01—Abstract
Summary
Summary of the 8-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
PG&E Corporation and its subsidiary Pacific Gas and Electric Company furnished this Form 8-K on February 13, 2025 to report results for the quarter and year ended December 31, 2024 and to update 2025 earnings guidance.
GAAP earnings were $1.15a per diluted share for full-year 2024, up from $1.05 in 2023, and $0.30 per share for the fourth quarter versus $0.43 a year earlier. Non-GAAP core earnings were $1.36 per share for 2024 versus $1.23 in 2023, and $0.31 for the fourth quarter versus $0.47. Full-year GAAP income available for common shareholders was $2,475 million, compared with $2,242 million in 2023, and total operating revenues were $24,419 million, roughly flat with $24,428 million the prior year.
Management reaffirmed 2025 GAAP EPS guidance of $1.30 to $1.36b per share and raised 2025 non-GAAP core EPS guidance to $1.48 to $1.52 from $1.47 to $1.51. The company stated that equity needs are fully satisfied to fund a five-year capital plan of $63 billion through 2028, and it is targeting a dividend payout ratio of approximately 20% of core earnings by 2028. Operating cash flow was $8.0 billion in 2024, up from $4.7 billion in 2023, and non-fuel operating and maintenance costs were reduced by 4% versus 2023.
Operationally, the company reported a second consecutive year with no major wildfires caused by its equipment, completed 366 miles of system hardening, and signed a $15 billionc loan guarantee agreement with the U.S. Department of Energy's Loan Programs Office. Investors should note that the 2025 guidance includes unrecoverable interest expense of $350 million to $400 million after tax, and that non-core items, which management excludes from core earnings, totaled $448 million after tax in 2024.
02—Key points
Key Highlights
- GAAP EPS of $1.15 for full-year 2024, up from $1.05 in 2023; Q4 2024 GAAP EPS of $0.30 versus $0.43 in Q4 2023
- Non-GAAP core EPS of $1.36 for full-year 2024 versus $1.23 in 2023; Q4 2024 core EPS of $0.31 versus $0.47
- 2025 GAAP EPS guidance reaffirmed at $1.30 to $1.36; 2025 non-GAAP core EPS guidance raised to $1.48 to $1.52 from $1.47 to $1.51
- Equity needs fully satisfied to fund the five-year capital plan of $63 billion through 2028
- Operating cash flow of $8.0 billion in 2024, up from $4.7 billion in 2023; non-fuel O&M costs reduced by 4% versus 2023
- Second consecutive year of zero major wildfires caused by company equipment; 366 miles of system hardening completed in 2024
- Signed a $15 billion loan guarantee agreement with the U.S. Department of Energy's Loan Programs Office for grid modernization projects
03—Questions
Frequently Asked Questions
How did PG&E perform financially in 2024?
Full-year 2024 GAAP income available for common shareholders was $2,475 million, or $1.15 per diluted share, compared with $2,242 million, or $1.05 per share, in 2023. Non-GAAP core earnings were $2,923 million, or $1.36 per share, versus $2,630 million, or $1.23 per share, a year earlier. The filing attributes the increase mainly to higher customer capital investment approved in the 2023 General Rate Case.
What is the updated 2025 earnings guidance?
PG&E reaffirmed 2025 GAAP EPS guidance of $1.30 to $1.36 per share. Projected 2025 non-GAAP core EPS guidance was increased to $1.48 to $1.52 per share from the prior range of $1.47 to $1.51. Non-core items are expected to total $360 million to $400 million after tax.
What does the company say about its capital and funding plans?
The company states that equity needs are fully satisfied to fund its five-year capital plan of $63 billion through 2028. It is also targeting a dividend payout ratio of approximately 20% of core earnings by 2028.
What are the main factors that could affect 2025 GAAP earnings?
The guidance factors in unrecoverable interest expense of $350 million to $400 million after tax, along with costs tied to the Chapter 11 reorganization cases, wildfire-related costs, investigation remedies, and amortization of the Wildfire Fund asset, partially offset by allowance for funds used during construction, incentive revenues, and cost savings.
What operational and financing developments were highlighted for 2024?
The company achieved a second consecutive year with no major wildfires caused by its equipment and completed 366 miles of system hardening. It signed a $15 billion loan guarantee agreement with the U.S. Department of Energy's Loan Programs Office, which it says could save customers up to $1 billion on a net present value basis. Operating cash flow rose to $8.0 billion from $4.7 billion.
04—Continue