Q4 2024 FirstEnergy Corp Earnings Call Transcript
Key Points
- FirstEnergy Corp (FE) achieved a significant de-risking of its business from financial and regulatory perspectives in 2024.
- The company delivered 2024 GAAP earnings of $1.70 per share and operating earnings of $2.63 per share, within the forecasted guidance range.
- FirstEnergy Corp (FE) completed rate reviews in four of its five states, de-risking 83% of its rate base.
- The company successfully closed a transformative transaction, improving its balance sheet and achieving investment-grade status across all subsidiaries.
- FirstEnergy Corp (FE) introduced core earnings to better reflect the performance of its regulated utilities, showing a 33% growth from 2022 to 2024.
- FirstEnergy Corp (FE) faced headwinds from lower sales volumes due to mild weather and storm activity that did not meet regulatory deferral requirements.
- Ohio revenues were below plan due to the ESP V order, impacting financial performance.
- Higher-than-anticipated financing costs, including significantly higher interest rates, affected the 2025 guidance.
- The removal of a 50 basis point incentive from ATSI transmission rates and Ohio DCR revenue caps posed challenges.
- The company experienced volatility in non-core earnings from pension and Signal Peak mine, leading to a shift in reporting to core earnings.
Hello and welcome to FirstEnergy Corp. fourth-quarter 2024 earnings conference call. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Karen Sagot, Vice President of the Investor relations. Please go ahead, Karen.
Thank you. Good morning, everyone, and welcome to FirstEnergy's fourth-quarter 2024 earnings review. Our Chair, President and Chief Executive Officer, Brian Tierney, will lead our call today, and he will be joined by John Taylor, our Senior Vice President and Chief Financial Officer.
Our earnings release, presentation slides, and related financial information are available on our website at firstenergycorp.com. Today's discussion will include the use of non-GAAP financial measures and forward-looking statements which are subject to risks and uncertainties. Please read our cautionary statement and discussion of non-GAAP financial measures on slides 2 and 3 of the presentation.
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