PG&E Corporation (PCG)

Over the past six months, PG&E's stock has experienced a decline. Key events impacting the stock include Q3 2024 earnings, concurrent stock offerings, analyst ratings changes, wildfire concerns, Q1 2025 earnings, data center demand, and price to sales multiple.

Demand for PG&E's electricity and natural gas is subject to seasonality, largely influenced by weather patterns. Electricity usage typically sees higher demand during peak hours and lower demand during off-peak hours, with extreme weather events significantly impacting energy demand and distribution costs. Natural gas demand also fluctuates with seasonal heating and cooling needs. The company is seeing a significant increase in electricity demand from new data centers, which is expected to grow substantially over the next decade and could help lower energy costs for all PG&E customers.

PG&E Corporation is a holding company whose primary subsidiary is Pacific Gas and Electric Company, a regulated utility based in Oakland, California. The company operates within the Utilities sector, specifically in the Electricity and Natural Gas industries. PG&E's major products and services include the sale and delivery of electricity and natural gas to residential, commercial, industrial, and agricultural customers. The company generates electricity using a diverse mix of sources, including nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. It also procures power and electric capacity, including renewable energy resources, and provides electric transmission and distribution services. For natural gas, PG&E is involved in procurement, transportation, and storage.

PG&E's service area covers the northern and central two-thirds of California, stretching approximately 70,000 square miles. This extensive territory extends from Bakersfield and northern Santa Barbara County almost to the Oregon and Nevada state lines, and from Eureka in the north to Bakersfield in the south, and from the Pacific Ocean in the west to the Sierra Nevada in the east. The company serves approximately 16 million people, with 5.5 million electric customer accounts and 4.5 million natural gas customer accounts. PG&E also has electric power systems in the Western Electricity Coordinating Council, the Canadian provinces of Alberta and British Columbia, and parts of Mexico.

PG&E's brand reputation has been significantly impacted by its history of liability for devastating wildfires in California, leading to its Chapter 11 bankruptcy filing in 2019. The company has been actively sharing updates on its wildfire prevention efforts, combating utility scams, engaging in community initiatives, expanding customer support programs, and undertaking infrastructure upgrades. Despite these efforts, the company's history of wildfire-related liabilities continues to be a significant factor in its public perception.

PG&E Corp. is primarily owned by institutional shareholders (76.91%), with a smaller percentage held by PG&E insiders (7.33%) and retail investors (15.76%). Major institutional owners include Vanguard Group Inc., BlackRock, Inc., FMR LLC, JPMorgan Chase & Co., Massachusetts Financial Services Company, and State Street Corp. The largest individual PG&E shareholder is the Fire Victim Trust PGE, owning 7.02% of the company.