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Sep 30, 2022

PG&E Q3 2022 Earnings Report

PG&E Corporation's financial performance for Q3 2022 improved, with GAAP earnings of $0.21 per diluted share and non-GAAP core earnings of $0.29 per diluted share.

Key Takeaways

PG&E Corporation reported third-quarter 2022 GAAP earnings of $0.21 per diluted share, a significant improvement compared to losses of $(0.55) per diluted share in the same period of 2021. Non-GAAP core earnings were $0.29 per diluted share, up from $0.24 in the prior year. The company updated its 2022 EPS guidance for GAAP earnings to $0.80 to $1.01 per diluted share and narrowed non-GAAP core earnings guidance to $1.09 to $1.11 per diluted share.

GAAP earnings were $0.21 per diluted share for Q3 2022, compared to losses of $(0.55) per diluted share for Q3 2021.

Non-GAAP core earnings were $0.29 per diluted share for Q3 2022, compared to earnings of $0.24 per diluted share for Q3 2021.

2022 EPS guidance for GAAP earnings was updated to a range of $0.80 to $1.01 per diluted share.

2022 EPS guidance for non-GAAP core earnings was narrowed to a range of $1.09 to $1.11 per diluted share.

Total Revenue
$5.39B
Previous year: $5.47B
-1.3%
EPS
$0.29
Previous year: $0.24
+20.8%
Gross Profit
$1.86B
Previous year: $1.36B
+36.3%
Cash and Equivalents
$262M
Previous year: $420M
-37.6%
Free Cash Flow
-$1.8B
Previous year: -$1.03B
+75.5%
Total Assets
$117B
Previous year: $104B
+13.0%

PG&E

PG&E

PG&E Revenue by Segment

Forward Guidance

PG&E Corporation updated 2022 GAAP earnings guidance in the range of $0.80 to $1.01 per diluted share and narrowed the guidance range for projected 2022 non-GAAP core earnings to $1.09 to $1.11 per diluted share. PG&E Corporation is initiating 2023 GAAP earnings guidance in the range of $0.98 to $1.21 per diluted share and non-GAAP core earnings in the range of $1.19 to $1.23 per share.

Positive Outlook

  • Updated 2022 GAAP earnings guidance to a range of $0.80 to $1.01 per diluted share.
  • Narrowed the guidance range for projected 2022 non-GAAP core earnings to $1.09 to $1.11 per diluted share.
  • Initiating 2023 GAAP earnings guidance in the range of $0.98 to $1.21 per diluted share.
  • Initiating 2023 non-GAAP core earnings guidance in the range of $1.19 to $1.23 per share.
  • Forecasting no equity needs in 2022 through 2024.

Challenges Ahead

  • Costs related to unrecoverable interest expense of $330 million to $370 million after tax.
  • 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.
  • Strategic repositioning costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income