Slide 1: 1Q 2024 Strategic & Financial Highlights
Focused on Our Future 1Q 2024 Strategic & Financial Highlights Published April 25, 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 Baseline O&M, 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 oper
Slide 4: Focus of Today's Call
Focus of Today’s Call Brian X. Tierney – President and Chief Executive Officer ■ Delivered on 1Q financial objectives and on track to meet our goals ■ Closed on FET 30% sale for a significantly stronger balance sheet to fuel our growth ■ Continue building a strong regulatory track record and executi
Slide 5: Financial Overview & Highlights
Financial Overview & Highlights Key Highlights Delivered 1Q24 Operating EPS of $0.55, +$0.02 above guidance midpoint 1Q 2024 vs 1Q 2023 Results Affirming 6-8% (1) long-term annual Operating EPS growth First Quarter target $0.60 $0.55 $0.51 $0.44 $0.53 Declared increased dividend (payable June 1) of
Slide 6: Our Value Proposition
Our Value Proposition Compelling Total Strong Growth Outlook Attractive Risk Profile Shareholder Return 6-8% long-term annual Operating EPS Targeted 14-15% FFO/Debt over plan Attractive total shareholder return of growth(1) horizon 10-12%+ with potential for upside (6-8% Operating EPS growth and 4%+
Slide 7: Delivering Financial Results: Driver View
Delivering Financial Results 1Q 2024 Earnings Summary – Driver View Our focus on efficient operations and financial discipline allowed us to deliver operating results above the mid-point of 1Q Guidance • Rates and investments associated with Quarter-over-Quarter Operating EPS Walk our Energize365 gr
Slide 8: Delivering Financial Results: Segment View
Delivering Financial Results 1Q 2024 Earnings Summary – Segment View Despite mild temperatures vs. normal, new rates, rate base growth, efficient operations, and financial discipline resulted in a strong start to 2024 • Distribution -$0.03: planned increase in Quarter-over-Quarter Operating EPS Walk
Slide 9: Key Regulatory Initiatives
Key Regulatory Initiatives Received constructive base rate outcomes in jurisdictions (NJ, WV, MD) (1) representing 32% of Rate Base Outcomes consistent with plan and Overview of Key Proceedings allow for solid regulated returns for our investors while keeping rates affordable for customers JCP&L Bas
Slide 10: Financial Updates
Financial Updates Investment Plan Summary FET 30% Interest Sale: Use of Proceeds YTD March 2023 Actual YTD March 2024 Actual Full Year Forecast ▪ Of the $3.5B in total proceeds, $2.3B was (Recast for new segments) (Reported in new segments) (Reported in new segments) received at the end of March and
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 2024 Earnings Results 16. 1Q 2023 Earnings Results 17. Quarter-over-Quarter Earnings Comparison Other sections
Slide 12: 1Q Earnings Summary and Reconciliation
1Q Earnings Summary and Reconciliation Quarterly Summary 1Q 2024 1Q 2023 Change GAAP Earnings Per Basic Share $0.44 $0.51 $(0.07) Special Items $0.11 $0.09 $0.02 Note: Refer to slide 3 for information Operating (Non-GAAP) Earnings Per Share $0.55 $0.60 $(0.05) on Non-GAAP Financial Matters. Quarterl
Slide 13: 1Q Earnings Drivers by Segment
1Q Earnings Drivers by Segment Descriptions: 1Q 2024 vs. 1Q 2023 Distribution Integrated Stand-Alone Transmission Corp / Other Rates & $0.01: $0.06: $0.02: Investments Formula Dx investment programs and Implementation of base rate cases, Formula Tx investment programs - +$0.09 lower OH rate credit f
Slide 14: 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 15: 1Q 2024 Earnings Results
1Q 2024 Earnings Results YTD March 2024 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) Dx Int Tx Corp FE Dx Int Tx Corp FE Dx Int Tx Corp FE (1) Electric sales $ 1,725 $ 1,082 $ 434 $ 3 $ 3,244 $ — $ — $ — $ — $ — $ 1,725 $ 1,082 $ 434 $ 3 $ 3,244 (2) Other 42 13
Slide 16: 1Q 2023 Earnings Results
1Q 2023 Earnings Results YTD March 2023 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) Dx Int Tx Corp FE Dx Int Tx Corp FE Dx Int Tx Corp FE (1) Electric sales $ 1,779 $ 1,012 $ 396 $ 2 $ 3,189 $ — $ 6 (d) $ 1 (d) $ — $ 7 $ 1,779 $ 1,018 $ 397 $ 2 $ 3,196 (2) Oth
Slide 17: Quarter-over-Quarter Earnings Comparison
Quarter-over-Quarter Earnings Comparison YTD March 2024 vs YTD March 2023 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) Dx Int Tx Corp FE Dx Int Tx Corp FE Dx Int Tx Corp FE (1) Electric sales $ (54) $ 70 $ 38 $ 1 $ 55 $ — $ (6) $ (1) $ — $ (1) $ (54) $ 64 $ 37
