Firstenergy Corp. · NYSE:FE
Firstenergy — Barclays CEO Energy-Power Conference 2016
14 slides from Firstenergy's conference presentation, Sep 8, 2016
Slide 1: CEO Energy-Power Conference
CEO Energy-Power Conference James F. Pearson, EVP and CFO September 8, 2016
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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 management's intents, beliefs and current expectatio
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including, among others, Operating earnings. In addition, Basic EPS and Basic EPS-Operating, each calculated on a segment basis, are also non-GAAP financial measures. Generally, a non- GAAP financial meas
Slide 4: Agenda
Agenda ■ FirstEnergy Overview ■ Regulatory and Business Update – Regulated Distribution – Regulated Transmission – Competitive Energy Services ■ Financial Update ■ Continued Focus in 2016 CEO Energy-Power Conference September 8, 2016 4
Slide 5: FirstEnergy Overview
FirstEnergy Overview Strength in Our Diversity and Scale Regulated Distribution ■ 10 operating companies serving 6M customers in 6 states MI Regulated Transmission PA ■ 24,200+ line miles; one of the largest transmission systems in PJM market IL IN OH MD NJ Competitive Operations VA WV ■ Diverse gen
Slide 6: Regulated Distribution
Regulated Distribution Customer-Focused Growth ■ Pennsylvania Rate Cases – April 28: Filed requested revenue increase of $439M across four PA utilities – Proposed new base rates include revenue associated with a portion of Long-Term Infrastructure Improvement Plan Capital of $245M over 5 years; the
Slide 7: Regulated Transmission
Regulated Transmission Growth through Energizing the Future ■ Energizing the Future – $4.2B over 2014-2017 – Projects designed to make our system more reliable, robust, secure and resistant to extreme weather events, with improved operational flexibility – Program, now in its third year, remains on
Slide 8: Competitive Energy Services
Competitive Energy Services Risk-mitigated approach focused on cash Recent Announcements Going Forward ■ 2019/2020 PJM Base Residual Auction results ■ Continue to seek opportunities to further de-risk the – Expect capacity revenues of ~$352M for 2019/2020 business planning year – Convert megawatts f
Slide 9: Financial Update
Financial Update ■ 2016 Earnings* 2016 3Q 2016 GAAP Earnings Forecast ($0.75) – ($0.55) $0.63 - $0.73 Operating (non-GAAP) Earnings Guidance $2.40 - $2.60 $0.65 - $0.75 ■ Financial Plan – Completed ~$371M tax exempt bond remarketings and have a commitment to close on additional $100M in mid-Septembe
Slide 10: Continued Focus in 2016
Continued Focus in 2016 ■ Safety is our top priority ■ Strong focus on customer service-driven regulated growth ■ Operational excellence across FirstEnergy ■ Continue implementation of Cash Flow Improvement Plan ■ Achieve solid financial performance ■ Improve financial health of FirstEnergy ■ Commit
Slide 11: Appendix
Appendix CEO Energy-Power Conference September 8, 2016 11
Slide 12: 2016F GAAP to Operating (Non-GAAP) Earnings Reconciliation
2016F GAAP to Operating (Non-GAAP) Earnings1 Reconciliation (In millions, except per share amounts) 2016 Forecast Competitive FirstEnergy Regulated Regulated Corporate/ Energy Consolidated Distribution Transmission Other Services Net Income (Loss) – GAAP ($325) – ($240) $695 - $730 $305 - $315 ($1,1
Slide 13: 2016F – Special Items
2016F – Special Items (In millions, except per share amounts) 2016 Forecast FirstEnergy Regulated Regulated Competitive Energy Corporate/ Consolidated Distribution Transmission Services Other Pre-Tax After-Tax EPS Pre-Tax After-Tax EPS Pre-Tax After-Tax EPS Pre-Tax After-Tax EPS Pre-Tax After-Tax EP
Slide 14: 3Q 2016F GAAP to Operating (Non-GAAP) Earnings Reconciliation and Special Items
3Q 2016F GAAP to Operating (Non-GAAP) Earnings1 Reconciliation and Special Items (In millions, except per share amounts) 3Q 2016 Forecast FirstEnergy Consolidated Net Income (Loss) – GAAP $275 – $320 Basic EPS $0.63 – $0.73 Excluding Special Items2: Regulatory Charges 0.01 Merger Accounting – Commod
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