Firstenergy Corp. · NYSE:FE
Firstenergy — Q4 2024 Earnings Presentation
30 slides from Firstenergy's earnings presentation, Feb 27, 2025
Slide 1: Focused on Our Future: 4Q 2024 Strategic & Financial Highlights
Focused on Our Future 4Q 2024 Strategic & Financial Highlights Published February 26, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These sta
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to certain financial measures including Baseline O&M, Core earnings per share (“Core EPS”) and Operating earnings per share (“Operating EPS”), as “non-GAAP financial measures,” which are not calculated in accordance with U.S. Generally
Slide 4: Focus of Today's Call
Focus of Today’s Call Brian X. Tierney – President, Chief Executive Officer, and Board Chair ■ Review of 2024 financial performance, key milestones, and regulatory activity ■ Introducing new Core EPS measure to highlight quality growth from our regulated businesses ■ Outlook for 2025 and beyond ■ Re
Slide 5: Financial Overview
Financial Overview 2023 vs 2024 Results 2024 Highlights 2023 2024 Delivered 2024 Operating EPS of $2.63, $0.07 above FY 2023 $2.56 $2.63 results and within the revised guidance range of $2.61-$2.71, despite lower Q4 customer demand $1.96 $1.70 Executed 2024 Investment plan of $4.5B, ~20% increase vs
Slide 6: 2024 Milestones
2024 Milestones 83% of Rate Base reviewed with constructive outcomes through base rate cases or formula rates since 4Q23 Regulatory Success Investment Plan approvals: PA LTIIP III, OH Grid Mod II, NJ EE&C, representing $2.8B of investments included in plan Closed 30% FET Sale as final phase of $7B i
Slide 7: 2025 Regulatory Overview
2025 Regulatory Overview Independent audit report and Staff report filed on February 21 Plan to update pending base rate case filing in 1Q25 to align with our Ohio Base Rate Case ESP VI Base rate case includes modest request to support recovery of investments, while keeping customer rates affordable
Slide 8: Highlighting FirstEnergy's Core Earnings Growth
Highlighting FirstEnergy’s Core Earnings Growth ▪ Beginning in 2025 we will provide Core earnings (1) guidance – Core EPS consists of Operating earnings for our Distribution, Integrated and Stand-Alone Transmission business segments and Corporate operations, excluding Signal Peak and net Pension/OPE
Slide 9: 2025-2029 Financial Guidance Overview
2025-2029 Financial Guidance Overview 2025-2029 GUIDANCE 2025 GUIDANCE 6-8% 9% $2.40-$2.60/sh 5.5% growth vs. 2024 (Midpoint vs. 2024A of $2.37) Core EPS Guidance Core EPS Growth(1) Rate Base Growth (2025-2029 CAGR) (2025-2029 CAGR) $5.0B Investment Plan 11% growth vs. 2024 (2024A of $4.5B) 60-70% $
Slide 10: Full Year 2024 Earnings Overview
Drivers Summary – Core Earnings ▪ Distribution +$0.04: higher customer demand, partially offset by the impact of Full Year 2024 Earnings Overview Ohio ESP V ▪ Integrated +$0.29: new base rates, rate base growth, and higher customer EPS Summary 2023 2024 Chg demand, partially offset by lower tax bene
Slide 11: 2024 Financing Updates
2024 Financing Updates Issued $2.1B in long-term debt at weighted 2024 Debt Financings 2024 Debt average rate of 5.1% Principal Notes Financings In December, issued $700M of long-term ATSI $150 5.63% due 2034 debt with registration rights at JCP&L MAIT $250 5.94% due 2034 FET $400 4.55% due 2030* FE
Slide 12: 2025-2029 Investment Plan & Rate Base Growth
2025-2029 Investment Plan & Rate Base Growth $28B, 5-yr Investment Plan 9% FE-Owned Rate Base CAGR (28% Increase in 2029 vs. 2025) (2025-2029) Segment CAGRs 2025-2029 Spend $38.8B (2025-2029) $6.4B $6.0B by Segment $35.5B $5.2B $5.6B $30.1B $32.6B $8.4 10% $5.0B $2.2 $9.5B $27.7B $6.8 $7.6 $4.5B $2.
