008 EPS Summary
PSEG Power - Q1 2008 EPS Summary $ 226 $ 2,149 $ 2,375 Operating Revenues $ 0.11 $ 0.43 $ 0.54 EPS from Operating Earnings $ 62 $ 213 $ 275 Net Income $ 6 ($ 6) -- Discontinued Operations $ 56 $ 219 $ 275 Income from Continuing Operations $ 56 $ 219 $ 275 Operating Earnings Variance Q1 2007 Q1 2008
Slide 13: PSEG Power EPS Reconciliation – Q1 2008 versus Q1 2007
$0.43 .15 .00 (.04) $0.54 0.00 0.20 0.40 0.60 0.80 Recontracting and strong markets PSEG Power EPS Reconciliation – Q1 2008 versus Q1 2007 Q1 2008 operating earnings Q1 2007 operating earnings MTM .01 BGSS (.01) NDT / Other (.03) Interest expense (.01)
Slide 14: Power – Generation Measures
PSEG Power – Generation Measures 7,456 7,264 3,142 3,660 2,312 2,778 5,000 10,000 15,000 Quarter ended March 31 Total Nuclear Total Coal* Total Oil & Natural Gas * Includes figures for Pumped Storage PSEG Power – Generation (GWh) 12,910 13,702
Slide 15: Power – Q1 Operating Highlights
PSEG Power – Q1 Operating Highlights Salem 2 refueling and steam generator replacement outage underway – on time Generation output increased 6% in quarter Nuclear 2.6% (reflecting outage) Fossil 18.0% O&M expense flat year-over-year Improved pricing for energy in PJM, New York and New England Benefi
Slide 16: Prices and operations yield margin improvement
Prices and operations yield margin improvement $0 $20 $40 $60 Q1 2007 Q1 2008 PSEG Power Realized Gross Margin ($/MWh) $44 $51
Slide 17: PSE&G
PSE&G 2008 Q1 Review
Slide 18: PSE&G – Q1 2008 EPS Summary
PSE&G – Q1 2008 EPS Summary $ 4 $ 821 $ 825 Gross Margin* -- $ 0.26 $ 0.26 EPS from Operating Earnings $ 5 $ 131 $ 136 Income from Continuing Operations/ Net Income $ 5 $ 131 $ 136 Operating Earnings $ 132 $ 2,486 $ 2,618 Operating Revenues Variance Q1 2007 Q1 2008 $ millions (except EPS) *Gross Mar
Slide 19: PSE&G EPS Reconciliation – Q1 2008 versus Q1 2007
$0.26 (.02) .02 $0.26 0.00 0.20 0.40 PSE&G EPS Reconciliation – Q1 2008 versus Q1 2007 Q1 2008 operating earnings Q1 2007 operating earnings Weather : Gas (.02) Taxes .04 O&M (.01) Other (.01)
Slide 20: PSE&G – Q1 Operating Highlights
PSE&G – Q1 Operating Highlights Sales Degree days 6.6% below normal O&M expense under control despite storm NJ Board of Public Utilities approved $105 million solar initiative FERC approved PSE&G request for Susquehanna to Roseland transmission line incentive rate treatment FERC approved 69kV transm
Slide 21: Energy Holdings
PSEG Energy Holdings 2008 Q1 Review
Slide 22: Energy Holdings – Q1 2008 EPS Summary
PSEG Energy Holdings – Q1 2008 EPS Summary $ 0.08 ($ 0.02) $ 0.06 EPS from Operating Earnings (Loss) $ 39 $ 3 $ 42 Net Income ($ 1) -- ($ 1) Impact of Asset Sales (Bond Premiums) -- $ 14 $ 14 Discontinued Operations $ 40 ($ 11) $ 29 Operating Earnings (Loss) Variance Q1 2007 Q1 2008 $ millions (exce
Slide 23: PSEG Energy Holdings EPS Reconciliation – Q1 2008 versus Q1 2007
($0.02) .04 .06 .02 (.04) $0.06 (.01) .01 -0.05 0.00 0.05 0.10 PSEG Energy Holdings EPS Reconciliation – Q1 2008 versus Q1 2007 Q1 2008 operating earnings Q1 2007 operating earnings Asset Sales (.03) Absence of settlement (.01) Effective tax rate Interest expense Texas - MTM Absence of settlement Ta
Slide 24: Energy Holdings – Q1 Operating Highlights
PSEG Energy Holdings – Q1 Operating Highlights Texas operations in line with year ago performance International operations stronger versus year-ago Valuations remain strong for international assets Texas near-term spark spreads stronger in south zone offset by weaker west zone Retired approximately
Slide 25: Summary
Summary
Slide 26: Cash flow projection
Cash flow projection During Q1 2008, cash from operations improved by approximately $100 million over the same period last year. Excluding changes in working capital, cash from operations is approximately $140 million higher than the first quarter of 2007. PSEG expects that it could have up to $3 bi
Slide 27: Summary
PSEG - Summary The PSEG organization has maintained its focus on safe and reliable operations Significant progress achieved on PSE&G regulatory initiatives Energy markets responding to tight supply conditions Strong liquidity position and balance sheet supported PSEG during difficult credit market c
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