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FE · FirstEnergy

50 filings

10-Q

FE 10-Q Quarterly Reports

FirstEnergy - 50 quarterly reports

Filing record · 2016–202610-K1310-Q338-K179

FE filed 13 annual reports (10-K), 33 quarterly reports (10-Q) and 179 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Sep ’17Sep ’17
  2. Material agreement8-K · Sep ’19Sep ’19
  3. Material agreement8-K · Nov ’21Nov ’21
  4. Leadership change8-K · Sep ’25Sep ’25
  1. 2026-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2026

    FirstEnergy Corp. (FE) reported increased revenues and earnings for the nine months ended September 30, 2026, compared to the same period in 2025. Total revenues grew by 10% to $12.4 billion, driven by higher transmission revenues from increased capital investments, higher rider revenues, and increased customer demand. Earnings attributable to FE increased by 17% to $1.25 billion. This improvement was bolstered by the absence of certain one-time charges and a state tax benefit, partially offset by higher interest expenses due to new debt issuances and increased investigation costs. The company continues to invest heavily in its 'Energize365' plan, with capital investments of $4.19 billion in the nine-month period focused on enhancing grid reliability, supporting growing customer demand, and addressing aging infrastructure. FirstEnergy has secured significant data center load growth, anticipating further increases in its investment plan to accommodate this demand. The company also recently amended its credit facilities to extend maturity dates and increase letter of credit commitments, indicating proactive financial management. While facing ongoing regulatory and legal matters, FirstEnergy appears to be navigating these challenges while maintaining operational and financial stability.

    Oct 28, 2026
  2. 2026-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2026

    FirstEnergy Corp. (FE) reported improved financial results for the three and six months ended June 30, 2026, compared to the prior year. Total revenues increased by 9% to $3.7 billion for the quarter and by 10% to $7.9 billion for the six-month period, driven primarily by higher transmission revenues and increased generation sales. Net income attributable to FE also saw a healthy increase, rising by 7% to $288 million ($0.50 per share) for the quarter and by 10% to $693 million ($1.20 per share) for the six months. This performance reflects the positive impact of regulated capital investments on rate base and improved operational efficiencies, although partially offset by higher operating and interest expenses. The company continues to focus on its long-term investment plan, Energize365, totaling $36 billion from 2026-2030, aimed at enhancing grid reliability, resilience, and customer experience. This plan includes significant investments in distribution and transmission infrastructure, supported by a strengthened financial position and an ongoing commitment to dividend growth. Management anticipates continued solid performance, with a focus on executing capital investment plans and managing operating costs amidst evolving economic and regulatory landscapes.

    Jul 28, 2026
  3. 2026-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2026

    FirstEnergy Corp. reported strong financial results for the first quarter of 2026, with net income attributable to common shareholders increasing by 12.5% to $405 million, or $0.70 per diluted share, compared to $360 million, or $0.62 per diluted share, in the first quarter of 2025. This improvement was driven by higher revenues across all segments, particularly in Integrated and Stand-Alone Transmission, attributed to increased regulated capital investments and favorable weather conditions. The company also benefited from lower operating expenses, including the absence of certain severance costs from the prior year and reduced vegetation management expenses. FirstEnergy continues to execute its long-term investment strategy, "Energize365," with planned capital investments of $36 billion from 2026 to 2030, a 25% increase over its previous five-year plan. This investment is aimed at enhancing grid reliability, resiliency, and supporting growing customer demand, including investments in automation, advanced metering, and grid modernization. Financially, the company has maintained a strong position, supported by an increase in its quarterly cash dividend by $0.02 to $0.465 per share. While facing some economic uncertainties and supply chain considerations, FirstEnergy remains confident in its ability to fund its capital plan through a combination of organic cash flows and debt issuance.

    Apr 28, 2026
  4. 2025-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2025

    FirstEnergy Corp. (FE) reported increased revenues and net income for the nine months ended September 30, 2025, compared to the same period in 2024. This improvement was driven by higher revenues from base rate case implementations across its service territories, increased earnings from regulated capital investments, and the absence of significant one-time charges incurred in the prior year, such as a prior impairment charge and civil penalties. Despite higher operating expenses, including increased employee benefit costs and vegetation management expenses, the company's robust revenue growth and favorable regulatory outcomes led to a substantial year-over-year increase in earnings attributable to FE. Financially, FirstEnergy has actively managed its capital structure through debt issuances and redemptions, bolstering its liquidity position. The company's investment in grid modernization and infrastructure upgrades continues, with plans for increased capital expenditures in the coming years. While facing ongoing regulatory reviews and potential economic uncertainties, FirstEnergy's operational performance and strategic financial management indicate a stable trajectory for the reporting period.

    Oct 28, 2025
  5. 2025-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2025

    FirstEnergy Corp. (FE) reported a significant increase in earnings attributable to the company for the second quarter and the first six months of 2025 compared to the prior year. This improvement was primarily driven by the absence of one-time charges, such as SEC investigation penalties and ARO adjustments, which impacted the prior year's results. Higher revenues from regulated capital investments and rate case implementations in Pennsylvania, New Jersey, and West Virginia also contributed positively to the performance. Operationally, the company saw mixed results with distribution services impacted by milder weather in the second quarter, leading to lower customer usage. However, for the first six months, colder weather in the first quarter boosted customer usage. FirstEnergy also successfully executed a significant financing strategy, issuing new convertible notes and repurchasing existing ones, while also managing its debt through various redemptions and issuances across its subsidiaries. The company's outlook suggests continued focus on regulated investments and shareholder returns, balanced with ongoing management of market and regulatory landscapes.

    Jul 30, 2025
  6. 2025-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2025

    FirstEnergy Corp. (FE) reported a strong first quarter for 2025, with earnings attributable to FE increasing by 42% to $360 million, or $0.62 per share, compared to $253 million, or $0.44 per share, in the first quarter of 2024. This significant growth was driven by higher revenues across its segments, particularly from implemented base rate cases in New Jersey, West Virginia, and Pennsylvania, coupled with increased customer usage due to colder weather. The company also benefited from lower interest expenses and the absence of certain one-time charges incurred in the prior year. Operationally, FE saw a notable increase in total revenues to $3.77 billion, up from $3.29 billion in the prior year's quarter. This revenue growth was supported by higher capital investments that expanded the rate base. The company also announced a $0.02 per share increase in its quarterly common stock dividend, signaling confidence in its financial performance and commitment to shareholder returns. While the company faces ongoing regulatory and environmental considerations, its first-quarter results demonstrate robust operational execution and a positive financial trajectory.

