Earnings Per Share (EPS) and Dividends

3 Months Ended

Mar. 31, 2022

EPS

Basic EPS is calculated by dividing Net Income (Loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is calculated by dividing Net Income (Loss) by the weighted average number of shares of common stock outstanding, plus dilutive potential shares related to PSEG’s stock based compensation. The following table shows the effect of these dilutive potential shares on the weighted average number of shares outstanding used in calculating diluted EPS:



	Three Months Ended March 31,
		2022	2021
			Basic		Diluted		Basic		Diluted
EPS Numerator (Millions):
Net Income (Loss)			$	(2)	$	(2)	$	648	$	648
EPS Denominator (Millions):
Weighted Average Common Shares Outstanding			501		501		504		504
Effect of Stock Based Compensation Awards			—		—		—		3
Total Shares			501		501		504		507

EPS
Net Income (Loss)			$	0.00	$	0.00	$	1.29	$	1.28

Approximately 3 million potentially dilutive shares were excluded from total shares used to calculate the diluted loss per share for the three months ended March 31, 2022 as their impact was antidilutive.

In 2021, the Board of Directors authorized senior management to implement a $500 million share repurchase program. In December 2021, under this authorization PSEG entered into an open market share repurchase plan for $250 million of our common shares that complies with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. There were no common share repurchases during the fourth quarter of 2021. During January and through February 16, 2022, PSEG purchased the full $250 million of common shares under the open market share repurchase plan.

In March 2022, PSEG entered into a Master Confirmation and Supplemental Confirmation with an investment banking firm to effect an accelerated share repurchase agreement (ASR Agreement) of $250 million of shares of PSEG’s outstanding Common Stock. The share repurchases pursuant to the ASR Agreement will be completed under PSEG’s current share repurchase authorization. Under the ASR Agreement, PSEG received initial delivery of approximately 3.0 million shares of Common Stock in mid-March, representing approximately 80% of the total number of shares of Common Stock initially underlying the ASR Agreement, based on the closing price of the Common Stock of $65.72 on March 11, 2022. The total number of shares that PSEG will repurchase under the ASR Agreement will be based on the volume-weighted average price of the Common Stock during the term of the ASR Agreement, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR Agreement. The ASR Agreement provides that final settlement of the shares of Common Stock repurchased under the ASR Agreement will generally occur in June 2022, unless the scheduled termination date of the ASR Agreement is accelerated. If the final settlement is in PSEG’s favor, the obligations to PSEG will be satisfied by delivery of additional shares of PSEG’s Common Stock and cash payment for any fractional shares. If final settlement is in the investment banking firm’s favor, PSEG’s obligations will be satisfied by delivery of either cash or shares of PSEG’s Common Stock at PSEG’s election.

Dividends



	Three Months Ended
	March 31,
Dividend Payments on Common Stock		2022		2021
Per Share		$	0.54	$	0.51
In Millions		$	271	$	258