AEP Reports First-Quarter 2024 Earnings, Reaffirms Guidance
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First
-quarter 2024 GAAP earnings of
$1.91 per share; operating earnings of$1.27 per share -
Company reaffirms 2024 operating earnings (non-GAAP) guidance of
$5.53 to$5.73 per share and long-term growth rate of 6% to 7% - Economic development focus helps drive 10.5% commercial load growth year over year in the first quarter
Preliminary, unaudited results
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First Quarter
ended |
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2024 |
2023 |
Variance |
Revenue ($ in billions): |
5.0 |
4.7 |
0.3 |
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Earnings ($ in millions): |
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GAAP |
1,003.1 |
397.0 |
606.1 |
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Operating (non-GAAP) |
670.4 |
571.6 |
98.8 |
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EPS ($): |
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GAAP |
1.91 |
0.77 |
1.14 |
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Operating (non-GAAP) |
1.27 |
1.11 |
0.16 |
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EPS based on 527 million shares 1Q 2024, 514 million shares 1Q 2023 |
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Operating earnings is a non-GAAP measure representing GAAP earnings excluding special items. The difference between 2024 GAAP and operating earnings for the quarter was largely due to an adjustment to transition to standalone rate making for deferred taxes. A full reconciliation of GAAP earnings to operating earnings for the quarter is included in the tables at the end of this news release.
"Despite mild weather, AEP achieved solid quarterly earnings results, driven by our continued investments in a modern, reliable grid to serve our customers and communities. Affordability for our customers remains top of mind as we make these investments," said
"Commercial load grew 10.5% year over year as we've built on our long-term, strategic economic development focus to support growth in our communities. AEP's industry-leading transmission network continues to attract meaningful investment from data centers and other commercial and industrial customers, especially in our
"We're making significant progress executing our robust capital plan focused on wires and new generation resources to meet customer demand. This includes investing more than
"We closed on the sale of our
"AEP has a strong track record of effectively managing costs while growing the business. We are taking additional steps, including a voluntary workforce reduction program, to help mitigate the impacts of inflation and interest rates and position the company for the future. This action will allow us to keep customer bills affordable as we make needed investments in the energy infrastructure," Fowke said.
SUMMARY OF RESULTS BY SEGMENT $ in millions
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GAAP Earnings |
1Q 24 |
1Q 23 |
Variance |
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560.8 |
261.0 |
299.8 |
|
150.3 |
125.7 |
24.6 |
AEP Transmission Holdco (c) |
208.7 |
181.5 |
27.2 |
Generation & Marketing (d) |
137.6 |
(157.7) |
295.3 |
All Other |
(54.3) |
(13.5) |
(40.8) |
Total GAAP Earnings (Loss) |
1,003.1 |
397.0 |
606.1 |
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Operating Earnings (non-GAAP) |
1Q 24 |
1Q 23 |
Variance |
|
300.3 |
265.2 |
35.1 |
|
150.3 |
125.7 |
24.6 |
AEP Transmission Holdco (c) |
208.7 |
181.5 |
27.2 |
Generation & Marketing (d) |
65.4 |
45.2 |
20.2 |
All Other |
(54.3) |
(46.0) |
(8.3) |
Total Operating Earnings (non-GAAP) |
670.4 |
571.6 |
98.8 |
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A full reconciliation of GAAP earnings with operating earnings is included in tables at the end of this news release. |
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a. |
Includes |
b. |
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c. |
Includes wholly-owned transmission-only subsidiaries and transmission-only joint ventures |
d. |
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EARNINGS GUIDANCE
AEP management reaffirms its 2024 operating earnings guidance range to
Reflecting special items recorded through the first quarter, the estimated earnings per share on a GAAP basis would be
2024 EPS Guidance Reconciliation |
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Estimated EPS on a GAAP basis |
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to |
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Mark-to-market impact of commodity hedging activities |
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(0.10) |
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Remeasurement of Excess ADIT Regulatory Liability - Turk Plant |
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(0.06) |
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Impact of NOLC on Retail Rate Making |
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(0.50) |
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Disallowance - |
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0.02 |
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Operating EPS Guidance |
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to |
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WEBCAST
AEP's quarterly discussion with financial analysts and investors will be broadcast live over the internet at
AEP's earnings are prepared in accordance with accounting principles generally accepted in
At
WEBSITE DISCLOSURE
AEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP's website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the "Email Alerts" section at https://www.aep.com/investors/.
