Slide 1: Focused on Our Future: 3Q 2024 Strategic & Financial Highlights
Focused on Our Future 3Q 2024 Strategic & Financial Highlights Published October 29, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: This presentation includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-l
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters Strategic & Financial Highlights – Published October 29, 2024 This presentation contains references to certain financial measures including Operating earnings (loss) and Operating earnings (loss) per share (“EPS”), including by segment, and the impact of special items on t
Slide 4: Focus of Today's Call
Focus of Today’s Call Strategic & Financial Highlights – Published October 29, 2024 Brian X. Tierney – President and Chief Executive Officer K. Jon Taylor – Senior Vice President, Chief Financial Officer ■ Delivering on our 2024 and long-term financial objectives ■ Continued execution of our regulat
Slide 5: Third Quarter Key Highlights
$0.73 $0.85 $0.74 $0.88 GAAP EPS Operating EPS Third Quarter Key Highlights Financial Overview 2024 vs 2023 EPS Results Delivered 3Q24 Operating EPS of $0.85, within guidance range Delivered YTD24 Operating EPS of $1.96, $0.02 above YTD23 results (1) Basic Earnings Per Share from Continuing Operatio
Slide 6: 2024 Key Milestones
2024 Key Milestones Strategic & Financial Highlights – Published October 29, 2024 ▪ Increasing 2024 investment plan from $4.3B to $4.6B – 24% increase vs. 2023 ▪ Pursuing incremental Tx investments through joint- development agreement (JDA) with AEP and Dominion • Includes several new 765-, 500- and
Slide 7: Advocating for Customers Through Industry Dynamics
▪ Data center and AI’s share of U.S. electricity consumption are expected to triple by 2030 ▪ In our own footprint, load study requests of 500MW+ have more than tripled compared to 2023 ▪ Despite record-high prices in the July PJM capacity auction, no new dispatchable generation cleared the auction
Slide 8: Shareholder Value Proposition
Shareholder Value Proposition (1) As measured year-over-year off prior midpoint guidance. The amount and timing of items impacting comparability makes a detailed reconciliation of forward-looking non-GAAP financial measures impracticable. Please see slide 3 for more information. Strong Growth Outloo
Slide 9: Delivering Financial Results: 3Q 2024 Earnings Summary
Delivering Financial Results 3Q 2024 Earnings Summary – Segment View Strategic & Financial Highlights – Published October 29, 2024 Note: Reconciliations between GAAP Earnings from Continuing Operations and Operating (non-GAAP) earnings and detailed information is available in the Earnings Supplement
Slide 10: Delivering Financial Results: YTD 2024 Earnings Summary
Delivering Financial Results YTD 2024 Earnings Summary – Segment View Strategic & Financial Highlights – Published October 29, 2024 YTD Operating EPS Walk Dx $0.95 Int $0.54 Tx $0.53 Corp($0.08) Dx $0.90 Int $0.73 Tx $0.45 Corp($0.12) ▪ Distribution -$0.05: primarily from the planned increase in veg
Slide 11: Recent Regulatory Activity - PA and NJ
Recent Regulatory Activity – PA and NJ Strategic & Financial Highlights – Published October 29, 2024 EE&C: Settlement filed 10/18/24; Expect approval on 10/30/24 ▪ Program budget $817M over 2.5 years (January 2025- June 2027), recovered over 10 years ▪ ROE 9.6%; Debt/Equity 48%/52% ▪ Includes progra
Slide 12: Recent Regulatory Activity - OH
Recent Regulatory Activity - OH Strategic & Financial Highlights – Published October 29, 2024 ESP V: Withdrawal filed 10/29/24 ▪ The withdrawal is subject to PUCO order and will result in the Ohio Companies reverting to ESP IV until an ESP VI is filed and approved ▪ Reverting to ESP IV allows us to
Slide 13: Economic & Customer Updates
Economic & Customer Updates Strategic & Financial Highlights – Published October 29, 2024 Economic Trends Source: Moody’s Analytics & U.S Bureau of Economic Analysis 0% 1% 2% 3% 4% 5% 6% 2023Q3 2023Q4 2024Q1 2024Q2U n e m p lo y m e n t R a te Unemployment Rate OH PA NJ MD WV 0% 1% 2% 3% 4% 5% 6% 20
Slide 14: Key Financial Updates
Key Financial Updates Strategic & Financial Highlights – Published October 29, 2024 YTD, completed $1.4B in long-term debt transactions at a weighted average coupon of 5.1% ▪ In September, FET launched $800M senior unsecured notes in two tranches at weighted avg. coupon of $4.78%; Private offering w
Slide 15: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community 16. 3Q Earnings Summary and Reconciliation 17. 3Q Operating Earnings Drivers by Segment 18. YTD Summary and Reconciliation 19. YTD Operating Earnings Drivers by Segment 20. Special Items Descriptions 21. 3Q 2024 Earnings Results 22. 3Q 2023 Earnings Res
Slide 16: 3Q Earnings Summary and Reconciliation
3Q Earnings Summary and Reconciliation Strategic & Financial Highlights – Published October 29, 2024 EPS Variance Analysis Stand-Alone Corporate / FirstEnergy Corp. (in millions, except per share amounts) Distribution Integrated Transmission Other Consolidated 3Q 2023 Earnings (Loss) Attributable to
Slide 17: 3Q Operating Earnings Drivers by Segment
