POR

PORTLAND GENERAL ELECTRIC CO

Utilities | Mid Cap

$0.91

EPS Forecast

$892

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-12-31
EX-99.1 2 a2019q4ex991-pressrele.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
logoa05.jpg
Portland General Electric
One World Trade Center
121 S.W. Salmon Street
Portland, OR 97204

News Release
 
FOR IMMEDIATE RELEASE
 
 
Feb. 14, 2020
 
 
 
 
 
Media Contact:
 
Investor Contact:
Andrea Platt
 
Chris Liddle
Corporate Communications
 
Investor Relations
Phone: 503-464-7980
 
Phone: 503-464-7458

Portland General Electric announces 2019 financial results and initiates 2020 earnings guidance

•
Full-year 2019 financial results of $2.39 per diluted share within guidance range
•
Initiating 2020 earnings guidance of $2.50 to $2.65 per diluted share
•
Providing long-term earnings per diluted share growth guidance of 4%-6% on average

PORTLAND, Oregon -- Portland General Electric Company (NYSE: POR) today reported net income of $214 million, or $2.39 per diluted share, for the year ended Dec. 31, 2019. This compares with net income of $212 million, or $2.37 per diluted share, for the year ended Dec. 31, 2018. Net income was $61 million, or $0.68 per diluted share, for the fourth quarter of 2019. This compares with $49 million, or $0.55 per diluted share, for the comparable period of 2018.

“I am pleased with our financial results and the progress that we continue to make on our strategic objectives to decarbonize our power supply, electrify other sectors of the economy and operate efficiently,” said Maria Pope, PGE president and CEO. “In 2020 we are focused on investments that enhance reliability and resiliency.”

2019 earnings compared to 2018 earnings
The increase in full-year 2019 earnings was driven by an increase in revenues from higher retail prices and increased loads from industrial customers when compared to 2018. Largely offsetting the increase in revenues were higher distribution expenses due to higher vegetation management and wildfire mitigation efforts, a gain from the cash settlement of the Carty litigation in 2018 that did not recur in 2019, higher labor and benefit expenses, higher depreciation and amortization expense resulting from capital additions, and an increase in income tax expense attributable largely to fewer production tax credits.
Company Updates
Integrated Resource Plan (IRP)
In January 2020, PGE filed its final public comments with the Public Utility Commission of Oregon (OPUC) in its 2019 IRP. PGE responded to comments from stakeholders on a wide range of topics and proposed modifications to the Action Plan including delaying the acquisition of renewable resources from 2023 to 2024 to align with PGE’s capacity need and the extended production tax credit availability afforded by House Resolution 1865. PGE also proposed a modification to its capacity action to allow for concurrent consideration of existing resources through bilateral negotiations and new non-emitting capacity resources through a request for proposal.


Page 1


Capital Projects
Wheatridge Renewable Energy Facility
Construction is on schedule for the 300 megawatt wind generation component of the overall facility that is located in Morrow County, Oregon. PGE will own 100 megawatts of the wind generation component and purchase the balance of the wind output under a 30-year power purchase agreement. The facility will also include 50 megawatts of solar generation and 30 megawatts of battery storage. The wind component of the facility is expected to be in service during the fourth quarter of 2020, and the solar generation and battery storage in 2021. The facility will be incorporated into customer prices through PGE’s Renewable Adjustment Clause. As of Dec. 31, 2019 the estimated cost of the project totals approximately $150 million, excluding allowance for funds used during construction (AFDC). Construction crews mobilized to the site in January and work has begun on initial site preparation.

Integrated Operations Center (IOC)
Construction is on schedule for the IOC, which will centralize key operations in a facility designed for enhanced resilience against seismic, cyber and physical security risks. The facility is being designed for negligible structural damage under a maximum considered earthquake event using seismic (base) isolation. It is expected to be in service during the fourth quarter of 2021 at an estimated cost of approximately $200 million, excluding AFDC. Site preparation began in the third quarter of 2019. Construction permits have been granted and construction of the new facility is in progress.
2020 earnings guidance
PGE is initiating full-year 2020 earnings guidance of $2.50 to $2.65 per diluted share based on the following assumptions:
•
An increase in retail deliveries between 0.5 and 1.5%, weather adjusted;
•
Average hydro conditions for the year;
•
Wind generation based on five years of historical levels or forecast studies when historical data is not available;
•
Normal thermal plant operations;
•
Operating and maintenance costs between $590 million and $610 million; and
•
Depreciation and amortization expense between $415 million and $435 million.

