Firstenergy Corp. · NYSE:FE
Firstenergy — Q1 2019 Earnings Presentation
17 slides from Firstenergy's earnings presentation, Apr 23, 2019
Slide 1: 1Q 2019 Strategic & Financial Highlights
Exhibit 99.2 1Q 2019 Strategic & Financial Highlights Charles E. Jones, President and CEO Steven E. Strah, SVP and CFO April 2019
Slide 2: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including, among others, Operating earnings (loss), Operating earnings (loss) per share and Operating earnings (loss) per share by segment. Generally, a non-GAAP financial measure is a numerical measure o
Slide 3: Financial and Business Updates: 1Q 2019 Results
Financial and Business Updates 1Q 2019 Results ■ Reported GAAP earnings of $0.59 per share ■ Reported Operating (non-GAAP) earnings of $0.67 per share* – Above the midpoint of our 1Q earnings guidance range of $0.60 - $0.70 Transmission Updates ■ Energizing the Future: on pace for $1.2B in planned i
Slide 4: Financial and Business Updates (Continued): Distribution Updates
Financial and Business Updates (Continued) Distribution Updates ■ In February, the Ohio utilities requested approval for two-year extension of Distribution Modernization Rider (Rider DMR) ■ Ohio supplemental stipulation on tax reform and grid modernization remains pending ■ Reached settlement on Jer
Slide 5: Financial and Business Updates (Continued): Corporate Responsibility
Financial and Business Updates (Continued) Corporate Responsibility ■ Continuing our efforts to offer greater transparency and engagement with our ESG goals – Plan to publish a Corporate Responsibility report later this year to examine our efforts on issues as wide- ranging as diversity and inclusio
Slide 6: Financial and Business Updates (Continued): Earnings Guidance
Financial and Business Updates (Continued) Earnings Guidance ■ Updating 2019 GAAP earnings forecast to $2.37 - $2.67 per share ■ Affirming 2019 Operating (non-GAAP) earnings guidance of $2.45 - $2.75 per fully diluted share* ■ Introducing 2Q19 GAAP and Operating (non-GAAP) earnings guidance of $0.55
Slide 7: 1Q 2019 Earnings Results
(GAAP) (Non-GAAP) 1Q 2019 Earnings Results 1Q19 vs. 1Q18 EPS Variance Basic EPS Operating EPS* Regulated Distribution ($0.06) – Quarter-over-Quarter (Basic EPS / Operating EPS*) Regulated Transmission ($0.02) +$0.01 Corporate / Other ($1.88) ($0.01) 1Q Results FE Consolidated ($1.96) – ■ Continue to
Slide 8: Rating Agency and Financing Updates
Rating Agency and Financing Updates Recent Rating Actions ■ In late March, Moody’s issued one-notch upgrades to American Transmission Systems, Incorporated (ATSI), Mid-Atlantic Interstate Transmission, LLC (MAIT) and JCP&L ■ Last week, Fitch issued one-notch upgrades to JCP&L, Monongahela Power Comp
Slide 9: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community TABLE OF CONTENTS (Slide) 10. 1Q 2019 and 1Q 2018 Earnings Summary and Reconciliation 11. 1Q 2019 Earnings Drivers by Segment 12. Special Items Descriptions 13. 1Q 2019 Earnings Results 14. 1Q 2018 Earnings Results 15. Quarter-over-Quarter Earnings Comp
Slide 10: Quarterly Summary
Quarterly Summary 1Q 2019 1Q 2018 Change GAAP Earnings (Loss) Per Basic Share $0.59 $2.55 $(1.96) Special Items $0.08 $(1.88) $1.96 Operating (Non-GAAP) Earnings Per Share $0.67 $0.67 $— Quarterly Reconciliation FirstEnergy EPS Variance Analysis Regulated Regulated Corporate / Corp. (in millions, ex
Slide 11: Earnings Drivers: 1Q 2019 vs. 1Q 2018
Earnings Drivers: 1Q 2019 vs. 1Q 2018 Regulated Distribution (RD) ▪ Distribution Deliveries: Total distribution deliveries increased earnings $0.01 per share primarily reflecting an increase in weather-adjusted usage and customer count in the residential class. Q-o-Q Weather-Adjusted Distribution De
Slide 12: Special Items Descriptions
Special Items Descriptions ▪ Regulatory charges: Primarily reflects the impact of regulatory agreements or orders requiring certain commitments and/or disallowing the recoverability of costs, net of related credits. ▪ Exit of competitive generation: Primarily reflects charges or credits resulting fr
Slide 13: 1st Quarter 2019
1st Quarter 2019 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,512 $ 352 $ (31) $ 2,833 $ — $ — $ — $ — $ 2,512 $ 352 $ (31) $ 2,833 (2) Other 61 4 (15) 50 — — — — 61 4 (15) 50 (3) Total Revenues 2
Slide 14: 1st Quarter 2018
1st Quarter 2018 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,508 $ 319 $ (21) $ 2,806 $ — $ — $ — $ — $ 2,508 $ 319 $ (21) $ 2,806 (2) Other 68 4 (16) 56 — — — — 68 4 (16) 56 (3) Total Revenues 2
Slide 15: 1st Quarter 2019 vs 1st Quarter 2018
1st Quarter 2019 vs 1st Quarter 2018 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 4 $ 33 $ (10) $ 27 $ — $ — $ — $ — $ 4 $ 33 $ (10) $ 27 (2) Other (7) — 1 (6) — — — — (7) — 1 (6) (3) Total Revenues
Slide 16: 2019F GAAP to Operating (Non-GAAP) Earnings Reconciliation
2019F GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2019 Forecast 2Q19 Forecast (In $M, except per share amounts) RD RT Corp FE FE 2019F Net Income (Loss) attributable to Common Stockholders (GAAP) $1,175 - $1,280 $435 - $480 ($330) - ($320) $1,280 - $1,440 $295 - $350 2019F Earnings (Loss
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Unless the context requires otherwise, as used herein, references to “we,” “us,” “our,”