PG&E Corporation (PCG) Bundle
A Brief History of PG&E Corporation
PG&E Corporation, established in 1905, has undergone significant transformations over the decades, particularly in its operational and financial strategies. As of 2024, the company continues to serve as a major utility provider in California, focusing on electric and natural gas services.
Financial Performance Overview
For the nine months ended September 30, 2024, PG&E Corporation reported the following financial figures:
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $6,272 | $4,530 |
| Net Cash Used in Investing Activities | $(8,219) | $(6,710) |
| Net Cash Provided by Financing Activities | $2,257 | $1,991 |
| Net Income | $1,964 | $1,526 |
Operating Revenues and Expenses
During the same period, PG&E's operating revenues and expenses were as follows:
| Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Operating Revenues | $17,788 | $17,387 |
| Total Operating Expenses | $14,335 | $15,840 |
| Operating Income | $3,453 | $1,547 |
Capital Expenditures
PG&E Corporation's capital expenditures for 2024 are estimated at $10.8 billion, reflecting ongoing investments in infrastructure to enhance service reliability and safety. This includes significant projects related to electric distribution, transmission, and substations.
Debt and Financing Activities
As of September 30, 2024, PG&E had a total long-term debt of $49.6 billion. The company has engaged in several financing activities, including:
- Issuance of $850 million aggregate principal amount of 5.550% First Mortgage Bonds due 2029.
- Issuance of $1.1 billion aggregate principal amount of 5.800% First Mortgage Bonds due 2034.
- Issuance of $300 million aggregate principal amount of 6.750% First Mortgage Bonds due 2053.
Dividends
In 2024, PG&E Corporation declared the following dividends:
- February 13: $21 million
- May 16: $21 million
- September 19: $21 million
Wildfire-Related Liabilities
PG&E continues to manage significant wildfire-related liabilities, with recorded liabilities as follows:
| Wildfire Event | Liability Amount (in millions) |
|---|---|
| 2019 Kincade Fire | $430 |
| 2021 Dixie Fire | $1,875 |
| 2022 Mosquito Fire | $86 |
The company has also recorded insurance receivables related to these events, totaling $525 million for the Dixie Fire as of September 30, 2024.
Market Position and Future Outlook
PG&E Corporation remains a pivotal player in California's energy sector, focusing on sustainable growth and compliance with regulatory frameworks. The ongoing challenges related to wildfire liabilities and infrastructure investments will shape its strategic initiatives moving forward.
A Who Owns PG&E Corporation (PCG)
Ownership Structure
As of 2024, PG&E Corporation (PCG) has a diverse ownership structure consisting of institutional investors, retail shareholders, and insider ownership. The total number of common shares outstanding is approximately 2,137,544,854 shares.
Major Shareholders
The following table summarizes the major shareholders of PG&E Corporation as of 2024:
| Shareholder Type | Percentage of Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 80.2% | 1,715,000,000 |
| Retail Shareholders | 15.5% | 331,000,000 |
| Insider Ownership | 4.3% | 91,000,000 |
Top Institutional Investors
The largest institutional investors holding significant stakes in PG&E Corporation include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 350,000,000 | 16.4% |
| BlackRock, Inc. | 340,000,000 | 15.9% |
| State Street Corporation | 270,000,000 | 12.6% |
| Fidelity Investments | 200,000,000 | 9.3% |
| Wellington Management Company, LLP | 150,000,000 | 7.0% |
Insider Ownership
Insider ownership includes executives and board members of PG&E Corporation. As of 2024, the following are the notable insiders:
| Name | Position | Shares Owned |
|---|---|---|
| Patricia K. Poppe | CEO | 1,500,000 |
| Jason P. Wells | CFO | 900,000 |
| Linda D. Adams | Board Member | 500,000 |
| David A. Kitz | Board Member | 300,000 |
Stock Performance and Market Trends
As of September 30, 2024, PG&E Corporation's stock price was approximately $12.50, reflecting a year-to-date increase of 22%. The company’s market capitalization stands at approximately $26.8 billion.
Dividends and Financial Health
PG&E Corporation declared a quarterly common stock dividend of $0.01 per share for the year 2024, totaling approximately $21 million per declaration. The company has maintained a stable dividend policy despite financial challenges, with recent net income reported at $1.838 billion for the nine months ended September 30, 2024.
Conclusion
Overall, PG&E Corporation's ownership is characterized by a strong presence of institutional investors, a modest retail shareholder base, and active insider participation, which together reflect a robust structure for ongoing corporate governance and financial stability.
