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Public Service Enterprise Group Inc (PEG) Q4 2024 Earnings Call Highlights: Strong Financial ...

In This Article:

  • Net Income (Q4 2024): $0.57 per share.

  • Net Income (Full Year 2024): $3.54 per share.

  • Non-GAAP Operating Earnings (Q4 2024): $0.84 per share.

  • Non-GAAP Operating Earnings (Full Year 2024): $3.68 per share.

  • 2025 Non-GAAP Operating Earnings Guidance: $3.94 to $4.06 per share.

  • Capital Spending (2024): $3.6 billion.

  • Planned Capital Spending (2025): $4 billion.

  • Planned Capital Spending (2025-2029): $22.5 billion to $26 billion.

  • Rate Base Growth (2025-2029): 6% to 7.5% CAGR.

  • Dividend Increase (2025): $0.12 per share, annual rate of $2.52 per share.

  • Liquidity (End of 2024): $2.6 billion.

  • Cash Collateral Balance (End of 2024): $250 million.

  • Debt Outstanding (End of 2024): $1.65 billion at PSEG Power.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Public Service Enterprise Group Inc (NYSE:PEG) reported strong financial results for 2024, with net income of $3.54 per share for the full year and non-GAAP operating earnings of $3.68 per share, which was at the top of their guidance range.

  • The company successfully settled its first electric and gas distribution rate case in six years, achieving a balanced outcome that recovers prudent investments and maintains affordability.

  • PSE&G received approval to invest $2.9 billion in its Clean Energy Future Energy Efficiency 2 program, enhancing energy efficiency and reducing carbon emissions.

  • The company completed its $3.6 billion capital spending program, including the advanced metering infrastructure program, on time and on budget.

  • PSEG's Board of Directors announced a $0.12 per share increase in the annual common dividend, marking the 14th consecutive annual increase, supported by strong financial discipline.

Negative Points

  • PSEG's net income for 2024 was lower compared to 2023, with a decrease from $5.13 per share in 2023 to $3.54 per share in 2024.

  • The company faces challenges with the upcoming increase in customer electric bills due to the basic generation service auction results, driven by rising capacity prices.

  • There is uncertainty in the PJM market, raising concerns about the ability to attract new generation and maintain reliability.

  • PSEG Power & Other reported a net loss for the fourth quarter of 2024, compared to net income in the same period of 2023.

  • The company is navigating regulatory complexities and potential delays in commercial discussions related to its nuclear operations, particularly concerning the Artificial Island project.