Public Service Enterprise Group (PEG) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 3, 2022 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. My name is Liddy and I am your event operator today. I would like to welcome everyone to Today’s Conference, Public Service Enterprise Group First Quarter 2022 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. And as a reminder, this conference call is being recorded today, May 3, 2022, and will be made available as an audio webcast on PSEG’s Investor Relations website at http://investor.pseg.com.

I'd now like to turn the conference over to Carlotta Chan. Please go ahead.

Carlotta Chan - VP, IR

Good morning. And thank you for participating in our earnings call. PSEG’s first quarter 2022 earnings release, attachments and slides detailing operating results by company are posted on our IR website located at www.investor.pseg.com, and our 10-Q will be filed shortly.

The earnings release and other matters discussed during today's call contain forward-looking statements and estimates that are subject to various risks and uncertainties. We will also discuss non-GAAP operating earnings, which differ from net loss as reported in accordance with generally accepted accounting principles in the United States. We include reconciliations of our non-GAAP financial measures and a disclaimer regarding forward-looking statements on our IR website and in today's earnings material.

I'll now turn the call over to Ralph Izzo, Chair, President and Chief Executive Officer of PSEG. Joining Ralph on today's call is Dan Cregg, Executive Vice President and Chief Financial Officer. At the conclusion of their remarks, there will be time for your questions.

Ralph Izzo - Chairman, President & CEO

Thank you, Carlotta. Good morning, everyone, and thanks for joining us for a review of PSEG’s first quarter results. PSEG reported a GAAP net loss of under $0.01 per share, resulting predominantly from mark-to-market adjustments related to higher energy prices versus our existing forward sale contracts. We exclude these items in calculating PSEG’s non-GAAP operating earnings, which were a $1.33 per share for the first quarter of 2022. For the first quarter of 2021, PSEG reported a $1.28 per share for both net income and non-GAAP operating earnings.

And just a reminder that first quarter 2021 included the results from our divested fossil assets, and solar source. Our non-GAAP results for the first quarter of ‘22 reflect solid utility and nuclear operations. That foundation combined with rate-based growth from regulated investments, as well as lower cost resulting from the completed sale of PSEG fossil, offset lower capacity and recontracting this quarter.