PG&E Corp (NYSE:PCG) has amended the contract of CEO Patricia K. Poppe, extending her tenure through January 4, 2031, as disclosed in a recent 8-K filing with the Securities and Exchange Commission. The extension follows the original offer letter dated November 13, 2020, with compensation subject to annual performance and market reviews by the company's board.
In addition to the contract update, PG&E declared a fourth-quarter 2024 cash dividend of $0.025 per share on its common stock, marking an increase from the previous amount. The dividend is scheduled for payment on January 15, 2025, to shareholders on record as of December 31, 2024.
Looking forward, PG&E's management projects consistent dividend growth, targeting a payout ratio of around 20% of non-GAAP core earnings per share by 2028. This strategy aligns with the company's capital allocation balance between dividends and investments in the utility industry's growth needs.
The company also reaffirmed its earnings guidance, anticipating a non-GAAP Core Earnings Per Share (EPS) of $1.34-$1.37 for 2024 and projecting a 10% year-over-year growth at the midpoint for 2025, with a non-GAAP Core EPS of $1.47-$1.51. Furthermore, PG&E expects at least 9% non-GAAP Core EPS growth annually through 2028.
The non-GAAP Core EPS is a non-standard financial measure and is not intended to replace GAAP measures. Detailed reconciliations between non-GAAP core EPS and GAAP earnings per share were provided in PG&E's third-quarter earnings materials filed with the SEC on November 7, 2024.
The forward-looking statements in the 8-K report, including earnings and dividend projections, are subject to various risks and uncertainties. PG&E Corp and its subsidiary, Pacific Gas and Electric Company, do not commit to updating these statements unless required by law. The information in this article is based on the aforementioned SEC filing.
In other recent news, PG&E Corporation has experienced notable developments. Mizuho (NYSE:MFG) Securities has reaffirmed its Outperform rating for PG&E and increased the company's price target to $26.00, following PG&E's proposal for a new rate structure to the California Public Utilities Commission. The new proposal aims to expedite the connection process for transmission-level customers and protect current customers from potential costs associated with unfulfilled load requests.
Furthermore, PG&E reported a 10% increase in its third-quarter 2024 core earnings per share (EPS), adjusting the EPS guidance range for 2024 to $1.34 to $1.37. The company also completed a $500 million sale of 7.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due in 2055, raising the total outstanding principal amount for this series to $1.5 billion. This sale was facilitated by Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., Mizuho Securities USA LLC, and Wells Fargo (NYSE:WFC) Securities, LLC.
Moreover, PG&E has expanded its five-year capital plan by $1 billion, now totaling $63 billion through 2028. This includes plans to reduce $2 billion in corporate debt by 2026 and raise $3 billion in equity through an at-the-market program.
The company also plans to invest an additional $5 billion in customer-driven projects, having already secured $8 billion in capital. These are recent developments that continue to shape PG&E's financial and operational trajectory.
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