PG&E Corporation (NYSE: PCG) delivered solid financial results in 2024 and is on track to deliver beyond:
- GAAP earnings were $0.30 per share for the fourth quarter of 2024, compared to earnings of $0.43 for the same period in 2023.
- GAAP earnings were $1.15 per share for the full year of 2024, compared to earnings of $1.05 per share for the same period in 2023.
- Non-GAAP core earnings were $0.31 per share for the fourth quarter of 2024, compared to earnings of $0.47 per share for the same period in 2023.
- Non-GAAP core earnings were $1.36 per share for the full year of 2024, compared to earnings of $1.23 per share for the same period in 2023.
- Equity needs fully satisfied to fund the five-year capital plan of $63 billion through 2028.
- 2025 GAAP EPS guidance reaffirmed at $1.30 to $1.36 per share.
- 2025 non-GAAP core EPS guidance increased from $1.47 to $1.51 per share (previously) to $1.48 to $1.52 per share.
2024 non-fuel operating and maintenance (O&M) costs reduced by 4%, as compared to 2023, exceeding 2% target; saved over $200 million in non-fuel O&M costs in each of the past three years.
- Operating cash flow of $8.0 billion in 2024 is up from $4.7 billion in 2023.
- Targeting a dividend payout ratio of approximately 20% of core earnings by 2028.
Operational progress during 2024 continued to focus on physical safety and delivery of affordable and resilient energy:
- Achieved a second consecutive year of zero major wildfires caused by the company's equipment.
- For long-term wildfire risk reduction, completed 366 miles of system hardening including 258 miles of underground powerlines and 108 miles of stronger poles and overhead powerlines in the highest fire-risk areas.
- Residential combined gas and electric bills remained flat in January 2025 compared to January 2024, assuming similar usage.
- Exceeded non-fuel O&M cost reduction target through continuous efforts to deliver longer-term energy bill stability for customers.
- Signed a $15 billion loan guarantee agreement with the U.S. Department of Energy's Loan Programs Office to finance grid modernization projects and potentially save customers up to $1 billion on a net present value basis through lower-cost financing.
- Connected nearly 14,000 new customers to the electric system, approximately 30% more than plan. Incremental service connections were completed at an average unit cost 50% lower than plan. Also installed more than 3,800 new electric vehicle charging ports. More beneficial new load in the years ahead can help reduce electricity prices for all customers.
- Interconnected four new renewable natural gas (RNG) facilities in 2024, enabling more California-produced RNG to reach consumers and help reduce greenhouse-gas emissions.
"In 2024, we continued progress in ways that matter to both customers and investors. We delivered energy safely—our system has never been safer, and we are working to make it even safer. We stabilized combined gas and electric bills for residential customers. And we connected more new customers to our grid than we have in decades. We believe clean, climate-resilient energy can be accessible for all, and we're showing it's possible," said PG&E Corporation CEO Patti Poppe.
2025 Guidance
PG&E Corporation is reaffirming 2025 GAAP earnings guidance in the range of $1.30 to $1.36 per share. Factors driving GAAP earnings include costs related to unrecoverable interest expense of $350 million to $400 million after tax and other earnings factors, including allowance for funds used during construction, 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, costs related to 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 2025 non-GAAP core earnings increased from $1.47 to $1.51 per share to $1.48 to $1.52 per share. The guidance range for non-core items, which management does not consider representative of ongoing earnings, is $360 million to $400 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.
Financial Results
PG&E Corporation recorded annual 2024 income available for common shareholders of $2,475 million, or $1.15 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with income available for common shareholders of $2,242 million, or $1.05 per share, for 2023.
The increase in year-over-year 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 cost of capital proceeding. Other drivers include non-fuel operating and maintenance savings achieved for various programs such as process improvements for inspections, as well as lower contract spend through strategic sourcing. Operating and maintenance savings are reinvested back into the business for various programs, including those that support risk mitigation, such as inspections, gas corrosion mitigation, and distribution maintenance.
The decrease in quarter-over-quarter results is primarily driven by the recognition of the 2023 General Rate Case within the fourth quarter of 2023. This decrease is partially offset by the Automatic Cost of Capital Adjustment Mechanism which increased return on equity in 2024.
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 $2,923 million, or $1.36 per share, for 2024, compared to earnings of $2,630 million, or $1.23 per share, for 2023.
The increase in year-over-year non-GAAP core earnings is primarily driven by similar factors to the GAAP results including 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 cost of capital proceeding.
The decrease in quarter-over-quarter non-GAAP core earnings per share is primarily driven by similar factors to the GAAP results, including timing of the recognition of the 2023 GRC Decision.
Non-core items, which management does not consider representative of ongoing earnings, totaled $448 million after tax, or $0.21 per share, for the full year 2024, compared with $388 million after tax, or $0.18 per share, for the full year 2023.
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.
