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Public Service Enterprise Group 8-K Report, Financial Results (Nov 4, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed November 4, 2024
Period End
November 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 November 4, 2024. Cited figures are marked; the original filing is the authoritative source.

Public Service Enterprise Group Incorporated (PSEG) reported third-quarter 2024 net income of $520 milliona, or $1.04 per diluted share, compared with $139 million, or $0.27 per share, in the third quarter of 2023.

Non-GAAP Operating Earnings were $448 millionb, or $0.90 per share, versus $425 million, or $0.85 per share, a year earlier. For the nine months ended September 30, 2024, net income was $1,486 million ($2.97 per share) against $2,017 million ($4.03 per share) in the prior-year period, and Operating Earnings were $1,418 million ($2.84 per share) against $1,471 million ($2.94 per share). PSEG narrowed its full-year 2024 Non-GAAP Operating Earnings guidance to $3.64 to $3.68 per share, from $3.60 to $3.70.

The quarter's main regulatory developments were in New Jersey. The Board of Public Utilities approved a settlement of PSE&G's base electric and gas distribution rate case, effective October 15, 2024, which provides for an additional $505 millionc in annual revenues on a distribution rate base of $17.8 billion, a 9.6% return on equity, and a 55% equity ratio. The board also approved the second phase of PSE&G's Clean Energy Future-Energy Efficiency programs, covering an investment program of $1.9 billion (net of administrative expenses) plus a $1 billion on-bill repayment program, both treated as rate base.

Management stated that the five-year capital plan of $19 billion to $22.5 billiond can be funded without issuing new equity or selling assets. PSEG Power & Other Non-GAAP Operating Earnings rose to $69 million ($0.14 per share) from $22 million ($0.05 per share), reflecting expected second-half energy margin contributions and the positive impact of the federal nuclear production tax credit, which took effect January 1, 2024.

PSE&G Operating Earnings were $379 million ($0.76 per share), compared with $403 million ($0.80 per share) a year earlier, as higher depreciation and interest expense preceded the October rate increase. Management reiterated a long-term non-GAAP Operating Earnings growth rate of 5% to 7%.

02—Key points

Key Highlights

  1. Q3 2024 net income of $520 million ($1.04 per diluted share) versus $139 million ($0.27 per share) in Q3 2023; Non-GAAP Operating Earnings of $448 million ($0.90 per share) versus $425 million ($0.85 per share).
  2. Full-year 2024 Non-GAAP Operating Earnings guidance narrowed to $3.64 to $3.68 per share, from $3.60 to $3.70 per share.
  3. PSE&G distribution base rate case settlement approved by the BPU, effective October 15, 2024, providing an additional $505 million in annual revenues, a 9.6% return on equity, and a 55% common equity ratio.
  4. BPU approved the CEF-EE II settlement, with an investment program of $1.9 billion (net of administrative expenses) plus a $1 billion on-bill repayment program, both treated as rate base.
  5. Five-year capital investment plan of $19 billion to $22.5 billion, which management says can be funded without new equity or asset sales; PSE&G invested about $2.7 billion year-to-date and expects to modestly exceed its $3.5 billion full-year 2024 plan.
  6. PSEG Power & Other Non-GAAP Operating Earnings of $69 million ($0.14 per share) versus $22 million ($0.05 per share), aided by the nuclear production tax credit.
  7. Nine-month 2024 net cash from operating activities of $1,766 million, versus $3,096 million in the first nine months of 2023; total available liquidity of $3,364 million at September 30, 2024.

03—Questions

Frequently Asked Questions

  1. Why did net income increase so significantly in the third quarter?

    Third-quarter 2024 net income was $520 million ($1.04 per share), compared with $139 million ($0.27 per share) in the third quarter of 2023. The 2023 quarter included a $332 million pension settlement charge and net losses on trust investments, which are excluded from Non-GAAP Operating Earnings. Non-GAAP Operating Earnings rose more modestly, to $448 million ($0.90 per share) from $425 million ($0.85 per share).

  2. What did the New Jersey BPU approve for PSE&G's rates?

    The BPU approved a multiparty settlement of PSE&G's base electric and gas distribution rate case, effective October 15, 2024. It provides for an additional $505 million in annual revenues ($341 million electric and $164 million gas), based on a distribution rate base of $17.8 billion, a 9.6% return on equity, and a 55% equity ratio. PSE&G will also implement new pension and storm deferral mechanisms.

  3. How is PSEG funding its capital investment plan?

    PSEG states that its five-year capital investment plan of $19 billion to $22.5 billion can be funded without issuing new equity or selling assets. The company also cites a solid balance sheet and the opportunity for consistent and sustainable dividend growth. Dividends paid were $0.60 per share in the third quarter of 2024, compared with $0.57 in the third quarter of 2023.

  4. What changed in PSEG's full-year 2024 earnings guidance?

    PSEG narrowed its full-year 2024 Non-GAAP Operating Earnings guidance to $3.64 to $3.68 per share, from the prior range of $3.60 to $3.70 per share. Nine-month 2024 Non-GAAP Operating Earnings were $2.84 per share, compared with $2.94 per share in the first nine months of 2023.

04—Continue

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