Fourth Quarter 2019 earnings call and webcast — Feb. 14, 2020

PGE will host a conference call with financial analysts and investors on Friday, Feb. 14, 2020, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Friday, Feb. 14, 2020, through 1 p.m. ET on Friday, Feb. 21, 2020.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of Finance, CFO, and treasurer; and Chris Liddle, director, Investor Relations and Treasury, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited consolidated statements of income, consolidated balance sheets, and consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

# # #






Page 2


About Portland General Electric Company

Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon, serving 895,000 customers in 51 cities. For 130 years, PGE has delivered safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. With approximately 3,000 employees across the state, PGE is committed to helping its customers and the communities it serves build a clean energy future. For more information, visit PortlandGeneral.com/CleanVision.

Safe Harbor Statement
Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the company’s generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or liability for third party property damage; and cyber security breaches of the company’s customer information system or operating systems, which may affect customer bills or other aspects of our operations. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise. Prospective investors should also review the risks, assumptions and uncertainties listed in the company’s most recent annual report on form 10-K and in other documents that we file with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time.


POR
Source: Portland General Company



Page 3


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
(Unaudited)


Years Ended December 31,

2019

2018

2017
Revenues:








         Revenues, net
$
2,121


$
1,988


$
2,009

         Alternative revenue programs, net of amortization
2


3


—

                 Total Revenues
2,123


1,991


2,009

Operating expenses:





Purchased power and fuel
614


571


592

Generation, transmission and distribution
323


292


309

Administrative and other
290


271


260

Depreciation and amortization
409


382


345

Taxes other than income taxes
134


129


123

Total operating expenses
1,770


1,645


1,629

Income from operations
353


346


380

Interest expense, net
128


124


120

Other income:





Allowance for equity funds used during construction
10


11


12

Miscellaneous income (expense), net
6


(4
)

1

Other income, net
16


7


13

Income before income taxes
241


229


273

Income tax expense
27


17


86

Net income
$
214


$
212


$
187







Weighted-average shares outstanding (in thousands):





Basic
89,353


89,215


89,056

Diluted
89,559


89,347


89,176










Earnings per share:








Basic
$
2.39


$
2.38


$
2.10

Diluted
$
2.39


$
2.37


$
2.10



Page 4


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)

 
 
As of December 31,
 
2019
 
2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
30

 
$
119

Accounts receivable, net
167

 
193

Unbilled revenues
86

 
96

Inventories, at average cost:
 
 
 
Materials and supplies
56

 
53

Fuel
40

 
31

Regulatory assets—current
17

 
61

Other current assets
104

 
90

Total current assets
500

 
643

Electric utility plant:
 
 
 
In service
10,928

 
10,344

Accumulated depreciation and amortization
(4,095
)
 
(3,803
)
In service, net
6,833

 
6,541

Construction work-in-progress
328

 
346

Electric utility plant, net
7,161

 
6,887

Regulatory assets—noncurrent
483

 
401

Nuclear decommissioning trust
46

 
42

Non-qualified benefit plan trust
38

 
36

Other noncurrent assets
166

 
101

Total assets
$
8,394

 
$
8,110


























Page 5


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share amounts)
(Unaudited)

 
As of December 31,
 
2019
 
2018
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
165

 
$
168

Liabilities from price risk management activities—current
23

 
55

Current portion of long-term debt
—

 
300

Current portion of finance lease obligations
16

 
—

Accrued expenses and other current liabilities
315

 
268

Total current liabilities
519

 
791

Long-term debt, net of current portion
2,597

 
2,178

Regulatory liabilities—noncurrent
1,377

 
1,355

Deferred income taxes
378

 
369

Unfunded status of pension and postretirement plans
247

 
307

Liabilities from price risk management activities—noncurrent
108

 
101

Asset retirement obligations
263

 
197

Non-qualified benefit plan liabilities
103

 
103

Finance lease obligations, net of current portion
135

 
—

Other noncurrent liabilities
76

 
203

Total liabilities
5,803

 
5,604

Commitments and contingencies (see notes)
 
 
 
Shareholders’ equity:
 
 
 
Preferred stock, no par value, 30,000,000 shares authorized; none issued and outstanding
—

