Summary
FirstEnergy Corp. (FE) operates as a diversified electric utility company, primarily engaged in the transmission and distribution of electricity to over six million customers across the Midwest and Mid-Atlantic regions. The company's business is structured around two main reportable segments: Regulated Distribution and Regulated Transmission. In 2019, FirstEnergy continued to advance its strategy of focusing on its regulated utility operations, marked by several key regulatory approvals and a strengthened balance sheet through equity issuances. The company's financial performance in 2019 showed a slight decrease in net income from continuing operations compared to 2018, primarily due to the cessation of Rider DMR collection following a Supreme Court ruling, higher pension and OPEB mark-to-market adjustments, and lower weather-related customer usage. However, the Regulated Transmission segment demonstrated growth, driven by higher rate bases. FirstEnergy's capital expenditures remain significant, with substantial investments planned for both distribution and transmission infrastructure to enhance reliability and modernize the grid.
Financial Highlights
48 data points| Revenue | $11.04B |
| Operating Expenses | $8.53B |
| Operating Income | $2.51B |
| Interest Expense | $1.03B |
| Net Income | $912.00M |
| EPS (Basic) | $1.70 |
| EPS (Diluted) | $1.68 |
| Shares Outstanding (Basic) | 535.00M |
| Shares Outstanding (Diluted) | 542.00M |
Key Highlights
- 1FirstEnergy is a fully regulated electric utility focused on its Regulated Distribution and Regulated Transmission segments, serving over six million customers across nine states.
- 2In 2019, the company made significant progress on its regulated growth plans, with key regulatory approvals obtained in Maryland, New Jersey, Ohio, and West Virginia.
- 3FirstEnergy's capital expenditure plan includes over $10 billion for Regulated Distribution and over $7 billion for Regulated Transmission from 2018-2023, with expected rate base compound annual growth rates of 4% and 10%, respectively.
- 4The company announced a 3% increase in its quarterly dividend payable in March 2020, demonstrating a commitment to shareholder returns while maintaining significant regulated investments.
- 5FirstEnergy continues to strengthen its balance sheet and improve credit metrics following a substantial equity issuance in 2018, which is expected to support investment-grade credit metrics.
- 6The company is actively involved in environmental sustainability efforts, including progress on CO2 reduction goals and modernization of its transmission and distribution systems.