Portland General Electric Company (NYSE:POR) Q4 2022 Results Conference Call February 16, 2023 11:00 AM ET

Company Participants

Jardon Jaramillo - Senior Director of Finance, Investor Relations and Risk Management

Maria Pope - President and CEO

Jim Ajello - SVP Finance, CFO, Treasurer and CCO

Conference Call Participants

Julien Dumoulin-Smith - Bank of America

Sophie Karp - KeyBank

Alex Mortimer - Mizuho Group

Travis Miller - Morningstar

Nathan Richardson - Credit Suisse

James Kennedy - Guggenheim Partners

Operator

Good morning, everyone. And welcome to Portland General Electric Company's Fourth Quarter 2022 Earnings Results Conference Call. Today is Thursday, February 16, 2023. This call is being recorded. And as such, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period [Operator Instructions].

For opening remarks, I would turn the conference call over to Portland General Electric's Senior Director of Finance, Investor Relations and Risk Management, Jardon Jaramillo. Please go ahead, sir.

Jardon Jaramillo

Thank you, Towanda. Good morning, everyone. I'm happy you can join us today. Before we begin this morning, I would like to remind you that we've prepared a presentation to supplement our discussion, which we will be referencing throughout the call. The slides are available on our Web site at investors.portlandgeneral.com. Referring to slide two, some of our remarks this morning will constitute forward-looking statements. We caution you that such statements involve inherent risks and uncertainties and actual results may differ materially from our expectations. For a description of some of the factors that could cause actual results to differ materially, please refer to our earnings press release and our most recent periodic reports on Forms 10-K and 10-Q, which are available on our Web site. Leading our discussion today are Maria Pope, President and CEO; and Jim Ajello, Senior Vice President of Finance, CFO, Treasurer and CCO. Following their prepared remarks, we will open the line for your questions. Now, it’s my pleasure to turn the call over to Maria.

Maria Pope

Great, thank you, Jardon. Good morning. Thank you all for joining us today. Beginning with Slide 4, I'll start by discussing our 2022 full year and fourth quarter results, as well as touch on a few key drivers. Overall, we delivered solid results for the year despite significant challenges. We reported GAAP net income of $233 million or $2.60 per share for the full year of 2022. After adjusting for the first quarter $0.14 impact of the 2020 wildfire and COVID earnings [Indiscernible] write off, non-GAAP net income was $245 million or $2.74 per diluted share. This compares with $244 million or $2.72 per share in 2021. For the fourth quarter, GAAP net income was $50 million or $0.56 per share. This compares with $66 million or $0.73 per share in the fourth quarter of 2021, as we were specifically impacted by severe late December storms and extraordinary natural gas and energy market volatility. In December, natural gas prices at regional hubs peaked at over $55 per MMBtu and average Mid-C power prices rose to $265 per megawatt hour, over 5 times what we experienced in 2021. The risks and impacts of market volatility are squarely in our focus. We've made improvements to procurement, modeling and have entered into additional hedges. We're also more actively using natural gas storage at the North Mist facility to mitigate market volatility.