Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q1 2013 Earnings Presentation
30 slides from Public Service Enterprise's earnings presentation, Apr 30, 2013
Slide 1: PSEG Earnings Conference Call 1st Quarter 2013
Public Service Enterprise Group PSEG Earnings Conference Call 1st Quarter 2013 April 30, 2013
Slide 2: Forward-Looking Statement
Forward-Looking Statement Certain of the matters discussed in this report constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to di
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 gains or losses associa
Slide 4: 2013 Q1 Review
PSEG 2013 Q1 Review Ralph Izzo Chairman, President and Chief Executive Officer
Slide 5: Q1 Earnings Summary
Q1 Earnings Summary Quarter ended March 31 $ millions (except EPS) 2013 2012 Operating Earnings $ 433 $ 432 Reconciling Items, Net of Tax (113) 61 Income from Continuing Operations/Net Income $ 320 $ 493 EPS from Operating Earnings* $ 0.85 $ 0.85 * See Slide A for Items excluded from Income from Con
Slide 6: PSEG Q1 2013 Highlights
PSEG – Q1 2013 Highlights Strong Earnings Operating earnings of $0.85 vs. $0.85 per share in Q1 2012 Power benefited from higher pricing and increased output Increased contribution to earnings from PSE&G’s investment in transmission Operational Excellence PSEG Power output up 7.7% in qua
Slide 7: Maintaining 2013 Guidance
PSEG – Maintaining 2013 Guidance $2.74 $2.44 $2.25 - $2.50E 2011 Operating Earnings* 2012 Operating Earnings* 2013 Operating Earnings Guidance * See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings. E = Estimate. 6
Slide 8: 2013 Q1 Operating Company Review
PSEG 2013 Q1 Operating Company Review Caroline Dorsa EVP and Chief Financial Officer
Slide 9: Q1 Operating Earnings by Subsidiary
Q1 Operating Earnings by Subsidiary Quarter ended March 31 Operating Earnings Earnings per Share $ millions (except EPS) 2013 2012 2013 2012 PSEG Power $ 250 $ 196 $ 0.49 $ 0.39 PSE&G 179 197 0.35 0.39 PSEG Energy Holdings/ 4 39 0.01 0.07 Enterprise Operating Earnings* $ 433 $ 432 $ 0.85 $ 0.85 * Se
Slide 10: EPS Reconciliation – Q1 2013 versus Q1 2012
PSEG EPS Reconciliation – Q1 2013 versus Q1 2012 1.00 .10 (.04) (.06) $0.85 $0.85 Capacity .05 Transmission 0.80 Net Earnings .03 Absence of Net Price .02 Tax Settlement (.07) Weather .02 0.60 Other .01 Volume .02 Distribution O&M (.02) Gas Send-Out and Fixed Cost $ / share D&A and 0.40 Recovery .04
Slide 11: Power 2013 Q1 Review
PSEG Power 2013 Q1 Review
Slide 12: Power – Q1 2013 EPS Summary
PSEG Power – Q1 2013 EPS Summary $ millions (except EPS) Q1 2013 Q1 2012 Variance Operating Revenues $ 1,447 $ 1,561 $ (114) Operating Earnings $ 250 $ 196 $ 54 Pro Forma Adjustments, (113) 57 (170) Net of Tax** Income from Continuing Operations/ $ 137 $ 253 $ (116) Net Income EPS from Operating Ear
Slide 13: Power EPS Reconciliation – Q1 2013 versus Q1 2012
PSEG Power EPS Reconciliation – Q1 2013 versus Q1 2012 .13 (.03) $0.49 0.50 O&M and Other $0.39 0.40 (.02) Capacity .05 D&A (.01) 0.30 Net Price .02 $ / share 0.20 Volume .02 Gas Send-Out 0.10 and Fixed Cost Recovery .04 0.00 Q1 2012 Q1 2013 Operating Operating Earnings* Earnings* * See Slide A for
Slide 14: Power – Generation Measures
PSEG Power – Generation Measures Generation by Fuel (GWh) Fleet Capacity Factors (%) Quarter ended March 31 Quarter ended March 31 15,000 14,030 14,157 13,143 27% 2011 2012 2013 of 3,790 3,813 Output Combined 4,043 Cycle PJM and NY 53% 56% 52% 2,312 2,207 1,130 Coal* 7,500 NJ (Coal/Gas) 29% 2% 19% 5
Slide 15: Power – Fuel Costs
PSEG Power – Fuel Costs PSEG Power – Fuel Costs Quarter ended March 31 ($ millions) 2011 2012 2013 Coal $90 $39 $66 Oil & Gas 191 128 178 Total Fossil 281 167 244 Nuclear 46 50 58 Total Fuel $327 $217 $302 Cost Total Generation 14,030 13,143 14,157 (GWh) $ / MWh 23.31 16.51 21.33 14
Slide 16: Power – Gross Margin Performance
