American Electric Power(AEP) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter 2024 GAAP earnings were $664 million or $1.25 per share, a 97.0% increase from $336 million or $0.64 per share in fourth-quarter 2023[3] - Year-end 2024 GAAP earnings reached $2.97 billion or $5.60 per share, compared to $2.21 billion or $4.26 per share for year-end 2023, representing a 34.4% increase[4] - Operating earnings for fourth-quarter 2024 were $660 million or $1.24 per share, slightly up from $647 million or $1.23 per share in fourth-quarter 2023[3] - AEP's revenue for fourth-quarter 2024 was $4.70 billion, an increase of 2.6% from $4.58 billion in fourth-quarter 2023[12] - GAAP earnings for Q4 2024 were $664.1 million, resulting in an EPS of $1.25, compared to $336.2 million and an EPS of $0.64 in Q4 2023[28][31] - Operating earnings (non-GAAP) for Q4 2024 were $660.1 million, with an EPS of $1.24, compared to $646.9 million and an EPS of $1.23 in Q4 2023[28][31] - GAAP earnings for year-to-date 2024 reached $2,967.1 million, with an EPS of $5.60, compared to $2,208.1 million and an EPS of $4.26 in 2023, reflecting a significant increase[35][37] - Operating earnings (non-GAAP) for 2024 were $2,977.9 million, translating to an EPS of $5.62, up from $2,724.5 million and an EPS of $5.25 in 2023, indicating a growth of approximately 9.3%[35][37] - Adjustments to GAAP earnings for 2024 totaled $10.8 million, while in 2023, adjustments amounted to $516.4 million, indicating a significant reduction in adjustments year-over-year[35][37] Sales and Load Growth - Total retail electric sales increased by 0.6% to 21,721 million KWh in Q4 2024, while wholesale electric sales surged by 30.7% to 3,636 million KWh[34] - AEP's total retail electric sales in transmission and distribution utilities increased by 10.0% to 22,153 million KWh in Q4 2024[34] - Total retail electric sales for vertically integrated utilities increased by 2.0% in 2024, totaling 91,956 million KWh, compared to 90,148 million KWh in 2023[39] - Wholesale electric sales for vertically integrated utilities rose by 8.4% in 2024, reaching 14,523 million KWh, compared to 13,401 million KWh in 2023[39] - Retail electric sales for transmission and distribution utilities increased by 8.6% in 2024, totaling 91,039 million KWh, compared to 83,834 million KWh in 2023[39] - Commercial load grew by 10.6% in 2024, driven by economic development in AEP's service territory[5] - The company anticipates 8-9% annual total retail load growth from 2025-2027, expecting to serve over 20 gigawatts of new load by the end of the decade[5] Segments and Adjustments - The vertically integrated utilities segment reported GAAP earnings of $255.2 million in Q4 2024, a significant increase from $38.8 million in Q4 2023[28][31] - The transmission and distribution utilities segment saw a GAAP earnings increase to $183.4 million in Q4 2024 from $190.3 million in Q4 2023[28][31] - The corporate and other segment reported a GAAP loss of $(3.7) million in Q4 2024, an improvement from a loss of $(48.0) million in Q4 2023[28][31] - The company incurred total adjustments to GAAP earnings of $(4.0) million in Q4 2024, compared to $310.7 million in adjustments in Q4 2023[28][31] Strategic Initiatives - AEP has filed for approval of 2.3 gigawatts of natural gas generation and is pursuing innovative solutions for large loads, including a partnership with Bloom Energy for fuel cells[7][8] - AEP's five-year capital plan totals $54 billion, with approximately two-thirds allocated to transmission and distribution systems to enhance reliability[5][9] - The company is focused on transitioning from fossil generation and expanding renewable generation capacity, which is critical for future growth[26] - The company is focusing on regulatory compliance and has incurred severance and pension settlement charges of $121.4 million in 2024[35] - AEP announced a $2.82 billion minority equity interest transaction to enhance financial flexibility and support economic growth in its states[10] Other Financial Impacts - The company reported a mark-to-market impact of commodity hedging activities resulting in a loss of $84.8 million for 2024, compared to a gain of $228.3 million in 2023[35][37] - The company experienced a provision for revenue refund associated with the Turk Plant, amounting to $116.5 million in 2024[35] - Residential retail electric sales in vertically integrated utilities decreased by 0.7% to 6,834 million KWh in Q4 2024, while commercial sales increased by 3.2%[34] - The residential retail electric sales for vertically integrated utilities increased by 2.4% in 2024, reaching 31,025 million KWh, compared to 30,290 million KWh in 2023[39]