PG&E Corporation Reports Second-Quarter Results; On Track to Deliver Solid 2023

• Recorded GAAP earnings were $0.19 per diluted share for the second quarter of 2023, compared to earnings of $0.17 per diluted share for the same period in 2022.
• Non-GAAP core earnings were $0.23 per diluted share for the second quarter of 2023, compared to earnings of $0.25 per diluted share for the same period in 2022.
• Recorded GAAP earnings were $0.46 per diluted share for the first half of 2023, compared to earnings of $0.39 per diluted share for the same period in 2022.
• Non-GAAP core earnings were $0.52 per diluted share for the first half of 2023, compared to earnings of $0.55 per diluted share for the same period in 2022.
• 2023 EPS guidance updated for GAAP earnings from $1.00 to $1.13 per share (previously) to $1.04 to $1.13 per share.
• 2023 EPS guidance reaffirmed for non-GAAP core earnings in the range of $1.19 to $1.23 per share.
• Forecasting no equity needs in 2023 through 2024.

OAKLAND, Calif., July 27, 2023 /PRNewswire/ -- PG&E Corporation (NYSE: PCG) recorded second quarter 2023 income available for common shareholders of $406 million, or $0.19 per diluted share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with income available for common shareholders of $356 million, or $0.17 per diluted share, for the second quarter of 2022.

The increase in GAAP results was primarily driven by lower costs related to PG&E Corporation's and Pacific Gas and Electric Company's (Utility) reorganization cases under Chapter 11 of the U.S. Bankruptcy Code (Chapter 11) and lower wildfire-related costs, and higher Fire Victim Trust tax benefit net of securitization.

"Through the first half of 2023, we feel confident that we continue to reduce physical risk on our system overall, and that our investments since 2017 have made a dramatic difference in preventing catastrophic wildfires," said Patti Poppe, CEO of PG&E Corporation. "We also expect continued steady and predictable improvement in our financial health, which in turn allows us to further invest and innovate as we build a climate-resilient energy system for California's future."

Non-GAAP Core Earnings

PG&E Corporation's non-GAAP core earnings, which exclude non-core items, were $494 million, or $0.23 per diluted share, in the second quarter of 2023, compared with $536 million, or $0.25 per diluted share, during the same period in 2022.

The decrease in quarter-over-quarter non-GAAP core earnings is primarily driven by timing items and other increases, including property taxes, partially offset by savings in operating and maintenance costs net of redeployment.

Non-core items, which management does not consider representative of ongoing earnings, totaled $88 million after tax, or $0.04 per diluted share, in the second quarter of 2023, compared with $180 million after tax, or $0.08 per diluted share, during the same period in 2022.

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.

2023 Guidance

PG&E Corporation is updating 2023 GAAP earnings guidance in the range of $1.04 to $1.13 per diluted share. Factors driving GAAP earnings include costs related to unrecoverable interest expense of $370 million to $430 million after tax and other earnings factors, including allowance for funds used during construction equity, 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, wildfire-related costs, PG&E Corporation's and the Utility's reorganization cases under Chapter 11, and investigation remedies, partially offset by Fire Victim Trust tax benefits and prior period net regulatory impact.

The guidance range for projected 2023 non-GAAP core earnings is reaffirmed at $1.19 to $1.23 per diluted share. The guidance range for non-core items, which management does not consider representative of ongoing earnings, is updated to $210 million to $320 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.

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 at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.

Earnings Conference Call

PG&E Corporation will also hold a conference call on July 27, 2023, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its second quarter 2023 results. The public can access the conference call through a simultaneous webcast. The link is provided below and will also be available from the PG&E Corporation website.

What: Second Quarter 2023 Earnings Call

When: Thursday, July 27, 2023 at 11:00 a.m. Eastern Time

Where: http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx

A replay of the conference call will be archived at http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx.

Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through August 10, 2023, by dialing (800) 770-2030. International callers may dial (647) 362-9199. For both domestic and international callers, the confirmation code 64421 will be required to access the replay.

Public Dissemination of Certain Information

PG&E Corporation and the Utility routinely provide links to the Utility's principal regulatory proceedings with the California Public Utilities Commission and the Federal Energy Regulatory Commission at http://investor.pgecorp.com, under the "Regulatory Filings" tab, so that such filings are available to investors upon filing with the relevant agency. PG&E Corporation and the Utility also routinely post, or provide direct links to, presentations, documents, and other information that may be of interest to investors, including regarding dividends, at http://investor.pgecorp.com, under the "Wildfire and Safety Updates," "News & Events: Events & Presentations," and "Shareholders: Dividend Information" tabs, respectively, in order to publicly disseminate such information. It is possible that any of these filings or information included therein could be deemed to be material information.

About PG&E Corporation

PG&E Corporation (NYSE: PCG) is a holding company headquartered in Oakland, California. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. For more information, visit http://www.pgecorp.com.

Forward-Looking Statements

This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and the Utility, including but not limited to earnings guidance and equity financing requirements for 2023 and 2024. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E Corporation and the Utility's joint annual report on Form 10-K for the year ended December 31, 2022, their most recent quarterly report on Form 10-Q for the quarter ended June 30, 2023, and other reports filed with the SEC, which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC website at www.sec.gov. PG&E Corporation and the Utility undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.