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PG&E 8-K Report, Financial Results (Feb 22, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 22, 2024
Period End
February 22, 2024
In the record · 2016–202610-K1310-Q338-K367

PCG filed 13 annual reports (10-K), 33 quarterly reports (10-Q) and 367 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’18Jul ’18
  2. Bankruptcy8-K · Jun ’20Jun ’20
  3. Material agreement8-K · Apr ’22Apr ’22
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed February 22, 2024. Cited figures are marked; the original filing is the authoritative source.

PG&E Corporation and its subsidiary Pacific Gas and Electric Company reported full-year 2023 results in a press release furnished under Item 2.02 of this Form 8-K.

PG&E Corporation reported 2023 GAAP income available for common shareholders of $2,242 milliona, or $1.05 per diluted share, compared with $1,800 million, or $0.84 per share, in 2022. Non-GAAP core earnings were $2,630 million, or $1.23 per share, versus $2,343 million, or $1.10 per share, a year earlier. The company stated it delivered 2023 non-GAAP core EPS at the high end of its guidance range.

Management attributed the year-over-year increase primarily to higher customer capital investment approved in the 2023 General Rate Case final decision, along with non-fuel operating and maintenance savings. For 2024, PG&E raised its GAAP EPS guidance to $1.10 to $1.14b per share (previously $1.08 to $1.12) and its non-GAAP core EPS guidance to $1.33 to $1.37 per share (previously $1.31 to $1.35). The company stated it issued no equity in 2023 and forecasts no equity needs in 2024.

Five-year capital plan was increased to $62 billionc through 2028, which the filing describes as a 20% increase, and management extended at least 9% non-GAAP core EPS growth guidance through 2027 and 2028. The presentation furnished as Exhibit 99.2 describes a rate base growth forecast of approximately 9.5% CAGR from 2023 through 2028, and a 2023 non-fuel O&M reduction of 5.5%.

Non-core items totaled $388 milliond after tax, or $0.18 per share, for 2023. The filing's forward-looking statements cite wildfire liability, regulatory outcomes, and indebtedness among key risk factors.

02—Key points

Key Highlights

  1. GAAP EPS for 2023 was $1.05 per diluted share, up from $0.84 in 2022; Q4 2023 GAAP EPS was $0.43 versus $0.24.
  2. Non-GAAP core EPS for 2023 was $1.23 per share, versus $1.10 in 2022, and the company said this was at the high end of guidance.
  3. 2024 GAAP EPS guidance was raised to $1.10 to $1.14 per share from $1.08 to $1.12.
  4. 2024 non-GAAP core EPS guidance was raised to $1.33 to $1.37 per share from $1.31 to $1.35.
  5. Five-year capital plan increased to $62 billion through 2028, a 20% increase; company forecasts no equity issuance in 2024.
  6. 2023 non-fuel O&M costs were reduced by 5.5% versus 2022, exceeding the 2% annual reduction target.
  7. Non-GAAP core EPS growth guidance of at least 9% was extended through 2027 and 2028.

03—Questions

Frequently Asked Questions

  1. Why did PG&E's GAAP earnings increase in 2023?

    The filing attributes the increase primarily to higher customer capital investment approved in the 2023 General Rate Case final decision, which earns an equity return, plus non-fuel O&M savings, partly offset by reinvestment in programs such as Model Yards and employee training. Lower reorganization-related and wildfire-related costs also contributed.

  2. Is PG&E planning to issue new equity in 2024?

    No. The filing states that no equity was issued in 2023 and the company is forecasting no equity needs in 2024.

  3. What is driving the increase in the five-year capital plan?

    The company increased its five-year capital plan to $62 billion through 2028, a 20% increase, to support critical customer infrastructure improvements. The presentation attributes part of the rate base growth to authorized capital from the 2023 GRC and additional investment opportunities such as transmission upgrades and data center-related system investments.

  4. What are the main non-core items affecting 2023 and 2024 results?

    For 2023, non-core items totaled $388 million after tax, or $0.18 per share, including amortization of the Wildfire Fund contribution ($408 million after tax) and Fire Victim Trust tax benefit net of securitization (a $262 million benefit after tax). For 2024, the company estimates non-core items of $480 million to $490 million after tax, with the Wildfire Fund amortization being the largest component at about $0.16 per share.

  5. What risks does the filing highlight for these projections?

    The forward-looking statements cite risks including wildfire-related liability and recovery, regulatory and legislative outcomes, the ability to achieve projected cost savings, substantial indebtedness, securities class action and wildfire litigation, and the tax treatment of certain assets, as disclosed in the company's 2023 Form 10-K.

04—Continue

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