AKRON, Oh. – First Energy, the parent company of Met Ed, Jersey Central Power and Light and 8 other regulated distribution companies in the Mid-West and Mid-Atlantic regions, reported first quarter results today.

After several years of turmoil including federal lawsuits and management shakeups, First Energy appears to have moved back to smooth, steady operations.

In fact, operations are so steady that there was no difference in the earnings reported for 2023’s first quarter and the same quarter in 2022. They missed the Zacks Consensus estimate by a penny, but revenues topped estimates by 2%.

“Despite record-high temperatures across our footprint this winter, we’re off to a good start in 2023 as we continue positioning FirstEnergy for greater resiliency and growth by strengthening our financial position, enhancing our operations and optimizing the customer experience,” said John W. Somerhalder II, FirstEnergy board chair, interim president and chief executive officer.

“We’re also excited to welcome Brian Tierney as our new president and CEO, effective June 1.”

Tierney, 55, joins FirstEnergy from Blackstone, where he serves as the global head of Portfolio Operations and Asset Management for the Infrastructure group. He previously spent 23 years at Ohio-based American Electric Power Company, Inc. one of the United States’ largest investor-owned utilities, where he held a number of leadership positions, including most recently serving as executive vice president of Strategy following more than 11 years as its chief financial officer.

First quarter results

FirstEnergy reported first quarter 2023 GAAP (Generally Accepted Accounting Principles) earnings of $292 million, or $0.51 per basic and diluted share, on revenue of $3.2 billion. In the first quarter of 2022, the company reported GAAP earnings of $288 million, or $0.51 per basic share of common stock on revenue of $3.0 billion.

Operating (non-GAAP) earnings were $0.60 per share in the first quarter of 2023, near the midpoint of the company’s guidance range. Operating (non-GAAP) earnings in the first quarter of 2022 were also $0.60 per share.

The company stated significant earnings drivers in the first quarter of 2023 included the company’s long-term regulated investment strategies, lower operating expenses and higher investment income. These were primarily offset by the impact of mild winter temperatures, which negatively impacted usage by $0.12 per share compared to the first quarter of 2022, and lower pension credits.

“So far this year,” Somerhalder noted, “we’ve made progress on our goals with numerous regulatory filings, announcing the sale of an additional interest in our FirstEnergy Transmission business and driving for performance excellence in operations.”

Segment Results

In the Regulated Distribution business, First Energy said, extremely mild temperatures across the company’s service area drove a $0.12 per share decrease in customer usage compared to the first quarter of 2022. Operating results were also impacted by higher interest expenses and lower pension credits, partially offset by higher revenue related to investment programs, stronger weather-adjusted customer demand and lower operating expenses.

According to the company, total distribution deliveries decreased 5.3% compared to the first quarter of 2022 due to lower weather-related usage in the residential and commercial sectors and nearly flat industrial sales. Residential and commercial sales decreased 8.4% and 7.1%, respectively, compared to the first quarter of 2022, while sales to industrial customers decreased less than 1%. On a weather-adjusted basis, residential sales increased more than 5%, while commercial deliveries increased 1.5% over the period.

In the Regulated Transmission business, first quarter 2023 operating results benefited from the company’s ongoing Energizing the Future investment program, offset by the impact of the FirstEnergy Transmission 19.9% minority interest sale that closed on May 31, 2022. During the first quarter of 2023, the company made nearly $350 million in regulated transmission investments, a 60% increase compared to the same period of 2022.

In Corporate/Other, the company noted, first quarter 2023 operating results improved as compared to the first quarter of 2022 due to a higher earnings contribution from the company’s legacy investment in Signal Peak and lower interest expense from holding company debt redemptions during 2022.

Guidance

FirstEnergy updated its full-year 2023 GAAP earnings forecast to $1.350 billion to $1.465 billion, or $2.35 to $2.55 per share based on 574 million shares outstanding, and affirmed its operating (non-GAAP) guidance range of $2.44 to $2.64 per share. In addition, the company is providing a guidance range of $230 million to $285 million, or $0.40 to $0.50 per share for the second quarter of 2023, based on 573 million shares outstanding.

The company affirmed its long-term, 6% to 8% targeted annual operating earnings per share growth rate, which is based off the previous year’s operating earnings guidance midpoint.

About First Energy

Headquartered in Akron, Ohio, FirstEnergy (NYSE: FE) includes one of the nation’s largest investor-owned electric systems, more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions, and a diverse generating fleet with a total capacity of more than 16,000 megawatts, serving over 6 million customers.