Firstenergy Corp. · NYSE:FE
Firstenergy — Q1 2020 Earnings Presentation
19 slides from Firstenergy's earnings presentation, Apr 23, 2020
Slide 1: 1Q 2020 Strategic & Financial Highlights
1Q 2020 Strategic & Financial Highlights Charles E. Jones, President and CEO Steven E. Strah, SVP and CFO April 24, 2020
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: Business Updates – COVID-19 Operational Impacts
Business Updates – COVID-19 Operational Impacts ■ We believe our fully regulated strategy is built for resiliency during this crisis and we are well- positioned to manage through these events – Diversity and scale of our T&D operations is a fundamental strength (65,000 square miles across five state
Slide 4: Business Updates – COVID-19 (continued) Financial Considerations
Business Updates – COVID-19 (continued) Financial Considerations ■ Our T&D investments will continue to provide stable and predictable earnings – Diversity and scale gives us the flexibility to shift our investments, if needed, and continue deploying capital throughout the system; do not anticipate
Slide 5: Business Updates (continued) Regulatory Calendar
Business Updates (continued) Regulatory Calendar ■ In February, filed distribution base rate case in New Jersey – Seeking to recover increasing costs associated with providing safe and reliable electric service for our customers, along with recovery of storm costs incurred over the last few years –
Slide 6: Financial Summary
Financial Summary 5+ years 1Q 2020 Results of consistently meeting or exceeding the midpoint ■ Reported GAAP earnings of $0.14 per basic share of the quarterly guidance we’ve provided – Includes the impact from the February 26th remeasurement of Pension/OPEB plans ■ Reported Operating earnings of $0
Slide 7: Strategic Updates
Strategic Updates FE is Well-Positioned ■ While the financial markets have been extremely volatile and sometimes illiquid these past couple of months, FirstEnergy continues to be a low-risk, stable, predictable utility Adequate liquidity of $3.5B Strong and proven access to the capital markets
Slide 8: 1Q 2020 Earnings Results
(GAAP) (Non-GAAP) 1Q20 vs. 1Q19 EPS Variance Basic EPS Operating EPS(1) 1Q 2020 Earnings Results Regulated Distribution ($0.37) ($0.07) Quarter-over-Quarter: Basic EPS / Operating EPS(1) Regulated Transmission $0.03 $0.03 Corporate / Other ($0.11) $0.03 ■ As always, reconciliations and additional in
Slide 9: Financial Updates
Financial Updates Pension Update ■ Qualified Pension funded status was 79% at year-end; 77% at February remeasurement Minimum Required Contributions PBO Funded YTD Discount There- $ Millions Assets 2020 2021 2022 2023 2024 Total Liability Status Return Rate after December 31, 2019 $8,395 $10,598 79%
Slide 10: FE is Well-Positioned in Current Environment
FE is Well-Positioned in Current Environment ■ FirstEnergy is a low risk, fully regulated wires utility that spans five states – Overall value proposition is very simple, but also very unique; especially during periods of extreme volatility and uncertainty like we are seeing today ■ Our 6M customers
Slide 11: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community TABLE OF CONTENTS (Slide) 12. 1Q Earnings Summary and Reconciliation 13. 1Q Earnings Drivers by Segment 14. Special Items Descriptions 15. 1Q 2020 Earnings Results 16. 1Q 2019 Earnings Results 17. Quarter-over-Quarter Earnings Comparison 18. 2020F GAAP
Slide 12: Quarterly Summary
Quarterly Summary 1Q 2020 1Q 2019 Change GAAP Earnings (Loss) Per Basic Share $0.14 $0.59 $(0.45) Special Items $0.52 $0.08 $0.44 Operating (Non-GAAP) Earnings Per Share $0.66 $0.67 $(0.01) Quarterly Reconciliation FirstEnergy EPS Variance Analysis Regulated Regulated Corporate / Corp. (in millions,
Slide 13: Earnings Drivers: 1Q 2020 vs. 1Q 2019
Earnings Drivers: 1Q 2020 vs. 1Q 2019 Regulated Distribution (RD) ▪ Distribution Revenues: Distribution revenues decreased earnings $0.01 per share, primarily due to $0.07 from lower weather-related usage, partially offset by $0.04 per share benefit from implementing decoupling in Ohio and $0.02 per
Slide 14: 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 15: 1st Quarter 2020
1st Quarter 2020 (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 $ 2,299 $ 397 $ (35) $ 2,661 $ — $ — $ — $ — $ 2,299 $ 397 $ (35) $ 2,661 (2) Other 59 4 (15) 48 — —— — 59 4 (15) 48 (3) Total Revenues 2,
Slide 16: 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 17: 1st Quarter 2020 vs 1st Quarter 2019
1st Quarter 2020 vs 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 $ (213) $ 45 $ (4) $ (172) $ — $ — $ — $ — $ (213) $ 45 $ (4) $ (172) (2) Other (2) — — (2) — — — — (2) — — (2) (3) To
Slide 18: 2020F GAAP to Operating (Non-GAAP) Earnings Reconciliation
2020F GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2020 Forecast 2Q20 Forecast (In $M, except per share amounts) RD RT Corp FE FE 2020F Net Income (Loss) attributable to Common Stockholders (GAAP) $1,000 - $1,075 $460 - $485 ($440) - ($430) $1,020 - $1,130 $260 - $315 2020F Earnings (Loss
Slide 19: Forward-Looking Statements
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, refer