    Apr 30, 2025
  7. 2024-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2024

    FirstEnergy Corp. reported revenues of $3.73 billion for the third quarter of 2024, an increase of 7% compared to the prior year's quarter, driven by higher customer demand and effective rate case implementations across its service territories. Net income attributable to FirstEnergy Corp. was $419 million, or $0.73 per diluted share, a slight decrease from the prior year's $421 million. This decrease was influenced by an impairment charge related to the Akron general office, lower revenues from Ohio's DCR changes, and the dilutive impact of the FET Equity Interest Sale. For the first nine months of 2024, revenues rose to $10.30 billion, but net income attributable to FirstEnergy Corp. declined to $717 million from $927 million in the comparable period of 2023. This decline was primarily due to significant charges related to asset retirement obligations, legal settlements, and an impairment charge, partially offset by improvements in operational segments and favorable rate case outcomes. The company continues to invest heavily in its infrastructure through its Energize365 program, planning approximately $26 billion in capital investments from 2024 through 2028 to enhance grid reliability, support the energy transition, and modernize its systems. FirstEnergy also reported progress in strengthening its balance sheet and a recent increase in its quarterly dividend. Management remains focused on executing its strategy to improve reliability, customer experience, and deliver value to investors, navigating regulatory and economic landscapes.

    Oct 29, 2024
  8. 2024-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2024

    FirstEnergy Corp. (FE) reported a net income of $98 million for the three months ended June 30, 2024, a significant decrease from $254 million in the same period of the prior year. This decline was primarily driven by higher operating expenses, debt redemption costs, and loss contingencies related to ongoing investigations. For the six months ended June 30, 2024, net income was $365 million, down from $564 million year-over-year, reflecting similar pressures. Despite lower net income, the company saw an increase in total revenues to $3,280 million for the quarter, up from $3,006 million in Q2 2023, driven by higher distribution and transmission services. The company's balance sheet shows total assets of $51,021 million and total liabilities of $37,293 million as of June 30, 2024. Operationally, FirstEnergy is executing its "Energize365" capital investment strategy, planning approximately $26 billion in system-wide capital investments from 2024 through 2028 to enhance reliability, grid modernization, and clean energy initiatives. The company also continues to manage its financial position, including the ongoing resolution of legal and regulatory matters. Key highlights include increased revenues, the progress in the FET equity interest sale, and the company's commitment to its strategic investment plan despite the near-term earnings pressure from various charges.

    Jul 30, 2024
  9. 2024-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2024

    FirstEnergy Corp. reported a net income of $267 million for the first quarter of 2024, a decrease from $310 million in the same period of 2023. This decline was primarily attributed to lower weather-adjusted customer usage and demand, higher discrete income tax charges related to the PA Consolidation and updates to deferred taxes on the FET equity interest sale, and increased other operating expenses including vegetation management and uncollectible expenses. Financially, the company saw an increase in cash and cash equivalents to $888 million from $137 million at the end of the previous year. The company also successfully completed a significant equity interest sale in FirstEnergy Transmission, LLC (FET), increasing Brookfield's stake to 49.9% and providing substantial cash inflow. FirstEnergy continues its strategic focus on investing in regulated operations through its Energize365 program, with a significant capital investment plan outlined for the next five years, aiming to improve reliability, support clean energy initiatives, and enhance grid modernization.

    Apr 25, 2024
  10. 2023-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2023

    FirstEnergy Corp. reported increased revenues and earnings for the nine months ended September 30, 2023, compared to the same period in the prior year. Total revenues rose by 5% to $9.72 billion, and earnings attributable to FE from continuing operations grew by 17% to $948 million. This performance was driven by growth in both the Regulated Distribution and Regulated Transmission segments, reflecting successful capital investments aimed at enhancing reliability and grid modernization. The company also highlighted progress on its strategic initiatives, including the ongoing consolidation of its Pennsylvania companies and continued focus on cost management and operational efficiencies. While the company experienced an increase in capital expenditures to support its investment plans, it also managed its financing activities effectively, including issuing new debt and convertible notes. Despite the positive financial trends, investors should remain aware of the company's ongoing regulatory matters and legal proceedings, which could present future risks.

    Oct 26, 2023
  11. 2023-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2023

    FirstEnergy Corp. (FE) reported solid financial results for the second quarter and first half of 2023. Total revenues increased by 7% year-over-year for both the quarter and the first six months, driven by growth in both Regulated Distribution and Regulated Transmission segments. Net income attributable to FE saw a significant increase of 26% for the quarter and 11% for the first half, reflecting improved operational performance and effective cost management. The company is progressing on its strategic initiatives, including the consolidation of its Pennsylvania operating companies and the partial sale of its interest in FirstEnergy Transmission, LLC (FET) to Brookfield. These strategic moves are aimed at strengthening the balance sheet and focusing on core regulated utility operations. FirstEnergy continues to invest in grid modernization and reliability improvements across its service territories, positioning itself for future growth and the energy transition.

    Aug 1, 2023
  12. 2023-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2023

    FirstEnergy Corp. reported solid financial results for the first quarter of 2023, with total revenues increasing by 8% to $3.23 billion and net income attributable to FE rising slightly by 1% to $292 million, or $0.51 per diluted share, compared to the same period in 2022. This performance was driven by higher revenues in the Regulated Distribution segment, bolstered by increased capital investment programs and higher non-shopping customer participation. The company also made progress on strategic initiatives, including filings for rate case adjustments in Maryland and New Jersey, and the ongoing consolidation of its Pennsylvania operations expected by early 2024. Financially, FirstEnergy maintained a healthy liquidity position, with $3.92 billion in available liquidity. The company continues to focus on its long-term strategy, "Energizing the Future," with significant planned investments in its Regulated Distribution and Transmission segments aimed at improving grid reliability, enabling the clean energy transition, and modernizing infrastructure. The company also highlighted its commitment to environmental sustainability with a goal of carbon neutrality by 2050.

    Apr 27, 2023
  13. 2022-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2022

    FirstEnergy Corp. reported mixed financial results for the nine months ended September 30, 2022. Total revenues increased by 10% to $9.28 billion compared to the prior year, driven by growth in both Regulated Distribution and Regulated Transmission segments. However, net income attributable to FE decreased by 5% to $809 million, largely due to higher operating expenses, including increased fuel and purchased power costs, and the absence of a significant gain on the sale of Yards Creek in the prior year. The company also incurred substantial debt redemption costs and faced increased interest expenses. Operationally, FirstEnergy is focusing on investments in grid modernization, clean energy transition, and infrastructure upgrades within its regulated segments. The company has made significant progress on its "FE Forward" initiative, aimed at generating capital expenditure efficiencies and working capital improvements. Despite ongoing legal and regulatory matters, including investigations related to HB 6, FirstEnergy is working to strengthen its compliance culture and address these challenges. The company reaffirmed its commitment to carbon neutrality by 2050 and continues to invest in renewable energy and sustainable practices.

