PUBLIC SERVICE ENTERPRISE GROUP, INC. Q1 2024 Update
We are off to a solid start in 2024, with PSEG's first-quarter results consistent with our expectations to deliver full-year 2024 non-GAAP Operating Earnings guidance of $3.60 to $3.70 per share. As expected, continued rate base growth from investments focused on infrastructure replacement are being offset by higher investment-related expense that will build over the balance of 2024 as we await resolution of our pending distribution rate case later this year. In addition, the nuclear production tax credit went into effect on January 1, 2024, which is expected to provide our nuclear fleet with downside price protection through 2032. We also anticipate realizing most of the increase in PSEG Power's gross margin for 2024 during the second half of the year.
Quarterly Update Q1 2024
NYSE: PEG
We continue to execute on our long-term strategy by investing in energy infrastructure to support greater electrification of transportation, homes and workplaces, while also reducing greenhouse gas emissions and helping customers lower their bills through our award- winning energy efficiency programs. PSEG will continue to prioritize a solid balance sheet, which enables us to fund our five-year regulated capital investment plan totaling $18 billion to $21 billion without the need to issue new equity or sell assets, and to consistently grow our annual shareholder dividend.
Ralph LaRossa
Chair, President & CEO - April 30, 2024
Q1 2024 Highlights
First Quarter Results
- Net Income of $1.06 per share
- Non-GAAPOperating Earnings* of $1.31 per share
- PSE&G non-GAAP Operating Earnings* driven by higher regulated investments, offset by anticipated higher O&M, depreciation and interest expense
- First quarter dividend increased by $0.03 per share to indicative 2024 annual rate of $2.40 per share**
Operational Excellence
- CEF-EC/AMIinstallations on schedule and on budget, nearing 80% completion
- CEF-EEprogram recognized with the ENERGY STAR Partner of the Year - Sustained Excellence Award
- Nuclear capacity factor was approximately 97% for the quarter
Disciplined Investment
- PSE&G invested ~$0.8 billion in Q1 and is on track for 2024's $3.4 billion capital investment program
- PSE&G commenced in Q1 2024 GSMP II extension, representing ~$900 million of infrastructure spend through year end 2025
- Regulated capital investment program for 2024 - 2028 of $18 billion - $21 billion focused on infrastructure modernization and electrification initiatives
Reaffirmed 2024 Non-GAAP Operating Earnings Guidance
PSEG Results by Segment
PSE&G
($ millions, except EPS) | 1Q 2024 | 1Q 2023 |
Net Income | $488 | $487 |
Net Income Per Share (EPS) | $0.98 | $0.98 |
Non-GAAP Operating Earnings* | $488 | $492 |
Non-GAAP Operating EPS | $0.98 | $0.99 |
PSEG Power & Other
($ millions, except EPS) | 1Q 2024 | 1Q 2023 |
Net Income | $44 | $800 |
Net Income Per Share (EPS) | $0.08 | $1.60 |
Non-GAAP Operating Earnings* | $169 | $203 |
Non-GAAP Operating EPS | $0.33 | $0.40 |
*See Items excluded from Net Income to reconcile to non-GAAP Operating Earnings on next page or https://investor.pseg.com/non-GAAP. ** All future decisions and declarations regarding dividends on the common stock are subject to approval by the Board of Directors.
E=Estimate; O&M=Operation and Maintenance; CEF-EC/AMI=Clean Energy Future-Energy Cloud/Advanced Metering Infrastructure; CEF-EE=Clean Energy Future-Energy Efficiency; GSMP=Gas System Modernization Program; PTC=Production Tax Credit
Public Service Enterprise Group (PSEG)
80 Park Plaza, Newark, NJ 07102
Investor Relations: PSEG-IR-GeneralInquiry@pseg.comhttps://investor.pseg.com
This document contains forward-looking information. Actual results may differ from those anticipated. Information describing the significant factors that could cause results to differ from those anticipated are described in Public Service Enterprise Group's filings with the SEC, which are available on our website https://investor.pseg.com. Information provided is as of April 30, 2024. Any forward-looking statements included herein represent our estimates as of this date and we disclaim any obligation to update the information provided.
Quarterly Update Q1 2024
NYSE: PEG
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. Non-GAAP Operating Earnings exclude the impact of gains (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and other material infrequent items.
Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure for comparing PSEG's financial performance to previous financial results. The presentation of non-GAAP Operating Earnings is intended to complement, and should not be considered an alternative to, the presentation of Net Income, which is an indicator of financial
performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings as presented in this release may not be comparable to similarly titled measures used by other companies.
Due to the forward-looking nature of non-GAAP Operating Earnings guidance, PSEG is unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be required for such reconciliation. Namely, we are not able to reliably project without unreasonable effort MTM and NDT gains (losses) for future periods due to market volatility. These items are uncertain, depend on various factors, and may have a material impact on our future GAAP results. Guidance included herein is as of April 30, 2024.
From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.comor by navigating to the Email Alerts webpage here. The information on https://investor.pseg.comand https://investor.pseg.com/resources/email-alerts/default.aspxis not incorporated herein and is not part of this communication.
Public Service Enterprise Group Incorporated
Consolidated Operating Earnings (non-GAAP) Reconciliation
Three Months Ended | |||||||||||
Reconciling Items | March 31, | ||||||||||
2024 | 2023 | ||||||||||
($ millions, Unaudited) | |||||||||||
Net Income | $ | 532 | $ | 1,287 | |||||||
(Gain) Loss on Nuclear Decommissioning Trust (NDT) | |||||||||||
Fund Related Activity, pre-tax | (95) | (42) | |||||||||
(Gain) Loss on Mark-to-Market (MTM), pre-tax(a) | 258 | (772) | |||||||||
Lease Related Activity, pre-tax | (4) | - | |||||||||
Exit Incentive Program (EIP), pre-tax | - | 11 | |||||||||
Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) | (34) | 211 | |||||||||
Operating Earnings (non-GAAP) | $ | 657 | $ | 695 | |||||||
PSEG Fully Diluted Average Shares Outstanding (in millions) | 500 | 500 | |||||||||
($ Per Share Impact - | |||||||||||
Diluted, Unaudited) | |||||||||||
Net Income | $ | 1.06 | $ | 2.58 | |||||||
(Gain) Loss on NDT Fund Related Activity, pre-tax | (0.19) | (0.08) | |||||||||
(Gain) Loss on MTM, pre-tax(a) | 0.52 | (1.55) | |||||||||
Lease Related Activity, pre-tax | (0.01) | - | |||||||||
EIP, pre-tax | - | 0.02 | |||||||||
Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) | (0.07) | 0.42 | |||||||||
Operating Earnings (non-GAAP) | $ | 1.31 | $ | 1.39 | |||||||
- Includes the financial impact from positions with forward delivery months.
- Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity.
PSE&G Operating Earnings (non-GAAP) Reconciliation
Three Months Ended | ||||||||||
Reconciling Items | March 31, | |||||||||
2024 | 2023 | |||||||||
($ millions, Unaudited) | ||||||||||
Net Income | $ | 488 | $ | 487 | ||||||
EIP, pre-tax | - | 7 | ||||||||
Income Taxes related to Operating Earnings (non-GAAP) reconciling items | - | (2) | ||||||||
Operating Earnings (non-GAAP) | $ | 488 | $ | 492 | ||||||
PSEG Fully Diluted Average Shares Outstanding (in millions) | 500 | 500 |
PSEG Power & Other Operating Earnings (non-GAAP) Reconciliation
Three Months Ended | ||||||||||
Reconciling Items | March 31, | |||||||||
2024 | 2023 | |||||||||
($ millions, Unaudited) | ||||||||||
Net Income | $ | 44 | $ | 800 | ||||||
(Gain) Loss on NDT Fund Related Activity, pre-tax | (95) | (42) | ||||||||
(Gain) Loss on MTM, pre-tax(a) | 258 | (772) | ||||||||
Lease Related Activity, pre-tax | (4) | - | ||||||||
EIP, pre-tax | - | 4 | ||||||||
Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) | (34) | 213 | ||||||||
Operating Earnings (non-GAAP) | $ | 169 | $ | 203 | ||||||
PSEG Fully Diluted Average Shares Outstanding (in millions) | 500 | 500 |
- Includes the financial impact from positions with forward delivery months.
- Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity.
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PSEG - Public Service Enterprise Group Inc. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 16:02:08 UTC.
