Financial Data and Key Metrics Changes - The company reported second quarter earnings of $13.7 million or $0.07 per share, compared to $60.4 million or $0.30 per share in the same period of 2024 [12] - Income from continuing operations was $14.1 million for the second quarter or $0.07 per share, down from $20.2 million or $0.10 per share in 2024 [12] - The company narrowed its earnings per share guidance to a range of $0.88 to $0.95 per share from a previous range of $0.88 to $0.98 per share [10] Business Line Data and Key Metrics Changes - The electric utility segment reported second quarter earnings of $10.4 million, down from $15.5 million in the same period in 2024, primarily due to higher payroll costs and planned outages [12][13] - The natural gas utility experienced a seasonal loss of $7.4 million in the second quarter, compared to a loss of $5 million in 2024, driven by increased operating expenses and lower volumes due to warmer weather [13] - The pipeline segment posted second quarter earnings of $15.4 million, down from a record $17.3 million in the prior year, impacted by higher operating expenses [14] Market Data and Key Metrics Changes - The utility experienced combined retail customer growth of 1.4% compared to the same time last year, aligning with the targeted annual growth rate of 1% to 2% [5] - The company has signed electric service agreements for 580 megawatts of data center load, with 180 megawatts currently online and additional capacity expected to come online in the coming years [7] Company Strategy and Development Direction - The company is focused on a capital investment of $3.1 billion over the next five years, targeting 7% to 8% compounded annual utility rate base growth and 1% to 2% annual customer growth [11] - The company plans to file general rate cases in Wyoming and Montana, and is refining wildfire mitigation plans across its electric service territory [6][8] - The company remains committed to investing in future expansion projects to meet customer demand, including the Minot expansion project which will add approximately 7 million cubic feet of natural gas transportation capacity per day [9] Management's Comments on Operating Environment and Future Outlook - Management noted unfavorable weather and increased operating costs impacted second quarter results, but expressed confidence in the company's long-term growth strategy [4][10] - The company anticipates a long-term EPS growth rate of 6% to 8% while targeting a 60% to 70% annual dividend payout ratio [11] - Management emphasized the importance of operational excellence and customer focus as key components of their strategy moving forward [11] Other Important Information - The company maintains a strong balance sheet and ample access to working capital, with no equity needs in 2025 based on the current capital plan [16] - The binding open season for the Baker storage field enhancement project concluded in May, and the company is evaluating a smaller project based on customer interest [10] Q&A Session Summary Question: Impact of lower storage project size on Bakken East pipeline - Management indicated that the Baker storage enhancement project does not have implications for the Bakken East project, and there may be opportunities for expansion if Bakken East proceeds [20][22] Question: Revised EPS guidance and its impact on long-term outlook - Management explained that the revision was due to weather impacts and higher operating expenses, but they do not expect these to be long-term trends [23][24] Question: North Dakota Industrial Commission meeting and its implications - Management confirmed the timing of the next meeting and indicated that state support would enhance the Bakken East project, but customer commitments are also crucial [29][30] Question: Quantifying drivers of guidance revision - Management provided insights on the planned outage and weather impacts, estimating a $1 million impact from weather alone in the quarter [33][34] Question: Capacity absorption for data centers before needing new infrastructure - Management stated that there is additional capacity available without new infrastructure, but they are willing to explore investments if necessary [36][38]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.01 per share, a significant increase from a loss of $0.14 per share a year ago, reflecting growth across all business segments [7][8] - Adjusted earnings for the third quarter totaled $4.1 million, an increase of over $8 million compared to the previous year [18] Business Line Data and Key Metrics Changes - The Gas Utilities segment had an adjusted loss of $10 million in the third quarter, which was $1 million better than the prior year, driven by higher contribution margin at Spire Missouri [18] - Earnings in the Gas Marketing segment increased by over $4 million, indicating strong performance [19] - The Midstream segment saw strong earnings growth due to additional capacity and asset optimization at Spire Storage, despite higher operating costs [19] Market Data and Key Metrics Changes - Year-to-date capital expenditures totaled $700 million, with a nearly 20% increase in utility CapEx year-over-year, focusing on upgrading distribution infrastructure [20] - The capital investment target for fiscal 2025 has increased to $875 million, reflecting a $10 million increase in Midstream and a $25 million increase in Spire Missouri [21] Company Strategy and Development Direction - The company is committed to a long-term EPS growth target of 5% to 7%, supported by a ten-year $7.4 billion capital investment plan [11][22] - The recent