    Oct 25, 2022
  14. 2022-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2022

    FirstEnergy Corp. reported a significant increase in net income for the six months ended June 30, 2022, reaching $480 million compared to $393 million in the same period of 2021. This growth was driven by a substantial rise in revenues, up 9% to $5.81 billion, supported by improvements in both regulated distribution and transmission segments. The company also saw a notable increase in operating income, reflecting improved operational efficiencies and favorable rate adjustments. Financially, FirstEnergy made progress in managing its debt, with total long-term debt decreasing. The company also completed a significant transaction with Brookfield, selling a minority interest in FirstEnergy Transmission, LLC (FET) for $2.375 billion, which closed in May 2022. This transaction, along with a $1 billion investment from Blackstone, strengthens the company's balance sheet and provides capital for strategic investments. Despite ongoing legal and regulatory scrutiny related to past activities, the company continues to focus on its strategic priorities of grid modernization and clean energy transition.

    Jul 26, 2022
  15. 2022-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2022

    FirstEnergy Corp. (FE) reported its first quarter 2022 financial results, showing a net income of $288 million, or $0.50 per diluted share, a decrease from $335 million, or $0.62 per diluted share, in the same period of 2021. Total revenues increased by 10% to $2,989 million, driven by higher distribution and transmission service revenues. Operating expenses also rose, leading to flat operating income year-over-year. The company highlighted its strategic focus on regulated investments in transmission and distribution, with significant capital expenditure plans aimed at grid modernization and enabling the energy transition. Significant events during the quarter included progress on the sale of a minority interest in FirstEnergy Transmission, LLC, which is expected to close by the end of May 2022, and ongoing management of regulatory matters across its operating states. Financially, FirstEnergy demonstrated solid operational performance with increased revenues, though net income was impacted by various factors including higher operating expenses and the absence of certain one-time gains from the prior year. The company continues to strengthen its balance sheet and liquidity through strategic financing actions, including the recent private placement of common stock and new credit facilities. Management remains focused on executing its long-term strategy, "FE Forward," which aims for capital expenditure efficiencies and working capital improvements, while also addressing environmental initiatives and the ongoing legal and regulatory landscape, including the aftermath of the HB 6 investigations.

    Apr 21, 2022
  16. 2021-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2021

    FirstEnergy Corp. reported increased revenues and net income for the nine months ended September 30, 2021, compared to the same period in 2020, driven by growth in both its Regulated Distribution and Regulated Transmission segments. The company successfully navigated significant regulatory and legal challenges, including the resolution of a deferred prosecution agreement with the U.S. Attorney's Office and ongoing efforts to enhance its compliance and ethics programs. Significant management changes were implemented to strengthen corporate governance. Financially, the company secured new revolving credit facilities totaling $4.5 billion, enhancing liquidity. While capital expenditures remain robust, particularly in transmission infrastructure, the company has discontinued providing long-term earnings growth rate guidance due to regulatory uncertainties in Ohio and ongoing investigations.

    Oct 28, 2021
  17. 2021-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2021

    FirstEnergy Corp. (FE) reported its second-quarter and first-half 2021 financial results, marked by a significant $230 million penalty as part of a Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office related to lobbying activities. This penalty, recognized in the second quarter, led to a substantial decrease in net income for the period. Despite the ongoing investigations and related litigation, the company's core regulated utility operations in distribution and transmission showed stable performance with increases in revenues and operating income compared to the prior year, driven by higher rates and increased demand as COVID-19 restrictions eased. Management has implemented significant governance and compliance changes, including executive terminations and an enhanced code of conduct, to address cultural issues and rebuild trust. Financially, the company continues to manage its liquidity and capital structure, including amending its credit facilities to maintain compliance following the DPA. While the company faces continued regulatory scrutiny and potential legal outcomes, its regulated segments demonstrate resilience, and the company is focused on operational improvements through its 'FE Forward' initiative.

    Jul 22, 2021
  18. 2021-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2021

    FirstEnergy Corp. reported a significant increase in net income for the first quarter of 2021 compared to the same period in 2020. The company's net income rose to $335 million, or $0.62 per diluted share, from $74 million, or $0.14 per diluted share, in Q1 2020. This improvement was driven primarily by the absence of a large pension and OPEB mark-to-market adjustment that impacted the prior year, alongside increased residential sales and benefits from investment-related riders. Despite the strong earnings performance, the company continues to navigate significant legal and regulatory challenges stemming from the "HB 6" investigation in Ohio. While management is implementing changes to enhance its compliance culture and has reached a partial settlement regarding decoupling in Ohio, the outcomes of ongoing government investigations, lawsuits, and regulatory proceedings remain uncertain and could materially impact the company's financial condition and reputation. Investors should monitor developments related to these legal and regulatory matters closely.

    Apr 22, 2021
  19. 2020-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2020

    FirstEnergy Corp.'s (FE) third-quarter 2020 filing reveals a net income of $454 million, a 16% increase from the prior year's $391 million, driven primarily by improved operating income in its regulated segments. Total revenues saw a modest 2% increase, reaching $3.02 billion. The company highlighted operational improvements and strategic progress, including the final step in exiting the competitive generation business with the emergence of FES Debtors from bankruptcy. However, the report also heavily emphasizes ongoing government investigations into the company related to "HB 6" and the termination of key executives due to policy and code of conduct violations. These investigations and related litigation pose significant uncertainty and could materially impact the company's financial condition and operations. Despite the legal and governance challenges, FirstEnergy continues to focus on its regulated growth plans, with investments in its Regulated Distribution and Transmission segments. The company is managing the impacts of COVID-19 by monitoring customer receivables and incurred incremental expenses, which are being tracked for future recovery under regulatory mechanisms. Liquidity remains adequate, with sufficient cash from operations and available credit facilities to meet obligations.

    Nov 19, 2020
  20. 2020-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2020

    FirstEnergy Corp. reported financial results for the quarter and six months ended June 30, 2020. Total revenues remained relatively flat year-over-year for the quarter, but saw a slight decrease for the six-month period. Net income experienced a slight decrease in the quarter, and a more significant decrease for the six months, largely impacted by a substantial pension and OPEB mark-to-market adjustment in the first quarter of 2020 and other factors. The company's transition to a fully regulated utility is nearing completion with the emergence of FES Debtors from bankruptcy, which was a key strategic milestone. The company continues to focus on its regulated distribution and transmission segments, with ongoing investments in infrastructure to improve reliability and modernize its systems. FirstEnergy is also managing the impacts of the COVID-19 pandemic, including increased uncollectible customer receivables and implementing measures to protect employees and customers. Regulatory mechanisms are in place in several states to recover pandemic-related incremental costs. Despite the ongoing uncertainties related to the pandemic and a government investigation into Ohio House Bill 6, FirstEnergy maintains its focus on executing its regulated growth strategy and providing essential services.

