American Electric Power(US:AEP)2025-02-13 17:50Financial 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].