acquisition of the Piedmont Natural Gas business in Tennessee is seen as a strategic move to enhance scale and diversify the regulated utility portfolio [12][13] - The company aims to maintain a strong balance sheet while supporting long-term adjusted EPS growth and dividend growth [14][27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial and operational goals, emphasizing the importance of delivering safe and reliable natural gas service [26][28] - The company is focused on achieving constructive regulatory outcomes and strengthening recovery mechanisms to support continued investment [27] Other Important Information - A unanimous stipulation and agreement has been filed for an annual revenue increase of $210 million in Missouri, pending approval [10][15] - The company anticipates adjusted earnings at the Utility segment to be significantly higher in 2026 due to new rates and improved regulatory frameworks [24] Q&A Session Summary Question: Is the FFO to debt target of 15% to 16% still applicable? - Management confirmed that these targets remain relevant, although achieving them may be slower during the acquisition transition [34] Question: How much of the midstream results is attributable to storage expansion? - Approximately 90% of the increase in midstream results year-over-year is attributed to storage [39] Question: Will the strong marketing results continue into Q4? - Management indicated that Q4 is typically quieter, but they feel confident about the operations and targets for the marketing business [41] Question: Does the long-term 5% to 7% growth rate include impacts from the Missouri rate case? - The growth rate is primarily based on capital deployment, with potential catch-up from previous recovery delays in Missouri [57] Question: How does the company plan to manage O&M expenses going forward? - The target is to keep O&M expenses at or below the rate of inflation, with current year-to-date O&M running less than 1% higher than the prior year [61]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.01 per share, a significant improvement from a loss of $0.14 per share a year ago, reflecting growth across all business segments [7][18] - Year-to-date capital expenditures totaled $700 million, with a nearly 20% increase in utility CapEx year over year [20] Business Line Data and Key Metrics Changes - The Gas Utilities segment had an adjusted loss of $10 million, which was $1 million better than the prior year, driven by higher contribution margin at Spire Missouri [18] - Earnings in the Gas Marketing segment increased by over $4 million, indicating strong performance [18] - The midstream segment saw strong earnings growth, attributed to additional capacity and asset optimization at Spire Storage [18] Market Data and Key Metrics Changes - The company is focused on a long-term EPS growth target of 5% to 7%, supported by a ten-year $7.4 billion capital investment plan [11][22] - The company expects to deliver within its fiscal 2025 earnings guidance of $4.4 to $4.6 per share [11][22] Company Strategy and Development Direction - The company announced the acquisition of the Piedmont Natural Gas Tennessee business, which is expected to enhance its scale and expand its regulated utility footprint [12][13] - The acquisition is projected to add $900 million to the five-year capital plan, focusing on system modernization and infrastructure resilience [13] - The company aims to maintain a strong balance sheet while supporting long-term adjusted EPS growth and dividend growth [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong operational performance and financial discipline, emphasizing the importance of regulatory transparency and customer affordability [25][28] - The company is actively pursuing regulatory approvals for the acquisition and advancing integration planning [28] Other Important Information - A unanimous stipulation and agreement has been filed for an annual revenue increase of $210 million, pending approval by the Missouri Public Service Commission [9][15] - The company is committed to maintaining a strong focus on customer affordability through disciplined cost management [25] Q&A Session Summary Question: Is the FFO to debt target of 15% to 16% still applicable? - Management confirmed that these targets remain the right framework, although progress may be slower during the acquisition transition [31][32] Question: How much of the midstream results is attributable to storage expansion? - Management indicated that about 90% of the increase in midstream results was due to storage, with a 75% to 25% split on net income basis [35][36] Question: Does the long-term 5% to 7% growth rate include impacts from the Missouri rate case settlement? - Management clarified that the growth rate is based on capital deployment and does not directly include the impacts of the rate case [51][52] Question: How does the company see O&M expenses evolving? - Management stated the target is to keep O&M expenses at or below the rate of inflation, with current year-to-date O&M run rate being less than 1% higher than the prior year [55]

Joining me now, the Democratic mayor of Lancing, Michigan, Andy Shore. Also with us, the Republican mayor from Rochester Hills, Brian Barnett. Good to have both of you here.Mayor Barnett, I think one of your biggest trading partners is indeed Canada. So, talk about that and what this uh could mean for your city. Well, thanks for having me.I I think uh you're right. Obviously, in in I think all of Michigan, uh by far and away, our biggest trading partner is our neighbor. Uh we're closer to Canada here in my ...