Slide 18: Quarterly Support
Quarterly Support TABLE OF CONTENTS (Slide) Strategic & Regulatory Quarterly Support 19. Regulatory Calendar 22. TTM Actual Sales by Class 20. Earned ROE Summary 23. TTM Weather-Adjusted Sales 21. Earnings ROE Detail by Jurisdiction 24. TTM Weather Impacts 25. Credit Ratings Summary 18 Strategic & F
Slide 19: Regulatory Calendar
Regulatory Calendar Select Proceedings Jurisdiction Regulatory Matter Key Dates • Base Rate Case • Plan to file 5/31/24 • Grid Mod II • Settlement agreement filed 4/12/24; hearings scheduled for 6/5/24 Ohio • Electric Security Plan (ESP V) • Expect PUCO order by 5/31/24 • HB6 Related Investigations
Slide 20: Earned ROE Summary
Earned ROE Summary TTM 3/31/2024 (see slide 21 for details by jurisdiction) Distribution Integrated Stand-Alone Transmission 10% As filed in pending rate case Earned ROE 5% 10.7% 10.45% (Weighted Avg) 7.7% 5.8% 6.3% 7.7% 0% 2.5% (1) (2) (2) (2) (3) OH PA NJ WV MD FET TransCos KATCo Rate Base $4.3B $
Slide 21: Earned ROE Detail by Jurisdiction
Earned ROE Detail by Jurisdiction TTM 3/31/2024 Test Allowed Earned Rate Equity Notes & Key Regulatory Adjustments(3) Year ROE ROE Base(1) %(2) • Rider DCR revenue equal to the allowed revenue cap Feb. • Includes pension/OPEB service costs only; excludes amortization of actuarial losses and OH Dx 10
Slide 22: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year 2Q23 3Q23 4Q23 1Q24 TTM 3.1% 2.0% 1.3% 1.5% 1.6% 1.0% 0.0% -0.2% -1.2% -1.1% -1.3% -1.7% -1.6% -2.2% -3.5% -4.3% -4.9% -4.9% -6.4% -10.8% Residential Commercial Industrial Total (MWh in thousands) 2Q22 2Q23 3Q22 3Q23 4Q22 4Q23 1Q23 1Q24 TTM 1Q23 TT
Slide 23: Actual Weather-Adjusted Sales by Class
Actual Weather-Adjusted Sales by Class Percent change vs. prior year 2Q23 3Q23 4Q23 1Q24 TTM 3.1% 2.3% 2.0% 2.0% 1.6% 1.3% 1.2% 1.2% 1.1% 0.0% -0.4% -0.1% -1.1% -1.0% -1.2% -1.5% -2.4% -3.1% -3.5% -4.6% Residential Commercial Industrial Total (MWh in thousands) 2Q22 2Q23 3Q22 3Q23 4Q22 4Q23 1Q23 1Q2
Slide 24: Weather Impacts
Weather Impacts 500 400 300 200 100 0 150 400 650 900 1,150 HDD Actual CDD Actual HDD Normal CDD Normal 1,400 KWh Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 OH PA NJ WV MD Total 1Q Days % Days % Days % Days % Days % Days % Weather vs. Nor
Slide 25: Credit Ratings
Credit Ratings As of April 23, 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 FirstEnergy Corp.* BBB Baa3 BBB- BBB- Baa3 BBB- P S S • On April 23, 2024, S&P Distribution Se
Slide 26: Appendix
Appendix TABLE OF CONTENTS (Slide) 27. 2023 Operating EPS by Quarter: Segment View 28. 2023 GAAP to Operating (Non-GAAP) Earnings Reconciliation 29. 2023 Quarterly GAAP to Operating (Non-GAAP) Earnings Reconciliation 30. 2023 GAAP to Operating (Non-GAAP) Baseline O&M Reconciliation 26 Strategic & Fi
Slide 27: 2023 Operating EPS by Quarter: Segment View
2023 Operating EPS by Quarter: Segment View As of year-end 12/31/2023 As of 1/1/2024 RD Distribution (Dx only) Operating GAAP OH OH 1Q: $0.33 1Q: $0.32 (OE, CE, TE) 2Q: $0.24 2Q: $0.26 $1.20 3Q: $0.37 3Q: $0.31 PA PA ~47% 4Q: $0.26 4Q: $0.14 $1.60 (FEPA) FY: $1.20 FY: $1.02 (~62%) NJ WV/MD Integrate
Slide 28: 2023 GAAP to Operating (Non-GAAP) Earnings Reconciliation
2023 GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2023A Stand-Alone Corporate/ FirstEnergy Distribution Integrated (In $M, except per share amounts) Transmission Other Consolidated 2023 Earnings (Loss) Attributable to FE Corp. from Continuing Operations $587 $300 $399 ($163) $1,123 (GAAP)
Slide 29: 2023 Quarterly GAAP to Operating (Non-GAAP) Earnings Reconciliation
2023 Quarterly GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation Stand-Alone Corporate/ FirstEnergy Distribution Integrated (In $M, except per share amounts) Transmission Other Consolidated 1Q 2023 Earnings (Loss) Per Share (572M shares) (GAAP) $0.32 $0.13 $0.17 ($0.11) $0.51 1Q 2023 Total Spe
Slide 30: 2023 GAAP to Operating (Non-GAAP) Baseline O&M Reconciliation
2023 GAAP to Operating (Non-GAAP) Baseline O&M Reconciliation 2023A (In $M) FE Consolidated Other Operating Expenses (GAAP) (1) $3,594 Excluding Special Items (pre-tax): Enhanced Employee Retirement and Other Related Costs ($77) Investigation and Other Related Costs ($77) FE Forward Cost-to-Achieve