    Aug 17, 2020
  21. 2020-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2020

    FirstEnergy Corp. (FE) reported financial results for the quarter ending March 31, 2020. The company experienced a significant decrease in net income, primarily driven by a large pension and OPEB mark-to-market adjustment. Revenues also declined year-over-year, reflecting lower customer usage and the absence of certain regulatory revenues. Despite these challenges, FirstEnergy continues to execute its strategy of transitioning to a fully regulated utility, with a focus on its Regulated Distribution and Transmission segments. The company also highlighted its ongoing efforts to manage the impacts of the COVID-19 pandemic, including measures to support customers and maintain operational stability.

    Apr 23, 2020
  22. 2019-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2019

    FirstEnergy Corp. reported net income attributable to common stockholders of $1,016 million for the nine months ended September 30, 2019, a decrease from $853 million in the same period of the prior year. This was primarily driven by lower revenues and higher operating expenses, as well as the impact of discontinued operations. For the third quarter of 2019, net income attributable to common stockholders was $391 million, an improvement from a net loss of $(512) million in the prior year's third quarter, largely due to the absence of significant charges related to discontinued operations in the current period. The company continues its strategy to transition to a fully regulated utility, focusing on its Regulated Distribution and Regulated Transmission segments. Significant investments are planned for transmission infrastructure through the "Energizing the Future" initiative, aiming to improve reliability and security. While the company has strengthened its balance sheet through equity issuances, it faces ongoing regulatory and environmental matters that could impact future results.

    Nov 4, 2019
  23. 2019-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2019

    FirstEnergy Corp. (FE) reported revenues of $2.52 billion for the second quarter of 2019, a slight decrease from $2.63 billion in the prior year's second quarter. Net income attributable to common stockholders was $308 million, or $0.58 per diluted share, compared to $134 million, or $0.28 per diluted share, in the same period of 2018. This improvement was largely driven by the absence of significant charges related to discontinued operations that impacted the prior year's results, and also benefited from a decrease in interest expense and a lower effective income tax rate. The company continues its strategic shift towards becoming a fully regulated utility, focusing on its Regulated Distribution and Regulated Transmission segments. These segments are expected to provide stable and predictable earnings and cash flows. Significant capital investments are planned for both segments, particularly in transmission infrastructure as part of the 'Energizing the Future' initiative, which aims to enhance reliability and modernize the grid. While the company's financial performance improved year-over-year for the quarter, it continues to navigate regulatory matters across its various operating states and manage the ongoing implications of past divestitures and financial restructuring.

    Jul 23, 2019
  24. 2019-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2019

    FirstEnergy Corp. (FE) reported revenues of $2.88 billion for the first quarter of 2019, a slight increase of 1% compared to the prior year, driven by growth in its regulated transmission segment. Net income attributable to common stockholders significantly decreased to $315 million ($0.59 per diluted share) from $1.21 billion ($2.54 per diluted share) in the first quarter of 2018. This decline is largely due to the absence of a significant gain from the deconsolidation of FES and FENOC that occurred in the prior year's quarter, which had boosted reported net income. Excluding discontinued operations, income from continuing operations saw a substantial increase of 96% to $355 million, indicating operational improvements within the core regulated businesses. The company continues its strategic shift towards becoming a fully regulated utility, with significant investments planned for its Regulated Distribution and Regulated Transmission segments. These investments are aimed at improving reliability, modernizing infrastructure, and enhancing customer service. FirstEnergy's balance sheet was strengthened by a substantial equity issuance in early 2018, which has helped support its transition and financial stability. The company is actively managing its debt and capital structure, with available liquidity remaining strong.

    Apr 23, 2019
  25. 2018-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2018

    FirstEnergy Corp. (FE) reported mixed financial results for the nine months ended September 30, 2018. While total revenues increased by 4% year-over-year to $8.55 billion, driven by growth in both Regulated Distribution and Regulated Transmission segments, the company posted a net loss of $458 million for the third quarter, a significant decline from a net income of $396 million in the prior year period. This loss was heavily influenced by a substantial charge of $1.2 billion related to the FES bankruptcy settlement. Despite the quarterly loss, the company's strategic transition to a fully regulated utility is progressing. Significant equity issuance of $2.5 billion in January 2018 strengthened the balance sheet and is expected to support investment-grade credit metrics. Capital investment plans for Regulated Distribution and Regulated Transmission remain robust, focusing on infrastructure improvements and modernization to enhance reliability and customer service. The company's outlook centers on stable, predictable earnings from its regulated operations, supported by planned capital expenditures through 2021.

    Oct 25, 2018
  26. 2018-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2018

    FirstEnergy Corp. reported solid financial performance for the six months ended June 30, 2018, with net income increasing significantly to $1.67 billion from $379 million in the prior year period. This substantial increase was largely driven by a $1.24 billion gain on deconsolidation related to the Chapter 11 bankruptcy filings of FirstEnergy Solutions (FES) and FirstEnergy Nuclear Operating Company (FENOC) and the company's strategic exit from competitive generation. Excluding discontinued operations, income from continuing operations saw a slight decrease to $444 million from $476 million in the prior year. The company continues to focus on its core regulated businesses, Regulated Distribution and Regulated Transmission, with planned capital investments to improve reliability and modernize infrastructure. The company successfully completed a significant equity issuance, strengthening its balance sheet and positioning it for future investments in its regulated segments.

    Jul 31, 2018
  27. 2018-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2018

    FirstEnergy Corp. (FE) reported its first-quarter 2018 financial results, marked by a significant strategic shift and substantial financial events. The company's primary focus is now on its regulated utility operations, namely Regulated Distribution and Regulated Transmission, with a stated goal of providing stable and predictable earnings. This strategic pivot is underscored by a substantial equity raise of $2.5 billion in January 2018, strengthening the balance sheet and supporting a transition to a fully regulated model. However, a major event impacting the quarter was the March 31, 2018, bankruptcy filing of its competitive generation subsidiary, FirstEnergy Solutions Corp. (FES), and its affiliate FENOC. This event led to the deconsolidation of these entities, resulting in a significant gain on deconsolidation and the reclassification of their operations as discontinued. Despite these complex events, the company's regulated segments showed operational improvements, particularly in transmission investments. The company's financial performance in Q1 2018 was heavily influenced by the deconsolidation of FES and FENOC, which led to a substantial gain from discontinued operations. While continuing operations saw a decrease in income compared to the prior year, largely due to higher income tax expenses and increased interest expense, the overall net income was significantly boosted by the gain on deconsolidation. Investors should monitor the ongoing FES bankruptcy proceedings and their potential impact on FirstEnergy, as well as the company's continued investment in its regulated transmission and distribution infrastructure, which are key to its future growth and stability.

