By Michael Dabaie
Public Service Enterprise Group Inc. shares were up 6%, to $55.53, in afternoon trading.
Before the market open, the diversified energy company reported second-quarter net income of $451 million, or 89 cents per share, up from $153 million, or 30 cents per share, in the second quarter of 2019.
Non-GAAP operating earnings for the second quarter were 79 cents per share, versus 58 cents a year earlier. Operating revenue came to $2.05 billion, down from $2.32 billion in the year-ago period.
PSEG backed its 2020 non-GAAP operating earnings guidance of $3.30 to $3.50 per share.
The company also said it is exploring strategic alternatives for PSEG Power's non-nuclear generating fleet. This includes more than 6,750 megawatts of fossil generation located in New Jersey, Connecticut, New York and Maryland, as well as the 467-megawatt Solar Source portfolio located in various states.
The company said that while it is in the preliminary stage of this evaluation, the marketing of a potential transaction in one or a series of steps, anticipated to launch in the fourth quarter, is expected to be completed sometime in 2021.
An exit from the fossil generation business would accelerate PSEG's transition to a primarily regulated and contracted business, the company said. Given the relatively small part of PSEG that the non-nuclear business represents, the decision won't affect the company's current shareholder dividend policy, the company said.
"PSEG will explore how a potential separation of the non-nuclear assets could reduce overall business risk and earnings volatility, improve our credit profile, and enhance an already compelling ESG position driven by pending clean energy investments, methane reduction, and zero carbon generation," said Chief Executive Ralph Izzo.
PSEG intends to retain ownership of PSEG Power's existing nuclear fleet.
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