American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q4 2011 Earnings Presentation
16 slides from American Electric Power's earnings presentation, Jan 27, 2012
Slide 1: 4Q11 Earnings Release Presentation
4Q11 Earnings Release Presentation January 27, 2012
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: 4Q11 Performance
4Q11 Performance 4Q11 Performance Drivers Fourth Quarter Reconciliation Regulatory Disallowances in Virginia and Ohio of $107M Weather was unfavorable by $49M vs. prior year, Ongoing unfavorable $33M vs. normal Earnings Retail Margins down $22M EPS ($ in millions) Loss of POLR revenues from
Slide 4: December YTD 2011 Performance
December YTD 2011 Performance YTD 2011 Performance Drivers December YTD 2011 Reconciliation Regulatory Disallowances in Virginia and Ohio of $107M Ongoing Weather was unfavorable by $49M vs. prior year, favorable $113M vs. normal Earnings EPS ($ in millions) Retail Margins down $34M Loss of
Slide 5: Normalized Load Trends
Normalized Load Trends AEP Residential Normalized GWh Sales AEP Commercial Normalized GWh Sales %Change vs. Prior Year %Change vs. Prior Year 15% 15% 10% 10% 5% 4.4% 5% 0.3% 0.4% 1.2% 0.5% -0.1% 0% 0% -1.7% -0.3% -1.5% -1.0% -5% -5% 1Q11 2Q11 3Q11 4Q11 2011YTD 1Q11 2Q11 3Q11 4Q11 2011YTD AEP Industr
Slide 6: Customer Switching
Customer Switching AEP-OH Customers Choosing Other Energy Providers 50% $150,000 45% Actual Cumulative % Lost Load Actual Cumulative Lost Gross Margin $123,958 40% ($ in millions) $120,000 4Q11 YTD Gross Gross YTD % 35% Margin Margin Lost Lost Gross Margin ($000s) Lost Lost Load 30% CSP $ 30.7 $ 105
Slide 7: Capitalization & Liquidity
Capitalization & Liquidity 70% Total Debt / Total Capitalization Credit Statistics 65% 64.5% Actual Target 62.5% FFO Interest Coverage 4.6 >3.6x FFO To Total Debt 18.7% 15%- 20% 60.7% 60% 59.1% 59.1% 57.2% 57.2% 57.0% Note: Credit statistics represent the trailing 12 months as of 12/31/2011 55.3% 55
Slide 8: 4Q11 Earnings
4Q11 Earnings $ millions Earnings Per Share 4th Qtr 4th Qtr 4th Qtr 4th Qtr 2010 2011 Change 2010 2011 Change Utility Operations $ 180 $ 175 $ (5) $ 0.38 $ 0.37 $ (0.01) Transmission Operations 5 11 6 0.01 0.02 0.01 Non-Utility Operations 29 16 (13) 0.06 0.03 (0.03) Parent & Other (35) (8) 27 (0.07)
Slide 9: Quarterly Performance Comparison
Quarterly Performance Comparison American Electric Power Financial Results for 4th Quarter 2011 Actual vs 4th Quarter 2010 Actual 2010 Actual 2011 Actual Performance Driver ($ millions) EPS Performance Driver ($ millions) EPS UTILITY OPERATIONS: Gross Margin: 1 East Regulated Integrated Utilities 17
Slide 10: December YTD Earnings
December YTD Earnings $ millions Earnings Per Share Dec YTD Dec YTD Dec YTD Dec YTD 2010 2011 Change 2010 2011 Change Utility Operations $ 1,419 $ 1,455 $ 36 $ 2.97 $ 3.02 $ 0.05 Transmission Operations 10 30 20 0.02 0.06 0.04 Non-Utility Operations 65 59 (6) 0.13 0.12 (0.01) Parent & Other (43) (40
Slide 11: YTD 2011 Performance Comparison
YTD 2011 Performance Comparison American Electric Power Financial Results for YTD December 2011 Actual vs YTD December 2010 Actual 2010 Actual 2011 Actual Performance Driver ($ millions) EPS Performance Driver ($ millions) EPS UTILITY OPERATIONS: Gross Margin: 1 East Regulated Integrated Utilities 6
Slide 12: Retail Rate Performance
Retail Rate Performance Rate Changes, net of Rate Changes, net of trackers (in millions) trackers (in millions) 4Q11 vs. 4Q10 YTD11 vs. YTD10 East Regulated East Regulated $11 Integrated $116 Integrated Utilities Utilities Ohio Companies $5 Ohio Companies $40 West Regulated West Regulated $10 Integr
Slide 13: 4Q11 Retail Performance
4Q11 Retail Performance Retail Load* Weather Impact (weather normalized) (in millions) 4Q11 vs. 4Q10 4Q11 vs. 4Q10 East Regulated East Regulated (2.0%) Integrated ($39) Integrated Utilities Utilities Ohio Companies 1.5% Ohio Companies ($16) West Regulated West Regulated 0.7% Integrated $3 Integrated
Slide 14: YTD 2011 Retail Performance
YTD 2011 Retail Performance Retail Load* Weather Impact (weather normalized) (in millions) YTD11 vs. YTD10 YTD11 vs. YTD10 East Regulated East Regulated (1.2%) Integrated ($63) Integrated Utilities Utilities Ohio Companies 3.2% Ohio Companies ($24) West Regulated West Regulated 2.4% Integrated $18 I
Slide 15: Industrial Sales Volumes
Industrial Sales Volumes AEP Industrial GWh by Sector GWh 2,400 Primary Metal Manuf acturing Chemical Manuf acturing Petroleum and Coal Products Manuf acturing Industry 4Q11 vs PY YTD vs PY Mining (except Oil & Gas) Primary Metals 12.5% 14.1% Paper Manuf acturing Chemical Mfg -7.1% 0.7% 2,000 Petrol
Slide 16: Off System Sales Gross Margin Detail
Off System Sales Gross Margin Detail 4Q11 Physical off-system sales margins decreased from last year by $10M 4Q10 4Q11 GWh Realization ($millions) GWh Realization ($millions) Volumes up 10% versus last year OSS Physical Sales 3,133 $ 16.28 $ 51 3,461 $ 11.85 $ 41 Marketing/Trading - $ 21 - $ 13
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