    Apr 23, 2018
  28. 2017-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2017

    FirstEnergy Corp. (FE) reported a net income of $396 million for the third quarter of 2017, a slight increase from $380 million in the same period of 2016, with earnings per share remaining steady at $0.89. For the first nine months of 2017, net income was $775 million, a significant improvement from a net loss of $381 million in the prior year's comparable period, primarily driven by lower asset impairment and plant exit costs. The company continues its strategic shift towards becoming a fully regulated utility, signaling an exit from competitive energy services (CES) operations by mid-2018. This involves the planned sale of certain competitive generation assets, which resulted in a non-cash impairment charge of $158 million in the first nine months of 2017. The regulated distribution and transmission segments are performing steadily, with planned investments in transmission infrastructure through the 'Energizing the Future' plan. However, significant financial challenges and "substantial doubt about FES' ability to meet its obligations as they come due over the next twelve months" are noted, potentially requiring debt restructuring or bankruptcy protection for FES and its nuclear subsidiary.

    Oct 26, 2017
  29. 2017-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2017

    FirstEnergy Corp. (FE) reported a net income of $174 million, or $0.39 per diluted share, for the second quarter of 2017, a significant improvement from a net loss of $1,089 million, or ($2.56) per diluted share, in the same quarter of 2016. This turnaround was largely driven by a substantial decrease in asset impairment and plant exit costs compared to the prior year, which included significant goodwill and asset impairments totaling $1.45 billion in Q2 2016. While revenues saw a slight decrease of $92 million to $3.31 billion, primarily due to lower performance in the Competitive Energy Services (CES) segment, the regulated distribution and transmission segments showed revenue growth. Management continues to focus on transitioning to a fully regulated utility model, with a strategic review of its competitive operations aimed at exiting by mid-2018. However, challenges remain within the CES segment, including ongoing negotiations for asset sales and potential financial difficulties at FirstEnergy Solutions Corp. (FES), raising concerns about its ability to continue as a going concern over the next twelve months.

    Jul 27, 2017
  30. 2017-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2017

    FirstEnergy Corp. (FE) reported a decrease in net income for the first quarter of 2017 compared to the same period in 2016, largely driven by a significant charge related to long-term coal transportation contract disputes within its Competitive Energy Services (CES) segment. While the regulated distribution and transmission segments showed improved operating income, the substantial pre-tax charge of $164 million significantly impacted overall profitability, leading to a net income of $205 million ($0.46 per share) for Q1 2017, down from $328 million ($0.78 per share) in Q1 2016. FirstEnergy continues its strategic review to transition into a fully regulated utility, aiming to exit competitive operations by mid-2018. This strategy involves ongoing divestitures of competitive generation assets, evidenced by announced agreements to sell certain natural gas generating plants and an interest in Bath County, as well as the sale of the Pleasants power station. Investors should monitor the progress of these divestitures and the ongoing "going concern" assessment for FirstEnergy Solutions Corp. (FES) due to its significant debt maturities and challenging market conditions.

    Apr 27, 2017
  31. 2016-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2016

    FirstEnergy Corp. (FE) reported a net loss of $381 million, or $(0.90) per diluted share, for the nine months ended September 30, 2016, a significant decrease from the $804 million net income, or $1.90 per diluted share, reported in the same period of 2015. This decline was primarily driven by substantial asset impairment charges totaling $1.45 billion, including an $800 million goodwill impairment in the Competitive Energy Services (CES) segment and $647 million in impairments related to the planned exit of certain generation stations. The company is actively pursuing a strategic review of its competitive operations with the goal of becoming a fully regulated utility, exploring alternatives such as legislative restructuring, asset sales, and potential deactivations, which may lead to further impairments. Despite the net loss for the year-to-date period, the third quarter of 2016 showed a net income of $380 million, or $0.89 per diluted share, which was a slight decrease from the third quarter of 2015. The Regulated Distribution and Transmission segments showed improved performance, while the CES segment experienced lower earnings due to decreased contract sales and lower capacity revenues. The company continues to focus on its "Energizing the Future" transmission plan, with significant capital expenditures planned for its regulated businesses.

    Nov 4, 2016
  32. 2016-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2016

    FirstEnergy Corp. (FE) reported a significant net loss of $1,089 million for the second quarter of 2016, or $(2.56) per diluted share, a stark contrast to the net income of $187 million, or $0.44 per diluted share, reported in the same period of 2015. This substantial decline was primarily driven by substantial non-cash impairment charges totaling $1,447 million. These charges included an $800 million impairment of goodwill within the Competitive Energy Services (CES) segment and a $647 million impairment related to the announced plans to exit operations at the W. H. Sammis and Bay Shore generating stations by 2020. Additionally, the company recognized $58 million in coal contract settlement and termination costs and recorded $159 million in valuation allowances against state and local Net Operating Loss (NOL) carryforwards. Despite these significant charges impacting quarterly results, FirstEnergy's strategic focus remains on its regulated transmission and distribution businesses, aiming to modernize infrastructure and enhance reliability. The company is navigating challenging conditions in its competitive energy services segment due to depressed power and capacity prices, and is exploring options to reduce its exposure to these markets over time. Regulatory filings and approvals for rate increases in various jurisdictions are ongoing, which are crucial for recovering investments and supporting future capital expenditure plans.

    Jul 28, 2016
  33. 2016-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2016

    FirstEnergy Corp. (FE) reported strong financial results for the first quarter of 2016, with net income increasing significantly to $328 million, or $0.78 per diluted share, compared to $222 million, or $0.53 per diluted share, in the same period of the prior year. This substantial year-over-year improvement was primarily driven by a $152 million increase in net income from the Competitive Energy Services (CES) segment. The regulated segments, Distribution and Transmission, also contributed positively, though the Distribution segment saw a decrease in net income, partly due to regulatory charges related to Ohio's ESP IV. Overall revenues saw a slight decrease of $28 million, mainly due to lower volumes in the CES segment as the company continued its strategy of aligning sales with generation. However, operating expenses decreased by $210 million, largely driven by lower fuel costs and mark-to-market gains within the CES segment. FirstEnergy's regulated businesses are continuing to focus on infrastructure investments and regulatory initiatives aimed at enhancing customer service and reliability.

    Apr 26, 2016
  34. 2015-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2015

    FirstEnergy Corp. reported a net income of $395 million for the third quarter of 2015, a significant increase from $333 million in the same period of the prior year. This improvement was driven by higher earnings in the Competitive Energy Services (CES) segment, a stronger performance in Regulated Transmission, and positive contributions from Regulated Distribution, partially offset by increased corporate expenses. Revenues also saw a notable increase, primarily due to rate adjustments and higher weather-related usage in the Regulated Distribution segment, alongside improved transmission revenues. The CES segment, however, experienced a revenue decline due to a strategic reduction in contract sales, although this was mitigated by higher capacity prices and wholesale sales. The company continues to focus on strategic investments in its regulated transmission and distribution infrastructure, including the "Energizing the Future" plan. Management is actively managing costs through a cash flow improvement plan, targeting substantial savings by 2017. While the company faces ongoing regulatory and market uncertainties, particularly within its CES segment, the overall financial performance for the quarter reflects progress in its strategic initiatives.