Financial Data and Key Metrics Changes - The adjusted earnings per share (EPS) for Q2 2025 was reported at $0.92, which is $0.07 above the estimate and $0.18 lower than Q2 2024 [9] - Year-to-date retail electricity sales were 1.3% higher than 2024, with a 3% increase in sales growth in Q2 compared to the previous year [10] - Adjusted EPS estimate for Q3 2025 is projected at $1.50 per share [9] Business Line Data and Key Metrics Changes - Increased earnings from state-regulated utilities contributed positively, alongside higher usage and customer growth, adding $0.06 year-over-year compared to 2024 [9] - Weather-normal residential sales increased by 2.8%, supported by the addition of over 15,000 new electric customers in the quarter [10] - Data center usage was notably up by 13% compared to 2024, with industrial sales to major customer segments like transportation and primary metals increasing by 6% year-over-year [11] Market Data and Key Metrics Changes - Economic development activities in the Southeast resulted in nearly $2 billion of capital investment and over 6,000 new jobs announced in the service territories [12] - The large load pipeline across Alabama, Georgia, and Mississippi remains above 50 gigawatts of potential incremental load by the mid-2030s [13] - The Georgia Public Service Commission approved a stipulated agreement that extends Georgia Power's 2022 alternate rate plan, stabilizing base rates through 2028 [14] Company Strategy and Development Direction - The company is focused on building for growth in the Southeast, leveraging its vertically integrated market and constructive regulatory processes [23] - The 2025 Integrated Resource Plan (IRP) approval allows for continued investment in existing fleet upgrades and new generation resources to meet increasing demand [16] - The company is committed to maintaining customer affordability while capturing the benefits of projected economic growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment in the Southeast, with unemployment rates and population growth better than national averages [12] - The company is encouraged by the momentum with large load customers and is focused on sustainable growth patterns [29] - Management emphasized the importance of new nuclear energy as part of the solution to meet future demand [72] Other Important Information - The company announced a $76 billion five-year capital plan, increasing from $63 billion, with potential upside of approximately $5 billion still pending [20] - The transition of CFO Daniel Tucker, who is retiring after nearly three decades, was highlighted as a significant leadership change [24] Q&A Session Summary Question: Capital plan update and rate base growth - Management confirmed that they will continue with annual updates and are encouraged by the marketplace momentum [28][29] Question: RFP update and procurement status - Management assured that they have made reservations and payments for turbines and are well-positioned for efficient execution [30] Question: FFO to debt improvement timeline - Management expects to reach approximately 17% FFO to debt near the end of the planning horizon, with proactive measures being taken [40] Question: Asset sales and rumors - Management stated that they are always evaluating opportunities but would not comment on specific rumors [44] Question: Load update and pipeline growth - Management indicated that the large load pipeline continues to grow, with advanced discussions ongoing [52] Question: Returns on Southern Power investments - Management noted that returns from Southern Power are generally higher than state-regulated returns, with stringent risk-return parameters in place [68] Question: New nuclear discussions - Management reiterated the need for new nuclear energy and ongoing discussions with various stakeholders [72] Question: Large load update filing - Management confirmed that an update filing is expected in mid-August, with anticipation of higher load forecasts [74][77]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $0.92 for Q2 2025, which is $0.07 above the estimate and $0.18 lower than 2024 [7] - Year-to-date retail electricity sales were 1.3% higher than 2024, with a 3% increase in retail electricity sales in Q2 compared to the previous year [8][9] - Adjusted EPS estimate for Q3 is $1.50 per share [8] Business Line Data and Key Metrics Changes - Increased earnings from state-regulated utilities contributed positively, with higher usage and customer growth adding $0.06 year-over-year compared to 2024 [7] - Weather-normal residential sales increased by 2.8%, supported by over 15,000 new electric customers in the quarter [8] - Data center usage was notably up 13% compared to 2024, while industrial sales to major customer segments like transportation and primary metals grew by 6% year-over-year [9] Market Data and Key Metrics Changes - Economic development activities in the Southeast resulted in nearly $2 billion of capital investment and over 6,000 new jobs announced [10] - The large load pipeline across Alabama, Georgia, and Mississippi remains above 50 gigawatts of potential incremental load by the mid-2030s [11] Company Strategy and Development Direction - The company is focused on disciplined growth, with a commitment to customer affordability and regulatory stability [12] - Georgia Power's 2025 integrated resource plan (IRP) was approved, allowing for continued investment in existing fleet and new generation resources [13][14] - The company plans to certify approximately 10 gigawatts of new generation resources, including a mix of third-party power purchase agreements and Georgia Power-owned resources [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment in the Southeast, with unemployment rates and population growth better than national averages [10] - The company is encouraged by the momentum in attracting large load customers and expects to reassess its long-term EPS growth rate as early as 2027 [19][20] - Management emphasized the importance of investing in people and leadership transitions to ensure sustained long-term success [21] Other Important Information - The company has increased its five-year base capital plan from $63 billion to $76 billion, with potential upside of approximately $5 billion still pending [16] - The CFO transition was highlighted, with management expressing gratitude for the retiring CFO's contributions [22] Q&A Session Summary Question: Capital plan update and rate base growth - Management confirmed that they will provide a full financial plan update in the Q4 call and are encouraged by the marketplace momentum [26][27] Question: RFP update and procurement status - Management assured that they have good relationships with OEMs and EPCs, positioning themselves efficiently for upcoming projects [28] Question: FFO to debt improvement timeline - Management expects to reach approximately 17% FFO to debt near the end of the planning horizon, with proactive measures being taken [37][40] Question: Asset sales and rumors - Management stated they are always evaluating opportunities but would not comment on specific rumors [41] Question: Load update and pipeline growth - Management indicated that the large load pipeline continues to grow, with advanced discussions ongoing with major customers [49] Question: Southern Power returns compared to regulated business - Management noted that Southern Power's returns are generally higher than state-regulated returns, but they maintain stringent risk-return parameters [64] Question: New nuclear discussions - Management emphasized the need for new nuclear energy and ongoing discussions with various stakeholders [68] Question: Large load update filing - Management confirmed that an update filing is expected in August, which may reflect higher load than previously discussed [71] Question: Gas plants and timing confidence - Management clarified that the planned new units are based on existing capacity rolling off PPAs [78] Question: Trends on generation costs - Management acknowledged rising generation costs but indicated they are prepared to react accordingly [101]

Financial Performance & Outlook - PPL reported Q2 2025 GAAP earnings of $025 per share and ongoing earnings of $032 per share[6] - The company reaffirmed its 2025 ongoing EPS forecast range of $175 - $187 per share[7] - PPL is on track to complete approximately $43 billion in capital investments and achieve at least $150 million in cumulative O&M savings in 2025[10] - PPL issued approximately $350 million of equity via the ATM year-to-date[30] Capital Investment & Growth - PPL projects $20 billion of capital investment needs through 2028, resulting in an average annual rate base growth of 98% over the period[10] - The company anticipates 6%-8% annual EPS and dividend growth through at least 2028[10,38] - The company is targeting 16%-18% FFO/CFO to debt throughout the plan[10,40] Strategic Initiatives & Regulatory Updates - A constructive agreement was reached to advance generation needs for LG&E and KU, supporting the approval for two new 645MW NGCC units[11,13] - A base rate case was filed in Kentucky on May 30, 2025, requesting an increase in annual electricity revenues of approximately $105 million and $226 million at LG&E and KU, respectively, and an increase in annual gas revenues of approximately $60 million at LG&E[14,16] - PPL Electric is enabling speed to market for data centers with $13 billion invested in Pennsylvania Grid since 2013[18] - PPL is in a joint venture with Blackstone Infrastructure, with PPL owning 51% of the interest, to build new electric generation stations to power data centers under long-term energy services agreements[19]

