Firstenergy Corp. · NYSE:FE
Firstenergy — Q4 2020 Earnings Presentation
23 slides from Firstenergy's earnings presentation, Feb 18, 2021
Slide 1: 4Q 2020 Strategic & Financial Highlights
4Q 2020 Strategic & Financial Highlights February 18, 2021 Chris Pappas, Executive Director Steven E. Strah, President and Acting CEO K. Jon Taylor, SVP and CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements February 18, 20212 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 ri
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters February 18, 2021 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 n
Slide 4: Critical Focus on Compliance, Ethics and Integrity
Critical Focus on Compliance, Ethics and Integrity February 18, 20214 Steve Strah, President and Acting CEO The ratings agencies have taken numerous actions, and w ■ We are deeply committed to creating a culture in which compliance is endemic and second-nature, and where our leaders prioritize and e
Slide 5: Strategic Overview
Strategic Overview February 18, 20215 Steve Strah, President and Acting CEO The ratings agencies have taken numerous actions, and w ■ Reported 2020 GAAP earnings of $1.99 per share and Operating (non-GAAP) earnings of $2.39 per share ■ On Tuesday, announced several proactive steps to resolve a range
Slide 6: Additional Focus Areas – 2020 & Beyond
Additional Focus Areas – 2020 & Beyond February 18, 20216 Steve Strah, President and Acting CEO The ratings agencies have taken numerous actions, and w ■ Our fundamental performance continues to be excellent; reflecting our commitment to strong operations, as well as the stability provided by our di
Slide 7: Key Board Updates
Key Board Updates February 18, 20217 Chris Pappas, Executive Director The ratings agencies have taken numerous actions, and w ■ The Board and management team are focused on a critical objective: To move forward from the past actions of certain former executives and take the steps necessary to improv
Slide 8: Key Board Updates (Continued)
Key Board Updates (Continued) February 18, 20218 Chris Pappas, Executive Director The ratings agencies have taken numerous actions, and w ■ Our internal investigation continues to be thorough and robust and includes assistance from external law firms who are supported by several other consultants –
Slide 9: 2020 Results Overview
2020 Results Overview Year-over-Year: Basic EPS / Operating EPS(1) ■ Reconciliations and detailed information are available on our website ■ Reported 4Q 2020 GAAP earnings of $0.45 per share and Operating (non-GAAP) earnings of $0.32 per share – Operating results include a $0.15 charge at our Ohio u
Slide 10: Financial Updates
Financial Updates ■ Providing 2021 GAAP and Operating (non-GAAP) earnings guidance of $2.40 - $2.60 per share – 1Q 2021 GAAP and Operating (non-GAAP) earnings guidance of $0.62- $0.72 per share ■ Expect 2021 capital investments of up to $3B ■ We expect continued Transmission growth from our Energizi
Slide 11: Financial Updates (Continued)
Financial Updates (Continued) ■ Equity remains a part of our overall financing plan, and we are affirming our plan to issue up to $600M in equity annually in 2022 and 2023 and will flex our equity plan as needed ■ We remain committed to maintaining adequate liquidity for our subsidiaries – Year-end
Slide 12: Financial Updates (Continued)
Financial Updates (Continued) ■ Kicked off FE Forward, a project designed to transform FirstEnergy into a more efficient and effective industry leader, delivering superior customer value and shareholder returns ■ Employees across FirstEnergy, in partnership with McKinsey, are challenging organizatio
Slide 13: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community 14. 4Q Earnings Summary and Reconciliation 15. YTD Earnings Summary and Reconciliation 16. 4Q Earnings Drivers by Segment 17. Special Items Descriptions 18. 4Q 2020 Earnings Results 19. 4Q 2019 Earnings Results 20. Quarter-over-Quarter Earnings Comparis
Slide 14: FirstEnergy EPS Variance Analysis (4Q)
FirstEnergy EPS Variance Analysis Regulated Regulated Corporate / Corp. (in millions, except per share amounts) Distribution Transmission Other Consolidated 4Q 2019 Net Income (Loss) attributable to Common Stockholders (GAAP) $119 $114 $(344) $(111) 4Q 2019 Basic Earnings (Loss) Per Share - GAAP (av
Slide 15: FirstEnergy EPS Variance Analysis (YTD)
FirstEnergy EPS Variance Analysis Regulated Regulated Corporate / Corp. (in millions, except per share amounts) Distribution Transmission Other Consolidated 2019 Net Income (Loss) attributable to Common Stockholders (GAAP) $1,076 $447 $(615) $908 2019 Basic Earnings (Loss) Per Share - GAAP (avg. sha
Slide 16: Earnings Drivers: 4Q 2020 vs. 4Q 2019
Earnings Drivers: 4Q 2020 vs. 4Q 2019 Regulated Distribution (RD) ▪ Distribution Revenues - Riders: Incremental rider revenues in Ohio and PA increased earnings $0.04 per share. ▪ Distribution Revenues - Weather Impact: Lower weather-related usage decreased earnings $0.02 per share. Heating Degree D
Slide 17: 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 generation credits: Primarily reflects charges or credits resulting from t
Slide 18: 4th Quarter 2020 Earnings Results
4th 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 $ 2,099 $ 428 $ (34) $ 2,493 $ — $ — $ — $ — $ 2,099 $ 428 $ (34) $ 2,493 (2) Other 57 4 (17) 44 — — — — 57 4 (17) 44 (3) Total Revenues 2
Slide 19: 4th Quarter 2019 Earnings Results
4th 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 $ 2,238 $ 420 $ (32) $ 2,626 $ — $ — $ — $ — $ 2,238 $ 420 $ (32) $ 2,626 (2) Other 59 3 (15) 47 — — — — 59 3 (15) 47 (3) Total Revenues 2
Slide 20: 4th Quarter 2020 vs 4th Quarter 2019
4th Quarter 2020 vs 4th 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 $ (139) $ 8 $ (2) $ (133) $ — $ — $ — $ — $ (139) $ 8 $ (2) $ (133) (2) Other (2) 1 (2) (3) — — — — (2) 1 (2) (3) (3)
Slide 21: YTD December 2020
YTD December 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 $ 9,130 $ 1,613 $ (139) $ 10,604 $ — $ — $ — $ — $ 9,130 $ 1,613 $ (139) $ 10,604 (2) Other 233 17 (64) 186 — — — — 233 17 (64) 186 (3) T
Slide 22: YTD December 2019
YTD December 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 $ 9,452 $ 1,510 $ (128) $ 10,834 $ — $ — $ — $ — $ 9,452 $ 1,510 $ (128) $ 10,834 (2) Other 246 16 (61) 201 — — — — 246 16 (61) 201 (3) T
Slide 23: YTD December 2020 vs YTD December 2019
YTD December 2020 vs YTD December 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 $ (322) $ 103 $ (11) $ (230) $ — $ — $ — $ — $ (322) $ 103 $ (11) $ (230) (2) Other (13) 1 (3) (15) — — — — (13) 1 (