    Oct 29, 2015
  35. 2015-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2015

    FirstEnergy Corp. reported a significant increase in net income for the three months ended June 30, 2015, reaching $187 million ($0.44 per share), a substantial improvement from $64 million ($0.16 per share) in the prior year's quarter. This growth was driven by a strong performance in the Competitive Energy Services (CES) segment, which saw a $107 million increase in operating results, and a $26 million rise in the Regulated Transmission segment. Despite a slight overall revenue decline of 1% to $3.465 billion, primarily due to a strategic reduction in weather-sensitive load within CES, the company managed to reduce total operating expenses by 9% to $2.911 billion. This was largely achieved through lower purchased power, transmission, and fuel expenses within the CES segment, which helped offset increased operating costs in the Regulated Distribution segment. The company's strategic focus remains on reinvesting in its Regulated Distribution and Transmission segments, evidenced by the ongoing 'Energizing the Future' transmission expansion plan, aimed at modernizing infrastructure and improving reliability. These regulated segments continue to benefit from rate increases and the transition to forward-looking rate structures. The CES segment is actively managing its risk by reducing exposure to volatile markets and focusing on higher-margin sales, positioning it for future upside while mitigating near-term challenges.

    Jul 30, 2015
  36. 2015-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2015

    FirstEnergy Corp. reported solid financial results for the first quarter of 2015, demonstrating a recovery and strategic shift. Net income increased by 6.7% to $222 million, or $0.53 per share, compared to the prior year's $208 million ($0.50 per share), driven by a significant improvement in the Competitive Energy Services (CES) segment due to favorable market conditions and a revised sales strategy. This segment's performance was bolstered by reduced exposure to weather-sensitive loads and more effective hedging, offsetting challenging weather events in the first quarter. The Regulated Transmission segment also saw growth, primarily due to ATSI's transition to a forward-looking rate calculation. The company continues to execute its "Energizing the Future" transmission investment plan, with substantial capital expenditures aimed at modernizing infrastructure and preparing for load growth. Simultaneously, FirstEnergy is implementing a cash flow improvement plan targeting significant savings by 2017 through operating expense and capital expenditure reductions. These strategic moves, alongside successful regulatory initiatives across various states, position FirstEnergy for stability and growth in its core regulated businesses while navigating the complexities of the competitive energy market.

    May 1, 2015
  37. 2014-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2014

    FirstEnergy Corp. reported a net income of $333 million ($0.79 per diluted share) for the third quarter of 2014, a significant increase from $218 million ($0.52 per diluted share) in the same period of 2013. This growth was primarily driven by the Regulated Distribution segment, which saw a $142 million increase in net income due to higher generation earnings related to the Harrison/Pleasants asset transfer and lower regulatory charges. The company is strategically shifting its focus towards its regulated businesses, particularly transmission, with a $4.2 billion 'Energizing the Future' investment plan aimed at upgrading its transmission system over the next few years. While the Competitive Energy Services segment faced challenges with lower revenues and higher expenses, the company is taking steps to reposition this business by focusing on more selective sales channels and hedging strategies. FirstEnergy's liquidity remains sufficient, supported by revolving credit facilities, and the company is actively managing its debt structure to align with its strategic goals.

    Nov 4, 2014
  38. 2014-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2014

    FirstEnergy Corp. reported a net income of $64 million, or $0.16 per diluted share, for the second quarter of 2014, a significant improvement from a net loss of $164 million, or ($0.39) per share, in the same period of 2013. This turnaround was primarily driven by a substantial recovery in the Competitive Energy Services segment, which moved from a significant loss in the prior year to profitability this quarter, coupled with steady performance from the Regulated Distribution and Transmission segments. The company continues its strategic shift towards investing in regulated utility operations, with a $4.2 billion "Energizing the Future" plan focused on transmission system upgrades through 2017. This initiative is expected to drive modest earnings growth in the Regulated Transmission segment, accelerating as investments are fully reflected in rates. While the Regulated Distribution segment experienced flat sales due to economic conditions, future growth is anticipated from shale gas activity in its service territory. The Competitive Energy Services segment is undergoing a strategic repositioning to reduce exposure to volatile market conditions and focus on more predictable revenue streams.

    Aug 5, 2014
  39. 2014-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2014

    FirstEnergy Corp. (FE) reported a net income of $208 million for the first quarter of 2014, an increase from $196 million in the same period of 2013. This improvement was driven by higher distribution deliveries across customer classes, particularly in the residential and commercial segments, attributed to colder weather. The Regulated Distribution segment saw an increase in revenues due to higher deliveries and new distribution rider revenues, although offset by higher operational and maintenance expenses and increased depreciation. The company is strategically shifting its focus towards regulated businesses, with a $4.2 billion "Energizing the Future" investment plan for transmission system upgrades planned from 2014 to 2017. This initiative aims to enhance system performance and expand capacity, funded through a mix of debt, equity, and cash. The Competitive Energy Services segment faced challenges from weak demand and volatile market dynamics, leading FirstEnergy to reposition this business for potential recovery while prioritizing regulated growth opportunities.

    May 6, 2014
  40. 2013-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2013

    FirstEnergy Corp. (FE) reported a significant year-over-year decline in earnings for the third quarter and the first nine months of 2013. For the third quarter, net income fell to $218 million, or $0.52 per diluted share, compared to $425 million, or $1.02 per diluted share, in the same period of 2012. This earnings decrease was primarily driven by higher operating expenses, including a substantial increase in the amortization of regulatory assets and plant deactivation costs, which collectively impacted earnings per share by approximately $0.71 for the quarter. The company is actively undertaking strategic actions to reposition its competitive energy services segment and reduce debt, including the sale of hydroelectric assets and adjustments to its hedging strategy, aiming to navigate current economic conditions and prepare for future market improvements. Looking ahead, FirstEnergy plans to focus on growth in its regulated operations, particularly in transmission, with a planned $2.8 billion Transmission Reliability Excellence Plan (TREP). This investment aims to enhance system reliability and capacity. Despite the current financial pressures, the company's financial plan includes debt reduction and balance sheet strengthening, supported by ongoing asset optimization and capital management. Investors should monitor the progress of these strategic initiatives and the company's ability to manage its operational costs and regulatory environments across its diverse service territories.

