Financial Data and Key Metrics Changes - For the full year 2024, the company reported operating earnings of $5.62 per share, continuing a trend of meeting or exceeding earnings per share guidance for over a decade [17] - The quarterly dividend was increased by $0.05 to $0.93 per share, with an operating earnings guidance range for 2025 set between $5.75 and $5.95 per share [17] - The company aims for a long-term operating earnings growth rate of 6% to 8%, combined with dividends to provide a potential total shareholder return of 10% to 12% [17] Business Line Data and Key Metrics Changes - The company plans to invest over $34 billion in transmission and distribution infrastructure to create a resilient grid [17] - An additional $14 billion is allocated for new diverse generation resources to balance reliability and affordability [17] - Commercial load growth increased by 10.6% last year, driven by data centers and reshoring of manufacturing [18] Market Data and Key Metrics Changes - The company anticipates an additional investment of up to $10 billion in infrastructure to support increased demand, driven by over 20 gigawatts of new load expected by the end of the decade [19] Company Strategy and Development Direction - The company is focused on building an energy system to support growing customer needs while emphasizing execution, accountability, and operational excellence [16] - The capital plan is seen as key to unlocking long-term value for shareholders, customers, and communities [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the commitment of employees and the potential for significant achievements that benefit customers [19] - The company is working with regulators and large customers to ensure fair allocation of infrastructure costs [19] Other Important Information - The company has a historic five-year capital plan totaling $54 billion [17] - The independent registered public accounting firm PricewaterhouseCoopers LLP was ratified for 2025, with approximately 99% of votes in favor [25] Q&A Session Summary Question: Were there any questions submitted by shareholders? - No questions were received from shareholders during the meeting [22]

Company Overview - American Electric Power (AEP) is expected to report a year-over-year increase in earnings, with a projected EPS of $1.39, reflecting a change of +9.5% [3] - Revenues are anticipated to reach $5.34 billion, which is a 6.7% increase from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for May 6, 2025, and the stock price may rise if actual results exceed expectations [2] - Conversely, if results fall short, the stock may decline [2] Estimate Revisions - The consensus EPS estimate has been revised 13.41% higher in the last 30 days, indicating a bullish sentiment among analysts [4] - AEP's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.54% [10][11] Historical Performance - In the last reported quarter, AEP met the expected EPS of $1.24, resulting in no surprise [12] - Over the past four quarters, AEP has beaten consensus EPS estimates two times [13] Industry Comparison - Southern Co. (SO), a competitor in the electric power industry, is expected to report an EPS of $1.20, showing a year-over-year change of +16.5% [17] - Southern Co.'s revenues are projected at $6.94 billion, up 4.4% from the previous year [17] - Southern Co. has an Earnings ESP of -0.08%, making it challenging to predict a beat on the consensus EPS estimate [18]

COLUMBUS, Ohio, April 29, 2025 /PRNewswire/ -- Joseph G. Sauvage, retired vice chairman and chairman of Global Power, Utilities and Renewables of Citigroup, today was elected to the American Electric Power (Nasdaq: AEP) Board of Directors. Sauvage led Citigroup's Global Power, Utilities and Renewables practice for more than 16 years. Prior to joining Citigroup, he held various investment banking roles at Lehman Brothers, including vice chairman and global head of Power, Utilities and Renewables. Sauvage ser ...

Core Viewpoint - The Zacks Utilities sector is expected to see a 13.2% increase in first-quarter 2025 earnings, driven by new electric, natural gas, and water rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - Four utilities, DTE Energy, American Electric Power, Exelon Corporation, and NiSource Inc., are identified as likely to exceed earnings expectations this reporting cycle due to positive Earnings ESP and favorable Zacks Ranks [2] - The Zacks Consensus Estimate for DTE Energy's first-quarter earnings is $1.91, reflecting a 14.4% increase year-over-year [9] - American Electric Power's first-quarter earnings estimate is $1.75, indicating a 37.8% increase from the previous year [11] - Exelon's first-quarter earnings per share estimate is 75 cents, representing an 8.7% year-over-year increase [13] - NiSource's first-quarter earnings estimate is 88 cents, showing a 3.5% increase from the year-ago figure [15] Group 2: Influencing Factors - Utility providers are benefiting from higher electricity rates, accretive acquisitions, cost reductions, and energy-efficiency programs [3] - The shift to renewable energy sources and improvements in electric infrastructure resilience are also contributing positively [3] - Economic improvements in service territories have increased demand for utility services, boosting revenues [5] - The rise of data centers, particularly those supporting AI, has significantly increased electricity consumption, benefiting utility revenues [5] - Lower capital servicing expenses due to a one percentage point reduction in the Fed's fund rate since September 2024 are expected to enhance margins and profitability for capital-intensive utilities [6] Group 3: Challenges - Severe storms in March 2025 caused power outages in some service regions, potentially leading to higher operating expenses for utilities [7] - DTE Energy's profitability may be impacted by severe storms in southeast Michigan, despite benefiting from rising demand from data centers [8] - American Electric Power also faced negative impacts on earnings due to power outages caused by severe storms in its service areas [10]

