PEG (Update)

Public Service Enterprise Group Inc.

Energy


Presented:03/21/2014
Price:$36.28
Cap:$18.40B
Current Price:$88.17
Cap:$43.92B

Presented

Date03/21/2014
Price$36.28
Market Cap$18.40B
Ent Value$26.56B
P/E Ratio13.32x
Book Value$24.09
Div Yield3.9%
Shares O/S506.17M
Ave Daily Vol4,190,000
Short Int3.33%

Current

Price$88.17
Market Cap$43.92B
Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the northeastern and mid Atlantic United States. The company operates nuclear, coal, gas, and oil-fired generation facilities with a generation capacity of approximately 13,226 megawatts. It sells electricity, natural gas, capacity, emissions credits, and a series of energy-related products that are used to optimize the operation of the energy grid. The company also engages in the transmission of electricity; and distribution of electricity and natural gas to residential, commercial, and industrial customers, as well as invests in the development of solar generation projects, and implements demand response and energy efficiency programs. In addition, it offers appliance services and repairs to customers. As of December 31, 2012, the company owned and operated approximately 17,713 miles of gas mains, and 12 gas distribution headquarters and 2 subheadquarters, as well as 62 natural gas metering and regulating stations. Public Service Enterprise Group Incorporated was founded in 1985 and is headquartered in Newark, New Jersey.

Please note, this is an update to Short - Public Service Enterprise Group (PEG) (1/7/14)

Highlights

The presenter remains short shares of Public Service Enterprise Group (PEG) and said that the price disconnect which could lead to the potential $400 million cash flow shortfall in 2014 (and an additional $400 million shortfall in 2015) is still in play. The basis mismatch in PEG’s hedge book is becoming more obvious given recent price action in NY (over the past two weeks, in particular) vs. Henry Hub. The timing remains Q2-to-Q3 of this year when the company could have to recognize the issue (assuming the presenter’s calculations and thesis are correct).

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Idea Discussion

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