Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Q1 2017 Earnings Presentation
28 slides from Public Service Enterprise's earnings presentation, Apr 28, 2017
Slide 1: PSEG Earnings Conference Call 1st Quarter 2017
EXHIBIT 99.1 Public Service Enterprise Group PSEG Earnings Conference Call 1 st Quarter 2017 April 28, 2017
Slide 2: Forward-Looking Statements
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 “forwa
Slide 3: GAAP Disclaimer
GAAP Disclaimer PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings and Adjusted EBITDA
Slide 4: 2017 Q1 Review
PSEG 2017 Q1 Review Ralph Izzo Chairman, President and Chief Executive Officer
Slide 5: Q1 Results Summary – Solid Results
PSEG Q1 Results Summary – Solid Results Quarter ended March 31 $ millions (except EPS) 2017 2016 Net Income $ 114 $ 471 Reconciling Items 352 (8) Operating Earnings (non-GAAP)* $ 466 $ 463 EPS from Net Income $ 0.22 $ 0.93 EPS from Operating Earnings (non-GAAP)* $ 0.92 $ 0.91 * See Slide A for Items
Slide 6: Q1 2017 – Achieved Solid Financial Results
PSEG Q1 2017 – Achieved Solid Financial Results First Quarter Highlights Net Income of $0.22 vs. Net Income of $0.93 per share in Q1 2016 Non-GAAP Operating Earnings* results of $0.92 vs. $0.91 per share in Q1 2016 Net Income reflects decision to retire Hudson-Mercer in June 2017 and REMA lease rese
Slide 7: Reaffirming 2017 Full-Year Guidance
PSEG Reaffirming 2017 Full-Year Guidance Growth in utility infrastructure investment continues to drive a higher regulated earnings contribution in 2017 Non-GAAP Operating Earnings* and 2017 Guidance $2.90 $2.80 - $3.00E 2016 2017E * See Slide A for Items excluded from Net Income to reconcile to Ope
Slide 8: 2017 Q1 Operating Company Review
PSEG 2017 Q1 Operating Company Review Dan Cregg EVP and Chief Financial Officer
Slide 9: Q1 Results by Subsidiary
PSEG – Q1 Results by Subsidiary PSEG Q1 EPS Summary – Quarter ended March 31 GAAP Net Income/(Loss) 2017 2016 Change PSE&G $ 0.59 $ 0.52 $ 0.07 PSEG Power $ (0.34) $ 0.38 $ (0.72) PSEG Enterprise/Other $ (0.03) $ 0.03 $ (0.06) Total PSEG $ 0.22 $ 0.93 $ (0.71) Non-GAAP Operating Earnings* 2017 2016
Slide 10: EPS Reconciliation – Q1 2017 versus Q1 2016
PSEG EPS Reconciliation – Q1 2017 versus Q1 2016 Utility investment and cost control drove Q1 results $1.00 0.07 (0.06) $0.93 $0.91 $0.92 0.00 $0.90 $0.80 PSEG-LI Transmission Higher Gas and Other $0.70 0.03 Send-out 0.02 $0.60 Gas Margin 0.02 Recontracting (0.09) $0.50 Distribution O&M 0.02 ER&T Re
Slide 11: PSE&G 2017 Q1 Review
PSE&G 2017 Q1 Review
Slide 12: PSE&G – Q1 Summary of Results
PSE&G – Q1 Summary of Results $ millions (except EPS) Q1 2017 Q1 2016 Variance Operating Revenues $ 1,812 $ 1,712 $ 100 Operating Expenses Energy Costs 753 729 24 Operation & Maintenance 367 382 (15) Depreciation & Amortization 171 139 32 Total Operating Expenses 1,291 1,250 41 Net Income $ 299 $ 26
Slide 13: PSE&G EPS Reconciliation – Q1 2017 versus Q1 2016
PSE&G EPS Reconciliation – Q1 2017 versus Q1 2016 0.70 0.02 $0.59 0.60 0.05 $0.52 0.50 Distribution Transmission O&M 0.02 0.40 0.03 0.30 Gas Margin 0.02 0.20 0.10 0.00 Q1 2016 Q1 2017 Net Income Net Income 12
Slide 14: PSE&G – Monthly Heating Degree Days
PSE&G – Monthly Heating Degree Days Monthly Heating Degree Days Q1 2017 vs. Q1 2016 vs. Q1 Normal 1200 1Q 2017 1Q 2016 1Q Normal 1000 800 600 400 200 0 January February March 1Q 2017 winter weather, as defined by heating degree days, was ~10% warmer than normal; a colder than normal March offset a m
Slide 15: PSE&G – Q1 Operating Highlights
PSE&G – Q1 Operating Highlights Operations Residential electric sales were flat on an actual and weather-normalized basis; industrial and commercial electric sales increased by 2.5% due to a one time event and is not indicative of ongoing C&I demand growth Total firm gas sales rose by 3% on a weathe
