Public Service Enterprise (PEG) Reports In-Line Q4 EPS, Revenues Miss; Offers FY21 EPS Mid-Point Guidance Above Consensus

Public Service Enterprise (NYSE: PEG) reported Q4 EPS of $0.65, in-line with the analyst estimate of $0.65. Revenue for the quarter came in at $2.4 billion versus the consensus estimate of $2.83 billion.

• NET INCOME OF $3.76 PER SHARE
• NON-GAAP OPERATING EARNINGS OF $3.43 PER SHARE
• Non-GAAP 2021 Operating Earnings Guidance $3.35 - $3.55 per Share
• Utility Earnings Expected to Exceed 80% of PSEG 2021 Guidance Midpoint
• Strategic Alternatives Review of Non-Nuclear Generation Assets on Track

"We are pleased to report that PSEG posted strong operating and financial results for the fourth quarter, and our full-year 2020 non-GAAP Operating Earnings rose by 4.6% over 2019 results. I am particularly proud of the achievements of our employees during a year that was one of the most challenging in recent memory. Over a longer horizon, our 2020 financial performance also marked the 16th consecutive year that PSEG has delivered results within management's original earnings guidance," said Ralph Izzo, Chairman, President and Chief Executive Officer. PSEG is making steady progress on several business priorities, and on our strategy to become primarily a regulated utility with contracted generation, comprised of our zero carbon nuclear fleet and recent announcement regarding New Jersey offshore wind through our partnership with Ørsted North America.

Ralph Izzo went on to say, "For 2021, we are introducing non-GAAP Operating Earnings guidance of $3.35 - $3.55 per share, with PSE&G expected to contribute over 80% of consolidated earnings at the mid-point of guidance. Going forward, we expect that PSE&G will represent 80-90% of PSEG's Operating Earnings, with a growing percentage of the remaining balance being zero-carbon, contracted generation. For PSEG Power, over 70% of its 2021 gross margin has been secured via energy hedges, capacity revenues established in prior auctions, Zero Emission Certificates and ancillary service payments.

PSEG has updated its 5-year capital spending forecast to $14 billion - $16 billion for the 2021-2025 period. This update includes nearly $2 billion of recently approved investments from our Clean Energy Future program and the expected extension of the Gas System Modernization and Energy Efficiency programs at their average annual investment levels during the last two years of the period. Approximately 90%, or $13 billion - $15 billion, of this capital program will be directed to PSE&G, which is expected to produce 6.5% to 8% compound annual growth in rate base over the five-year period, starting from a year-end 2020 rate base of $22 billion. We also expect that our strong cash flow will enable us to fund the entire $14 - $16 billion, 5-year capital spending program – as well as our planned offshore wind investments during the 2021-2025 period – without the need to issue new equity.

As we continue to plan for the responsible re-entry of our employees to our facilities, currently targeted for this July, I would like to thank our dedicated employees for their professionalism, persistence and flexibility over the past year. Whether responding to a myriad of COVID-19 challenges or their excellent, injury free response to the February 2021 nor'easter, PSEG employees across our organization have embodied operational excellence as they provide our New Jersey and Long Island customers with reliable, essential energy services."

GUIDANCE:

Public Service Enterprise sees FY2021 EPS of $3.35-$3.55, versus the consensus of $3.43.

For earnings history and earnings-related data on Public Service Enterprise (PEG) click here.

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