American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q4 2024 Earnings Presentation
31 slides from American Electric Power's earnings presentation, Feb 13, 2025
Slide 1: AEP 4th Quarter 2024 Earnings Presentation
AEP 4th Quarter 2024 Earnings Presentation February 13, 2025 1
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures AEP reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). AEP supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including operati
Slide 4: AEP Represents an Attractive Investment Opportunity
AEP Represents an Attractive Investment Opportunity ~ 10%-12% ~8% TOTAL SHAREHOLDER RATE BASE CAGR 29GW TOTAL GENERATION RETURN Solid rate base growth through Diverse generation fleet Long-term EPS growth of 6%-8% and 2029 forecast off of 2023 base As of December 31, 2024 dividend yield of 4% 55% OF
Slide 5: Executive Summary
Executive Summary Generational load growth experienced now and into the future reflects customer commitments for approximately 20 GW of load through 2029 driven by data center demand and economic development; expect substantial retail load growth of 8%-9% annually in the 2025-2027 forecast period
Slide 6: 2024 Accomplishments
2024 Accomplishments FINANCIAL STRENGTH GROWTH TO SERVE OUR CUSTOMERS REGULATORY HIGHLIGHTS Executed on 2024 operating earnings Announced 5-year capital plan of Delivered positive regulatory outcomes guidance range $54B for the 2025-2029 forecast o Base cases approved in Indiana, period, increas
Slide 7: 4th Quarter 2024 Financial Update
4th Quarter 2024 Financial Update $1.25 $1.23 $1.24 4th QUARTER 2024 • Delivered fourth quarter GAAP earnings of $1.25 per share or $664M $0.64 • Delivered fourth quarter operating earnings of $1.24 per share or $660M 2023 2024 2023 2024 2021 2022 2021 2022 2021 2022 2021 2022 GAAP EPS OPERATING EPS
Slide 8: YTD 2024 Operating Earnings Segment Detail
YTD 2024 Operating Earnings Segment Detail 0.08 (0.11) $5.62 0.21 0.03 Per Share Invest Growth $0.10 Renewables $(0.08) O&M $0.02 0.16 Other $(0.02) Retail $(0.03) Net Interest $(0.13) $5.25 Rate Changes $0.20 Wholesale $0.01 Income Taxes $0.11 Per Share Net Interest $0.07 Other $0.03 Weather $0.06
Slide 9: Total Retail and Commercial Load Outlook
Total Retail and Commercial Load Outlook Normalized Total Retail GWh Sales Normalized Commercial GWh Sales Normalized Commercial GWh Sales by Company % Change vs. Prior Year % Change vs. Prior Year 2024-2026E CAGR 23.9% 24% 24% 60% 58.4% 19.0% 18% 18% 16.1% 40% 12% 12% 28.4% 10.6% 8.8% 8.4% 8.9% 21.