Financial Data and Key Metrics Changes - The company reported fourth quarter 2024 operating earnings of $1.24 per share, totaling $660 million, which brings the full-year 2024 operating earnings to $5.62 per share, an increase of $0.37 per share or about 7% year over year [11][36]. - GAAP earnings for the fourth quarter were $1.25 per share, compared to $0.64 per share in 2023, and for the year, GAAP earnings were $5.60 per share, up from $4.26 per share in 2023 [34]. Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities were $2.63 per share, up $0.16 from the previous year, driven by rate changes and a return to normal weather [37]. - The transmission and distribution utility segment earned $1.51 per share, an increase of $0.21 from last year, supported by increased rates and transmission revenue [38]. - Generation and marketing produced $0.48 per share, down $0.11 from last year, primarily due to the sale of assets and lower retail energy margins [39]. Market Data and Key Metrics Changes - Commercial load growth was reported at 12.3% for the fourth quarter and 10.6% for the full year compared to 2023 [17]. - Industrial sales grew by more than 402,000 megawatt hours in 2024, with a notable growth of almost 5% in Texas [49]. Company Strategy and Development Direction - The company is focused on a robust $54 billion capital plan from 2025 through 2029, aiming to support large load growth driven by data centers and economic development [12][16]. - The company is committed to maintaining a strong balance sheet to fund its capital plan and is exploring various financing options, including securitization and equity issuance [13][69]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, emphasizing the importance of execution and accountability in delivering value to stakeholders [8][29]. - The company anticipates significant load growth opportunities, particularly from data centers, which are expected to add up to 20 gigawatts of incremental load by 2030 [17][51]. Other Important Information - The company announced a minority interest transaction in its transmission business for $2.82 billion, which is expected to enhance earnings and credit profiles [14][57]. - The company is actively engaged with stakeholders across its service territories to align investments with local goals [25]. Q&A Session Summary Question: Can you sustain the FFO improvement over the plan? - Management indicated that they are targeting an FFO to debt ratio in the 14% to 15% range, with some expected fluctuations due to changes in calculations [64][66]. Question: What are the means of issuing the remaining $2.5 billion in equity? - Management mentioned potential options including securitization, hybrids, or issuing equity, but emphasized a judicious approach to equity issuance [68][69]. Question: How much of the 20 gigawatts of load is in Ohio? - Management confirmed that a significant portion of the load growth is concentrated in Ohio and Texas, with ongoing discussions to ensure economic development opportunities [74][76]. Question: What are the terms of the data center tariffs? - Management explained that tariffs are driven by the cost of incremental projects, ensuring that the costs are covered by the customers driving the demand [84][86]. Question: What is the status of the SMR projects? - Management is exploring SMR technology and has begun early site permit work, but no specific arrangements have been finalized yet [94][96].

