10-QPeriod: Q3 FY2023

FIRSTENERGY CORP Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 26, 2023For Securities:FE

Summary

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.

Financial Highlights

47 data points
Beta

Revenue

$3.49B

Net Income

$400.00M

11.5% Net Margin

EPS (Diluted)

$0.69

Total Assets

$47.47B

Cash & Equivalents

$118.00M

Free Cash Flow

$642.00M

Financial Statements
Beta
Revenue$3.49B
Operating Expenses$2.82B
Operating Income$666.00M
Interest Expense$289.00M
Net Income$400.00M
EPS (Basic)$0.70
EPS (Diluted)$0.69
Shares Outstanding (Basic)573.00M
Shares Outstanding (Diluted)574.00M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2023, increased by 5% to $9.72 billion compared to the prior year.
  • 2Earnings attributable to FE from continuing operations increased by 17% to $948 million for the nine months ended September 30, 2023.
  • 3Regulated Distribution segment earnings increased by $140 million year-over-year for the first nine months.
  • 4Regulated Transmission segment earnings increased by $96 million year-over-year for the first nine months.
  • 5FirstEnergy plans capital investments of approximately $12 billion over the three-year period (2023-2025).
  • 6The company successfully issued $1.5 billion in convertible notes in May 2023.
  • 7The company amended and extended its revolving credit facilities, extending the maturity date to October 18, 2027.

Frequently Asked Questions

FirstEnergy reported total revenues of $9.72 billion for the first nine months of 2023, a 5% increase from the same period in 2022. Earnings attributable to FE from continuing operations were $948 million, a 17% increase year-over-year.

The improved financial performance was driven by growth in both the Regulated Distribution and Regulated Transmission segments, supported by capital investments in reliability and grid modernization. The company's focus on operational efficiencies and cost management also contributed.

FirstEnergy is proceeding with the consolidation of its Pennsylvania companies into a new entity, FE PA, expected to close by early 2024. They are also continuing to execute their capital investment plan focused on transmission and distribution infrastructure and managing their financing activities, including extending credit facilities.

Yes, FirstEnergy is involved in several ongoing legal and regulatory matters, including investigations related to HB 6, and various rate cases and regulatory proceedings across its operating states. While the company is actively managing these situations, their ultimate outcomes could have a material impact on financial condition and results of operations.