American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q1 2025 Earnings Presentation
29 slides from American Electric Power's earnings presentation, May 6, 2025
Slide 1: AEP First Quarter 2025 Earnings Presentation
AEP First Quarter 2025 Earnings Presentation May 6, 2025 AEP CONFIDENTIAL
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward- Looking Statements This presentation contains forward-looking statements. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue” and similar expressions, and include statements reflecting future
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: Attractive Footprint Across High-Growth Regions
Attractive Footprint Across High-Growth Regions ~10%-12% $54B 95% TOTAL SHAREHOLDER 2025-2029 CAPITAL REGULATED ELECTRIC RETURN FORECAST UTILITY2 Targeted long-term EPS growth of 6%-8% No incremental equity needed to Pure-play, integrated platform and dividend yield of ~4% fund this plan 55% 40K 29G
Slide 5: First Quarter 2025 Business Highlights
First Quarter 2025 Business Highlights ➢ Derisked the financing plan by completing all AEP’s anticipated equity needs1 for the base 5-year $54B capital plan through the $2.3B equity sale (including greenshoe) to be settled under a forward contract by 12/31/2026 and the expected $2.82B minority inter
Slide 6: Key Achievements Drive Growth
Key Achievements Drive Growth All Anticipated Equity Recent Key Needs Completed1 Regulatory Successes through the $2.3B equity sale and the expected $2.82B minority interest transmission transaction close ✓ ERCOT Permian Basin 765 kV transmission ✓ Base cases approved in Oklahoma project approved fo
Slide 7: First Quarter 2025 Financial Update
First Quarter 2025 Financial Update $1.91 $1.50 $1.54 $1.27 2022 2021 2022 2024 2025 2024 2025 GAAP EPS OPERATING EPS Delivered solid earnings performance •• Delivered Delivered GAAP GAAP earnings earnings of of $1.50 $X.XXperpershare shareor or$800M $1.XB for for Q1 the 2025 first quarter of 2025 •
Slide 8: Operating Earnings Segment Detail
Operating Earnings Segment Detail Key Drivers Q1 2025 vs. Q1 2024 $1.54 0.05 Per Share 0.04 0.02 0.07 Income Taxes $0.03 Distributed $(0.03) Resources Other $0.02 0.09 Invest Growth $0.03 Retail $0.03 Other $0.01 Wholesale $0.03 $1.27 Rate Changes $0.08 Income Taxes $(0.01) Per Share Weather $0.06 N
Slide 9: Attractive Growth Opportunities
Attractive Growth Opportunities Normalized Total Retail GWh Sales Retail Sales Growth % Change vs. Prior Year 2024 Actual Retail Sales 2027 Projected Retail Sales 10% 8.8% 8.9% 8.4% Industrial Residential 30% 25% 8% Industrial Residential 34% 32% 6% 234,000 182,000 GWh 4% 3.0% GWh 2.8% 2.5% 2.1% 2%
Slide 10: Demonstrated Diverse Customer Demand
Demonstrated Diverse Customer Demand $13B Data Centers Nearly 180 GW in Columbus, OH Area ~2.1 GW at Buildout Interconnection Queue $11B Data Centers New Carlisle, IN ~2.2 GW at Buildout $7B Data Centers Load Growth Columbus, OH Area Summary 2025-2029 ~1.2 GW at Buildout 20+ GW2 in Load $1B Lithium
Slide 11: Liquidity and Credit Metrics
Liquidity and Credit Metrics LIQUIDITY SUMMARY 3/31/2025 FFO/DEBT TRAILING 12 MONTHS FFO/Debt as of 3/31/2025 ($ in millions) Amount Maturity (The expected minority interest transmission transaction is 13.2% credit accretive by 40-60 bps upon close in 2H 2025) Revolving Credit Facility $ 5,000 March
Slide 12: Closing Remarks
Closing Remarks 1 Derisked financial plan through the pending $2.82B minority interest transmission transaction and $2.3B equity sale Delivered strong Q1 2025 financial performance; positive regulatory 2 developments are setting a strong foundation for constructive outcomes 3 Highlighted the 8%-9% a
Slide 13: Appendix 1: Regulatory, Financial Strength and Growth
APPENDIX 1 Regulatory, Financial Strength and Growth
