Public Service Enterprise Group held its 2021 Investor Day on Sept. 27, 2021. At the meeting, management offered the following guidance:
- Reaffirmed its 2021 non-GAAP Operating Guidance of $3.50-$3.65 per share;
- Established 2022 non-GAAP Operating Earnings Guidance of $3.30-$3.60 per share. Acknowledging that this is an unusually wide range, management will narrow the guidance as certain uncertainties are resolved, probably during its 21Q4 conference call in February 2022.
- Established a long-term, annual non-GAAP Operating Earnings growth target of 5%-7% to 2025. This is off of a base of $3.45 per share, which is the midpoint of the 2022 guidance range.
- Raised its 2021-2025 utility capital spending program by $1 billion to $14 billion to $16 billion. This does not cover any planned or possible capital spending at PSEG Power, such as its potential offshore wind generating and transmission investments.
- Raised its 2022 indicative annual dividend per share increase to $0.12, which increases the likely dividend to $2.16 per share from $2.04 currently. Quarterly dividends are subject to the approval of PEG’s Board of Directors.
- Announced a planned $500 million share repurchase upon the closing of the sale of its fossil fuel fleet. That sale is anticipated to close either late in the 2021 fourth quarter or early in 2022.
Based upon the updated information, I am maintaining my neutral 6-12 month performance rating on PEG’s common stock. I view its 3.4% dividend yield as attractive.
This is a summary of my report on Public Service Enterprise Group’s 2021 Investor Day. For the full report, reach out to me by telephone or email.
October 13, 2021
Stephen P. Percoco
Lark Research
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