Slide 13: Improving Earned ROEs
Rate Base with completed base Improving Earned ROEs 83% rate cases since late ‘23, including FERC Tx formula rates FE Consolidated ROEs 2024 Earned ROE Details(1) KATCo 10.45% 8.8% 9.4% FET(2) 10.4% Targeting FE Consolidated 2023A 2024A ROE of 9.5%-10% MD 8.3% Equity Layer 52% 53% YE Rate Base $26.5
Slide 14: Data Center Growth
Data Center Growth 3GWs of load in the pipeline through 2029 represents $900M of Transmission investments in 2025-2029 base potential incremental transmission investment of plan associated with growing data center demand ~$350M(1) not in base plan 9,010 5,575 Beyond 2029, projecting 2029F pipeline d
Slide 15: 2025 Guidance Update
2025 Guidance Update Transitioning to Core EPS Guidance highlights strong growth of our core business Removing Non-Core components Guidance Updates since 3Q24 from Core EPS ▪ Impact of higher financing costs ▪ Continued and accelerated EPS – 10-yr treasury increased by ~100bps since October 1, 2024
Slide 16: 2025 Core EPS Guidance: $2.40 - $2.60
2025F Segment Core EPS Ranges Distribution $1.29 - $1.37 2025 Core EPS(1) Guidance: $2.40 - $2.60 Integrated Stand-Alone Transmission $0.91 - $0.97 $0.57 - $0.59 Corp/Other ($0.37) - ($0.33) FE $2.40 - $2.60 $0.13 $0.03 $- $2.50 $2.37 $(0.03) + Rates & Investments + Rates & Investments + Rates & Inv
Slide 17: Shareholder Value Proposition
Shareholder Value Proposition 2025-2029 Base Financial Plan Targeting ~14%+ FFO/Debt Strong • • 6-8% Core EPS(1) CAGR Growth Financial • Committed to achieving and maintaining BBB credit profile • $28B Base Investment Plan Outlook S • EM Discipline Focus on Continuous Improvement and • 9% Rate Base
Slide 18: Quarterly Support & GAAP to Non-GAAP Reconciliations
Quarterly Support & GAAP to Non-GAAP Reconciliations Quarterly Support GAAP to Non-GAAP Reconciliations (Slide) (Slide) 19. Regulatory Calendar 24. 2024 GAAP to Non-GAAP Earnings Reconciliations 20. TTM Actual Sales by Class 25. 2023 GAAP to Non-GAAP Earnings Reconciliations 21. TTM Weather-Adjusted
Slide 19: Regulatory Calendar
Regulatory Calendar Select Proceedings Jurisdiction Regulatory Matter Key Dates ▪ Grid Mod II ✓ Settlement agreement filed 4/12/24; approved on 12/18/24 ▪ Filed base rate request for approximately $94M on 5/31/24, updated request to $190M on 7/31/24, notified PUCO of ▪ Base Rate Case withdrawal of E
Slide 20: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year 1Q24 2Q24 3Q24 4Q24 TTM 15.7% 8.1% 7.9% 4.0% 4.6% 3.1% 2.5% 2.8% 2.0% 2.1% 2.2% 1.0% 1.5% 1.4% 1.3% 0.9% 0.2% -0.4% -1.2% -2.1% Residential Commercial Industrial Total (MWh in 1Q23 1Q24 2Q23 2Q24 3Q23 3Q24 4Q23 4Q24 TTM 4Q23 TTM 4Q24 thousands) Res
Slide 21: Weather-Adjusted Sales by Class
Weather-Adjusted Sales by Class Percent change vs. prior year 1Q24 2Q24 3Q24 4Q24 TTM 4.0% 3.4% 3.5% 2.6% 2.1% 1.4% 1.3% 0.0% 0.2% 0.0% -0.4% -0.8% -0.8% -1.4% -1.2% -1.6% -1.6% -2.1% -3.1% -3.4% Residential Commercial Industrial Total (MWh in 1Q23 1Q24 2Q23 2Q24 3Q23 3Q24 4Q23 4Q24 TTM 4Q23 TTM 4Q2