    Nov 5, 2013
  41. 2013-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2013

    FirstEnergy Corp. reported a net loss of $164 million, or $0.39 per diluted share, for the second quarter of 2013, a significant decrease from the $187 million net income, or $0.45 per diluted share, reported in the same period of the prior year. This downturn was largely attributed to a substantial pre-tax impairment charge of $473 million related to the decision to deactivate the Hatfield's Ferry and Mitchell generating units, alongside other operational and market pressures. The company is navigating a challenging economic environment characterized by weak demand and excess generation supply, leading to persistently low power and capacity prices. In response, FirstEnergy is undertaking cost-control initiatives and strategically adjusting its hedging and sales strategies within its Competitive Energy Services segment. The company also completed a $1.5 billion equity contribution to FirstEnergy Solutions Corp. (FES) as part of its financial plan to strengthen its balance sheet and reduce debt. Despite the quarterly loss, FirstEnergy's regulated segments demonstrated resilience, with Regulated Distribution showing an increase in net income driven by higher residential revenue and lower operating expenses. Regulated Transmission saw a slight decrease in net income due to lower revenues. Investors will be closely monitoring the company's ability to execute its cost-saving measures and navigate the volatile energy markets.

    Aug 6, 2013
  42. 2013-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2013

    FirstEnergy Corp. (FE) reported a net income of $196 million for the first quarter of 2013, a decrease from $306 million in the same period of 2012. This decline was primarily driven by a substantial loss on debt redemption related to tender offers and a decrease in net income from the Competitive Energy Services segment, impacted by lower wholesale sales and power prices. The Regulated Distribution segment, however, showed improvement with a $51 million increase in net income, largely due to lower operating expenses and higher distribution revenues driven by increased electricity deliveries. Operationally, FirstEnergy experienced weaker economic conditions and persistent low power prices, leading to adjustments in its hedging strategy for future sales. The company is executing a financial plan aimed at strengthening its balance sheet, including debt reduction and potential equity issuance later in the year. Key financial activities during the quarter included issuing $1.5 billion in senior unsecured notes and repurchasing a significant amount of outstanding senior notes, contributing to a $119 million loss on debt redemption. Despite the year-over-year decline in net income, the company highlighted strong performance in its regulated segments and provided an update on ongoing regulatory and operational matters.

    May 7, 2013
  43. 2012-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2012

    FirstEnergy's Q3 2012 10-Q shows a company under earnings pressure but with a stable balance sheet. Third-quarter earnings available to FirstEnergy fell to $425 million ($1.02 basic EPS) from $532 million ($1.27) a year earlier, and nine-month EPS rose to $2.20 from $2.01 only because the Allegheny Energy merger added shares and a full extra months of results. The decline was driven mainly by Competitive Energy Services, whose quarterly earnings dropped $113 million to $129 million on lower capacity revenue after the June 2012 PJM RPM auction, depressed power prices, and higher purchased power costs. Regulated Distribution and Regulated Transmission were roughly flat to slightly up. The balance sheet and liquidity picture is mixed. Short-term borrowings rose to $1.6 billion, and currently payable long-term debt of $1.47 billion (including $713 million of variable-rate PCRBs backed by bank letters of credit) created a working capital deficit. Management cites about $4.0 billion of available liquidity, and FirstEnergy made a voluntary $600 million pension contribution that weighed on operating cash flow, which fell to $1.28 billion from $2.23 billion. Management also guided to a pre-tax pension mark-to-market charge of roughly $300-400 million at year-end 2012. The outlook carries several items for investors to track: a storm cost estimate above $500 million from Hurricane Sandy (about 95% expected to be deferred for recovery), a pending JCP&L base rate case, Ohio ESP 3 approval, the proposed Harrison/Pleasants generation transfer in West Virginia, and the PATH project cancellation. Commodity risk is also significant, with an adverse 10% price move estimated to reduce net income by about $18 million over the next year. Management expects 2013 headwinds from lower competitive margins and higher depreciation, partly offset by reduced operating costs and higher distribution throughput.

    Nov 8, 2012
  44. 2012-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2012

    FirstEnergy's second-quarter 2012 Form 10-Q shows a company whose earnings fell year over year while its first-half results improved sharply. Earnings available to FirstEnergy Corp. were $187 million, or $0.45 per basic and diluted share, in Q2 2012, down from $203 million ($0.48) in Q2 2011. For the six months ended June 30, 2012, earnings were $493 million ($1.18 per share), up from $255 million ($0.67) in the prior-year period. The first-half comparison is inflated by the Allegheny merger, which closed February 25, 2011, so the 2011 figures include only four months of Allegheny results, and by lower merger-related costs. Operating cash flow was weak, at just $62 million for the first six months of 2012 versus $1,031 million a year earlier, driven largely by a $600 million voluntary pension contribution and lower collections from customers due to milder weather. Balance sheet and liquidity moved in ways investors should note. Short-term borrowings rose to $1.89 billion from zero at year-end 2011, and currently payable long-term debt was $1.58 billion, which produced a working capital deficit. Management states that total available liquidity was about $3.6 billion against $5.55 billion of revolving commitments, and that existing liquidity is sufficient. Management also refinanced parts of its credit facilities, extending maturities to May 2017, and entered $1.6 billion of forward-starting swaps at a weighted average 10-year fixed rate of 2.315% to lock in rates for planned debt issuances. Total assets were $48.0 billion, and common equity was $13.5 billion. The filing also highlights several regulatory and operational risks. Competitive Energy Services earnings improved sharply in the first half, but customer shopping continues to erode retail generation volumes at the regulated utilities, which is pressuring Regulated Distribution earnings. Pending matters include a New Jersey Board of Public Utilities order requiring JCP&L to file a base rate case by November 1, 2012, and an Ohio electric security plan extension approved in July 2012 that freezes base distribution rates through May 2016. Plant deactivations of roughly 3,349 MW tied to MATS compliance, with estimated future MATS compliance costs of $975 million, and a derecho storm with restoration costs expected to exceed $130 million are additional items for investors to watch.

    Aug 7, 2012
  45. 2012-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2012

    FirstEnergy Corp. (FE) reported a strong first quarter 2012, with earnings available to FirstEnergy of $306 million, or $0.73 per basic and diluted share, compared with $52 million, or $0.15 per share, in Q1 2011. The comparison is distorted by the February 2011 Allegheny Energy merger: Q1 2012 includes three months of Allegheny results versus one month in Q1 2011. Consolidated revenues rose 14% to $4.08 billion and operating income more than doubled to $746 million. Results were driven by Competitive Energy Services (net income $141 million vs. $15 million), Regulated Distribution ($183 million vs. $109 million), and Regulated Independent Transmission ($34 million vs. $12 million), with lower merger-related costs also contributing. Cash flow and liquidity were weaker than earnings suggest. Operating cash flow was negative $413 million, compared with positive $491 million a year earlier, mainly because of a $600 million pre-tax pension trust contribution and about $485 million of working capital outflows. Cash fell to $74 million, and short-term borrowings reached $1.075 billion. FirstEnergy reported approximately $3.9 billion of available liquidity. Capital spending was $589 million in the quarter, and management expects about $1.8 billion more in property additions and capital leases over the remainder of 2012. Key risks include the Ohio Electric Security Plan extension pending before the PUCO, the New Jersey Division of Rate Counsel challenge to JCP&L's return on equity, EPA MATS and other environmental rules that prompted announced retirements of about 3,349 MW of coal capacity by September 2012, the Michigan Thumb MVP cost dispute at FERC, and the $671 million of credit-contingent obligations tied to credit rating downgrades or material adverse events.

