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Public Service Enterprise Group 8-K Report, Financial Results (Apr 30, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed April 30, 2024
Period End
April 30, 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 April 30, 2024. Cited figures are marked; the original filing is the authoritative source.

Public Service Enterprise Group Incorporated (PSEG) reported first-quarter 2024 results on April 30, 2024, with net income of $532 milliona, or $1.06 per diluted share, compared with $1,287 million, or $2.58 per share, in the first quarter of 2023.

Non-GAAP Operating Earnings were $657 millionb, or $1.31 per share, versus $695 million, or $1.39 per share, a year earlier. Management attributed the decline mainly to a $125 million reconciling item and to PSEG Power & Other, where Non-GAAP Operating Earnings fell to $169 million ($0.33 per share) from $203 million ($0.40 per share), reflecting the Hope Creek refueling outage and higher taxes that management expects to reverse by year-end. PSE&G Non-GAAP Operating Earnings were $488 million ($0.98 per share), essentially flat with $492 million ($0.99 per share) in the prior-year quarter.

PSEG reaffirmed its 2024 Non-GAAP Operating Earnings guidance of $3.60 to $3.70c per share and its long-term goal of 5% to 7% annual growth through 2028. Management said it expects most of the increase in PSEG Power's 2024 gross margin to be realized in the second half of the year, and that higher investment-related expense will build over the rest of 2024 while the pending PSE&G distribution rate case is awaiting resolution later in the year. The company also cited the nuclear production tax credit, effective January 1, 2024, as providing downside price protection for its nuclear fleet through 2032.

PSEG reiterated a five-year regulated capital investment plan of $18 billion to $21 billiond, which it said can be funded without issuing new equity or selling assets. The board's declared first-quarter dividend was $0.60 per share, an indicative annualized increase of $0.12 per share for 2024. Nuclear capacity factor was 96.8% for the quarter, and total available liquidity was $4,997 million at quarter end.

02—Key points

Key Highlights

  1. Net income fell to $532 million ($1.06 per diluted share) from $1,287 million ($2.58 per share) in Q1 2023.
  2. Non-GAAP Operating Earnings were $657 million ($1.31 per share), compared with $695 million ($1.39 per share) in Q1 2023.
  3. PSEG Power & Other Non-GAAP Operating Earnings were $169 million ($0.33 per share), down from $203 million ($0.40 per share), largely due to the scheduled Hope Creek refueling outage and higher taxes that management expects to reverse by year-end.
  4. 2024 Non-GAAP Operating Earnings guidance of $3.60 to $3.70 per share was reaffirmed, with a long-term growth target of 5% to 7% annually through 2028.
  5. Five-year regulated capital investment plan of $18 billion to $21 billion, with management stating no new equity or asset sales are needed to fund it.
  6. Quarterly dividend of $0.60 per share, an indicative annualized increase of $0.12 per share for 2024.
  7. Nuclear fleet posted a 96.8% capacity factor and supplied 8.2 TWh of carbon-free energy in the quarter; the nuclear production tax credit took effect January 1, 2024.

03—Questions

Frequently Asked Questions

  1. Why did PSEG's net income decline so sharply compared with the first quarter of 2023?

    Net income was $532 million ($1.06 per share) versus $1,287 million ($2.58 per share) in Q1 2023. The filing's reconciliation shows reconciling items excluded from Net Income of $125 million in Q1 2024, compared with $(592) million in Q1 2023, which largely reflects mark-to-market and nuclear decommissioning trust swings. Non-GAAP Operating Earnings, which exclude those items, declined less sharply, to $657 million ($1.31 per share) from $695 million ($1.39 per share).

  2. What drove the lower results at PSEG Power & Other?

    The filing attributes the quarter's results primarily to the scheduled refueling outage at the 100%-owned Hope Creek nuclear plant, along with higher taxes. Management said the tax impact is timing-related and will reverse by year-end. The quarter also benefited from the federal nuclear production tax credit, effective January 1, 2024.

  3. Is PSEG on track to meet its 2024 earnings guidance?

    PSEG reaffirmed its full-year 2024 Non-GAAP Operating Earnings guidance of $3.60 to $3.70 per share and said first-quarter results are consistent with its expectations. Management expects most of the increase in 2024 PSEG Power gross margin to be realized in the second half of the year, while higher investment-related expense is expected to build over the balance of 2024 pending resolution of the PSE&G distribution rate case later this year.

  4. How will PSEG fund its capital investment plans?

    PSEG stated that its five-year regulated capital investment plan of $18 billion to $21 billion can be funded without the need to issue new equity or sell assets. The filing also notes PSE&G invested approximately $0.8 billion in the first quarter and is on track with its planned 2024 regulated capital investment program of approximately $3.4 billion.

  5. What is the outlook for the dividend?

    PSEG recently declared a first-quarter dividend of $0.60 per share, representing an indicative annualized increase of $0.12 per share for 2024. The company said it intends to consistently grow its annual shareholder dividend, though all future dividend decisions are subject to Board of Directors approval.

04—Continue

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