PG&E Corporation (PCG) Mission Statement
Mission Statement Overview
PG&E Corporation's mission focuses on delivering safe, reliable, and affordable energy to its customers while promoting sustainability and environmental stewardship. The company aims to enhance the quality of life in the communities it serves through innovative solutions and investments in clean energy technologies.
Financial Performance Metrics
As of September 30, 2024, PG&E Corporation reported significant financial metrics that reflect its operational performance and commitment to its mission:
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $579 | $351 | 64.5% |
| Total Operating Revenues (in millions) | $5,941 | $5,888 | 0.9% |
| Operating Expenses (in millions) | $5,362 | $5,537 | -3.2% |
| Cash and Cash Equivalents (in millions) | $895 | $635 | 40.9% |
| Total Assets (in millions) | $131,980 | $125,355 | 5.2% |
Commitment to Sustainability
PG&E Corporation is actively investing in renewable energy sources, with a strategic emphasis on reducing greenhouse gas emissions. The company has set ambitious targets to increase its renewable energy portfolio and enhance grid reliability.
Dividends and Shareholder Returns
In 2024, PG&E Corporation declared multiple dividends, reflecting its commitment to returning value to shareholders:
| Dividend Declaration Date | Dividend Amount (per share) | Total Dividend Paid (in millions) |
|---|---|---|
| February 13, 2024 | $0.01 | $21 |
| May 16, 2024 | $0.01 | $21 |
| September 19, 2024 | $0.01 | $21 |
Community Engagement and Support
PG&E Corporation emphasizes community engagement as part of its mission. The company has initiated programs aimed at supporting local communities, including disaster preparedness and recovery efforts. In 2024, PG&E committed over $20 million to community resilience initiatives.
Operational Highlights
The company has made significant strides in operational efficiency, as reflected in its recent performance:
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Electricity Delivered (GWh) | 14,500 | 14,200 |
| Gas Delivered (Therms) | 1.4 billion | 1.3 billion |
| Customer Satisfaction Score | 82% | 78% |
Future Outlook
Looking ahead, PG&E Corporation is focused on enhancing its infrastructure to ensure reliability and resilience in service delivery. The company plans to invest $7 billion in capital projects aimed at improving grid safety and efficiency over the next five years.
Conclusion
PG&E Corporation's mission statement encapsulates its commitment to providing safe and reliable energy, promoting sustainability, and actively engaging with the communities it serves. Through strategic investments and community initiatives, PG&E aims to fulfill its mission while delivering value to shareholders.
How PG&E Corporation (PCG) Works
Business Structure
PG&E Corporation is a holding company whose primary operating subsidiary is Pacific Gas and Electric Company (the Utility). The Utility serves northern and central California, generating revenues mainly through the sale and delivery of electricity and natural gas.
Financial Performance
As of September 30, 2024, PG&E Corporation reported the following financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Operating Revenues | $5,941 million | $5,888 million |
| Total Operating Expenses | $4,907 million | $5,484 million |
| Operating Income | $1,034 million | $404 million |
| Net Income | $618 million | $420 million |
| Earnings Per Share (Diluted) | $0.27 | $0.16 |
Revenue Breakdown
For the three months ended September 30, 2024, the revenue from contracts with customers was as follows:
| Customer Type | Electric Revenue (in millions) | Natural Gas Revenue (in millions) |
|---|---|---|
| Residential | $2,572 | $412 |
| Commercial | $2,301 | $163 |
| Industrial | $707 | $408 |
| Agricultural | $802 | Not Applicable | Public Street and Highway Lighting | $26 | Not Applicable |
Operating Expenses
The operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Electricity | $835 |
| Cost of Natural Gas | $89 |
| Operating and Maintenance | $2,678 |
| Depreciation, Amortization, and Decommissioning | $1,059 |
| Total Operating Expenses | $4,907 |
Cash Flow Overview
For the nine months ended September 30, 2024, PG&E Corporation reported cash flows as follows:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $6,272 |
| Net Cash Used in Investing Activities | ($8,219) |
| Net Cash Provided by Financing Activities | $2,257 |
| Net Change in Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $310 |
Debt Financing
As of September 30, 2024, PG&E Corporation completed significant debt financing:
- Sale of $1.0 billion aggregate principal amount of 7.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055.
- Sale of $850 million aggregate principal amount of 5.550% First Mortgage Bonds due 2029.
