Slide 1: Focused on Our Future: 4Q 2023 Strategic & Financial Highlights
Focused on Our Future 4Q 2023 Strategic & Financial Highlights Published February 8, 2024
Slide 2: 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. Such statements are subject to certain risks and uncertainties and readers are cautioned
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to certain financial measures including, Operating earnings (loss) and Operating earnings (loss) per share (“EPS”), including by segment, and the impact of special items on the following measures, Total revenues, Total operating expens
Slide 4: Focus of Today's Call
Focus of Today’s Call Brian X. Tierney – President and Chief Executive Officer ■ Delivered on 2023 financial commitments and key accomplishments ■ Extending financial guidance through 2028 and affirming long-term annual Operating EPS growth rate of 6-8%(1) with significantly improved earnings qualit
Slide 5: Financial Overview & Key Highlights
Financial Overview & Key Highlights 2023 vs 2022 Results Fourth Quarter 2023 2022 Full Year Key Highlights $2.56 $2.41 $0.62 $0.50 $1.96 Delivered 2023 Operating EPS of $2.56, $0.30 +$0.02 above guidance midpoint (1) GAAP EPS Operating EPS $0.71 Introducing Energize365, our new $26B, 5-yr investment
Slide 6: Executing on Our Regulatory Strategy
Executing on Our Regulatory Strategy WV (Settlement filed 1/23/24) Requested new rates effective 3/27/24, 9.8% ROE, $105M revenue increase MD (Order received 10/18/23) NJ (Settlement filed 2/2/24) New rates 10/19/2023, 9.5% ROE, Requested new rates effective 6/1/24, 9.6% ROE, $85M revenue increase $
Slide 7: Strategic Updates
Strategic Updates Simplifying segments to align with new org. structure beginning with 1Q 2024 results 4.2M Customers 2M Customers 16.8K Tx Line Miles 2023A Rate Base: $10.9B $8.7B $7.7B % of 2024F Operating EPS: ~45% ~35% ~20% Distribution Integrated Stand-Alone Transmission Corp/Other Ohio Pennsyl
Slide 8: Strategic Updates (Continued)
Strategic Updates (Continued) OOCIC • Continue to cooperate with commission • Maintaining our aspirational goal of net carbon neutrality by 2050 Greenhouse Gas • Eliminating our interim goal of reducing our Scope 1 emissions by 30% off the 2019 Emission Goal baseline by 2030 For more details, see th
Slide 9: Delivering Financial Results: 4Q 2023 Earnings Summary
Delivering Financial Results 4Q 2023 Earnings Summary Quarter-over-Quarter Operating EPS Summary 4Q23 GAAP Earnings from Continuing Operations $0.30 per share (vs. -$0.71 per share in 4Q22) – 4Q 2023 results include ($0.32) of special items, including Enhanced employee retirement and other RD: -$0.0
Slide 10: Delivering Financial Results: 2023 Earnings Summary
Delivering Financial Results 2023 Earnings Summary Year-over-Year Operating EPS Summary 2023 GAAP Earnings from Continuing Operations $1.96 per share (vs. $0.71 per share in 22) – 2023 results include ($0.60) of special items, including Debt-related costs ($0.05), Enhanced employee retirement and ot
Slide 11: Pathway to Strong Financial Future: 2024-2028 Financial Plan
Pathway to Strong Financial Future $2.61-$2.81/sh 7% growth vs. $1.70/sh Plan to declare four $4.3B 2024 16% increase 2023 Guidance dividends of $0.425/sh in vs. ‘23 Spend Earnings Guidance Midpoint ‘24; 6.25% increase vs. and Dividends Declared $1.60/sh declared in ‘23 Investment Plan $0.48-$0.58/S
Slide 12: Differentiating FirstEnergy through our transformation efforts
Differentiating FirstEnergy through our transformation efforts ■ Significantly improved balance sheet positions FirstEnergy for accelerated growth without the need for equity – Closed or announced shareholder-friendly equity proceeds of $7B, equivalent to issuing common equity at $87/sh or 36x LTM P
Slide 13: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community TABLE OF CONTENTS (Slide) 14. 4Q Earnings Summary and Reconciliation 15. 4Q Earnings Drivers by Segment 16. Full Year Earnings Summary and Reconciliation 17. Full Year Earnings Drivers by Segment 18. Special Items Descriptions 19. 4Q 2023 Earnings Resul
