Slide 1: Focused on Our Future: 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 2 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 caution
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters 3 Strategic & Financial Highlights - Published April 25, 2024 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 speci
Slide 4: Focus of Today's Call
Focus of Today’s Call 4 Brian X. Tierney – President and Chief Executive Officer K. Jon Taylor – Senior Vice President, Chief Financial 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
Slide 5: First Quarter Key Highlights
$0.44 $0.55 $0.51 $0.60 GAAP EPS Operating EPS First Quarter Key Highlights 5 Financial Overview & Highlights 1Q 2024 vs 1Q 2023 Results Delivered 1Q24 Operating EPS of $0.55, +$0.02 above guidance midpoint Affirming 6-8% (1) long-term annual Operating EPS growth target Declared increased dividend (
Slide 6: Our Value Proposition
Our Value Proposition 6 (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 Outlook Attr
Slide 7: 1Q 2024 Earnings Summary – Driver View
• Rates and investments associated with our Energize365 grid evolution program improved earnings by $0.09/sh vs. 1Q23 • Operational execution, including lower than planned operating expenses, helped to offset the impact of mild weather vs. normal • Improvement in earnings quality as Signal Peak earn
Slide 8: 1Q 2024 Earnings Summary – Segment View
Delivering Financial Results 1Q 2024 Earnings Summary – Segment View Strategic & Financial Highlights - Published April 25, 20248 Note: Reconciliations between GAAP Earnings and Operating (non-GAAP) earnings and detailed information is available in the Earnings Supplement section of the Strategic &
Slide 9: Key Regulatory Initiatives
OH, 16% PA, 24% NJ, 16% WV, 11% MD, 5% FET, 27% KATCo, 1% JCP&L Base Rate Case: Implementation of base rate case effective February 15, 2024, with rates effective for customers on June 1, 2024; $85M Rate adjustment, 9.6% Allowed ROE, 52% Equity ratio IIP: Filed in November 2023 and updated in Februa
Slide 10: Financial Updates: Investment Plan and FET Sale Proceeds
1,185 1,660 1,365 90 Full Year 2024F Financial Updates 252 347 287 11 1Q24 218 261 245 11 1Q23 $735M YTD March 2023 Actual (Recast for new segments) $897M YTD March 2024 Actual (Reported in new segments) $4.3B Full Year Forecast (Reported in new segments) YTD spend 22% higher than 2023, with focus o
Slide 11: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community Strategic & Financial Highlights - Published April 25, 2024 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 E
Slide 12: EPS Variance Analysis
EPS Variance Analysis Stand-Alone Corporate / FirstEnergy Corp. (in millions, except per share amounts) Distribution Integrated Transmission Other Consolidated 1Q 2023 Earnings (Loss) Attributable to FirstEnergy Corp. - GAAP $186 $70 $96 $(60) $292 1Q 2023 Basic Earnings (Loss) Per Share - GAAP (avg
Slide 13: 1Q Earnings Drivers by Segment
Distribution Integrated Stand-Alone Transmission Corp / Other Rates & Investments +$0.09 $0.01: Formula Dx investment programs and lower OH rate credit $0.06: Implementation of base rate cases, formula Dx and Tx investment programs $0.02: Formula Tx investment programs - Customer Demand +$0.01 $0.00
Slide 14: 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 and involuntary separations.
Slide 15: YTD March 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 4 (16) 43 — — — — — 42 1
Slide 16: YTD March 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) Other 38 16 4 (16) 42 — — —
Slide 17: YTD March 2024 vs YTD March 2023
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 $ 1 $ 54 (2) Other 4 (3) — — 1 — — — — —
Slide 18: Quarterly Support
Quarterly Support Strategic & Financial Highlights - Published April 25, 2024 Strategic & Regulatory 19. Regulatory Calendar 20. Earned ROE Summary 21. Earnings ROE Detail by Jurisdiction TABLE OF CONTENTS (Slide) 18 Quarterly Support 22. TTM Actual Sales by Class 23. TTM Weather-Adjusted Sales 24.
