PG&E Corporation Reports Second-Quarter Results; On Track to Deliver Solid 2024

OAKLAND — PG&E Corporation (NYSE: PCG) is on track to deliver solid 2024 results. Financial progress includes:

• GAAP earnings were $0.24 per share for the second quarter of 2024, compared to earnings of $0.19 for the same period in 2023.
• Non-GAAP core earnings were $0.31 per share for the second quarter of 2024, compared to earnings of $0.23 per share for the same period in 2023.
• Recorded GAAP earnings were $0.58 per share for the first half of 2024, compared to earnings of $0.46 per share for the same period in 2023.
• Non-GAAP core earnings were $0.69 per share for the first half of 2024, compared to earnings of $0.52 per share for the same period in 2023.
• 2024 EPS GAAP guidance updated in the range of $1.11 to $1.17 per share.
• 2024 non-GAAP core EPS guidance reaffirmed at $1.33 to $1.37 per share.
• Forecasting no equity needs in 2024.
• Reaffirming 2024-2028 financing plan.

Safety and operational progress during the second quarter of 2024 includes:

• Installed 46 miles of underground powerlines and 43 miles of stronger poles and covered powerlines in the highest fire-risk areas.
• Connected 2,900 new residential and business customers to our electric system, for a total of 5,184 in 2024.
• Interconnected the first of four new renewable natural gas (RNG) facilities planned for 2024, enabling more California-produced RNG to reach consumers and help reduce greenhouse-gas emissions.
• Installed more than 220 electric vehicle charging ports for a total of approximately 720 new ports installed in 2024.

“We’re delivering for our customers and hometowns today through a foundation of safe operations, wildfire risk reduction and solid financial progress. We also see a bright future where we lower average household energy costs, including from transportation, and further cut carbon emissions,” said PG&E Corporation CEO Patti Poppe.

Financial Results

PG&E Corporation recorded second-quarter 2024 income available for common shareholders of $520 million, or $0.24 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with income available for common shareholders of $406 million, or $0.19 per share, for the second quarter of 2023.

The increase in GAAP results is primarily driven by an increase in customer capital investment, as approved in the 2023 General Rate Case final decision and which earns an equity return as approved in the Automatic Cost of Capital Adjustment Mechanism Advice Letter. Other drivers include non-fuel operating and maintenance savings achieved for the first half of 2024 for various programs such as reinventing our inspection processes, net of amounts reinvested back into the business for emergency preparedness and risk mitigation as two examples.

PG&E Corporation uses “non-GAAP core earnings,” which is a non-GAAP financial measure, in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items. See the accompanying tables for a reconciliation of non-GAAP core earnings to consolidated earnings available for common shareholders.

Non-GAAP Core Earnings

PG&E Corporation’s non-GAAP core earnings, which exclude non-core items, were $674 million, or $0.31 per share, in the second quarter of 2024, compared with $494 million, or $0.23 per share, during the same period in 2023.

The increase in quarter-over-quarter non-GAAP core earnings per share is primarily driven by similar factors to the GAAP results, including customer capital investment, and non-fuel operating and maintenance savings, net of amounts reinvested back into the business as outlined above. 

Non-core items, which management does not consider representative of ongoing earnings, totaled $154 million after tax, or $0.07 per share, in the second quarter of 2024, compared with $88 million after tax, or $0.04 per share, during the same period in 2023.

2024 Guidance

PG&E Corporation is updating 2024 GAAP earnings guidance in the range of $1.11 to $1.17 per share (previously $1.15 to $1.20 per share). Factors driving GAAP earnings include costs related to unrecoverable interest expense of $285 million to $365 million after tax and other earnings factors, including allowance for funds used during construction equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. Additional factors include the amortization of the Wildfire Fund asset and accretion of the related Wildfire Fund liability, PG&E Corporation’s and the Utility’s reorganization cases under Chapter 11, wildfire-related costs, and investigation remedies, partially offset by prior period net regulatory impact.

The guidance range for projected 2024 non-GAAP core earnings is reaffirmed at $1.33 to $1.37 per share. The guidance range for non-core items, which management does not consider representative of ongoing earnings, is $420 million to $460 million after tax.

Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, and certain other factors.

Supplemental Financial Information

In addition to the financial information accompanying this release, presentation slides have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation’s website at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.

Earnings Conference Call

PG&E Corporation will also hold a conference call on July 25, 2024, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its second quarter 2024 results. The public can access the conference call through a simultaneous webcast. The link is provided below and will also be available from the PG&E Corporation website.

What: Second Quarter 2024 Earnings Call

When: Thursday, July 25, 2024 at 11:00 a.m. Eastern Time

Where: http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx

A replay of the conference call will be archived at

http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx 

Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through August 1, 2024, by dialing (800) 770-2030. The confirmation code 92587 will be required to access the replay.

Public Dissemination of Certain Information

PG&E Corporation and the Utility routinely provide links to the Utility’s principal regulatory proceedings with the California Public Utilities Commission and the Federal Energy Regulatory Commission at http://investor.pgecorp.com, under the “Regulatory Filings” tab, so that such filings are available to investors upon filing with the relevant agency. PG&E Corporation and the Utility also routinely post, or provide direct links to, presentations, documents, and other information that may be of interest to investors at http://investor.pgecorp.com, under the “Wildfire and Safety Updates” and “News & Events: Events & Presentations” tabs, respectively, in order to publicly disseminate such information. It is possible that any of these filings or information included therein could be deemed to be material information.

About PG&E Corporation 

PG&E Corporation (NYSE: PCG) is a holding company headquartered in Oakland, California. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.  For more information, visit http://www.pgecorp.com.