PSEG Initiates 2024 Non-GAAP Operating Earnings Guidance

Rhea-AI Summary

Public Service Enterprise Group (NYSE: PEG) has announced its 2024 non-GAAP Operating Earnings guidance, with a range of $3.60 to $3.70 per share, representing a 6% growth from the 2023 guidance. The company's long-term outlook for compound annual earnings growth of 5% to 7% for 2023 through 2027 remains consistent. PSEG's chair, president, and CEO, Ralph LaRossa, emphasized the improved business mix and platform for predictable growth, as well as the company's plan to increase the predictability of its business through operational excellence, disciplined investment, and financial strength.

Insights

Financial Analyst

The initiation of the 2024 non-GAAP Operating Earnings guidance by Public Service Enterprise Group (PSEG) highlights a positive trajectory, projecting a 6% growth from the previous year's midpoint. This is noteworthy for stakeholders as it aligns with the company's long-term outlook of 5% to 7% compound annual earnings growth through 2027. Such guidance is a critical indicator for investors, as it provides a benchmark against which to measure the company's financial performance.

The guidance reflects the combined earnings contributions of Public Service Electric and Gas and PSEG Power & Other, suggesting a diversified revenue stream. The emphasis on predictability and operational excellence implies a strategic focus on stability, which could be reassuring for investors seeking long-term investment opportunities.

However, it's important to consider that non-GAAP measures exclude certain items that are deemed non-recurring or not indicative of the company's core business performance. While these measures can provide a clearer picture of operational efficiency, they are not standardized and investors should also consider GAAP results for a complete financial assessment.

Industry Analyst

The energy sector, particularly utilities like PSEG, is often characterized by its stability and predictability, which are reflected in the company's disciplined investment strategy. PSEG's focus on financial strength and operational excellence are key factors that could enhance its competitive position in the industry. By maintaining a solid foundation and seeking predictable growth, PSEG is likely positioning itself to navigate the regulatory environment and potential market volatility effectively.

For industry stakeholders, the guidance issued by PSEG could signal underlying operational efficiencies and a robust investment strategy that may lead to sustainable growth. It is also indicative of management's confidence in the company's ability to deliver consistent performance amidst the dynamic energy landscape.

Economics Expert

The economic implications of PSEG's guidance are multifaceted. On one hand, the projected earnings growth may contribute positively to the overall economic health of the regions where PSEG operates by potentially leading to more investments and job creation. On the other hand, the focus on financial strength and disciplined investment suggests that PSEG is preparing for potential economic downturns, aiming to provide a buffer against market uncertainties.

Furthermore, the utility industry's performance is often tied to broader economic conditions. As such, PSEG's guidance could be seen as a microcosm of the sector's health and an indicator of consumer demand and energy consumption patterns. Investors and economists alike should monitor such guidance as part of larger economic trends.

NEWARK, N.J., Dec. 19, 2023 /PRNewswire/ -- Public Service Enterprise Group (NYSE: PEG) has initiated 2024 non-GAAP Operating Earnings guidance in the range of $3.60 to $3.70 per share. The midpoint of the Company's 2024 guidance represents earnings growth of approximately 6% from the midpoint of its 2023 non-GAAP Operating Earnings guidance of $3.40 to $3.50 per share. 

"Consistent with an improved business mix and a platform for predictable growth, PSEG has introduced 2024 non-GAAP Operating Earnings guidance that follows our existing long-term outlook for compound annual earnings growth in the range of 5% to 7% for 2023 through 2027," said Ralph LaRossa, PSEG's chair, president, and CEO.

"Guidance for 2024 is presented on a consolidated basis and reflects the estimated earnings contributions of both Public Service Electric and Gas and PSEG Power & Other. PSEG continues to execute on our plan to increase the predictability of our business, which is built on a foundation of operational excellence, disciplined investment, and the continuation of financial strength," LaRossa added. 

