American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q4 2008 Earnings Presentation
19 slides from American Electric Power's earnings presentation, Jan 29, 2009
Slide 1: 4Q08 Earnings Release Presentation
4Q08 Earnings Release Presentation 4Q08 Earnings Release January 29, 2009
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, which are subject to risks and uncertainties. These factors include electric load and customer growth; weather conditions, including storms; available sources and
Slide 3: 2008 Highlights
2008 Highlights Earnings: 2008 GAAP Earnings $3.43 per share; ongoing $3.24 per share 4Q08 GAAP Earnings $0.38 per share; ongoing $0.59 per share Regulatory Updates – $527MM of rate relief secured in 2008 Virginia Oklahoma Generation - Turk Plant 4Q08 Earnings Release Transmission –
Slide 4: 2009 Outlook
2009 Outlook Transmission Initiatives PATH ETT/ETA Generation Turk plant DC Cook Plant update Ohio ESP filing Outcome 4Q08 Earnings Release 2009 Earnings guidance of $3.00-$3.40 Cash Flow, Capex, Financing p.4
Slide 5: 4Q08 Performance
4Q08 Performance 4Q08 Performance Drivers: American Electric Power Retail Sales (lines 1-4): Financial Results for 4th Quarter 2008 Actual vs 4th Quarter 2007 Actual Rate relief of $114MM (Primarily APCo and Ohio RSPs) 2007 Actual 2008 Actual ($ millions) EPS ($ millions) EPS Positive load gro
Slide 6: YTD Performance
YTD Performance YTD Performance Drivers: Retail Sales (lines 1-4): Rate relief $358MM (Primarily APCo, Ohio RSPs, I&M, Texas & American Electric Power PSO) Financial Results for YTD December 2008 Actual vs YTD December 2007 Actual Positive load growth including new customers; $74MM 2007 Actual
Slide 7: Capitalization
Capitalization Capital Structure Actual 12/31/2007 Actual 12/31/2008 Debt Equity Total Debt Equity Total Balance Sheet Capitalization Long-term Debt 14,993 - 14,994 15,983 - 15,983 Short-term Debt 660 - 660 1,976 - 1,976 Preferred Stock Not Subject to Mandatory Redemption - 61 61 - 61 61 Common Equi
Slide 8: Questions
4Q08 Earnings Release Questions p.8
Slide 9: 4Q08 Earnings
4Q08 Earnings $ millions Earnings Per Share 4th Qtr 4th Qtr 4th Qtr 4th Qtr 2007 2008 Change 2007 2008 Change Utility Operations 152 182 30 0.38 0.45 0.07 Transmission Operations 0 0 0 0.00 0.00 0.00 Non-Utility Operations 41 56 15 0.10 0.14 0.04 Parent & Other 16 (1) (17) 0.04 0.00 (0.04) AEP On-Go
Slide 10: Quarterly Performance Comparison
Quarterly Performance Comparison American Electric Power Financial Results for 4th Quarter 2008 Actual vs 4th Quarter 2007 Actual 2007 Actual 2008 Actual Performance Driver ($ millions) EPS Performance Driver ($ millions) EPS UTILITY OPERATIONS: Gross Margin: 1 East Regulated Integrated Utilities 17
Slide 11: December YTD Earnings
December YTD Earnings $ millions Earnings Per Share Dec YTD Dec YTD Dec YTD Dec YTD 2007 2008 Change 2007 2008 Change Utility Operations 1,086 1,210 124 2.72 3.02 0.30 Transmission Operations 0 2 2 0.00 0.00 0.00 Non-Utility Operations 98 120 22 0.24 0.30 0.06 Parent & Other 15 (31) (46) 0.04 (0.08)
Slide 12: December YTD Performance Comparison
December YTD Performance Comparison American Electric Power Financial Results for YTD December 2008 Actual vs YTD December 2007 Actual 2007 Actual 2008 Actual Performance Driver ($ millions) EPS Performance Driver ($ millions) EPS UTILITY OPERATIONS: Gross Margin: 1 East Regulated Integrated Utiliti
Slide 13: 2008 Cash Flow
2008 Cash Flow ($ millio ns) 2007 2008 O pe ra t ing A c t iv it ie s 2008 Cash Flow Drivers: N e t Inc o m e - - R e po rt e d $ 1,0 8 9 $ 1,3 8 0 Operating Activities Disco ntinued Operatio ns (24) (12) C o nt inuing E a rnings 1,0 6 5 1,3 6 8 Changes in working capital largely driven by fuel (c
Slide 14: AEP Liquidity
AEP Liquidity as of December 31, 2008 Liquidity Summary Actual (unaudited) 12/31/08 ($ in millions) Amount Maturity Revolving Credit Facility $1,500 Mar. 2011 Revolving Credit Facility 1,454 Apr. 2012 Revolving Credit Facility 627 Apr. 2011 Revolving Credit Facility 338 Apr. 2009 Total Credit Facili
Slide 15: Detailed Ongoing Earnings Guidance
Detailed Ongoing Earnings Guidance 2008 Actual: $3.24 2009E: $3.00-$3.40 American Electric Power 2008 Actual vs 2009 Guidance 2008 Actual 2009 Guidance ($ millions) ($ millions) Utility Operations Gross Margin 8,046 8,433 Operations & Maintenance (3,366) (3,337) Depreciation & Amortization (1,450) (
Slide 16: 2008 & 2009 Cash Flow Forecast
2008 & 2009 Cash Flow Forecast AEP Sources and Uses of Cash $4,920 $4,920 $5,000 $233 $660 $227 $3,498 $3,498 $4,000 $2,185 $212 $669 ($ Millions) $619 $3,000 $159 $217 $150 $2,000 $3,800 $2,576 $2,612 $2,517 $1,000 $- 2008 Sources 2008 Uses 2009 Sources 2009 Uses 4Q08 Earnings Release Cash from Ope
Slide 17: 4Q08 Retail Performance
4Q08 Retail Performance Load Growth Weather (weather Impact normalized) 4Q08 vs. 4Q07 4Q08 vs. 4Q07 East East Regulated Regulated 1.0% $0.01 Integrated Integrated Utilities Utilities Ohio Ohio 0.0% $0.00 Companies Companies West West Regulated Regulated 2.2% ($0.01) Integrated Integrated Utilities U
Slide 18: YTD Retail Performance
YTD Retail Performance Load Growth Weather Impact (weather normalized) YTD 2008 vs. YTD 2007 YTD 2008 vs. YTD 2007 East Regulated East Regulated 0.9% Integrated Utilities Integrated Utilities ($0.04) Ohio Companies 2.8% Ohio Companies ($0.04) West Regulated West Regulated 1.0% ($0.02) Integrated Uti
Slide 19: Retail Performance
Retail Performance Rate Relief (in millions) Rate Relief (in millions) 4Q08 vs. 4Q07 YTD 2008 vs. YTD 2007 East Regulated East Regulated Integrated $45 Integrated $102 Utilities Utilities Ohio Companies $58 Ohio Companies $206 West Regulated West Regulated Integrated $7 Integrated $29 Utilities Util
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