Slide 14: Quarterly Summary and Reconciliation
Quarterly Summary 4Q 2023 4Q 2022 Change GAAP Earnings (Loss) from Continuing Operations Per Basic Share $0.30 $(0.71) $1.01 Special Items $0.32 $1.21 $(0.89) Operating (Non-GAAP) Earnings Per Share $0.62 $0.50 $0.12 Quarterly Reconciliation FirstEnergy EPS Variance Analysis Regulated Regulated Corp
Slide 15: Earnings Drivers: 4Q 2023 vs. 4Q 2022
Earnings Drivers: 4Q 2023 vs. 4Q 2022 Regulated Distribution (RD) ▪ Rates & Investments +$0.04: Higher revenues from formula rate investment programs, lower Ohio rate credits, and the impact of new base rates in Maryland effective 10/19/23 ▪ Customer demand ($0.04): Due to lower weather-related dema
Slide 16: Full Year Summary and Reconciliation
Full Year Summary 2023 2022 Change GAAP Earnings from Continuing Operations Per Basic Share $1.96 $0.71 $1.25 Special Items $0.60 $1.70 $(1.10) Operating (Non-GAAP) Earnings Per Share $2.56 $2.41 $0.15 Full Year Reconciliation FirstEnergy EPS Variance Analysis Regulated Regulated Corporate / Corp. (
Slide 17: Earnings Drivers: Full Year 2023 vs. Full Year 2022
Earnings Drivers: Full Year 2023 vs. Full Year 2022 Regulated Distribution (RD) ▪ Rates & Investments +$0.11: Higher revenues from formula rate investment programs, lower Ohio rate credits, and the impact of new base rates in Maryland effective 10/19/23 ▪ Customer Demand ($0.21): Primarily due to lo
Slide 18: Special Items Descriptions
Special Items Descriptions ▪ Debt-related costs: Primarily reflects costs associated with the redemption and early retirement of debt. ▪ Enhanced employee retirement and other related costs: Primarily reflects transition and benefit costs associated with the Company's voluntary retirement program an
Slide 19: 4th Quarter 2023
4th Quarter 2023 (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 $ 2,581 $ 563 $ (40) $ 3,104 $ — $ — $ (1) (d) $ (1) (2) Other 55 1 (14) 42 — — — — (3) Total Revenues 2,636 564 (54) 3,146 — — (1) (1) 2,
Slide 20: 4th Quarter 2022
4th Quarter 2022 (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 $ 2,718 $ 470 $ (44) $ 3,144 $ — $ 1 (a) $ — $ 1 (2) Other 45 1 (13) 33 — — — — (3) Total Revenues 2,763 471 (57) 3,177 — 1 — 1 2,763 472
Slide 21: 4th Quarter 2023 vs 4th Quarter 2022
4th Quarter 2023 vs 4th Quarter 2022 (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 $ (137) $ 93 $ 4 $ (40) $ — $ (1) $ (1) $ (2) (2) Other 10 — (1) 9 — — — — (3) Total Revenues (127) 93 3 (31) — (1) (1
Slide 22: YTD December 2023
YTD December 2023 (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 $ 10,814 $ 2,049 $ (170) $ 12,693 $ — $ 7 (a) $ (1) (d) $ 6 (2) Other 224 5 (52) 177 — — — — (3) Total Revenues 11,038 2,054 (222) 12,870
Slide 23: YTD December 2022
YTD December 2022 (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 $ 10,596 $ 1,863 $ (159) $ 12,300 $ — $ 62 (a) $ — $ 62 (2) Other 205 5 (51) 159 — — — — (3) Total Revenues 10,801 1,868 (210) 12,459 — 6
Slide 24: YTD December 2023 vs YTD December 2022
YTD December 2023 vs YTD December 2022 (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 $ 218 $ 186 $ (11) $ 393 $ — $ (55) $ (1) $ (56) (2) Other 19 — (1) 18 — — — — (3) Total Revenues 237 186 (12) 411 —
Slide 25: Condensed Consolidated Balance Sheets (GAAP)
Condensed Consolidated Balance Sheets (GAAP) (in millions) December 31, December 31, Assets 2023 2022 Current assets: Cash, cash equivalents and restricted cash $ 179 $ 206 Receivables 1,584 1,571 Other 805 638 Total current assets 2,568 2,415 Property plant and equipment 38,412 36,285 Investments a
Slide 26: Condensed Consolidated Statements of Cash Flows (GAAP)
Condensed Consolidated Statements of Cash Flows (GAAP) For the Years Ended December 31, (In millions) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,176 $ 439 $ 1,283 Adjustments to reconcile net income to net cash from operating activities- Depreciation, amortization, and impai
Slide 27: Quarterly Support
Quarterly Support TABLE OF CONTENTS (Slide) Strategic & Regulatory Quarterly Support 28. Regulatory Calendar 35. TTM Actual Sales by Class 29. RD Segment-State ROEs 36. TTM Weather-Adjusted Sales 30. JCP&L Base Rate Case 37. TTM Weather Impacts 31. Maryland Base Rate Case 38. Credit Ratings Summary
