PG&E Corporation Reports Second-Quarter 2022 Financial Results

PG&E Corporation recorded second-quarter 2022 income available for common shareholders of $356 million, or $0.17 per diluted share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with income available for common shareholders of $397 million, or $0.18 per diluted share, for the second quarter of 2021.

GAAP results include non-core items that management does not consider representative of ongoing earnings, which totaled $180 million after tax, or $0.08 per diluted share, for the quarter. These results were primarily driven by 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), wildfire-related costs, the amortization of Wildfire Fund contributions under Assembly Bill (AB) 1054, strategic repositioning costs, and investigation remedies, partially offset by rate neutral (Senate Bill (SB) 901) securitization and Fire Victim Trust tax benefits.

"We are on track to deliver on our 2022 commitments," said Patti Poppe, CEO of PG&E Corporation. "We are reducing risk and making the right investments for the future. Our daily focus on delivering predictable results and keeping costs down reflects our Triple Bottom Line of serving people, the planet, and California's prosperity."

Non-GAAP core earnings

PG&E Corporation's non-GAAP core earnings, which exclude non-core items, were $536 million, or $0.25 per diluted share, in the second quarter of 2022, compared with $575 million, or $0.27 per diluted share, during the same period in 2021.

The decrease in quarter-over-quarter non-GAAP core earnings per diluted share was primarily driven by regulatory items, taxes and other miscellaneous items, partially offset by the growth in rate base earnings and cost reductions.

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.

2022 guidance

PG&E Corporation is adjusting 2022 GAAP earnings guidance in the range of $0.74 to $1.02 per diluted share, which includes non-core items. PG&E Corporation is adjusting 2022 non-core items guidance in the range of $230 million to $720 million after tax, reflecting costs related to the amortization of Wildfire Fund contributions under AB 1054, PG&E Corporation's and the Utility's reorganization cases under Chapter 11, wildfire-related costs, investigation remedies, and strategic repositioning costs, partially offset by rate neutral (SB 901) securitization and Fire Victim Trust tax benefits and prior period net regulatory impact.

On a non-GAAP basis, the guidance range for projected 2022 non-GAAP core earnings is reaffirmed at $1.07 to $1.13 per diluted share. Factors driving non-GAAP core earnings include unrecoverable interest expense of $330 million to $370 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.

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 28, 2022, at 8:00 a.m. Pacific Time to discuss its second quarter 2022 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 2022 Earnings Call

When: Thursday, July 28, at 8 a.m. Pacific 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 5, 2022, 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.

Email Currents at [email protected].

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