Firstenergy Corp. · NYSE:FE
Firstenergy — Barclays CEO Energy-Power Conference 2017
14 slides from Firstenergy's conference presentation, Sep 6, 2017
Slide 1: FirstEnergy Barclays CEO Energy-Power Conference
FirstEnergy Barclays CEO Energy-Power Conference James F. Pearson, EVP and CFO New York, NY • September 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2September 2017Barclays CEO Energy-Power Conference This presentation includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including Operating earnings (losses). In addition, Basic Earnings (Loss) Per Share - Operating, calculated on a segment basis, is also a non-GAAP financial measure. Generally, a non-GAAP financial measur
Slide 4: Agenda
Agenda ■ FirstEnergy Overview ■ Our Transition to a Regulated Company ■ Business Updates – Distribution – Transmission – Financial – Competitive ■ AE Supply Updates ■ Building a Stronger FirstEnergy Barclays CEO Energy-Power Conference 4September 2017
Slide 5: FirstEnergy Overview
OH VA WV PA MD NJ MI INIL Jointly Owned Plant Regulated Plants Competitive Generating Plants 230, 345 and 500 kV Transmission Lines Competitive retail footprint Utility footprint FirstEnergy Overview September 2017Barclays CEO Energy-Power Conference 5 OUR MISSION We are a forward-thinking electric
Slide 6: Fully focused on our transition to a regulated company
Fully focused on our transition to a regulated company September 2017Barclays CEO Energy-Power Conference 6 Thoughtful exit from commodity-exposed generation Investing in our Regulated businesses Building a stronger balance sheet Thoughtful exit from commodity-exposed generation square4 Began strate
Slide 7: Business Updates
Business Updates ■ In January, new rates went into effect in Ohio, New Jersey and Pennsylvania ■ Four consecutive quarters of industrial load growth – Primarily driven by shale gas, steel, coal mining and chemical industries ■ Higher than forecasted load expected, offsetting the impact of mild tempe
Slide 8: Business Updates (Continued)
Business Updates (Continued) ■ On June 19, 2017, FE Corp. issued $3B Senior Notes at a weighted average coupon of 4.04% – Proceeds used to refinance $650M Notes due 2018 and to repay revolver borrowings – Improves liquidity and reduces exposure to rising interest rates ■ On August 16, 2017, S&P Glob
Slide 9: AE Supply Updates
AE Supply Updates ■ On August 30, 2017, signed an amended purchase agreement with LS Power to sell 1,615 MW of gas/hydro assets for a purchase price of $825M – Springdale (638 MW) and other gas units (221 MW), expected to close in 4Q17 – Buchanan (43 MW), expected to close in 1Q18 – Bath (713 MW), e
Slide 10: Building a Stronger FirstEnergy
Building a Stronger FirstEnergy ■ Safety is our top priority ■ Continue to drive operational excellence and strong financial performance across the company ■ Remain fully focused on our transition to a regulated company – Position FirstEnergy for customer-service oriented regulated growth – Committe
Slide 11: Appendix
Barclays CEO Energy-Power Conference 11September 2017 Appendix
Slide 12: Reconciliation of GAAP to Operating (Non-GAAP) Earnings
Barclays CEO Energy-Power Conference 12September 2017 * Per share amounts for the special items and earnings drivers above are based on the after-tax effect of each item divided by the weighted average basic shares outstanding and assumes up to $600 million of additional equity in 2017, of which ~$1
Slide 13: Parental Guarantees / Other Assurances on behalf of FES / FENOC
■ FE provides parental guarantees and other assurances of $1.7B on behalf of FES / FENOC – The secured revolving credit facility is currently undrawn ■ FES continues to have access to the unregulated money pool – As of June 30, 2017, FES, its subsidiaries, and FENOC had net borrowings of $174M – Cur
Slide 14: Nuclear Facts
Nuclear Facts Barclays CEO Energy-Power Conference Perry Davis-Besse Beaver Valley 1 Beaver Valley 2 License Expiration 2026(1) 2037 2036 2047 NDT Funding (as of June 30, 2017: SAFSTOR Method) ~$530M ~$575M ~$295M ~$390M NDT Shortfall (If plant closure is accelerated to next RFO) ~$15M – ~$90M ~$15M
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