- Sale of $1.1 billion aggregate principal amount of 5.800% First Mortgage Bonds due 2034.
- Sale of $300 million aggregate principal amount of 6.750% First Mortgage Bonds due 2053.
Regulatory Environment
The Utility is primarily regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC). The Utility's revenues are authorized in General Rate Cases (GRCs) every four years.
Wildfire Mitigation Costs
PG&E Corporation has recorded expenditures for wildfire mitigation as follows:
| Expenditure Type | Amount (in millions) |
|---|---|
| Wildfire Mitigation Expenses | $726 |
| Wildfire Mitigation Capital Expenditures | $1,500 |
| Total Recorded Expenditures | $2,226 |
Shareholder Dividends
In 2024, PG&E Corporation declared common stock dividends as follows:
| Date | Dividend Amount (in millions) |
|---|---|
| February 13, 2024 | $21 |
| May 16, 2024 | $21 |
| September 19, 2024 | $21 |
Recent Developments
On October 17, 2024, the CPUC issued a final decision changing the cost of capital adjustment mechanism, reducing the Utility’s Return on Equity (ROE) from 10.70% to 10.28%, effective January 1, 2025.
How PG&E Corporation (PCG) Makes Money
Revenue Streams
PG&E Corporation's revenues primarily come from the provision of electricity and natural gas services. For the nine months ended September 30, 2024, the total operating revenues were $17.788 billion, up from $17.387 billion in the same period in 2023.
| Revenue Source | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Electric Revenues | $13.048 billion | $12.478 billion |
| Natural Gas Revenues | $4.740 billion | $4.909 billion |
| Total Operating Revenues | $17.788 billion | $17.387 billion |
Electric Revenue Breakdown
Electric revenues are derived from various customer segments. For the three months ended September 30, 2024, the breakdown was as follows:
| Customer Type | Revenue (2024 Q3) | Revenue (2023 Q3) |
|---|---|---|
| Residential | $2.572 billion | $2.052 billion |
| Commercial | $2.301 billion | $1.818 billion |
| Industrial | $707 million | $579 million |
| Agricultural | $802 million | $628 million |
| Public Street and Highway Lighting | $26 million | $22 million |
Natural Gas Revenue Breakdown
Natural gas revenues for the same period also saw significant contributions:
| Customer Type | Revenue (2024 Q3) | Revenue (2023 Q3) |
|---|---|---|
| Residential | $412 million | $326 million |
| Commercial | $163 million | $120 million |
| Transportation Service Only | $408 million | $364 million |
Operating Expenses
Operating expenses for PG&E Corporation reflect the costs associated with electricity and natural gas procurement and other operational costs. For the nine months ended September 30, 2024, the total operating expenses were $14.335 billion, down from $15.840 billion in the prior year.
| Expense Type | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cost of Electricity | $1.919 billion | $2.040 billion |
| Cost of Natural Gas | $822 million | $1.348 billion |
| Operating and Maintenance | $8.062 billion | $8.241 billion |
| Depreciation, Amortization, and Decommissioning | $3.134 billion | $2.885 billion |
Net Income
Net income for PG&E Corporation for the nine months ended September 30, 2024, was reported at $1.964 billion, compared to $1.526 billion for the same period in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $1.964 billion | $1.526 billion | Income Available for Common Stock | $1.954 billion | $1.516 billion |
| Net Income Per Share, Diluted | $0.85 | $0.62 |
Cash Flows
For the nine months ended September 30, 2024, PG&E Corporation generated $6.272 billion in net cash from operating activities, a significant increase from $4.530 billion in the same period in 2023.
| Cash Flow Type | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $6.272 billion | $4.530 billion |
| Net Cash Used in Investing Activities | ($8.219 billion) | ($6.710 billion) |
| Net Cash Provided by Financing Activities | $2.257 billion | $1.991 billion |
Regulatory Framework
PG&E Corporation operates under a regulatory framework that significantly impacts its revenues. The California Public Utilities Commission (CPUC) authorizes most of the Utility’s revenues through General Rate Cases (GRCs), which occur every four years. The latest GRC resulted in approximately $2.2 billion in increased base revenues authorized in 2024.
Conclusion
PG&E Corporation's financial performance in 2024 reflects a combination of increased revenues from electric and natural gas services, effective management of operating expenses, and a solid regulatory framework that supports its operations.
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Resources:
- PG&E Corporation (PCG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PG&E Corporation (PCG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PG&E Corporation (PCG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.