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This report made by
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Financial Results for the First Quarter of 2024 |
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Reconciliation of GAAP to Operating Earnings (non-GAAP) |
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2024 |
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AEP Transmission Holdco |
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Generation & Marketing |
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Corporate and Other |
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Total |
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EPS (a) |
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($ in millions) |
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GAAP Earnings (Loss) |
|
560.8 |
|
150.3 |
|
208.7 |
|
137.6 |
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(54.3) |
|
1,003.1 |
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$ 1.91 |
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Special Items (b) |
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Mark-to-Market Impact of Commodity Hedging Activities |
(c) |
20.4 |
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— |
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— |
|
(72.2) |
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— |
|
(51.8) |
|
(0.10) |
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Remeasurement of Excess ADIT Regulatory Liability - |
(d) |
(32.4) |
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— |
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— |
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— |
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— |
|
(32.4) |
|
(0.06) |
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Impact of NOLC on Retail Rate Making |
(e) |
(259.6) |
|
— |
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— |
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— |
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— |
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(259.6) |
|
(0.50) |
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Disallowance - |
(f) |
11.1 |
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— |
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— |
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— |
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— |
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11.1 |
|
0.02 |
Total Special Items |
|
(260.5) |
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— |
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— |
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(72.2) |
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— |
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(332.7) |
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$ (0.64) |
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Operating Earnings (Loss) (non-GAAP) |
|
300.3 |
|
150.3 |
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208.7 |
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65.4 |
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(54.3) |
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670.4 |
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$ 1.27 |
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Financial Results for the First Quarter of 2023 |
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Reconciliation of GAAP to Operating Earnings (non-GAAP) |
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2023 |
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AEP Transmission Holdco |
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Generation & Marketing |
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Corporate and Other |
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Total |
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EPS (a) |
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($ in millions) |
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GAAP Earnings (Loss) |
|
261.0 |
|
125.7 |
|
181.5 |
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(157.7) |
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(13.5) |
|
397.0 |
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$ 0.77 |
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Special Items (b) |
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Mark-to-Market Impact of Commodity Hedging Activities |
(c) |
4.2 |
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— |
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— |
|
114.4 |
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— |
|
118.6 |
|
0.23 |
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Termination of the Sale of Kentucky Operations |
(g) |
— |
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— |
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— |
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— |
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(33.7) |
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(33.7) |
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(0.06) |
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Pending Sale of Unregulated Renewables |
(h) |
— |
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— |
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— |
|
88.5 |
|
1.2 |
|
89.7 |
|
0.17 |
Total Special Items |
|
4.2 |
|
— |
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— |
|
202.9 |
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(32.5) |
|
174.6 |
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$ 0.34 |
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Operating Earnings (Loss) (non-GAAP) |
|
265.2 |
|
125.7 |
|
181.5 |
|
45.2 |
|
(46.0) |
|
571.6 |
|
$ 1.11 |
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(a) |
Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic |
(b) |
Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted |
(c) |
Represents the impact of mark-to-market economic hedging activities |
(d) |
Represents the impact of the remeasurement of excess accumulated deferred income taxes related to the |
(e) |
Represents the impact of receiving |
(f) |
Represents the impact of a disallowance recorded at SWEPCo on the remaining net book value of the |
(g) |
Represents an adjustment to the loss on the expected sale of the Kentucky Operations which was terminated in |
(h) |
Represents the loss on the expected sale of the Competitive Contracted Renewable Portfolio and other related third-party transaction costs |
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Summary of Selected Sales Data |
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Regulated Connected Load |
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(Data based on preliminary, unaudited results) |
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Three Months Ended |
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ENERGY & DELIVERY SUMMARY |
|
2024 |
|
2023 |
|
Change |
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Residential |
|
8,560 |
|
8,099 |
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5.7 % |
Commercial |
|
5,769 |
|
5,372 |
|
7.4 % |
Industrial |
|
8,252 |
|
8,295 |
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(0.5) % |
Miscellaneous |
|
538 |
|
521 |
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3.3 % |
Total Retail |
|
23,119 |
|
22,287 |
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3.7 % |
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3,763 |
|
3,260 |
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15.4 % |
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Total KWHs |
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26,882 |
|
25,547 |
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5.2 % |
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Residential |
|
6,280 |
|
6,266 |
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0.2 % |
Commercial |
|
7,991 |
|
6,744 |
|
18.5 % |
Industrial |
|
6,812 |
|
6,526 |
|
4.4 % |
Miscellaneous |
|
180 |
|
168 |
|
7.1 % |
Total Retail (b) |
|
21,263 |
|
19,704 |
|
7.9 % |
|
|
|
|
|
|
|
|
|
590 |
|
453 |
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30.2 % |
|
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Total KWHs |
|
21,853 |
|
20,157 |
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8.4 % |
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(a) |
Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers |
(b) |
Represents energy delivered to distribution customers |
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