Slide 10: Liquidity and Credit Metrics
Liquidity and Credit Metrics Liquidity Summary FFO to Total Debt (Trailing 12 Months) Balance sheet strengthened ($ in millions) 12/31/2024 Actual 12/31/2024 14.0%1 by the minority interest transaction on the Amount Maturity Targeted Range 14%-15% transmission business, Revolving Credit Facility $ 5
Slide 11: Closing Remarks
Closing Remarks Delivered strong 2024 financial performance with robust 7% earnings growth off of 2023, executing on financial commitment GUIDANCE 2025 operating Embrace the remarkable load growth story; approximately 20 GW of load earnings guidance through the end of the decade backed by signed
Slide 12: Appendix: Growth and Financial Strength
Appendix 1 Growth and Financial Strength 4th Quarter 2024 Earnings Presentation February 13, 2025 12 12
Slide 13: Load Growth Supports Financial Strength
Load Growth Supports Financial Strength AEP Normalized Residential GWh Sales AEP Normalized Commercial GWh Sales % Change vs. Prior Year % Change vs. Prior Year 4% Customer commitments for 26% 23.9% approximately 20 GW of 2% 0.7% 0.1% 0.3% 20% 19.0% 16.1% 12.4% 12.3% load through 2029 driven 0% 14%
Slide 14: 2025-2029 Capital Forecast of $54B
2025-2029 Capital Forecast of $54B Regulated Other Generation Corporate Environmental $1.4B • 3% $3.8B • 7% Generation The ability to quickly redeploy transmission and Nuclear $0.3B • 0% Generation 100% of capital allocated to distribution investments $0.5B • 1% regulated businesses ensures we deliv
Slide 15: 2025-2029 Capital Forecast: Transmission
2025-2029 Capital Forecast: Transmission DRIVERS 2025-2029 Asset renewal investments based on condition, CAPEX ASSET performance and risk to reduce customer outages REPLACEMENT Strengthening the electric and interruption times transmission grid and New customer connections and system upgrades meetin
Slide 16: Transmission Delivering Significant Shareholder Value
Transmission Delivering Significant Shareholder Value Transmission Rate Base and Earnings Per Share $4.09 $3.79 $50B $3.57 $3.40 $3.20 $2.99 2025E transmission $40B investment represents 55% of total AEP earnings, $30B $22B $25B calculated using the 2025 $19B $20B $17B guidance midpoint of $5.85 $20
Slide 17: 2025-2029 Capital Forecast: Distribution
2025-2029 Capital Forecast: Distribution 2025-2029 DRIVERS CAPEX RELIABILITY, Asset renewal and reliability investments including RESILIENCY & pole, conductor, cutout, station transformer and AUTOMATION breaker replacements and automated technology Modernizing the electric distribution system to GRO
Slide 18: 2025-2029 Capital Forecast: New Generation
2025-2029 Capital Forecast: New Generation 2025-2029 CAPEX 2025-20341 RESOURCE NEEDS APCO I&M KPCo PSO SWEPCO GENERATION ADDITIONS SOLAR WIND STORAGE NAT. GAS3 TOTAL 2025-2034 (MW)1,2 Diversifying electric generation to support APCo 1,505 1,244 325 - 3,074 resource adequacy and $ I&M 2,749 1,100 300
Slide 19: 2025-2029 Financing Plan
2025-2029 Financing Plan FINANCING PLAN $ in millions 2025E-2029E Cash from Operations $41,500 Responsibly finance capital growth from a position of Plus: Net Cash Proceeds from Minority Interest Acquisition 2,800 strength with 14%-15% Less: Capital Investments (54,400) targeted FFO/Debt Less: Divid
Slide 20: 2025 Operating Earnings Guidance
2025 Operating Earnings Guidance 0.06 0.03 (0.21) 0.56 (0.21) $5.85/sh $5.62/sh Investment/Rate $0.12 2025 EPS Midpoint Base Growth Distributed Rate Changes $0.28 $(0.12) 2024 Actual EPS Resources Net Interest $(0.03) O&M $0.02 Trans Revenue $0.12 Retail $(0.04) Income Tax $(0.02) Net Interest $(0.0