Slide 28: Regulatory Calendar
Regulatory Calendar Select Proceedings Jurisdiction Regulatory Matter Key Dates • OH Grid Mod II • Application filed 7/15/22; Intervenor testimony filed on 10/20/23; PUCO Staff testimony filed on 12/4/23; Hearing to begin 4/16/24 Ohio • Electric Security Plan (ESP V) • Filed on 4/5/23; Hearings conc
Slide 29: RD Segment – State ROEs
RD Segment – State ROEs TTM 12/31/23 As updated in As filed in pending rate case pending rate case 10% 9.2% 7.7% 5.8% 4.1% 4.7% 5% 0% (2) (2) OH PA NJ WV MD Rate base at 12/31/23 $4.2B $6.6B $3.1B $3.2B $0.7B Equity/Total Capitalization(1) 49% 49% 52% 49% 50% ROE EPS Sensitivity +/- 1% ~$0.04 ~$0.05
Slide 30: JCP&L Base Rate Case Filing
JCP&L Base Rate Case Filing Filed 3/16/23; Updated 6/2/23; Settlement Agreement Filed 2/2/24 (Docket Number: ER23030144) Key Statistics Rate adjustment supports investments that strengthen Settlement Proposed Prior Current Settlement the energy grid, enhance the customer experience and Distribution
Slide 31: MD Base Rate Case Summary
MD Base Rate Case Summary Filed 3/22/23; Updated 5/16/23; Order issued 10/18/23 (Case No. 9695) Key Statistics Approved Prior Rate adjustment supports recent reliability investments, Distribution Rate Base $682M $462M Summary ongoing tree trimming, and inspections of lines, poles and substations, wh
Slide 32: Ohio Electric Security Plan (ESP) V Regulatory Filing
Ohio Electric Security Plan (ESP) V Regulatory Filing Filed 4/5/23 (Case Record: 23-0301-EL-SSO) Background Filing Summary • Utilities are required to file applications to establish either an ESP or a Market Rate Offer to • Focus on reliability, affordability, and stewardship provide customers defau
Slide 33: WV Regulatory Filing
WV Regulatory Filing Filed 5/31/23; Settlement Agreement filed 1/23/24; Expect Rates to be effective 3/27/24 (Case No. 23-0460-E-42T) Key Statistics Rate adjustment supports distribution, transmission, and generation investments, addresses depreciation rates for Settlement Prior Settlement generatio
Slide 34: PA Legal Entity Consolidation Summary
PA Legal Entity Consolidation Summary Settlement Agreement; Order Issued PA (12/7/23), NY (11/20/23), and FERC (8/14/23) Overview ■ FE’s 4 PA subsidiaries Met-Ed (ME), Penelec (PN), Penn Power (PP), and West Penn Power (WPP) filed a settlement agreement to merge into FirstEnergy Pennsylvania PA Cons
Slide 35: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year 1Q23 2Q23 3Q23 4Q23 TTM 2.0% 1.3% 0.7% 0.0% -0.5% -1.2% -1.1% -1.3% -1.7% -3.5% -3.3% -3.9% -4.9% -4.9% -5.3% -6.4% -6.7% -7.1% -8.4% -10.8% Residential Commercial Industrial Total (MWh in thousands) 1Q22 1Q23 2Q22 2Q23 3Q22 3Q23 4Q22 4Q23 2022 202
Slide 36: Actual Weather-Adjusted Sales by Class
Actual Weather-Adjusted Sales by Class Percent change vs. prior year 1Q23 2Q23 3Q23 4Q23 TTM 5.4% 2.3% 2.3% 2.0% 2.0% 1.5% 1.3% 1.5% 1.2% 1.2% 1.1% 0.9% 0.7% 0.4% 0.0% -0.5% -0.4% -1.1% -2.4% -3.1% Residential Commercial Industrial Total (MWh in thousands) 1Q22 1Q23 2Q22 2Q23 3Q22 3Q23 4Q22 4Q23 202
Slide 37: Weather Impacts
Weather Impacts 500 400 300 200 100 0 150 400 650 900 1,150 HDD CDD HDD Norm CDD Norm 1,400 KWh Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Total EPS Impact 4Q YTD OH PA NJ WV MD Total Days % Days % Days % Days % Days % Days % Weather vs.
Slide 38: Credit Ratings
Credit Ratings As of February 8, 2024 Issuer/Corporate Family Senior Secured Senior Unsecured Outlook/Watch Most Recent Ratings Actions S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch • On January 5, 2024, Fitch * FirstEnergy Corp. BBB- Ba1 BBB- BB+ Ba1 BBB- P RUR** S assigne
Slide 39: Credit Profile
Credit Profile As of February 5, 2024 Focused on Investment-Grade ratings Strong Liquidity • FFO/Debt target of 14%-15% • Available Liquidity: $4.6B, includes ~$118M of cash and cash • Remain focused on lowering FE Corp. Holdco debt to < 20% equivalents of total Balance Sheet debt by 12/31/26 • $5.6