 
—

Common stock, no par value, 160,000,000 shares authorized; 89,387,124 and 89,267,959 shares issued and outstanding as of December 31, 2019 and 2018, respectively
1,220

 
1,212

Accumulated other comprehensive loss
(10
)
 
(7
)
Retained earnings
1,381

 
1,301

Total shareholders’ equity
2,591

 
2,506

Total liabilities and shareholders’ equity
$
8,394

 
$
8,110



Page 6


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

 
Years Ended December 31,
 
2019
 
2018
 
2017
Cash flows from operating activities:
 
 
 
 
 
Net income
$
214

 
$
212

 
$
187

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
409

 
382

 
345

Deferred income taxes
6

 
(17
)
 
70

Allowance for equity funds used during construction
(10
)
 
(11
)
 
(12
)
Pension and other postretirement benefits
21

 
30

 
24

Decoupling mechanism deferrals, net of amortization
(2
)
 
(2
)
 
(22
)
(Amortization) Deferral of net benefits due to Tax Reform
(23
)
 
45

 
—

Stock-based compensation
9

 
5

 
7

Other non-cash income and expenses, net
34

 
16

 
24

Changes in working capital:
 
 
 
 
 
Decrease (increase) in receivables and unbilled revenues
30

 
(29
)
 
(3
)
(Increase) in margin deposits
—

 
(5
)
 
(3
)
(Decrease) increase in payables and accrued liabilities
(16
)
 
51

 
5

Other working capital items, net
(12
)
 
(11
)
 
1

Contribution to non-qualified employee benefit trust
(11
)
 
(11
)
 
(8
)
Contribution to pension and other postretirement plans
(65
)
 
(12
)
 
(5
)
Other, net
(38
)
 
(13
)
 
(13
)
Net cash provided by operating activities
546

 
630

 
597

Cash flows from investing activities:
 
 
 
 
 
Capital expenditures
(606
)
 
(595
)
 
(514
)
Purchases of nuclear decommissioning trust securities
(8
)
 
(12
)
 
(18
)
Sales of nuclear decommissioning trust securities
13

 
15

 
21

Proceeds from Carty Settlement
—

 
120

 
—

Other, net
(3
)
 
1

 
(3
)
Net cash used in investing activities
(604
)
 
(471
)
 
(514
)















Page 7


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
(In millions)
(Unaudited)
 
Years Ended December 31,
 
2019
 
2018
 
2017
Cash flows from financing activities:
 
 
 
 
 
Proceeds from issuance of long-term debt
$
470

 
$
75

 
$
225

Payments on long-term debt
(350
)
 
(24
)
 
(150
)
Debt extinguishment costs
(9
)
 
—

 
—

Dividends paid
(134
)
 
(125
)
 
(118
)
Other
(8
)
 
(5
)
 
(7
)
Net cash used in financing activities
(31
)
 
(79
)
 
(50
)
(Decrease) increase in cash and cash equivalents
(89
)
 
80

 
33

Cash and cash equivalents, beginning of year
119

 
39

 
6

Cash and cash equivalents, end of year
$
30

 
$
119

 
$
39

 
 
 
 
 
 
Supplemental disclosures of cash flow information:
 
 
 
 
 
Cash paid for:
 
 
 
 
 
Interest, net of amounts capitalized
$
116

 
$
117

 
$
110

Income taxes
33

 
25

 
18

Non-cash investing and financing activities:
 
 
 
 
 
Accrued capital additions
76

 
61

 
53

Accrued dividends payable
36

 
34

 
31

Assets obtained under leasing arrangements
210

 
24

 
87



Page 8


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING STATISTICS
(Unaudited)

 
Years Ended December 31,
 
2019
 
2018
 
2017
Revenues (dollars in millions):
 
 
 
 
 
 
 
 
 
 
 
Retail:
 
 
 
 
 
 
 
 
 
 
 
Residential
$
981

 
46
%
 
$
948

 
48
 %
 
$
969

 
48
%
Commercial
636

 
30

 
647

 
32

 
652

 
32

Industrial
196

 
9

 
185

 
9

 
192

 
10

Direct Access
44

 
2

 
43

 
2

 
37

 
2

Subtotal
1,857

 
87

 
1,823

 
91

 
1,850

 
92

Alternative revenue programs, net of amortization
2

 
—

 
3

 
—

 
—

 
—

Other accrued (deferred) revenues, net
22

 
2

 
(45
)
 
