American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q1 2010 Earnings Presentation
17 slides from American Electric Power's earnings presentation, Apr 29, 2010
Slide 1: 1Q10 Earnings Release Presentation
1Q10 Earnings Release Presentation April 29, 2010
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are
Slide 3: First Quarter 2010 Highlights
First Quarter 2010 Highlights 9 FINANCIAL PERFORMANCE 9 Delivered GAAP earnings of $0.72 and on-going earnings of $0.76/share 9 Reaffirming 2010 guidance of $2.80 to $3.20/share 9 Moody’s rating outlook changed to ‘Stable’ from ‘Negative’ 9 CORPORATE ACTIONS 9 Declared 400th consecutive quarterly di
Slide 4: 1Q10 Performance
1Q10 Performance First Quarter Reconciliation 1Q10 Performance Drivers Ongoing ¾ Share count impact due to 71MM weighted Earnings average shares outstanding increase (407MM EPS ($ in millions) to 478MM) from equity offering and DRP 1Q09 $ 0.89 $360 ¾ Rate Changes of $81MM from multiple operating jur
Slide 5: Normalized Load Trends
Normalized Load Trends AEP Residential Normalized GWh Sales AEP Commercial Normalized GWh Sales %Change vs. Prior Year %Change vs. Prior Year 5% 5% 2.1% 3% 3% 1.1% 0% 0% -0.5% -3% -1.3% -0.8% -0.7% -3% -0.9% -1.6% -1.8% -1.4% -5% -5% -8% -8% -10% -10% 1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q1
Slide 6: Industrial Sales
Industrial Sales AEP Industrial GWh by Sector GWh 2,000 Primary Metal Manufacturing These 5 sectors Chemical Manufacturing accounted for 61% of Petroleum and Coal Products Manufacturing Mining (except Oil and Gas) industrial GWh in 1Q10. 1,600 Paper Manufacturing 1,200 800 400 0 MAR03 MAR04 MAR05 MA
Slide 7: Off-System Sales
Off-System Sales 1Q10 vs. 1Q09 Balance of Year AEP Dayton 7X24 Real Time Prices 2009 Liquidations and 2010 Apr-Dec Forward $50.00 ¾ 1Q10 AEP Off-system sales volumes were up approximately 83% over 1Q09 $40.00 ¾ 1Q10 AEP/Dayton Hub 7X24 prices $/MWhr (liquidations) were about 5% below 1Q09 $30.00 $20
Slide 8: Our Forward Looking Focus
Our Forward Looking Focus ¾ Regulatory Proceedings ¾ Retail Load ¾ Off-System Sales ¾ O&M Cost Reduction ¾ 2010 Earnings Guidance $2.80 - $3.20 per share p.8
Slide 9: Questions
Questions p.9
Slide 10: 1Q10 Earnings
1Q10 Earnings $ millions Earnings Per Share 1st Qtr 1st Qtr 1st Qtr 1st Qtr 2009 2010 Change 2009 2010 Change Utility Operations $ 343 $ 361 $ 18 $ 0.84 $ 0.75 $ (0.09) Transmission Operations 0 1 1 0.00 0.00 0.00 Non-Utility Operations 35 14 (21) 0.09 0.03 (0.06) Parent & Other (18) (11) 7 (0.04) (
Slide 11: Quarterly Performance Comparison
Quarterly Performance Comparison American Electric Power Financial Results for 1st Quarter 2010 Actual vs 1st Quarter 2009 Actual 2009 Actual 2010 Actual Performance Driver ($ millions) EPS Performance Driver ($ millions) EPS UTILITY OPERATIONS: 1 East Regulated Integrated Utilities 18,661 GWh @ $ 3
Slide 12: 1Q 2010 Cash Flow
1Q 2010 Cash Flow ($ millio ns) 2 0 09 2 0 10 Operat ing A c t iv it ie s 1Q 2010 Cash Flow Drivers: N e t Inco me - - R epo rt e d $ 3 60 $ 344 Depreciation, Amo rtizatio n & Deferred Taxes 543 501 Operating Activities Pensio n Contributio ns - (38) Application of new accounting guidance Applicat
Slide 13: Capitalization & Liquidity
Capitalization & Liquidity 70% Total Debt/Capitalization Current Liquidity Summary 65% Liquidity Summary Actual 62.5% (unaudited) 03/31/10 60.7% ($ in millions) Amount Maturity 60% 59.1% 59.1% 1, 2 Revolving Credit Facility $1,500 Mar-11 58.1% 57.2% 57.2% Revolving Credit Facility 1,454 Apr-12 Revol
Slide 14: Detailed Ongoing Earnings Guidance
Detailed Ongoing Earnings Guidance 2009 Actual: $2.97 American Electric Power 2010E: $2.80-$3.20 2009 Actual vs. 2010 Guidance 2009 Actual 2010 Guidance Performance Driver ($ millions) Performance Driver ($ millions) UTILITY OPERATIONS: Gross Margin: 1 East Regulated Integrated Utilities 66,976 GWh
Slide 15: Retail Rate Performance
Retail Rate Performance Rate Changes, net of trackers (in millions) 1Q10 vs. 1Q09 East Regulated Integrated $42 Utilities Ohio Companies $27 West Regulated Integrated $12 Utilities Texas Wires $0 AEP System $81 Total Impact on EPS $0.13 p.15
Slide 16: 1Q10 Retail Performance
1Q10 Retail Performance Load Weather Impact (weather normalized) (in millions) 1Q10 vs. 1Q09 1Q10 vs. 1Q09 East East Regulated Regulated -3.6% Integrated Integrated $16 Utilities Utilities Ohio Ohio -4.4% $1 Companies Companies West West Regulated Regulated 4.6% $14 Integrated Integrated Utilities U
Slide 17: Off System Sales Gross Margin Detail
Off System Sales Gross Margin Detail 1Q09 1Q10 GWh Realization ($millions) GWh Realization ($millions) OSS Physical Sales 2,592 $ 16.98 $ 44 4,745 $ 13.07 $ 62 Marketing/Trading - $ 41 - $ 38 Pre-Sharing Gross Margin 2,592 $ 85 4,745 $ 100 Margin Shared $ (23) $ (26) Net OSS $ 62 $ 74 p.17
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