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Public Service Enterprise Group 8-K Report, Regulation FD Disclosure (Mar 4, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed March 4, 2024
Period End
March 4, 2024
Security
PEG
In the record · 2016–202610-K1110-Q338-K149

PEG filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 149 current reports (8-K) between 2016 and 2026.

  1. Impairment8-K · Oct ’16Oct ’16
  2. Impairment8-K · Jun ’19Jun ’19
  3. Leadership change8-K · Jul ’22Jul ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed March 4, 2024. Cited figures are marked; the original filing is the authoritative source.

Public Service Enterprise Group Incorporated (PSEG) and its subsidiary Public Service Electric and Gas Company (PSE&G) furnished a March 2024 investor update deck as Exhibit 99 to this combined Form 8-K, ahead of several investor meetings scheduled for March 2024.

The filing itself contains no earnings release; it is a Regulation FD disclosure of discussion materials. The deck outlines a strategy centered on predictable regulated growth: PSE&G is described as roughly 90%a of non-GAAP Operating Earnings over the next five years, and the company projects a 5%-7% non-GAAP Operating Earnings growth outlook for 2024-2028, with a dividend yield of 3%-4% and total potential shareholder return of 8%-11%. The capital plan is a key element.

The regulated capital spending plan for 2024-2028 was updated to $18 billionb-$21 billion, with a total PSEG capital plan of $19 billion-$22.5 billion, and rate base compound annual growth of 6%-7.5%. The company states it requires no new equity or required asset sales through 2028 to fund its five-year plan. PSEG also cites its retained carbon-free nuclear fleet, whose production tax credit provides price stability and downside protection through 2032, and its exit from merchant fossil generation and offshore wind generation.

The deck also highlights a 2024 indicative annual dividend of $2.40c per share, an increase of $0.12 over 2023, subject to Board approval. It reports 2024 non-GAAP Operating Earnings guidance of $3.60 to $3.70 per share, compared with $3.48 in 2023, and includes a pending distribution base rate case requesting a 9% overall revenue increase. Investors should note that the deck is furnished, not filed, and that its forward-looking statements are subject to the risks listed in the presentation.

02—Key points

Key Highlights

  1. 2024 non-GAAP Operating Earnings guidance of $3.60 to $3.70 per share, versus $3.48 per share in 2023, consistent with a 5%-7% long-term growth outlook for 2024-2028.
  2. Regulated capital spending plan for 2024-2028 updated to $18 billion-$21 billion, up from $16 billion-$18.5 billion in the prior plan, with rate base CAGR of 6%-7.5%.
  3. No new equity or required asset sales needed through 2028 to fund the five-year capital plan.
  4. Indicative 2024 annual dividend of $2.40 per share, an increase of $0.12 over 2023, subject to Board approval.
  5. PSE&G expected to represent roughly 90% of non-GAAP Operating Earnings over 2024-2028; PTC provides price protection for the nuclear fleet through 2032.
  6. Distribution base rate case filed seeking a 9% overall revenue increase, including recovery of $3.3 billion of recent capital investment.
  7. Exited merchant fossil generation and offshore wind generation; completed sale of a 25% equity stake in Ocean Wind 1 and is evaluating monetization of its 50% stake in Garden State Offshore Energy acreage.

03—Questions

Frequently Asked Questions

  1. Does this 8-K report new financial results for PSEG?

    No. The filing furnishes investor meeting discussion materials under Item 7.01 (Regulation FD Disclosure) and Exhibit 99. The deck includes fourth-quarter and full-year 2023 non-GAAP Operating Earnings reconciliations, showing 2023 Operating Earnings of $3.48 per share and Net Income of $5.13 per share for the full year.

  2. What is driving PSEG's expected earnings growth?

    The deck attributes 2024 earnings growth primarily to utility rate base growth and the Nuclear Production Tax Credit, partly offset by Parent interest expense. It states that PSE&G is expected to contribute about 90% of non-GAAP Operating Earnings over 2024-2028, and that the nuclear fleet's PTC threshold provides revenue stability.

  3. How will PSEG fund its capital program?

    The company says its 2024-2028 regulated capital plan of $18 billion-$21 billion will be funded through internally generated PSE&G cash flow, incremental PSE&G debt, and PSEG Power & Other cash flows, with no new equity required. It also states it has debt capacity of about $3.5 billion at its target capital structure while targeting solid BBB credit ratings.

  4. What are the risks to the outlook?

    The forward-looking statements are subject to risks including the outcome of regulatory proceedings and recovery of costs, wholesale power and natural gas market fluctuations, nuclear operating and fuel supply risks, cybersecurity, climate-related risks, and changes in tax laws. The company notes that its non-GAAP measures may not be comparable to those of other companies.

04—Continue

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