(2
)
 
10

 
1

Total retail revenues
1,881

 
89

 
1,781

 
89

 
1,860

 
93

Wholesale revenues
170

 
8

 
159

 
8

 
105

 
5

Other operating revenues
72

 
3

 
51

 
3

 
44

 
2

Total revenues
$
2,123

 
100
%
 
$
1,991

 
100
 %
 
$
2,009

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
Energy deliveries (MWh in thousands):
 
 
 
 
 
 
 
 
 
 
 
Retail:
 
 
 
 
 
 
 
 
 
 
 
Residential
7,471

 
31
%
 
7,416

 
31
 %
 
7,880

 
34
%
Commercial
6,653

 
28

 
6,783

 
29

 
6,932

 
30

Industrial
3,181

 
13

 
2,987

 
13

 
2,943

 
13

Subtotal
17,305

 
72

 
17,186

 
73

 
17,755

 
77

Direct access:
 
 
 
 
 
 
 
 
 
 
 
Commercial
665

 
3

 
$
647

 
3

 
623

 
3

Industrial
1,490

 
6

 
$
1,389

 
6

 
1,340

 
6

Subtotal
2,155

 
9

 
2,036

 
9

 
1,963

 
9

Total retail energy deliveries
19,460

 
81

 
19,222

 
82

 
19,718

 
86

Wholesale energy deliveries
4,669

 
19

 
4,290

 
18

 
3,193

 
14

Total energy deliveries
24,129

 
100
%
 
23,512

 
100
 %
 
22,911

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
Average number of retail customers:
 
 
 
 
 
 
 
 
 
 
 
Residential
779,673

 
88
%
 
772,389

 
88
 %
 
762,211

 
88
%
Commercial
109,521

 
12

 
108,570

 
12

 
107,364

 
12

Industrial
193

 
—

 
203

 
—

 
199

 
—

Direct access
632

 
—

 
604

 
—

 
559

 
—

Total
890,019

 
100
%
 
881,766

 
100
 %
 
870,333

 
100
%



Page 9


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING STATISTICS, continued
(Unaudited)

 
Heating Degree-Days
 
Cooling Degree-Days   
 
2019
 
2018
 
15-Year Average
 
2019
 
2018
 
15-Year Average
1st quarter
1,992

 
1,766

 
1,830

 
—

 
—

 
—

2nd quarter
467

 
471

 
653

 
102

 
116

 
88

3rd quarter
83

 
69

 
75

 
462

 
575

 
440

4th quarter
1,623

 
1,396

 
1,582

 
—

 
1

 
3

Total
4,165

 
3,702

 
4,140

 
564

 
692

 
531

Increase (decrease) from the 15-year average
1
%
 
(11
)%
 
 
 
6
%
 
30
%
 
 
Note: “Average” amounts represent the 15-year rolling averages provided by the National Weather Service (Portland Airport).

 
Years Ended December 31,
 
2019
 
2018
 
2017
Sources of energy (MWh in thousands):
 
 
 
 
 
 
 
 
 
 
 
Generation:
 
 
 
 
 
 
 
 
 
 
 
Thermal:
 
 
 
 
 
 
 
 
 
 
 
Natural gas
8,342

 
36
%
 
7,515

 
33
%
 
6,228

 
28
%
Coal
4,416

 
19
%
 
3,106

 
14

 
3,344

 
15

Total thermal
12,758

 
55

 
10,621

 
47

 
9,572

 
43

Hydro
1,407

 
6

 
1,474

 
7

 
1,774

 
8

Wind
1,706

 
8

 
1,875

 
8

 
1,641

 
8

Total generation
15,871

 
69

 
13,970

 
62

 
12,987

 
59

Purchased power:
 
 
 
 
 
 
 
 
 
 
 
Term
5,882

 
25

 
6,714

 
30

 
7,192

 
33

Hydro
1,048

 
5

 
1,603

 
7

 
1,648

 
7

Wind
284

 
1

 
286

 
1

 
264

 
1

Total purchased power
7,214

 
31

 
8,603

 
38

 
9,104

 
41

Total system load
23,085

 
100
%
 
22,573

 
100
%
 
22,091

 
100
%
Less: wholesale sales
(4,669
)
 
 
 
(4,290
)
 
 
 
(3,193
)
 
 
Retail load requirement
18,416

 
 
 
18,283

 
 
 
18,898

 
 



Page 10