PG&E Corp

Equity Research 24 July 2026 | 12:08AM EDT

PG&E Corp. (PCG) Potential wildfire reform a catalyst with stock trading at 46% discount; Buy

PCG 12m Price Target: $24.00 Price: $17.54 Upside: 36.8% BUY Carly Davenport We reiterate our Buy rating on PG&E Corp (PCG) following 2Q results | Goldman Sachs & Co. LLC and raise our price target to $24. Management remains encouraged Beatriz Abreu, CFA by the potential to see constructive wildfire reform pass as the | Goldman Sachs & Co. LLC California legislative session resumes in August. While we take no view on the outcome, we view a resolution on wildfire reform as a Jaya Patel | Goldman Sachs & Co. LLC key catalyst to removing the overhang on the stock, where shares currently trade at a ~46% discount to our coverage on 2027 P/E. There were also constructive updates, in our view, on PCG’s data Key Data _____________________________________ Market cap: $37.7bn center pipeline, which now stands at ~12.7 GW, up from ~5.1 GW Enterprise value: $102.3bn 3m ADTV: $311.1mn prior, reflecting results of the 2026 cluster study and larger projects United States than previously. We continue to look for progress on the Rule 30 and Americas Utilities M&A Rank: 3 FERC’s show cause order to get clarity on the pace of large load GS Forecast __________________________________ interconnections. Ultimately, we see solid execution on PCG’s 12/25 12/26E 12/27E 12/28E

strategy and earnings, where we raise our 2026 EPS estimate to the Revenue ($ mn) New Revenue ($ mn) Old 24,935.0 24,935.0 26,277.0 26,713.0 27,027.0 27,463.0 27,827.0 28,263.0 top end of guidance. Separately, we see potential for a re-rating EBITDA ($ mn) 9,735.0 11,239.8 12,235.1 13,273.7 EBIT ($ mn) 5,101.0 6,360.7 7,017.2 7,626.6 should the legislative session conclude favorably on August 31. We EPS ($) New update our estimates to reflect 2Q results, and our price target EPS ($) Old P/E (X) increases to $24 from $23 prior implying 37% total return. Dividend yield (%) 0.6 1.1 1.7 2.2 Net debt/EBITDA (X) 6.2 5.7 5.6 5.5

Key takeaways from earnings call 6/26 9/26E 12/26E 3/27E EPS ($) Constructive sentiment on urgency for Phase II of wildfire policy GS Factor Profile ______________________________ reform ahead of the legislative session resuming. With the Growth California legislative session resuming on August 3, management reiterated the importance of a constructive legislative outcome and Financial Returns

its subsequent capital allocation plans. Management shared that it Multiple

was encouraged by the policymakers recognizing the need for a Integrated

durable wildfire liability framework that protects customer affordability. The company emphasized that wildfire-related charges Percentile 20th 40th 60th 80th 100th

currently accounts for 14% to 19% of typical customer bills. PCG relative to Americas Coverage

Regardless of the positive sentiment ahead of the session resuming, PCG relative to Americas Utilities

management reiterated its plans to reevaluate its broader capital Source: Company data, Goldman Sachs Research estimates. See disclosures for details. allocation strategy and $73 billion long-term investment plans if a constructive framework does not pass. PCG also recently submitted

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs PG&E Corp. (PCG)

PG&E Corp. (PCG) Balance Sheet ($ mn) _______________________________________ BUY Rating since Apr 9, 2024 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable 3,730.0 3,793.0 3,793.0 3,793.0 Inventory Ratios & Valuation __________________________________________ Other current assets 10,567.0 9,784.0 9,784.0 9,784.0 12/25 12/26E 12/27E 12/28E Total current assets 15,830.0 15,248.0 15,030.5…