Slide 22: Weather Impacts
Weather Impacts 500 400 300 200 100 0 150 400 650 900 1,150 1,400 HDD CDD HDD Norm CDD Norm KWh Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 OH PA NJ WV MD Total EPS Impact - Weather Days % Days % Days % Days % Days % Days % 4Q YTD CDD (2)
Slide 23: Credit Ratings
Credit Ratings Most Recent Ratings Changes As of February 26, 2025 ▪ On October 2, 2024, Fitch upgraded FE Corp.’s ratings to BBB from BBB-. ‒ Fitch also upgraded ratings of JCP&L, MP, AGC, FET, ATSI, MAIT, TrAILCo, and KATCo and put OE, CEI, and TE on positive outlook. ▪ On July 22, 2024, S&P upgra
Slide 24: 2024 GAAP to Non-GAAP Earnings Reconciliations
2024 GAAP to Non-GAAP Earnings Reconciliations 4Q 2024 Full Year 2024 (In $M, except per share amounts) Dx Int Tx Corp FE Cons Dx Int Tx Corp FE Cons 2024 Earnings (Loss) Attributable to FE Corp. (GAAP) $198 $148 $57 ($142) $261 $624 $535 $294 ($475) $978 2024 Earnings (Loss) Per Share $0.34 $0.26 $
Slide 25: 2023 GAAP to Non-GAAP Earnings Reconciliations
2023 GAAP to Non-GAAP Earnings Reconciliations 4Q 2023 Full Year 2023 (In $M, except per share amounts) Dx Int Tx Corp FE Cons Dx Int Tx Corp FE Cons 2023 Earnings (Loss) Attributable to FE Corp. from Continuing Operations (GAAP) $80 $9 $99 ($13) $175 $587 $300 $399 ($163) $1,123 2023 Earnings (Loss
Slide 26: 2022 GAAP to Non-GAAP Earnings Reconciliation
2022 GAAP to Non-GAAP Earnings Reconciliation (In $M, except per share amounts) FE Cons 2022 Earnings Attributable to FE Corp. from Continuing Operations (GAAP) $406 2022 Earnings Per Share from Continuing Operations $0.71 Excluding Special Items: Debt-related costs 0.25 Exit of generation 0.02 FE F
Slide 27: Special Items Descriptions
Special Items Descriptions ▪ ARO regulatory change: Primarily related to increases in asset retirement obligations, primarily associated with the planned transfer of the McElroy’s Run coal ash disposal site to a third party and an estimate for new remediation obligations for various legacy coal comb
Slide 28: Full Year 2024 Earnings Results
Full Year 2024 Earnings Results (in millions, except for per share amounts) GAAP Special Items FE Dx Int Tx Corp FE Dx Int Tx Corp FE Operating - Pension - Signal = Core Peak Utility (1) Electric sales $6,703 $4,815 $1,768 $ 9 $13,295 $ — $ (2) (f) $ 41 (f)(g) $ (11) (h) $ 28 (2) Other 160 61 19 (63
Slide 29: Full Year 2023 Earnings Results
Full Year 2023 Earnings Results (in millions, except for per share amounts) GAAP Special Items FE Dx Int Tx Corp FE Dx Int Tx Corp FE - Net - Signal Operating Pension Peak = Core (1) Electric sales $ 6,690 $ 4,261 $ 1,731 $ 11 $ 12,693 $ — $ 4 (f)(g) $ 1 (g) $ (1) (c) $ 4 /OPEB (2) Other 164 59 17 (
Slide 30: 2023-2024 GAAP to Non-GAAP Baseline O&M Reconciliations
2023-2024 GAAP to Non-GAAP Baseline O&M Reconciliations FirstEnergy Consolidated (In $M) 2023 2024 Other Operating Expenses (GAAP) (1) $3,594 $4,159 Excluding Special Items (pre-tax): ARO Regulatory Change - ($200) Enhanced Employee Retirement and Other Related Costs ($77) ($8) Investigation and Oth