American Electric Power Company, Inc. Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Highlights

  • Q3 2021 operating earnings were $1.43 per share, compared to $1.47 per share in Q3 2020.
  • Year-to-date (YTD) operating earnings were $3.76 per share, up from $3.56 per share in 2020.
  • GAAP earnings for Q3 were $1.59 per share compared to $1.51 in 2020.
  • The economic recovery in AEP’s service territory supported a strong quarter, with the highest gross regional product on record and strongest job growth since 1984.
  • AEP raised its 2021 operating earnings guidance range to $4.65–$4.75 per share, midpoint $4.70 (previous midpoint was $4.60).
  • AEP reaffirmed its long-term earnings growth rate target of 5% to 7%.

Key Business & Strategic Updates

  • Kentucky Power/Kentucky Transco Sale:
    • AEP announced sale to Liberty Utilities (Algonquin Power) following a strategic review launched in April.
    • Approvals expected: FERC (within 180 days), Kentucky PSC (within 120 days), HSR (30–60 days), CFIUS (90–120 days).
    • Sale expected to close in Q2 2022.
    • Expected to be accretive by $0.01–$0.02 in 2022.
    • The sale eliminates the need for AEP’s previously planned $1.4B equity issuance in 2022.
  • Mitchell Plant Ownership:
    • Kentucky Power will remain a 50% owner until 2028.

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Operator: Ladies and gentlemen, thank you for standing by. Welcome to the American Electric Power Third Quarter, 2021 Earnings Conference Call. At this time, your telephone lines are in a listen-only mode. Later there will be an opportunity for questions and answers. If you would like to ask a question during the call, You have an indication you've been placed into queue, and you will move yourself from the queue by repeating the one as we command. Now as a reminder, your conference call today is being recorded. I will now turn the conference call over to your host, Vice President of Investor Relations, Darcy Reese. Go ahead please. Darcy Reese: Thank you, Allen. Good morning, everyone and welcome to the Third Quarter 2021 earnings call for American Electric Power. We appreciate you taking the time to join us today. Our earnings release, presentation slides and related financial information are available on our website at www. aep.com. Today we will be making Forward-looking statements during the call. There are many factors that may cause future results to differ materially from these statements. Please refer to our SEC filings for a discussion of these factors. Joining me this morning for opening remarks are Nick Akins, our Chairman, President, and Chief Executive Officer and Julie Sloat our Chief Financial Officer. We will take your questions following their remarks. I will now turn the call over to Nick. Nick Akins: Okay. Thanks, Darcy. Welcome again, everyone to Americ

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