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Aug. 12, 2021, 9:10 a.m. EDT

PSEG to sell PSEG Fossil for $1.9 billion, raises full-year profit outlook

Shares of Public Service Enterprise Group (NYS:PEG) rose 0.4% in premarket trading Thursday, after the utility announced an agreement to sell its fossil generating portfolio for $1.92 billion to a fund controlled by ArcLight Capital Partners LLC. The deal is expected to close late in the fourth quarter of 2021. As a result of the sale of PSEG Fossil, the company said it expects to record an impairment charge of $2.150 billion to $2.225 billion, employee severance and retention costs of up to $25 million and debt redemption costs of $280 million to $340 million. Separately, PSEG raised its guidance range for 2021 adjusted earnings per share to $3.50 to $3.65 from $3.40 to $3.55, citing the cessation of depreciation and interest expenses related to the sale of PSEG Fossil assets and the repayment of PSEG Power's debt. PSEG's stock has gained 9.0% year to date, while the SPDR Utilities Select Sector ETF (PSE:XLU) has tacked on 8.7% and the S&P 500 (S&P:SPX) has advanced 18.4%.

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