    May 1, 2012
  46. 2011-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2011

    FirstEnergy's Q3 2011 10-Q shows a transformed company following the February 25, 2011 acquisition of Allegheny Energy (AE). Third-quarter earnings available to FirstEnergy were $511 million, or $1.22 per basic and diluted share, versus $179 million, or $0.59, a year earlier. The improvement was driven largely by the absence of last year's $292 million pre-tax impairment on smaller coal units, together with higher Competitive Energy Services margins and the contribution of Allegheny's operations. Nine-month earnings were $742 million ($1.88 diluted), compared with $599 million ($1.96 diluted) in 2010; the dilution reflects the roughly 113 million shares issued in the merger, which lifted the share count from about 305 million to 420 million. Total revenues rose 27% in the quarter to $4.7 billion, though much of the increase reflects the Allegheny consolidation rather than organic growth. Balance sheet scale increased sharply, with total assets reaching $46.7 billion (from $34.8 billion at year-end 2010) and goodwill rising to $6.4 billion. Long-term debt and other obligations grew to $15.8 billion, and currently payable debt of $1.8 billion was largely covered by bank-backed pollution control bonds and a $503 million AE Supply note. Management highlighted several deleveraging steps: the October 18, 2011 sale of Richland and Stryker peaking plants for about $80 million, and the sale of a one-third interest in the Signal Peak coal mine to Gunvor for $257.5 million, which removes $360 million of consolidated debt and is expected to produce an after-tax gain of about $370 million. Operating cash flow was $2.2 billion for the nine months, but dividend payments of $651 million and a $1.5 billion property addition program absorbed much of it. Key risks remain material. Environmental exposure is significant, including Clean Air Act litigation, the proposed Clean Water Act Section 316(b) rule, and possible Monongahela River sulfate and TDS limits that could require large capital spending. Nuclear operations face increased NRC scrutiny after the Davis-Besse shield building cracking and the Perry shutdown, and the NRC has indicated post-Fukushima costs are likely to be material. Regulatory and litigation developments also bear watching, including New Jersey Rate Counsel's challenge to JCP&L's return, the MISO Multi-Value Project cost allocation dispute involving ATSI, and a pending $104 million verdict against ICG that is now on appeal.

    Nov 1, 2011
  47. 2011-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2011

    FirstEnergy Corp. reported a decrease in earnings for the six months ended June 30, 2011, compared to the same period in 2010, with earnings per share falling from $1.38 to $0.61. This decline was significantly impacted by merger-related costs and integration expenses associated with the acquisition of Allegheny Energy, Inc. (AE), which closed in February 2011. The company is actively managing these integration costs while aiming to realize merger synergies. Despite the earnings dip, key operational milestones were achieved, including the successful integration of ATSI into PJM and the energization of the TrAIL transmission line, reinforcing the company's infrastructure investments. FirstEnergy's financial performance was also affected by regulatory matters, including adjustments related to transmission loss recovery in Pennsylvania and ongoing energy efficiency program costs. The company continues to navigate a complex regulatory environment across its operating states while focusing on operational efficiency and capital allocation. Investors should monitor the ongoing integration progress, regulatory developments, and the impact of commodity price volatility on future earnings.

    Aug 2, 2011
  48. 2011-Q1

    FirstEnergy Quarterly Report for Q1 Ended Mar 31, 2011

    FirstEnergy Corp. reported net income available to common shareholders of $50 million, or $0.15 per diluted share, for the first quarter of 2011. This represents a significant decrease from the $155 million, or $0.51 per diluted share, reported in the first quarter of 2010. The primary driver for this decline was the recognition of approximately $82 million in merger transaction costs and $75 million in merger integration costs related to the acquisition of Allegheny Energy, Inc., which closed on February 25, 2011. The merger created a larger, more diversified energy company, but the immediate financial impact was substantial. Operationally, revenues increased year-over-year, driven by higher distribution deliveries and growth in direct and government aggregation sales. However, this was offset by decreased generation revenues, particularly in the Regulated Distribution segment, due to increased customer shopping and lower wholesale market conditions. Expenses were also impacted by higher transmission expenses, an inventory valuation adjustment, and impairments on non-core assets, further pressuring earnings. Despite these headwinds, the company maintains a strong liquidity position with $1.1 billion in cash and cash equivalents.

    May 3, 2011
  49. 2010-Q3

    FirstEnergy Quarterly Report for Q3 Ended Sep 30, 2010

    FirstEnergy Corp. (FE) reported mixed financial results for the nine months ended September 30, 2010, with a notable decline in earnings per share compared to the prior year. This downturn was largely attributed to a significant impairment charge of $292 million related to operational changes at several coal-fired generation units, driven by economic conditions and environmental regulatory uncertainties. The company is also navigating substantial merger-related transaction costs, having incurred $35 million in the first nine months of the year in preparation for its proposed acquisition of Allegheny Energy. Despite these headwinds, FirstEnergy's core Energy Delivery Services segment showed resilience, with increased distribution revenues driven by higher customer usage and approved rate adjustments. However, the Competitive Energy Services segment faced challenges, including lower investment income and the aforementioned impairment. The company's ongoing integration into PJM for transmission services and various regulatory proceedings across its operating states are key strategic initiatives to watch. FirstEnergy ended the period with a substantial revolving credit facility and cash reserves, indicating a stable liquidity position to manage ongoing operations and capital expenditures.

    Oct 26, 2010
  50. 2010-Q2

    FirstEnergy Quarterly Report for Q2 Ended Jun 30, 2010

    FirstEnergy Corp. reported lower earnings available to shareholders for the second quarter and first six months of 2010 compared to the same periods in 2009. This decline was primarily driven by the absence of a significant gain from an asset sale in the prior year and increased operating expenses, particularly higher purchased power costs and interest expense. Despite lower overall revenues due to increased customer shopping in the Ohio utilities and a decrease in generation sales volumes, the company saw some positive trends in distribution deliveries, reflecting recovering economic conditions. Financially, FirstEnergy maintained a stable liquidity position, with sufficient access to credit facilities to meet its obligations. The company is actively managing its balance sheet and exploring financing options in the capital markets. A significant ongoing development is the proposed merger with Allegheny Energy, Inc., which is progressing through regulatory approvals with an anticipated closing in the first half of 2011. This merger is expected to create a larger, more diversified energy company. The company continues to monitor and manage environmental compliance costs and potential regulatory changes, which could impact future operations and expenditures.

    Aug 3, 2010