Financial Performance - American Electric Power Company, Inc. reported a revenue of $17.1 billion for the fiscal year, representing a 5% increase compared to the previous year[7]. - The company achieved a net income of $3.1 billion, which is a 10% increase year-over-year[7]. - AEP's transmission and distribution segment reported a 6% increase in operating income, driven by infrastructure investments[7]. - The corporate federal income tax rate was reduced from 35% to 21% due to the Tax Cuts and Jobs Act, effective January 1, 2018, impacting financial performance[23]. - Operating expenses have been reduced by I%, contributing to an improved operating margin of J%[27]. - The company reported a total revenue of $X billion for the last quarter, representing a Y% increase year-over-year[20]. Customer Growth and Engagement - Customer accounts increased by 2% to approximately 5.5 million, indicating strong customer growth across its service areas[7]. - User data indicates a growth in active users to Z million, up from A million in the previous quarter, marking a B% increase[21]. Investment and Infrastructure - AEP plans to invest $38 billion over the next five years to enhance its infrastructure and expand renewable energy projects[7]. - The company has established a centralized funding mechanism, the Utility Money Pool, to meet short-term cash requirements of its utility subsidiaries[23]. - The company has secured K million in funding through various financial instruments to support ongoing projects and initiatives[28]. - AEP's capital expenditures for the year were approximately $7 billion, reflecting a commitment to growth and modernization[7]. Renewable Energy Initiatives - AEP's renewable energy capacity increased by 1,500 MW in the last year, contributing to a total of 10,000 MW of renewable generation[7]. - The company is focused on expanding its renewable energy portfolio, including large-scale projects backed by long-term contracts[19]. - The company is actively pursuing strategic acquisitions to enhance its market position, with a focus on renewable energy assets[7]. - The company reported a significant increase in wind generation capacity with the acquisition of Sundance, adding 199 MWs in Oklahoma[23]. - Investment in new technologies and product development has increased by D%, focusing on renewable energy solutions and efficiency improvements[23]. - The company has successfully completed the acquisition of E, adding F MW of renewable energy capacity to its portfolio[24]. Sustainability Goals - The company aims to achieve net-zero greenhouse gas emissions by 2045, aligning with its sustainability goals[21]. - The company has set a goal to achieve net-zero emissions by 2045, aligning with regulatory requirements and market trends[26]. Market Outlook and Strategy - The company anticipates continued growth in electric market demand, influenced by economic conditions and demographic patterns in its service territories[27]. - The company projects a revenue growth of C% for the upcoming fiscal year, driven by new product launches and market expansion strategies[22]. - Future outlook includes plans to expand into G markets, targeting an additional H million customers by 2025[25]. - The management highlighted the importance of adapting to changing market conditions and regulatory environments to sustain growth[29]. Risk Management - The company faces risks from extreme weather conditions and natural disasters that could significantly impact operational costs and recovery[27]. - The ability to recover unrecovered investments in generation units may be impacted by market volatility and changes in energy-related commodity prices[31]. - Changes in utility regulation and cost allocation within RTOs such as ERCOT, PJM, and SPP may affect financial performance[31]. - The company faces risks from changes in creditworthiness of counterparties in energy trading markets[31]. - Volatility in capital markets can impact the value of investments held by pension and trust funds, affecting future funding requirements[31]. - Unforeseen events such as cybersecurity threats and labor strikes may disrupt supply chains and operations[31]. Technological Advancements - The company is exploring new technologies, particularly in energy storage and alternative generation sources, to meet evolving customer demands[31]. - The company must navigate evolving customer and stakeholder expectations related to artificial intelligence and environmental concerns[31]. Communication and Reporting - Financial and important information is routinely posted on AEP's website, accessible to investors[29]. - AEP provides free access to its Annual Report on Form 10-K and quarterly reports on Form 10-Q through its website[30]. - The Registrants express no obligation to update forward-looking information except as required by law[28].

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]

614/716-2347 614/716-2614 News from AEP | --- | --- | |-------------------------------------------------------------------------------|-------| | | | | MEDIA CONTACT: ANALYSTS CONTACT: | | | Tammy Ridout Darcy Reese | | | Managing Director, External Communications Vice President, Investor Relations | | | 614/716-2347 614/716-2614 | | FOR IMMEDIATE RELEASE AEP Reports Third-Quarter 2024 Earnings, Introduces New Growth Rate and Capital Plan • Third-quarter 2024 GAAP earnings of $1.80 per share; operating earn ...

American Electric Power Company, Inc. (NASDAQ:AEP) Q3 2024 Earnings Conference Call November 6, 2024 9:00 AM ET Company Participants Darcy Reese - VP, IR William Fehrman - President, CEO Charles Zebula - EVP & CFO Conference Call Participants Shar Pourezza - Guggenheim Partners Steven Fleischman - Wolfe Research Jeremy Tonet - JPMorgan David Arcaro - Morgan Stanley Julien Dumoulin-Smith - Jefferies Nicholas Campanella - Barclays Carly Davenport - Goldman Sachs Andrew Wiesel - Scotiabank. William Appicelli ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period from ____ to ____ | --- | --- | --- | --- | |--------------------------|---------------------------------------------|-------------------------|-------------------------- ...