Slide 14: 2025 Regulatory Successes Pave the Way
2025 Regulatory Successes Pave the Way Regulatory Wins: Infrastructure Regulatory Wins: Cost Recovery ✓ February 2025: PJM awarded AEP affiliates with $1.7B ✓ February 2025: KPCo’s appeal to recover the annual transmission in transmission upgrades incremental to the $54B base expense of $14M was app
Slide 15: Regulated Earned Returns
Regulated Earned Returns Regulated Earned ROE was 9.3% as of twelve months ended 3/31/2025, demonstrating continuous improvement Twelve Months Ended 3/31/2025 ROE by Company AEP Regulated ROE Trend (non-GAAP operating earnings, not weather normalized) 14% 12% 9.4% 9.3% 10.7% 10.2% 10.3% 10% 9.2% 8%
Slide 16: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security APCo – Virginia APCo – West Virginia1 PSO - Oklahoma SWEPCO – Arkansas Docket # PUR-2024-00024 Docket # 24-0854-E-42T Docket # PUD 2023-000086 Docket # 25-003-U Filin
Slide 17: 2025-2029 Financing Plan De-risked
2025-2029 Financing Plan De-risked ($ in billions) 21.2 (0.5) (13.4) Securitization Amortization $(54.4) 2.3 0.5 2.8 Dividends2 $41.5 Dividend Future Debt and Other Completed Reinvestment Issuances Net Investing3 Net Proceeds All Anticipated Plan of of Debt from Minority Equity Funding Up to $100M M
Slide 18: 2025-2029 Capital Forecast of $54B
2025-2029 Capital Forecast of $54B Regulated Other Generation Corporate The ability to quickly redeploy Environmental $1.4B • 3% $3.8B • 7% transmission and distribution investments ensures we Generation $0.3B • 0% 100% of capital allocated to Nuclear deliver on our EPS growth Generation regulated b
Slide 19: 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 20: Transmission Delivering Significant Shareholder Value
Transmission Delivering Significant Shareholder Value Transmission Rate Base and Operating Earnings Per Share $4.09 $3.79 $50B $3.57 $3.40 $3.20 2025E transmission $2.99 $40B investment represents 55% of total AEP earnings, $25B $30B calculated using the 2025 $20B $22B $19B guidance midpoint of $5.8
Slide 21: 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 22: 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 2,820 2,700 50
Slide 23: 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 Customer commitments for 4% 26% 23.9% approximately 20 GW1 of 2% 0.7% 0.3% 20% 19.0% 16.1% 0.1% 12.4% 12.3% 12.3% load through 2029 driven
Slide 24: Appendix 2: First Quarter 2025 Performance
APPENDIX 2 First Quarter 2025 Performance
Slide 25: FFO to Total Debt
FFO to Total Debt FFO to Total Debt was 13.2% as of 3/31/2025; the minority interest transmission transaction is credit accretive by 40-60 bps upon expected close in 2H 2025 RECONCILIATION OF CASH FLOW RECONCILIATION OF TOTAL DEBT FROM OPERATIONS TO FFO TO ADJUSTED TOTAL DEBT 12 Months (in millions)
Slide 26: First Quarter Reconciliation of GAAP to Operating Earnings
First Quarter Reconciliation of GAAP to Operating Earnings Weighted Average number of share outstanding: 533M Q1 2025 and 527M Q1 2024 $ in millions Earnings Per Share Q1-24 Q1-25 Change Q1-24 Q1-25 Change Reported GAAP Earnings $ 1,003 $ 800 $ (203) $ 1.91 $ 1.50 $ (0.41) Non-Operating Items: Impac
Slide 27: Vertically Integrated Utilities First Quarter Performance
Vertically Integrated Utilities First Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q1-25 vs. Q1-25 vs. Q1-25 vs. Q1-24 Q1-25 vs. Q1-24 Q1-24 Normal APCo3 $20 APCo3 $4
Slide 28: Transmission and Distribution Utilities First Quarter Performance
Transmission and Distribution Utilities First Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q1-25 vs. Q1-25 vs. Q1-24 Normal Q1-25 vs. Q1-24 Q1-25 vs. Q1-24 AEP Ohio $
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American Electric Power Company — Q1 2025 Earnings Presentation on 6ix