Earnings Per Share (EPS) and Dividends

9 Months Ended

Sep. 30, 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 September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted
EPS Numerator (Millions):
Net Income (Loss)	$	114	$	114	$	(1,564)	$	(1,564)	$	243	$	243	$	(1,093)	$	(1,093)
EPS Denominator (Millions):
Weighted Average Common Shares Outstanding	497		497		504		504		498		498		504		504
Effect of Stock Based Compensation Awards	—		3		—		—		—		3		—		—
Total Shares	497		500		504		504		498		501		504		504

EPS
Net Income (Loss)	$	0.23	$	0.22	$	(3.10)	$	(3.10)	$	0.49	$	0.48	$	(2.17)	$	(2.17)

Approximately 3 million potentially dilutive shares were excluded from total shares used to calculate the diluted loss per share for the three months and nine months ended September 30, 2021 as their impact was antidilutive.

In September 2021, PSEG announced a $500 million share repurchase program, authorized by the Board of Directors. In December 2021, under this authorization PSEG entered into an open market share repurchase plan for $250 million of its common shares. During January and through mid-February 2022, PSEG purchased the full $250 million of common stock under the open market share repurchase plan.

In March 2022, under this authorization, PSEG entered into a Master Confirmation and Supplemental Confirmation with an investment banking firm to effect an accelerated share repurchase agreement (ASR Agreement) for the remaining authorized $250 million of shares of PSEG’s outstanding common stock. 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. In mid-May 2022, the investment banking firm exercised its right to accelerate the termination of the contract pursuant to the terms of the ASR Agreement and PSEG received approximately 0.6 million shares, representing the balance of the shares owed to PSEG under the ASR Agreement.

Dividends



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Dividend Payments on Common Stock	2022		2021		2022		2021
Per Share	$	0.54	$	0.51	$	1.62	$	1.53
In Millions	$	269	$	257	$	810	$	773