Slide 16: PSEG Power 2017 Q1 Review
PSEG Power 2017 Q1 Review
Slide 17: Power – Q1 Summary of Results
PSEG Power – Q1 Summary of Results $ millions (except EPS) Q1 2017 Q1 2016 Variance Operating Revenues $1,284 $ 1,313 $ (29) Net Income/(Loss) (170) 192 (362) Reconciling Items 320 (8) 328 Operating Earnings (non-GAAP)* $ 150 $ 184 $ (34) EPS from Net Income/(Loss) $ (0.34) $ 0.38 $ (0.72) EPS from
Slide 18: Power EPS Reconciliation – Q1 2017 versus Q1 2016
PSEG Power EPS Reconciliation – Q1 2017 versus Q1 2016 $0.38 $0.36 (0.09) 0.40 0.03 $0.30 0.30 Higher Gas O&M Send-out 0.02 Recontracting (0.09) 0.20 Lower Volume (0.01) ER&T Reserve (0.01) 0.10 Q1 2016 Q1 2016 Q1 2017 Q1 2017 Net Operating Operating Net(Loss) 0.00 Income Earnings Earnings (non-GAAP
Slide 19: Power – Q1 Generation Measures
PSEG Power – Q1 Generation Measures PSEG Power – Generation (GWh)* PSEG Power – Capacity Factors (%) PSEG Power – Fuel Costs Quarter ended Quarter ended 15,000 March 31 March 31 13,201 12,834 2016 2017 ($ millions) 2016 2017 3,754 3,046 Combined Gas $ 66 $ 78 10,000 Cycle 1,028 1,432 Coal 27 35 PJM
Slide 20: Power – Gross Margin Performance
PSEG Power – Gross Margin Performance Lower hedge prices and decline in generation (1 fewer day of operation) Capacity revenues were flat vs. Q1 2016 Regional spark spread compressed in the quarter PSEG Power Gross Margin ($/MWh) Regional Performance Quarter ended March 31 Q1 Gross $50 $47 Region Ma
Slide 21: Hedging Update
Hedging Update… Contracted Energy* Apr-Dec 2017 2018 2019 Volume TWh 25 34 34 Base Load % Hedged 100% 90-95% 35-40% (Nuclear and Base Load Coal) Price $/MWh $46 $41 $42 Volume TWh 10 19 26 Intermediate, Combined Cycle, % Hedged 65-70% 0% 0% Peaking Price $/MWh $46 $- $- Volume TWh 35-37 52-54 58-60
Slide 22: Power – Q1 Operating Highlights
PSEG Power – Q1 Operating Highlights Operations Q1 output down 2.8% as low energy prices and mild weather impacted economic dispatch Nuclear fleet achieved average capacity factor of 100%, producing 8.4 TWhs of energy CCGT fleet had a capacity factor of 42% versus 52% in Q1 2016 as high availability
Slide 23: PSEG
PSEG
Slide 24: Financial Highlights
PSEG Financial Highlights Reiterating 2017 non-GAAP Operating Earnings guidance of $2.80 - $3.00 per share PSE&G earnings forecast to grow 8.5% to comprise 66% of PSEG’s 2017 non-GAAP Operating Earnings Focused on maintaining operating efficiency and customer reliability PSEG’s 5-Year capital spendi
Slide 25: 2017 Guidance - By Subsidiary
PSEG 2017 Guidance - By Subsidiary Segment Operating Earnings Guidance and Prior Results (non-GAAP, except as noted)* $ millions (except EPS) 2017E 2016 PSE&G (Net Income) $945 - $985 $889 PSEG Power $435 - $510 $514 PSEG Enterprise/Other $35 - $35 $72 Operating Earnings (non -GAAP)* $1,415 - $1,530
Slide 26: Liquidity as of March 31, 2017
PSEG Liquidity as of March 31, 2017 25
Slide 27: Reconciliation of Non-GAAP Operating Earnings
Reconciliation of Non-GAAP Operating Earnings PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Consolidated Operating Earnings (non-GAAP) Reconciliation Three Months Ended Year Ended Reconciling Items March 31, December 31, 2017 2016 2016 ($ millions, Unaudited) Net Income $ 114 $ 471 $ 887 (Gain) Loss
Slide 28: Reconciliation of Non-GAAP Operating Earnings and Non-GAAP Adjusted EBITDA
Reconciliation of Non-GAAP Operating Earnings and Non-GAAP Adjusted EBITDA PSEG Power Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) Reconciliation Three Months Ended Year Ended Reconciling Items March 31, December 31, 2017 2016 2016 ($ millions, Unaudited) Net Income (Loss) $ (170) $
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