3Q Operating Earnings Drivers by Segment Strategic & Financial Highlights – Published October 29, 2024 Distribution Integrated Stand-Alone Transmission Corp / Other Rates & Investments +$0.12 $0.01: Primarily due to PA DSIC revenues and lower OH rate credit $0.09: Implementation of new base rates, f
Slide 18: YTD Earnings Summary and Reconciliation
YTD Earnings Summary and Reconciliation Strategic & Financial Highlights – Published October 29, 2024 Strategic & Financial Highlights – Published October 29, 2024 EPS Variance Analysis Stand-Alone Corporate / FirstEnergy Corp. (in millions, except per share amounts) Distribution Integrated Transmis
Slide 19: YTD Operating Earnings Drivers by Segment
YTD Operating Earnings Drivers by Segment Strategic & Financial Highlights – Published October 29, 2024 Distribution Integrated Stand-Alone Transmission Corp / Other Rates & Investments +$0.33 $0.02: Primarily due to PA DSIC revenues and lower OH rate credit $0.24: Implementation of new base rates,
Slide 20: Special Items Descriptions
Special Items Descriptions Strategic & Financial Highlights – Published October 29, 2024 ▪ ARO regulatory change: Primarily related to increases in asset retirement obligations, primarily associated with the planned transfer of the McElroy’s Run coal ash disposal site to a third party and an estimat
Slide 21: 3Q 2024 Earnings Results
3Q 2024 Earnings Results Strategic & Financial Highlights – Published October 29, 2024 3rd Quarter 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 $ 1,775 $ 1,432 $ 470 $ 2 $ 3,679 $ — $
Slide 22: 3Q 2023 Earnings Results
3Q 2023 Earnings Results Strategic & Financial Highlights – Published October 29, 2024 3rd Quarter 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 $ 1,754 $ 1,254 $ 434 $ 1 $ 3,443 $ — $
Slide 23: Quarter-over-Quarter Earnings Comparison
Quarter-over-Quarter Earnings Comparison Strategic & Financial Highlights – Published October 29, 2024 3rd Quarter 2024 vs 3rd Quarter 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 $ 2
Slide 24: YTD 2024 Earnings Results
YTD 2024 Earnings Results Strategic & Financial Highlights – Published October 29, 2024 YTD September 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 $ 5,110 $ 3,676 $ 1,367 $ 6 $10,159
Slide 25: YTD 2023 Earnings Results
YTD 2023 Earnings Results Strategic & Financial Highlights – Published October 29, 2024 YTD September 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 $ 5,115 $ 3,206 $ 1,262 $ 6 $ 9,589
Slide 26: YTD Year-over-Year Comparison
YTD Year-over-Year Comparison Strategic & Financial Highlights – Published October 29, 2024 YTD September 2024 vs YTD September 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 $ (5) $ 47
Slide 27: Quarterly Support
Quarterly Support Strategic & Financial Highlights – Published October 29, 2024 Strategic & Regulatory 28. Regulatory Calendar 29. Earned ROE Summary 30. Earnings ROEs Detail by Jurisdiction TABLE OF CONTENTS (Slide) Quarterly Support 31. TTM Actual Sales by Class 32. TTM Weather-Adjusted Sales 33.
Slide 28: Regulatory Calendar
Jurisdiction Regulatory Matter Key Dates Ohio ▪ Base Rate Case ▪ Grid Mod II ▪ Electric Security Plan (ESP V) ▪ HB6 Related Investigations ▪ Filed base rate request for approximately $94M on 5/31/24, updated request to $190M on 7/31/24 ▪ Settlement agreement filed 4/12/24; hearings concluded 7/2/24
Slide 29: Earned ROE Summary
Earned ROE (Weighted Avg) 4.7% 2.5% 8.3% 8.9% 9.0% 10.7% 10.45% 0% 5% 10% OH PA NJ WV MD FET TransCos KATCo Earned ROE Summary TTM 9/30/2024 (see next slide for details by jurisdiction) Distribution Integrated Stand-Alone Transmission Rate Base $4.4B $7.2B $4.4B $3.7B $1.0B $8.0B $0.4B FE EPS Sensit
Slide 30: Earned ROE Detail by Jurisdiction
Earned ROE Detail by Jurisdiction TTM 9/30/2024 (1) For distribution assets, represents rate base at the end of the quarter for OH, PA, NJ and 13-month average for WV and MD. For FERC-regulated transmission assets, represents quarter-end rate base balance.. (2) Calculated using filed capital structu
Slide 31: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year Commercial includes street lighting Numbers may not add due to rounding *Values reflect a reclassification of certain Commercial and Industrial customers Strategic & Financial Highlights – Published October 29, 2024 (MWh in 4Q22 4Q23 1Q23 1Q24 2Q23
Slide 32: Actual Weather-Adjusted Sales by Class
Actual Weather-Adjusted Sales by Class Percent change vs. prior year Strategic & Financial Highlights – Published October 29, 2024 (MWh in 4Q22 4Q23 1Q23 1Q24 2Q23 2Q24 3Q23 3Q24 TTM 3Q23 TTM 3Q24 thousands) Residential 13,170 13,122 15,982 15,493 11,511 11,907 15,293 15,078 55,956 55,600 Commercial
Slide 33: Weather Impacts
Weather Impacts KWh Strategic & Financial Highlights – Published October 29, 2024 Total EPS Impact 3Q YTD Weather vs Normal: Weather vs Normal: $0.01 -$0.02 Weather vs 2023: Weather vs 2023: $0.04 $0.15 OH PA NJ WV MD Total Days % Days % Days % Days % Days % Days % 3Q24 vs Normal CDD 46 8% 85 13% (7
Slide 34: Credit Ratings Summary
▪ On October 2, 2024, Fitch upgraded FE Corp.’s ratings to BBB from BBB-. ‒ Fitch also upgraded ratings of JCP&L, MP, AGC, FET, ATSI, MAIT, TrAILCo, and KATCo and put OE, CEI, and TE on positive outlook. ▪ On July 22, 2024, S&P upgraded FET, LLC by 2 notches and ATSI, MAIT, and TrAILCo by 1 notch wh