About PSE
Public Service Enterprise Group (PSEG) (NYSE: PEG) is a predominantly regulated infrastructure company focused on a clean energy future. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever. PSEG's commitment to sustainability is demonstrated in our net-zero 2030 climate vision and participation in the U.N. Race to Zero, as well as our inclusion on the Dow Jones Sustainability North America Index and the list of America's most JUST Companies. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island. (https://corporate.pseg.com).

Non-GAAP Financial Measures 
Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure for comparing PSEG's financial performance to previous financial results. Non-GAAP Operating Earnings exclude the impact of gains (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and material one-time items. The presentation of non-GAAP Operating Earnings is intended to complement, and should not be considered an alternative to the presentation of Net Income/(Loss), which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings as presented in this release may not be comparable to similarly titled measures used by other companies. Due to the forward-looking nature of non-GAAP Operating Earnings guidance, PSEG is unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be required for such reconciliation. Namely, we are not able to reliably project without unreasonable effort MTM and NDT gains (losses), for future periods due to market volatility. These items are uncertain, depend on various factors, and may have a material impact on our future GAAP results.

Forward-Looking Statements
Certain of the matters discussed in this report about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:

• any inability to successfully develop, obtain regulatory approval for, or construct transmission and distribution, and our nuclear generation projects;
• the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits;
• any equipment failures, accidents, critical operating technology or business system failures, severe weather events, acts of war, terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks or other incidents that may impact our ability to provide safe and reliable service to our customers;
• any inability to recover the carrying amount of our long-lived assets;
• disruptions or cost increases in our supply chain, including labor shortages;
• any inability to maintain sufficient liquidity or access sufficient capital on commercially reasonable terms;
• the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems;
• a material shift away from natural gas toward increased electrification and a reduction in the use of natural gas;
• failure to attract and retain a qualified workforce;
• inflation, including increases in the costs of equipment, materials, fuel and labor;
• the impact of our covenants in our debt instruments and credit agreements on our business;
• adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements and pension costs;
• fluctuations in, or third party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
• our ability to obtain adequate nuclear fuel supply;
• changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;
• third-party credit risk relating to and purchase of nuclear fuel;
• any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules;
• reliance on transmission facilities to maintain adequate transmission capacity for our nuclear generation fleet;
• the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments;
• PSE&G's proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;
• our ability to advocate for and our receipt of appropriate regulatory guidance to ensure long-term support for our nuclear fleet;
• adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns;
• risks associated with our ownership and operation of nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;
• changes in federal and state environmental laws and regulations and enforcement;
• delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and
• changes in tax laws and regulations.

All of the forward-looking statements made in this communication are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this communication apply only as of the date of this communication. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws. The forward-looking statements contained in this communication are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

CORPORATE COMMUNICATIONS
Marijke.Shugrue@pseg.com
862-465-1445 

INVESTOR RELATIONS CONTACTS:
Carlotta.Chan@pseg.com 
(973) 430-6565

Michael.Cimini@pseg.com
(973) 430-6596

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SOURCE PSEG

FAQ

What is Public Service Enterprise Group's (NYSE: PEG) 2024 non-GAAP Operating Earnings guidance?

Public Service Enterprise Group has announced its 2024 non-GAAP Operating Earnings guidance, with a range of $3.60 to $3.70 per share.

How does the 2024 guidance compare to the 2023 non-GAAP Operating Earnings guidance?

The midpoint of the Company's 2024 guidance represents earnings growth of approximately 6% from the midpoint of its 2023 non-GAAP Operating Earnings guidance of $3.40 to $3.50 per share.

What is PSEG's long-term outlook for compound annual earnings growth?

PSEG's long-term outlook for compound annual earnings growth is in the range of 5% to 7% for 2023 through 2027.

Who is the chair, president, and CEO of Public Service Enterprise Group?

Ralph LaRossa is the chair, president, and CEO of Public Service Enterprise Group.