Portland General Electric(POR) - 2024 Q2 - Quarterly Results

Portland General Electric Q2 2024 Results Second Quarter 2024 Financial Highlights PGE's Q2 2024 GAAP net income increased to $72 million ($0.69/share) from $39 million, driven by demand and offset by higher costs Q2 2024 vs. Q2 2023 Financial Performance | Metric | Q2 2024 | Q2 2023 (GAAP) | Q2 2023 (Non-GAAP) | | :--- | :--- | :--- | :--- | | GAAP Net Income | $72 million | $39 million | - | | GAAP Diluted EPS | $0.69 | $0.39 | - | | Non-GAAP Net Income | - | - | $44 million | | Non-GAAP Diluted EPS | - | - | $0.44 | - Revenue growth was primarily driven by increased demand from semiconductor manufacturing and technology infrastructure customers, partially offset by lower residential and commercial usage due to weather conditions[3] - Operating costs increased year-over-year due to higher purchased power and fuel expenses, increased generation and network maintenance, and higher depreciation and interest expenses from ongoing capital investments[3] Company Updates PGE completed a $300 million ATM offering, launched a new $400 million program, advanced transmission, and declared a $0.50 dividend - PGE completed its $300 million at-the-market (ATM) offering facility and, on July 26, 2024, registered a new $400 million ATM program to fund general corporate purposes and investments in renewables[4][6] - The company is advancing transmission capacity by signing a non-binding memorandum of understanding for the North Plains Connector project, aimed at improving regional reliability and supporting decarbonization[7] - PGE was ranked the No. 1 utility for customer experience in the 2024 Forrester Customer Experience Index[8] - The Board of Directors approved a quarterly common stock dividend of $0.50 per share, payable on or before October 15, 2024[9] 2024 Earnings Guidance PGE reaffirmed its 2024 adjusted EPS guidance of $2.98-$3.18, based on energy delivery growth and capital expenditures, excluding winter storm impacts 2024 Full-Year Guidance Assumptions | Metric | Assumption | | :--- | :--- | | Adjusted Diluted EPS | $2.98 to $3.18 | | Energy Deliveries Increase (weather adjusted) | 2% to 3% | | Operating & Maintenance Expense | $800M to $825M | | Depreciation & Amortization Expense | $475M to $525M | | Capital Expenditures | $1,340 million | | Cash from Operations | $700M to $800M | - The 2024 guidance explicitly excludes the impacts of the January 2024 winter storm, including non-deferrable Reliability Contingency Event (RCE) costs and other incremental storm restoration costs[10] Non-GAAP Financial Measures PGE uses non-GAAP measures like adjusted EPS to show core performance, excluding infrequent items such as the Q2 2023 Boardman settlement charge Non-GAAP Earnings Reconciliation for Q2 2023 (in millions, except EPS) | Description | Net Income | Diluted EPS | | :--- | :--- | :--- | | GAAP as reported | $39 | $0.39 | | Exclusion of Boardman settlement charge | $7 | $0.07 | | Tax effect | ($2) | ($0.02) | | Non-GAAP as reported | $44 | $0.44 | - PGE believes that excluding significant items not related to ongoing business activities, such as the Boardman settlement charge, provides a more meaningful representation of comparative earnings performance[14] Financial Statements Condensed Consolidated Statements of Income PGE's Q2 2024 total revenues grew to $758 million, driving net income to $72 million ($0.69/share), with six-month net income reaching $181 million Income Statement Highlights (in millions, except EPS) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $758 | $648 | $1,687 | $1,396 | | Income from Operations | $116 | $81 | $278 | $198 | | Net Income | $72 | $39 | $181 | $113 | | Diluted EPS | $0.69 | $0.39 | $1.77 | $1.19 | Condensed Consolidated Balance Sheets As of June 30, 2024, PGE's total assets increased to $11.58 billion, with liabilities rising to $8.10 billion and shareholders' equity at $3.48 billion Balance Sheet Summary (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $848 | $935 | | Electric Utility Plant, Net | $9,873 | $9,546 | | Total Assets | $11,582 | $11,208 | | Total Current Liabilities | $850 | $1,112 | | Long-term Debt, Net | $4,353 | $3,905 | | Total Liabilities | $8,098 | $7,889 | | Total Shareholders' Equity | $3,484 | $3,319 | Condensed Consolidated Statements of Cash Flows Net cash from operations more than doubled to $364 million in H1 2024, while investing activities used $639 million, and financing provided $276 million Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $364 | $143 | | Net Cash used in Investing Activities | ($639) | ($574) | | Net Cash from Financing Activities | $276 | $279 | | Change in Cash and Cash Equivalents | $1 | ($152) | Supplemental Operating Statistics Revenue and Energy Delivery Breakdown Total revenues reached $1.69 billion in H1 2024, with retail accounting for 82%, and total energy deliveries increased to 14,794 GWh, driven by wholesale growth Revenue Breakdown for Six Months Ended June 30 (in millions) | Customer Class | 2024 Revenue | 2023 Revenue | | :--- | :--- | :--- | | Residential | $722 | $641 | | Commercial | $446 | $393 | | Industrial | $206 | $169 | | Wholesale | $275 | $150 | | Total Revenues | $1,687 | $1,396 | Energy Deliveries for Six Months Ended June 30 (MWh in thousands) | Delivery Type | 2024 MWh | 2023 MWh | | :--- | :--- | :--- | | Total Retail | 10,511 | 10,669 | | Wholesale | 4,283 | 2,849 | | Total Deliveries | 14,794 | 13,518 | Customer and Energy Source Statistics PGE's retail customer base grew to 940,231, with total system load increasing to 14,384 GWh, primarily met by owned generation (53%) and purchased power (47%) - The average number of total retail customers increased to 940,231 for the first six months of 2024, compared to 927,256 for the same period in 2023[40] Sources of Energy for Six Months Ended June 30 (MWh in thousands) | Source | 2024 MWh | % of Total | 2023 MWh | % of Total | | :--- | :--- | :--- | :--- | :--- | | Total Generation | 7,726 | 53% | 7,300 | 56% | | Total Purchased Power | 6,658 | 47% | 5,622 | 44% | | Total System Load | 14,384 | 100% | 12,922 | 100% | Forward-Looking Statements and Risk Factors Risk Factors Forward-looking statements are subject to risks including regulatory outcomes, operational challenges, market conditions, and environmental impacts like severe weather and wildfires - Forward-looking statements are subject to risks including legal and regulatory outcomes, changing customer demand, and operational risks at generation facilities[27] - Market and environmental risks include changes in capital and credit markets, inflation, the effects of climate change, severe weather, wildfires, and the effectiveness of Public Safety Power Shutoffs (PSPS)[27] - Additional risks involve cyber security attacks, workforce factors, health emergencies, and failure to meet greenhouse gas emission goals[27]