Financial Data and Key Metrics Changes - The company reported an AFFO per share of $1.28 for the second quarter, representing a 9.4% increase year-over-year, driven by accretive investment activity and sector-leading rent growth [16] - The full-year AFFO guidance range has been raised to between $4.87 and $4.95 per share, implying a 4.5% year-over-year growth at the midpoint [16][27] - Contractual same-store rent growth for the second quarter was 2.3% year-over-year, with comprehensive same-store rent growth at 4% [17] Business Line Data and Key Metrics Changes - The majority of second-quarter investments were in warehouse and industrial properties, which also represent the bulk of the investment pipeline [10] - The average yield on investments year-to-date is in the mid-nine percent range, one of the highest in the net lease sector [8][10] - The company has closed approximately $550 million in deals during the second quarter at an initial weighted average cap rate of 7.5% [8] Market Data and Key Metrics Changes - Investments were primarily concentrated in the U.S., with a notable increase in deal volume in Europe during the third quarter [10] - The company has identified a strong pipeline of $700 million in advanced-stage deals, with expectations for continued favorable market conditions [9] Company Strategy and Development Direction - The company is focused on maintaining strong investment volume and has raised its investment guidance for the year, expecting to complete $1.4 billion to $1.8 billion in investments [16][27] - The strategy includes accretive sales of non-core assets, with an expectation of achieving over 100 basis points of spread between asset sales and new investments [12] - The company aims to continue building its portfolio through capital projects, including build-to-suits and expansions, with nearly $300 million of projects underway [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum despite broader economic uncertainties, noting no unforeseen disruptions in business or tenant credit events [7][26] - The company is monitoring trade policy developments but has not seen direct impacts on its portfolio [14][56] - Management believes the foundation built this year positions the company well for long-term growth and value creation for shareholders [27] Other Important Information - The company declared a dividend of $0.90 per share, representing a 3.4% increase over the prior year, with a payout ratio of approximately 73% of AFFO per share [25] - The company ended the second quarter with liquidity of about $1.7 billion and a low weighted average cost of debt at 3.1% [23][24] Q&A Session Summary Question: Expectations for comprehensive income in the second half of the year - Management expects comprehensive income to normalize in the back half of the year, potentially tracking slightly above contractual levels [29][31] Question: Transition of self-storage operating portfolio to net lease structure - The company has flexibility regarding the remaining self-storage portfolio and may lean towards more sales or conversions to net lease structures [33] Question: AFFO guidance implications for the second half of the year - Management highlighted that the second quarter's elevated other lease-related income is expected to normalize, impacting AFFO guidance [42][43] Question: Credit quality of tenants and market conditions - Management noted improved credit quality among tenants and a stable transaction market, which is driving increased opportunities [78] Question: Impact of new entrants in the net lease market - Management acknowledged increased competition but remains confident in its ability to compete effectively in the market [83] Question: Acquisition and disposition cap rates for the quarter - The company reported acquisition cap rates in the mid-sevens and disposition cap rates approaching 6% for the full year [95][96]

Financial Data and Key Metrics Changes - AEP reported the strongest ever second quarter operating earnings in its 100-year history, with operating earnings of $1.43 per share or $766 million, representing a 14% increase year-over-year from $1.25 per share in 2024 [9][27] - The company is guiding to the upper half of its 2025 operating earnings range of $5.75 to $5.95 per share, reflecting strong year-to-date results [10][39] - AEP reaffirmed its long-term operating earnings growth rate of 6% to 8% [10] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities increased to $0.56 per share, up $0.10 from the previous year, driven by rate changes and increased load from data centers [28] - The transmission and distribution utility segment earned $0.42 per share, up $0.01 from last year, supported by rate changes and retail sales gains [29] - Generation and Marketing produced $0.17 per share, up $0.05 from last year, with favorable energy margins [31] Market Data and Key Metrics Changes - AEP expects to have 24 gigawatts of