PUBLIC SERVICE ENTERPRISE GROUP, INC. Quarterly Update Q4 2023
NYSE: PEG
Q4 and Full Year 2023 Update
PSEG achieved solid operating and financial performance in 2023. Our non-GAAP results for the full year came in at the high-end of our 2023 guidance range and marked the 19th consecutive year that we delivered results that met or exceeded our guidance. PSE&G efficiently completed its largest ever capital investment plan in a single year - totaling $3.7 billion - focused on meeting our customers' needs by modernizing our system infrastructure, maintaining our best in the state reliability and resiliency, and expanding our energy efficiency offerings to customers at every income level to help them reduce their energy usage and bills.
For 2024, we are reaffirming our non-GAAP Operating Earnings guidance range of $3.60 to $3.70 per share. The recent $0.12 increase to PSEG's 2024 indicative annual common dividend rate to $2.40 per share also extends our track record of providing dividend income to our investors for 117 consecutive years.
Ralph LaRossa
Chair, President & CEO - February 26, 2024
PSEG Q4 and Full Year 2023 Highlights
Solid Fourth Quarter and Full Year Results
- Net Income of $1.10 per share in Q4; Net Income of $5.13 per share in FY 2023
- Non-GAAPOperating Earnings* of $0.54 per share in Q4; Non-GAAP Operating Earnings* of $3.48 per share in FY 2023
Operational Excellence
- #1 in Customer Satisfaction with Residential and Business Electric Service in the East among Large Utilities by J.D. Power in 2023
- 2023 PA Consulting ReliabilityOne® Award for Outstanding Metropolitan Service Area Reliability Performance in the Mid-Atlantic Region for 22nd consecutive year
- Nuclear capacity factor remains strong at approximately 93% for full year 2023
Disciplined Investment
- PSE&G successfully executed its largest single year capital investment program in 2023 totaling $3.7 billion, including $1 billion in Q4
- Regulated capital investment program for 2024 - 2028 of $18 billion - $21 billion driven by system modernization and NJ's decarbonization and energy policy goals
- PSE&G filed a required distribution rate case with the BPU, its first in nearly six years, primarily to recover prior investments
- PSE&G also submitted its CEF-EE II filing to the BPU; the $3.1 billion proposal covers commitments made from January 2025 through June 2027
Reaffirmed 2024 Non-GAAP Operating Earnings Guidance
PSEG Results by Segment
PSE&G
($ millions, except EPS) | 4Q 2023 | 4Q 2022 | FY 2023 | FY 2022 |
Net Income | $291 | $352 | $1,515 | $1,565 |
Net Income Per Share (EPS) | $0.58 | $0.70 | $3.03 | $3.12 |
Non-GAAP Operating Earnings* | $296 | $352 | $1,532 | $1,565 |
Non-GAAP Operating EPS | $0.59 | $0.70 | $3.06 | $3.12 |
PSEG Power & Other
($ millions, except EPS) | 4Q 2023 | 4Q 2022 | FY 2023 | FY 2022 |
Net Income (Loss) | $255 | $436 | $1,048 | $(534) |
Net Income (Loss) Per Share (EPS) | $0.52 | $0.88 | $2.10 | $(1.06) |
Non-GAAP Operating Earnings* | $(25) | $(34) | $210 | $174 |
Non-GAAP Operating EPS | $(0.05) | $(0.06) | $0.42 | $0.35 |
*See Items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating Earnings on next page or https://investor.pseg.com/non-GAAP. E=Estimate; CEF=Clean Energy Future; PTC = Production Tax Credit; BPU = New Jersey Board of Public Utilities
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 February 26, 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 Q4 2023
NYSE: PEG
GAAP Disclaimer
PSEG presents Operating Earnings in addition to its Net Income/(Loss) 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/(Loss). 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/(Loss), 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 February 26, 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 | Year Ended | ||||||||||||||||||
Reconciling Items | December 31, | December 31, | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||
($ | millions, Unaudited) | ||||||||||||||||||
Net Income | $ | 546 | $ | 788 | $ | 2,563 | $ | 1,031 | |||||||||||
(Gain) Loss on Nuclear Decommissioning Trust (NDT) | |||||||||||||||||||
Fund Related Activity, pre-tax | (126) | (85) | (184) | 270 | |||||||||||||||
(Gain) Loss on Mark-to-Market (MTM), pre-tax(a) | (291) | (611) | (1,334) | 635 | |||||||||||||||
Pension Settlement Charges, pre-tax | 6 | - | 338 | - | |||||||||||||||
Plant Retirements, Dispositions and Impairments, pre-tax(b) | - | 14 | - | 31 | |||||||||||||||
Lease Related Activity, pre-tax | 7 | 25 | 7 | 78 | |||||||||||||||
Exit Incentive Program (EIP), pre-tax | 4 | - | 29 | - | |||||||||||||||
Income Taxes related to Operating Earnings (non-GAAP) reconciling items(c) | 125 | 187 | 323 | (306) | |||||||||||||||
Operating Earnings (non-GAAP) | $ | 271 | $ | 318 | $ | 1,742 | $ | 1,739 | |||||||||||
PSEG Fully Diluted Average Shares Outstanding (in millions) | 500 | 500 | 500 | 501 | |||||||||||||||
($ Per Share Impact - Diluted, Unaudited) | |||||||||||||||||||
Net Income | $ | 1.10 | $ | 1.58 | $ | 5.13 | $ | 2.06 | |||||||||||
(Gain) Loss on NDT Fund Related Activity, pre-tax | (0.26) | (0.17) | (0.37) | 0.54 | |||||||||||||||
(Gain) Loss on MTM, pre-tax(a) | (0.58) | (1.22) | (2.67) | 1.27 | |||||||||||||||
Pension Settlement Charges, pre-tax | 0.02 | - | 0.68 | - | |||||||||||||||
Plant Retirements, Dispositions and Impairments, pre-tax(b) | - | 0.03 | - | 0.06 | |||||||||||||||
Lease Related Activity, pre-tax | 0.01 | 0.05 | 0.01 | 0.15 | |||||||||||||||
EIP, pre-tax | 0.01 | - | 0.06 | - | |||||||||||||||
Income Taxes related to Operating Earnings (non-GAAP) reconciling items(c) | 0.24 | 0.37 | 0.64 | (0.61) | |||||||||||||||
Operating Earnings (non-GAAP) | $ | 0.54 | $ | 0.64 | $ | 3.48 | $ | 3.47 | |||||||||||
- Includes the financial impact from positions with forward delivery months.
- Full year 2022 includes the results for fossil generation sold in February 2022.
- Income tax effect calculated at 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 | PSEG Power & Other Operating Earnings (non-GAAP) Reconciliation |
- Includes the financial impact from positions with forward delivery months.
- Full year 2022 includes the results for fossil generation sold in February 2022.
- 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 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 04:31:05 UTC.