Slide 21: Appendix: Q4-24 Performance
Appendix 2 Q4-24 Performance 4th Quarter 2024 Earnings Presentation February 13, 2025 21 21
Slide 22: 4th Quarter Operating Earnings Segment Detail
4th Quarter Operating Earnings Segment Detail 0.07 0.00 0.01 (0.14) $1.24 Rate Changes $0.07 0.07 Per Share $1.23 Weather $0.01 Invest Growth Other $0.05 $(0.04) Per Share Normalized $0.02 Rate Changes $0.15 Sales Transmission Weather $0.01 $0.03 Key Drivers Q4-24 Normalized Revenue Retail $(0.05) O
Slide 23: Current Rate Case Activity
Current Rate Case Activity APCo – APCo – Virginia West Virginia1 PSO – Oklahoma Docket # PUR-2024-00024 Docket # 24-0854-E-42T Docket # PUD 2023-000086 Achieve positive Filing Date 3/29/2024 Filing Date 11/1/2024 Filing Date 1/31/2024 regulatory outcomes Requested Rate Base $3.2B Requested Rate Base
Slide 24: FFO to Total Debt
FFO to Total Debt1 12 Months FFO Calculation (in millions) Ended 12/31/2024 Cash Flow from Operations (GAAP) $ 6,805 Changes in Working Capital (510) FFO to Total Debt = 14.0% Operating Lease Depreciation 122 $6,320M FFO / $45,257M Capitalized Interest (130) Adjusted Total Debt Junior Subordinated D
Slide 25: 4th Quarter Reconciliation of GAAP to Operating Earnings
4th Quarter Reconciliation of GAAP to Operating Earnings $ in millions Earnings Per Share Q4-23 Q4-24 Change Q4-23 Q4-24 Change Reported GAAP Earnings $ 336 $ 664 $ 328 $ 0.64 $ 1.25 $ 0.61 Weighted average number of Non-Operating Items: shares outstanding: 526M Mark-to-Market Impact of Commodity 55
Slide 26: YTD Reconciliation of GAAP to Operating Earnings
YTD Reconciliation of GAAP to Operating Earnings $ in millions Earnings Per Share YTD-23 YTD-24 Change YTD-23 YTD-24 Change Reported GAAP Earnings $ 2,208 $ 2,967 $ 759 $ 4.26 $ 5.60 $ 1.34 Non-Operating Items: Impact of Net Operating Losses Carryforward - (260) (260) - (0.49) (0.49) on Retail Rate
Slide 27: Vertically Integrated Utilities 4th Quarter Performance
Vertically Integrated Utilities 4th Quarter Performance RATE PERFORMANCE WEATHER IMPACT RETAIL LOAD PERFORMANCE Rate Changes, net Weather Impact Retail Load1 of offsets ($ in millions) (weather normalized) ($ in millions) Q4-24 vs. Q4-24 vs. Q4-24 vs. Q4-23 Q4-24 vs. Q4-23 Q4-23 Normal APCo3 $20 APC
Slide 28: Vertically Integrated Utilities YTD Performance
Vertically Integrated Utilities YTD Performance RATE PERFORMANCE WEATHER IMPACT RETAIL LOAD PERFORMANCE Rate Changes, net Weather Impact Retail Load1 of offsets ($ in millions) (weather normalized) ($ in millions) YTD-24 vs. YTD-24 vs. YTD-24 vs. YTD-23 YTD-24 vs. YTD-23 YTD-23 Normal APCo3 $103 APC
Slide 29: Transmission and Distribution Utilities 4th Quarter Performance
Transmission and Distribution Utilities 4th Quarter Performance RATE PERFORMANCE WEATHER IMPACT RETAIL LOAD PERFORMANCE Rate Changes, net Weather Impact Retail Load1 of offsets ($ in millions) (weather normalized) ($ in millions) Q4-24 vs. Q4-24 vs. Q4-23 Normal Q4-24 vs. Q4-23 Q4-24 vs. Q4-23 AEP O
Slide 30: Transmission and Distribution Utilities YTD Performance
Transmission and Distribution Utilities YTD Performance RATE PERFORMANCE WEATHER IMPACT RETAIL LOAD PERFORMANCE Rate Changes, net Weather Impact Retail Load1 of offsets ($ in millions) (weather normalized) ($ in millions) YTD-24 vs. YTD-24 vs. YTD-23 Normal YTD-24 vs. YTD-23 YTD-24 vs. YTD-23 AEP Oh
Slide 31: American Electric Power
AMERICAN a ELECTRIC POWER
American Electric Power Company — Q4 2024 Earnings Presentation on 6ix