Slide 19: Regulatory Calendar
Jurisdiction Regulatory Matter Key Dates Ohio • Base Rate Case • Grid Mod II • Electric Security Plan (ESP V) • HB6 Related Investigations • Plan to file 5/31/24 • Settlement agreement filed 4/12/24; hearings scheduled for 6/5/24 • Expect PUCO order by 5/31/24 • Effective 2/26/24, PUCO lifted stay;
Slide 20: Earned ROE Summary
Earned ROE (Weighted Avg) 7.7% 2.5% 5.8% 6.3% 7.7% 10.7% 10.45% 0% 5% 10% OH PA NJ WV MD FET TransCos KATCo Earned ROE Summary TTM 3/31/2024 (see slide 21 for details by jurisdiction) 20 Distribution Integrated Stand-Alone Transmission Rate Base $4.3B $7.2B $4.2B $3.6B $0.8B $7.9B $0.5B FE EPS Sensi
Slide 21: Earned ROE Detail by Jurisdiction
Earned ROE Detail by Jurisdiction TTM 3/31/2024 21 (1) For distribution assets, represents rate base at the end of the quarter (unless otherwise noted). For FERC-regulated transmission assets, represents projected average rate base from latest Projected Transmission Revenue Requirement (PTRR) filing
Slide 22: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year 22 -10.8% -3.5% -4.9% 1.0% -4.3% -6.4% -1.2% -1.1% -0.2% -2.2% 1.3% 0.0% 2.0% 3.1% 1.6% -4.9% -1.7% -1.3% 1.5% -1.6% 2Q23 3Q23 4Q23 1Q24 TTM Residential Commercial Industrial Total Commercial includes street lighting Numbers may not add due to roun
Slide 23: Actual Weather-Adjusted Sales by Class
Actual Weather-Adjusted Sales by Class Percent change vs. prior year Strategic & Financial Highlights - Published April 25, 202423 -2.4% 2.3% -0.4% -3.5% -1.0% -3.1% 1.2% 2.0% -4.6% -1.2% 1.3% 0.0% 2.0% 3.1% 1.6% -1.1% 1.2% 1.1% -1.5% -0.1% Residential Commercial Industrial Total 2Q23 3Q23 4Q23 1Q24
Slide 24: Weather Impacts
Weather Impacts 24 1Q Weather vs. Normal: -$0.07 Weather vs. 1Q23: $0.05 KWh 0 100 200 300 400 500 1,400 1,150 900 650 400 150 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 HDD Actual CDD Actual HDD Normal CDD Normal Strategic & Financial Hi
Slide 25: Credit Ratings
• On April 23, 2024, S&P upgraded FE Corp.’s ratings and maintained positive outlook • S&P also upgraded ratings of OE, TE, FEPA, AGC, FET, ATSI, MAIT, and TrAILCo • On March 28, 2024, Moody’s upgraded FE Corp.’s ratings to Baa3 from Ba1 Credit Ratings As of April 23, 2024 Strategic & Financial High
Slide 26: Appendix
Appendix Strategic & Financial Highlights - Published April 25, 2024 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&
Slide 27: 2023 Operating EPS by Quarter: Segment View
2023 Operating EPS by Quarter: Segment View 27 2023A $2.56 As of year-end 12/31/2023 As of 1/1/2024 Strategic & Financial Highlights - Published April 25, 2024 OH PA NJ WV/MD RD $1.60 (~62%) JCP&L MP/PE FET (ATSI, MAIT, TRAIL) WP (KATCo) RT $0.91 (~36%) Primarily includes: FE Corp. HoldCo debt and S
Slide 28: 2023 GAAP to Operating (Non-GAAP) Earnings Reconciliation
2023 GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 28 (1) Operating earnings exclude special items as described in the reconciliation table above and is a non-GAAP financial measure. Per share amounts for the special items above are based on the after-tax effect of each item divided by the
Slide 29: 2023 Quarterly GAAP to Operating Earnings Reconciliation
2023 Quarterly GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 29 (In $M, except per share amounts) Distribution Integrated Stand-Alone Transmission Corporate/ Other FirstEnergy Consolidated 1Q 2023 Earnings (Loss) Per Share (572M shares) (GAAP) $0.32 $0.13 $0.17 ($0.11) $0.51 1Q 2023 Total
Slide 30: 2023 GAAP to Operating Baseline O&M Reconciliation
30 (1) As reported in the Consolidated Statement of Income (2) Refer to slide 14 for information on special items (3) Primarily represents PJM Network Transmission Expense and ancillary charges such as Transmission Enhancement (4) Primarily represents the rider/program recoverable and deferred O&M w