FirstEnergy(FE) - 2024 Q4 - Annual Report

Financial Performance - Total revenues for 2024 reached $13,472 million, an increase of 4.7% from $12,870 million in 2023[521]. - Operating income for 2024 was $2,375 million, up 4.8% compared to $2,266 million in 2023[521]. - Net income attributable to FirstEnergy Corp. for 2024 was $978 million, a decrease of 11.3% from $1,102 million in 2023[521]. - Earnings per share for continuing operations in 2024 was $1.70, down from $1.96 in 2023[521]. - Comprehensive income for 2024 was $1,130 million, slightly down from $1,173 million in 2023[523]. - Total operating expenses for 2024 were $11,097 million, an increase of 4.6% from $10,604 million in 2023[521]. - Interest expense for 2024 was $1,144 million, compared to $1,124 million in 2023[521]. - Cash flows from operating activities rose significantly to $2,891 million in 2024, compared to $1,387 million in 2023, marking an increase of 108.4%[532]. - Capital investments in 2024 totaled $4,030 million, an increase from $3,356 million in 2023, reflecting a growth of 20%[532]. - The company declared cash dividends of $1.70 per share in 2024, compared to $1.60 in 2023, indicating a 6.25% increase[529]. Assets and Liabilities - Total assets increased to $52,044 million in 2024, up from $48,767 million in 2023, representing a growth of 4.6%[526]. - As of December 31, 2024, regulatory assets amounted to $617 million and regulatory liabilities were $995 million[515]. - The total liabilities increased to $38,324 million in 2024 from $37,851 million in 2023, a rise of 1.2%[526]. - Long-term debt decreased to $22,496 million in 2024 from $22,885 million in 2023, a reduction of 1.7%[526]. - Common stockholders' equity increased to $12,455 million in 2024, up from $10,437 million in 2023, representing a growth of 19.4%[526]. Employee and Corporate Structure - FirstEnergy's total employee count as of December 31, 2024, was 12,294, with approximately 40% represented by unions[64][65]. - The company continues to focus on employee development through various programs, including leadership training and educational opportunities[61][62]. - FirstEnergy's safety metrics are regularly monitored and included in the annual incentive compensation program to promote a safe work environment[59][60]. - The company has consolidated its Pennsylvania Companies into FE PA as of January 1, 2024, creating a new single operating entity[53][66]. Regulatory and Compliance - The imposition of new tariffs could adversely affect FirstEnergy's results of operations and financial condition, as the situation remains dynamic[50]. - FirstEnergy's default service obligations vary by state, with competitive procurement processes in place for securing power supply[51]. - The company maintained effective internal control over financial reporting as of December 31, 2024[507]. Market and Customer Metrics - FirstEnergy serves over six million customers across the Midwest and Mid-Atlantic regions, comprising one of the largest investor-owned electric systems in the nation[541]. - Total customer receivables as of December 31, 2024, amounted to $1,530 million, compared to $1,318 million in 2023, reflecting an increase of 16.0%[601]. - Unbilled customer receivables increased to $718 million in 2024 from $665 million in 2023, indicating a growth of 7.9%[601]. - Retail generation and distribution services for residential customers in the Distribution segment reached $4,514 million in 2024, a 3.9% increase from $4,344 million in 2023[593]. Pension and Benefits - FirstEnergy expects to make a voluntary contribution to its pension plan, with an estimated amount of approximately $300 million anticipated in 2027[613]. - The discount rate for pension obligations increased to 5.72% in 2024 from 5.05% in 2023[618]. - The benefit obligation as of December 31, 2024, decreased to $7,824 million from $8,363 million in 2023, a decline of approximately 6.4%[626]. - The actual return on plan assets for 2024 was a loss of $62 million, contrasting sharply with a gain of $682 million in 2023[626]. Taxation - FirstEnergy's total income taxes on income from continuing operations for 2024 amounted to $377 million, with an effective income tax rate of 25.1%[656]. - The net accumulated deferred income tax liability as of December 31, 2024, was $5.613 billion, an increase from $4.530 billion in 2023[658]. - FirstEnergy recognized a net tax charge of approximately $46 million in the first quarter of 2024 related to deferred tax liabilities[653]. Capital and Investments - The company completed the sale of a 30% equity interest in FirstEnergy Transmission, LLC to Brookfield for a purchase price of $3.5 billion, with $2.3 billion paid in cash at closing[549]. - FirstEnergy's equity ownership in FET is 50.1% as of December 31, 2024, following the sale of an incremental 30% equity interest to Brookfield[678].