Portland General Electric Company (POR) Q4 2023 earnings summary

Executive summary

• 2023 results reflected challenging operating conditions and power-market volatility; adjusted diluted EPS was $2.38 versus $2.74 in 2022.

• 2024 adjusted diluted EPS guidance is $2.98–$3.18; long-term EPS growth target remains 5%–7% from the 2022 adjusted base year.

• Priorities include clean-energy development, grid resilience, customer growth and operational cost discipline.

Financial highlights

• 2023 GAAP net income was $228 million and diluted EPS was $2.33; adjusted net income was $233 million and adjusted diluted EPS was $2.38. 2022 GAAP net income was $233 million and diluted EPS was $2.60; adjusted net income was $245 million and adjusted diluted EPS was $2.74.

• 2023 total revenue was $2,923 million, up from $2,647 million in 2022; income from operations was $396 million versus $397 million.

• Q4 2023 GAAP net income was $68 million, or $0.67 per diluted share, versus $50 million, or $0.56, in Q4 2022.

• 2023 EPS bridge included retail revenue impact of -$0.14/share and net variable power cost impact of +$0.25/share.

Outlook and guidance

• 2024 adjusted diluted EPS guidance is $2.98–$3.18, excluding non-deferrable January storm restoration and Reliability Contingency Event costs; long-term EPS growth target is 5%–7% from the 2022 adjusted base year.

• 2024 weather-adjusted energy deliveries are forecast to increase 2%–3%; long-term load growth target is 2% through 2027.

• Guidance assumes normal temperatures and thermal operations, current hydro estimates, and wind generation based on five-year historical levels or forecast studies.

• 2024 O&M expense guidance is $815–$840 million, including ~$165 million offset in other income statement lines; depreciation and amortization is $475–$525 million and the effective tax rate is 10%–15%.

• 2024 operating cash flow target is $700–$800 million; planned capital expenditures are $1,310 million and average construction work in progress is assumed at $720 million.