Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Presentation (November 2016)
9 slides from Public Service Enterprise's investor presentation, Nov 4, 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: Disciplined investment program and focus on operational excellence have supported growth
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 contribution to PSEG’s r
Slide 4: Cost control actions: PSE&G utilizing Lean Six Sigma to achieve cost savings
Cost control actions: PSE&G is utilizing the Lean Six Sigma discipline to achieve costs savings and process improvements Conducting organizational reviews resulting in streamlining of processes through restructuring Continued focus on vendor and inventory practices ensuring maximum value Successful
Slide 5: Cost control actions taken at PSEG Power
Cost control actions taken: Fossil plant assessment CCGT material condition assessment Vendor contract renegotiations Nuclear security services brought in-house to control costs Nuclear maintenance productivity study Nuclear outage efficiency initiative Materials management Nuclear excellence initia
Slide 6: Post-Capitalization Pension and OPEB Expense
Post-Capitalization Pension and OPEB Expense Manageable Pension and OPEB Expense with a reduction of $25 million in 2016 $ millions E = Estimate. Pension expense in 2017 is estimated to increase by ~ $0.03 per share (excluding any actuarial updates or other potential impacts that are under evaluatio
Slide 7: PSEG O&M Expense
Power excludes impacts from storm recovery costs and related insurance proceeds as well as impairments related to Hudson/mercer retirements. NM = not material E = ESTIMATE 2011 - 2016E CAGR: ~1.1% 2011 – 2016E CAGR Transmission ~10.2% Distribution ~1.5% Power ~0.0% Other: N.M. $ Millions PSEG O&M Ex
Slide 8: PSEG's 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 $0.01 $0.01 $0.01 $
Slide 9: Items Excluded from Net Income to Reconcile to Operating Earnings (non-GAAP)
Items Excluded from Net Income to Reconcile to Operating Earnings (non-GAAP) 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 2016 2015 2015 2014 2013 2012 Net Income 985 $ 1,370 $ 1,679 $ 1,518 $ 1,243 $ 1
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