incremental load by the end of the decade, up from 21 gigawatts, primarily driven by data centers and reshoring [12] - The company has a significant interconnection queue with approximately 190 gigawatts of additional load seeking to connect to its system, which is five times its current system size of 37 gigawatts [12][35] Company Strategy and Development Direction - AEP is executing a $54 billion capital plan and expects to announce a new five-year capital plan of approximately $70 billion, with allocations of 50% to transmission, 40% to generation, and 10% to distribution [11] - The company is focused on aligning its business with regulatory goals and has secured large load tariffs in multiple states to support economic development [14][15] - AEP is exploring innovative power solutions, including small modular reactors (SMRs) and Bloom fuel cells, to meet growing customer demands [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, citing strong regulatory support and a disciplined approach to capital allocation [10][18] - The management team highlighted the importance of safety, service, and reliability while navigating complex operational and regulatory landscapes [18][19] - AEP's leadership emphasized the need for continued collaboration with regulators to support infrastructure investments and customer affordability [20][21] Other Important Information - AEP Texas was granted approval for a significant transmission project, and the company has received positive regulatory outcomes in several states [19][23] - The company has a strong liquidity position with over $5.6 billion supported by $6 billion in credit facilities [36][37] Q&A Session Summary Question: CapEx increase and financing needs - Trevor Mihalik indicated that the company has proactively financed its existing capital plan and does not have near-term equity needs, providing flexibility for future financing [42][44] Question: ROE trajectory and impact of regulatory changes - Trevor Mihalik confirmed that the ROE is expected to increase due to the new regulatory mechanisms in Texas, potentially by 50 to 100 basis points [46][48] Question: Plans for small modular reactors (SMRs) - William J. Fehrman discussed the focus on early site permit work for SMRs, emphasizing strong regulatory support in Virginia and Indiana [52][53] Question: Ongoing impact of NOLC changes - Kate Sturgess noted that the ongoing impact from the NOLC change is expected to be around 3 cents per share annually [56][57] Question: Update on West Virginia case - William J. Fehrman provided an update that the West Virginia case is awaiting an order expected in late August or early September [59] Question: CapEx opportunities and future increases - Trevor Mihalik highlighted the tremendous growth opportunities across AEP's service territory, indicating that further increases in CapEx could be possible [64][66] Question: Data center activity and connection timelines - William J. Fehrman explained that AEP's transmission system is attractive for data centers, with wait times for connections typically ranging from five to seven years [70][71]

Financial Performance - Q2 2025 operating earnings per share (EPS) reached $1.43, compared to $1.25 in Q2 2024, representing a 14% increase[22] - Year-to-date (YTD) 2025 operating EPS was $2.98, up from $2.52 in YTD 2024, reflecting an 18% growth[24] - The company is guiding towards the upper half of the 2025 operating earnings guidance range of $5.75-$5.95 per share[20] - Moody's FFO to Debt as of June 30, 2025, was 13.2%[46, 114] Capital Investments and Growth - AEP expects to announce a new 5-year capital plan of approximately $70 billion to meet growing energy needs[18, 20] - The company is executing a $54 billion capital plan and expects approximately 8% rate base growth through the 5-year forecast[11, 18, 51] - Approximately $34 billion, or 63%, of the $54 billion capital forecast is allocated to wires (transmission and distribution)[75, 77] - Approximately $14 billion, or 26%, of the $54 billion capital forecast is allocated to regulated new generation, including renewables[75, 79] Load Growth and Demand - AEP anticipates 24 GW of incremental load growth through 2029, supported by signed customer financial commitments[17, 25, 43, 44] - The company has approximately 190 GW of interconnect requests in various stages of development[17, 25, 44] - Peak demand in Q2 2025 reached 37.6 GW, generating $2.9 billion in revenue, compared to 33.5 GW and $2.7 billion in Q2 2024[42] Financial Strength and Strategy - The company closed a $2.82 billion minority interest transmission transaction, contributing to S&P's outlook upgrade to stable[25, 29, 51] - AEP reaffirms its long-term growth rate of 6%-8% and a FFO/Debt targeted range of 14%-15%[18, 25] - The company's balance sheet strength is reinforced by S&P's favorable outlook revision to stable[49]