PEG (Update)

Public Service Enterprise Group Inc.

Energy


Presented:10/01/2014
Price:$37.29
Cap:$18.90B
Current Price:$88.17
Cap:$43.92B

Presented

Date10/01/2014
Price$37.29
Market Cap$18.90B
Ent Value$27.31B
P/E Ratio13.97x
Book Value$24.09
Div Yield3.7%
Shares O/S505.89M
Ave Daily Vol3
Short Int2.75%

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, oil-fired, and renewable generation facilities with a generation capacity of approximately 13,466 megawatt. 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 transmits electricity; and distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and implements energy efficiency and demand response programs. In addition, it offers appliance services and repairs to customers. As of December 31, 2013, it owned and operated 17,758 miles of gas mains; and owned 12 gas distribution headquarters and 2 sub-headquarters, as well as operated 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 Inc (PEG), which was last updated on March 21, 2014.
Publicly traded companies mentioned herein: Public Service Enterprise Group Inc. (PEG)

Highlights

The presenter believes his “hedge book mismatch” thesis is playing out as expected, and is sticking with his short position in shares of Public Service Enterprise Group (PEG). He monitors PJM East prices by dispatch zone, and said the oversupply of gas is putting pressure on prices in the region. Based on his estimates, he is modeling Q3 2014 EPS of $0.65 for PEG, which is ~$0.05-0.10 below current Street estimates. In addition, he sees the utility’s mark-to-market exposure at ~$280 million based on current market dynamics, and expects this to increase.

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Idea Discussion

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