Firstenergy Corp. · NYSE:FE
Firstenergy — Merger or Acquisition (February 2023)
9 slides from Firstenergy's merger presentation, Feb 3, 2023
Slide 1: FET 30% Ownership Interest Transaction
FET 30% Ownership Interest Transaction $3.5B Equity capital raise to further enhance financial position and support sustainable, long-term growth February 2, 2023
Slide 2: $3.5B FET 30% Ownership Interest Sale: Transaction Overview
$3.5B FET 30% Ownership Interest Sale: Transaction Overview ■ Highly attractive and efficient equity financing, reflecting strong long-term growth-oriented business – Expanded partnership with Brookfield, one of the world’s largest infrastructure investors – Represents ~39x LTM P/E valuation* (or >
Slide 3: $3.5B FET 30% Ownership Interest Sale: Key Terms
$3.5B FET 30% Ownership Interest Sale: Key Terms Term Description Investor ■ Brookfield Super-Core Infrastructure Partners (Brookfield) Purchase Price & Implied Valuation ■ $3.5B equity purchase for a 30% ownership interest in FirstEnergy Transmission, LLC (FET) ̶ $1.75B due at closing and an 18-mon
Slide 4: Targeting 14-15% FFO/Debt and solid BBB credit ratings
Targeting 14-15% FFO/Debt and solid BBB credit ratings ■ With closing of this transaction, FE will have raised ~$7B of highly efficient strategic capital with two leading infrastructure investors: Brookfield Super-Core Infrastructure Partners and Blackstone Infrastructure Partners ■ Proceeds strengt
Slide 5: FE continues to own significant transmission assets post-transaction
27% 39% 34% FE - Utility-Owned Transmission FE - FET Ownership Brookfield - FET Ownership FE continues to own significant transmission assets post-transaction $3B $4.5B $4B 37% 63% Regulated Transmission (RT) Segment Regulated Distribution (RD) Segment $31B 2025F FE Rate Base $19.2B Pro Forma RT Seg
Slide 6: Transaction supports higher investments through 2025 & beyond
Transaction supports higher investments through 2025 & beyond FET 30% Ownership Interest Transaction $2.9B $3.2B $3.4B $3.9B $4.1B $8.8 $7.6 $0.3 RD RT Corp ~$17B 2021-2025 Original ~$17B Investment Plan $9.3 $7.8 $0.4 RD RT Corp 2021-2025 Revised ~$18B Investment Plan ~$18B 2021A 2022F 2023F 2024F
Slide 7: Transaction enhances credit profile and supports our long-term strategy
Transaction enhances credit profile and supports our long-term strategy FET 30% Ownership Interest Transaction7 ■ Today’s announcement reflects FirstEnergy’s continued commitment to its transformation – Shareholder friendly equity raise – equivalent of raising common equity at $93 per share* – Provi
Slide 8: Investor Relations Contact Information
Investor Relations Contact Information For our e-mail distribution list, please contact: Linda M. Foster, Executive Assistant to Vice President fosterl@firstenergycorp.com 330.384.2509 Shareholder Inquires: Shareholder Services (American Stock Transfer & Trust Company, LLC) firstenergy@amstock.com 1
Slide 9: 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