PUBLIC SERVICE ENTERPRISE GROUP, INC.

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Public Service Incorporated : January 2022 Investor Update

01/11/2022 | 09:28am EDT

Public Service Enterprise Group

January 2022 Investor Update

NYSE TICKER: PEG

Forward-Looking Statements

Certain of the matters discussed in this presentation 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-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 differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward- looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:

  • any inability to successfully develop, obtain regulatory approval for, or construct generation, transmission and distribution projects;
  • lack of growth or slower growth in the number of customers or the failure of our Conservation Incentive Program to fully address a decline in customer demand;
  • any equipment failures, accidents, severe weather events, acts of war or terrorism or other incidents, including pandemics such as the ongoing coronavirus pandemic, that may impact our ability to provide safe and reliable service to our customers;
  • any inability to recover the carrying amount of our long-lived assets;
  • any inability to maintain sufficient liquidity;
  • the impact of cybersecurity attacks or intrusions or other disruptions to our information technology or other systems;
  • the impact of the ongoing coronavirus pandemic;
  • the impact of our covenants in our debt instruments on our operations;
  • adverse performance of our nuclear decommissioning and defined benefit plan trust fund investments and changes in funding requirements;
  • risks associated with the timeline and ultimate completion of the sale of our fossil generating fleet;
  • the failure to complete, or delays in completing, our proposed investment in the Ocean Wind offshore wind project, or following the completion of our initial investment in the project, the failure to realize the anticipated strategic and financial benefits of the project;
  • fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
  • our ability to obtain adequate fuel supply;
  • disruptions or cost increase in our supply chain, including labor shortages;
  • market risks impacting the operation of our generating stations;
  • changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;
  • third-partycredit risk relating to our sale of generation output and purchase of fuel;
  • any inability of PSEG Power to meet its commitments under forward sale obligations;
  • reliance on transmission facilities to maintain adequate transmission capacity for our power generation fleet;
  • the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments;
  • PSE&G's proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;
  • the absence of a long-term legislative or other solution for our New Jersey nuclear plants that sufficiently values them for their carbon-free, fuel diversity and resilience attributes, or the impact of the current or subsequent payments for such attributes being materially adversely modified through legal proceedings;
  • adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning and transmission returns;
  • risks associated with our ownership and operation of nuclear facilities, including regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;
  • changes in federal and state environmental regulations and enforcement;
  • changes in tax laws and regulations; and
  • delays in receipt of, or an inability to receive, necessary licenses and permits.

All of the forward-looking statements made in this presentation are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this presentation apply only as of the date of this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this presentation are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

2

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 excludes the impact of returns (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and material one-time items. The last slide in this presentation (Slide A) includes a list of items excluded from Net Income to reconcile to non-GAAP Operating Earnings with a reference to that slide included on each of the slides where the non-GAAP information appears.

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 a similarly titled measure 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. Management is unable to project certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility. Guidance included herein is as of November 2, 2021.

GAAP Contribution to PSEG Net Income ($ Millions) and Net Income per Share ($/Share)

$3.76

$3.30

$3.33

$2.99

$3.10

$2.83

$2.45

36

122

33

$1.75

6

468

594

644

760

856

18

479

365

1,250

1,327

612

725

787

889

973

1,067

2013

(13)

2014

2015

2016

(20)

2017

2018

2019

(25)

2020

(16)

PSE&G

PSEG Power

PSEG Enterprise/Other

PSEG Consolidated

From time to time, PSEG, PSE&G and PSEG Power 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 websiteto review new postings. You can sign up for automatic email alerts regarding new postings on the Investor Relations websiteat the bottom of the webpage.

3

PSEG's

Powering Progress

Vision:

A future in which people use less energy, that energy is cleaner and delivered more reliably than ever.

4

PSEG: Predominantly regulated with contracted, zero-carbon infrastructure and a strong set of growth opportunities

  • PSEG 2022: 90% regulated business mix from stable, predictable operations of PSE&G, 10% Zero-Carbon Generation, Infrastructure and Other
  • PSE&G: Robust capital program aligned with state clean energy goals, increased by $1B to $14B-$16B through 2025, at our best-in-class utility
    • Incremental investment to focus on last mile distribution starting with the Infrastructure Advancement Program filing
    • Effective cost control to maintain customer affordability
  • Future zero-carbon operations and infrastructure opportunities aligned with New Jersey energy policy
  • Long runway of regulated investment supported by regulatory & policy advocacy paired with effective governance and strong ethics
  • Growth platform of predictable earnings, dividends and capital spend visibility
    • 2022 non-GAAP Operating Earnings Guidance of $3.30 - $3.60 per share
    • Multi-yearearnings growth rate of 5% - 7% over the 2022 to 2025 period, starting with 2022 guidance midpoint
    • Raising indicative 2022 dividend by $0.12 per share, 2022 indicative annual dividend of $2.16* per share
    • $500M of share repurchase, which the Board has authorized before or after the closing of PSEG Fossil sale
    • Expanded financial flexibility lowers minimum threshold credit metrics to 13%-14% (from 17%-18%)
    • No new equity needed to execute 2021-2025 capital program, including Ocean Wind investment

PSEG is an ESG leader in tackling climate change, DEI and governance, with a Net-Zero 2030 Vision and top-tier ESG scores

*Note: All future decisions and declarations regarding dividends on the common stock are subject to approval by the Board of Directors.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

PSEG - Public Service Enterprise Group Inc. published this content on 11 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 January 2022 14:27:01 UTC.


© Publicnow 2022
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Sales 2022 9 081 M - -
Net income 2022 1 731 M - -
Net Debt 2022 19 053 M - -
P/E ratio 2022 19,8x
Yield 2022 3,17%
Capitalization 34 089 M 34 089 M -
EV / Sales 2022 5,85x
EV / Sales 2023 5,68x
Nbr of Employees 12 684
Free-Float 92,9%
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Mean consensus OUTPERFORM
Number of Analysts 20
Last Close Price 68,28 $
Average target price 76,89 $
Spread / Average Target 12,6%
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Managers and Directors
Ralph Izzo Chairman, President & Chief Executive Officer
Daniel J. Cregg Chief Financial Officer & Executive Vice President
Zeeshan Sheikh Chief Information & Digital Officer
Ralph A. LaRossa Chief Operating Officer
M. Courtney McCormick Vice President-Internal Auditing Services
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