FirstEnergy Corp. · NYSE:FE
FirstEnergy — Barclays CEO Energy-Power Conference 2017
14 slides from FirstEnergy's conference presentation, September 2017
Slide 1: Barclays CEO Energy-Power Conference
FirstEnergy Barclays CEO Energy-Power Conference James F. Pearson, EVP and CFO New York, NY • September 2017
Slide 2: 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. These statements include declarations regarding management's intents, beliefs and current expectati
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including Operating earnings (losses). In addition, Basic Earnings (Loss) Per Share - Operating, calculated on a segment basis, is also a non-GAAP financial measure. Generally, a non-GAAP financial measur
Slide 4: Agenda
Agenda ■ FirstEnergy Overview ■ Our Transition to a Regulated Company ■ Business Updates – Distribution – Transmission – Financial – Competitive ■ AE Supply Updates ■ Building a Stronger FirstEnergy Barclays CEO Energy-Power Conference September 2017 4
Slide 5: FirstEnergy Overview
FirstEnergy Overview OUR MISSION We are a forward-thinking electric utility powered by a diverse team of employees committed to making customers’ lives brighter, the environment better and our communities stronger. $43B $15B 2016 Total Assets 2016 Annual Revenues MI Jointly Owned Plant PA Regulated
Slide 6: Fully focused on our transition to a regulated company
Fully focused on our transition to a regulated company The scale and diversity of our regulated operations position FirstEnergy for sustained growth into the future Thoughtful exit from commodity-exposed generation Investing in our Regulated businesses Building a stronger balance sheet Thoughtful ex
Slide 7: Business Updates
Business Updates Distribution Updates ■ In January, new rates went into effect in Ohio, New Jersey and Pennsylvania ■ Four consecutive quarters of industrial load growth – Primarily driven by shale gas, steel, coal mining and chemical industries ■ Higher than forecasted load expected, offsetting the
Slide 8: Business Updates (Continued)
Business Updates (Continued) Financial Updates ■ On June 19, 2017, FE Corp. issued $3B Senior Notes at a weighted average coupon of 4.04% – Proceeds used to refinance $650M Notes due 2018 and to repay revolver borrowings – Improves liquidity and reduces exposure to rising interest rates ■ On August
Slide 9: AE Supply Updates
AE Supply Updates Gas/Hydro Asset Sale* Expected Net Proceeds ■ On August 30, 2017, signed an amended purchase ■ AE Supply: $403M; FE Corp.: $350M agreement with LS Power to sell 1,615 MW of ■ AE Supply expected to redeem long-term gas/hydro assets for a purchase price of $825M debt, including make-
Slide 10: Building a Stronger FirstEnergy
Building a Stronger FirstEnergy ■ Safety is our top priority ■ Continue to drive operational excellence and strong financial performance across the company ■ Remain fully focused on our transition to a regulated company – Position FirstEnergy for customer-service oriented regulated growth – Committe
Slide 11: Appendix
Appendix Barclays CEO Energy-Power Conference September 2017 11
Slide 12: Reconciliation of GAAP to Operating (Non-GAAP) Earnings
Earnings (Loss) Per Share – Forecast for 2017 Reconciliation of GAAP to Operating (Non-GAAP) Earnings (In millions, except per share amounts) * Per share amounts for the special items and earnings drivers above are based on the after-tax effect of each item divided by the weighted average basic shar
Slide 13: Parental Guarantees / Other Assurances
Parental Guarantees / Other Assurances On behalf of FES / FENOC ■ FE provides parental guarantees and other assurances of $1.7B on behalf of FES / FENOC – The secured revolving credit facility is currently undrawn ($M) $500 $1,691 Unfunded EDCP Energy Surety Bonds Rail Secured Total Pension OPEB Con
Slide 14: Nuclear Facts
Nuclear Facts ■ Nuclear Decommissioning Trust (NDT) for all units is expected to be fully funded by the license expiration date – NDT shortfall of ~$120M, if plant closures were accelerated to the date of the next refueling outage Perry Davis-Besse Beaver Valley 1 Beaver Valley 2 License Expiration
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