Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Debt Investor Presentation (January 2019)
17 slides from Pacific Gas & Electric's debt investor presentation, Jan 23, 2019
Slide 1: Public-Side Lender Presentation
PUBLIC-SIDE LENDER PRESENTATION January 23, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements regarding management’s expectations and objectives for future periods as well as forecasts and estimates regarding potential liability in connection with the 2017 and 2018 Northern California wildfires, the proposed Community Wildfire
Slide 3: Non-GAAP Information
Non-GAAP Information PG&E refers to the term “Adjusted EBITDA” in various places in this presentation. Adjusted EBITDA is a supplemental financial measure that is not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA is provided herein in order to pr
Slide 4: Executive summary
Executive summary PG&E Corporation (NYSE: PCG) (the “Corporation”) is an energy-based holding company, headquartered in San Francisco − It is the parent company of Pacific Gas and Electric Company (the “Utility” and, together with the Company, “PG&E”), an energy company that serves 16 million Cali
Slide 5: PG&E System At a Glance
PG&E System At a Glance Service Territory 2017 Revenue Sources Key Highlights (2018) Employees ~23,000 Gas Transmission General & Storage Californians served ~16M Rate Case ~7% ~43% Net income (2017) ~$1.7B Electric Pass- Transmission through ~9% Ratebase (2017) ~$34.4B ~41% Miles of electric lines
Slide 6: 2017 and 2018 Northern California Wildfires
2017 and 2018 Northern California Wildfires Recent Wildfires Overview 2017 Northern California Wildfires • According to the California Department of Forestry and Fire Protection’s (“Cal Fire”) California Statewide Fire Summary dated October 30, 2017, at the peak of the 2017 Northern California wildf
Slide 7: Comprehensive Program to Address Wildfire Risk
Comprehensive Program to Address Wildfire Risk Proposed Community Wildfire Safety Program (1) ~$6B Program Spend through 2023 (1) (3) ($B) Increase Enhanced Infrastructure 1.5 Situational Operational Hardening Awareness Practices ~600 HD Cameras ~2,800 miles of tree wire in 12’ radial vegetation 1.0
Slide 8: Highlights of Senate Bill 901
Highlights of Senate Bill 901 On September 21, 2018, California's governor signed legislation to strengthen California's ability to prevent and recover from catastrophic wildfires, including SB 901. Highlights below: • Imposing more restrictive forest management practices and providing support and i
Slide 9: Wildfire Cases
Wildfire Cases Status • 8/8/2018: California Supreme Court denied PG&E Petition for Review • 11/29/2018: Court granted motion for stipulated Butte Fire Case judgment, giving PG&E the right to appeal the trial court’s inverse condemnation ruling. PG&E is in the early stages of this appeal • Wildfire
Slide 10: PG&E is Critical to California's Safety and Climate Goals
PG&E is Critical to California’s Safety and Climate Goals PG&E Safety Culture and PG&E is advancing California’s Climate Goals Procedures Million metric California GHG Emissions and Targets Investing billions of dollars in gas tons CO2e 500 Assembly Bill 32: and electric safety improvements Reduce
Slide 11: Adjusted EBITDA and Ratebase
Adjusted EBITDA(1) and Ratebase Adjusted EBITDA ($B) 2014-LTM 2018 (1) Ratebase ($B) 2014-2018 $7.0 $40.0 7% CAGR (2) 7% CAGR (2) $36.8 $5.9 $34.4 $6.0 $35.0 $5.6 $5.6 $32.4 $5.0 $29.5 $4.9 $30.0 $28.2 $5.0 $25.0 $4.0 $20.0 $3.0 $15.0 $2.0 $10.0 $1.0 $5.0 $0.0 $0.0 (3) 2014 2015 2016 2017 LTM '18 20
Slide 12: 2018 Financial and Regulatory Snapshot / Assumptions
2018 Financial and Regulatory Snapshot / Assumptions Capital Expenditures Authorized Ratebase (weighted average) ($ billions) ($ billions) 2018E 2018 General Rate Case $4.2 General Rate Case $25.9 Gas Transmission and Storage 1.0 Gas Transmission and Storage 3.8 Transmission Owner 19 1.3 Transmissio
Slide 13: Robust Cap Ex Bolsters Safety Initiatives
Robust Cap Ex Bolsters Safety Initiatives Capital Expenditures 2018-2023 ~$0.1B ~$0.2B ~$7B $6.5B $6.6B ~$1.0B ~$5.7B CWSP (2) $~700M Other GRC $~300M 2018E 2018 2019 Currently Incremental Incremental Incremental Authorized Authorized GRC Request GT&S Request TO Request Plus Requested CapEx CapEx Ra
Slide 14: Ratebase Supports Stable Revenues & Cash Flows
Ratebase Supports Stable Revenues & Cash Flows 2018-2023 Estimated Weighted Average Ratebase (1) ~7 – 8.5% CAGR ~$52.0-56.0B ~$49.5-52.5B ~$47.0-49.0B ~$44.5-45.5B ~$40.5B $36.8B (3) 2018 2019 2020 2021 2022 2023 General Rate Case (2) Gas Transmission & Storage Electric Transmission Owner Range (1)
Slide 15: Strong collateral coverage with first priority lien
Strong collateral coverage with first priority lien Note: No valuation work has been performed Illustrative Collateral Coverage ($mm) Substantial Enterprise Value Firm Value / LTM Adjusted EBITDA (3) $61,200 Book Value (1) 14.0x Median: 11.3x $500 Inventory 12.4x 11.9x 11.7x $4,500 11.5x 11.3x 11.0x
Slide 16: GAAP Net Income to Non-GAAP Adjusted EBITDA reconciliation
GAAP Net Income to Non-GAAP Adjusted EBITDA reconciliation ($MM) 2014 2015 2016 2017 9 mo. ended 09/30/17 9 mo. ended 09/30/18 LTM ended 09/30/18 PG&E Corporation’s Net Income on a GAAP Basis $ 1,450 $ 888 $ 1,407 $ 1,660 $ 1,542 $ 32 $ 150 Income tax provision (benefit) 345 (27) 55 511 403 (527) (4
Slide 17: Corporate structure
Corporate structure Pre-petition HoldCo debt Instrument Face Due PG&E Corporation Unsecured term loan $350 Apr-20 (“HoldCo”) $300mm revolver 300 Apr-22 100% common equity (1) Post-petition DIP Instrument Commit. Due DIP R/C $3,500 Dec-20 DIP TL $1,500 Dec-20 Pacific Gas and All significant Immateria