PSEG Power – Gross Margin Performance Return to normal weather and higher spot power and gas prices offset declines in average hedge price Q1 spot prices higher across PJM, ISO-NE, and NYISO Capacity prices higher year-over-year Market support for dispatch of NJ coal units on coal Continue
Slide 17: Hedging Update
Hedging Update… Contracted Energy* Apr-Dec 2013 2014 2015 Volume TWh 26 35 35 Base Load % Hedged 100% 80-85% 40-45% (Nuclear and Base Load Coal) Price $/MWh $50 $50 $50 Volume TWh 15 19 18 Intermediate Coal, Combined % Hedged 30-35% 0% 0% Cycle, Peaking Price $/MWh $50 $50 $50 Volume TWh 40-42 53-55
Slide 18: Power – Q1 2013 Operating Highlights
PSEG Power – Q1 2013 Operating Highlights Operations Q1 output up 7.7% on strong portfolio production; nuclear capacity factor at 101% Salem station posted record generation Equipment and design upgrades contributed to excellent nuclear performance Output of NJ coal units was 54% coal, 46% g
Slide 19: PSE&G 2013 Q1 Review
PSE&G 2013 Q1 Review
Slide 20: PSE&G – Q1 Earnings Summary
PSE&G – Q1 Earnings Summary $ millions (except EPS) Q1 2013 Q1 2012 Variance Operating Revenues $ 1,995 $ 1,939 $ 56 Operating Expenses Energy Costs 967 1,002 (35) Operation & Maintenance 427 376 51 Depreciation & Amortization 215 190 25 Taxes Other than Income Taxes 21 29 (8) Total Operating Expens
Slide 21: PSE&G EPS Reconciliation – Q1 2013 versus Q1 2012
PSE&G EPS Reconciliation – Q1 2013 versus Q1 2012 0.50 .05 (.02) (.07) $0.39 0.40 Distribution $0.35 Transmission O&M Net Earnings .03 D&A and 0.30 $ / share Other (.01) Weather .02 Absence of Tax 0.20 Settlement (.06) 0.10 0.00 Q1 2012 Q1 2013 Operating Operating Earnings* Earnings* * See Slide A f
Slide 22: PSE&G – Q1 Operating Highlights
PSE&G – Q1 Operating Highlights Operations Q1 weather was significantly colder than a year ago but about normal Heating degree days 26% above Q1 2012, flat versus normal weather Residual impacts of Sandy and a still-slow economy continue to weigh on demand More normal O&M spend in Q1 2013; e
Slide 23: Energy Holdings/Enterprise 2013 Q1 Review
PSEG Energy Holdings/Enterprise 2013 Q1 Review
Slide 24: Energy Holdings/Enterprise – Q1 2013 Earnings Summary
PSEG Energy Holdings/Enterprise – Q1 2013 Earnings Summary $ millions (except EPS) Q1 2013 Q1 2012 Variance Operating Earnings $ 4 $ 39 $ (35) Lease Transaction Activity - 4 (4) Net Income $ 4 $ 43 $ (39) EPS from Operating Earnings* $ 0.01 $ 0.07 $ (0.06) * See Slide A for Items excluded from Incom
Slide 25: Energy Holdings/Enterprise EPS Reconciliation – Q1 2013 versus Q1 2012
PSEG Energy Holdings/Enterprise EPS Reconciliation – Q1 2013 versus Q1 2012 0.10 $0.07 (.06) $ / share Absence of Tax 0.05 Settlement (.07) Other .01 $0.01 0.00 Q1 2012 Q1 2013 Operating Operating Earnings* Earnings* * See Slide A for Items excluded from Income from Continuing Operations/Net Income
Slide 26: PSEG
PSEG
Slide 27: PSEG Financial Highlights
PSEG Financial Highlights Maintaining 2013 operating earnings guidance of $2.25 - $2.50 per share Focused on maintaining operating efficiency and customer reliability PSE&G expected to grow at double-digit rate in 2013 and provide ~50% of operating earnings Executing existing $3.4 billion tr
Slide 28: 2013 Operating Earnings Guidance - By Subsidiary
PSEG 2013 Operating Earnings Guidance - By Subsidiary $ millions (except EPS) 2013E 2012A PSEG Power $535 – $600 $644 PSE&G $580 – $635 $528 PSEG Energy $25 – $35 $64 Holdings/Enterprise Operating Earnings* $1,140 – $1,270 $1,236 Earnings per Share $2.25 – $2.50 $2.44 * See Slide A for Items exclude
Slide 29: Liquidity as of March 31, 2013
PSEG Liquidity as of March 31, 2013 28
Slide 30: Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings
Items Excluded from Income from Continuing Operations/ Net Income 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 Year Ended Pro-f
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