American Electric Power Company, Inc. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights

  • Q3 2022 operating earnings were $1.62 per share (or $831 million), up from $1.43 in Q3 2021.
  • GAAP earnings were $1.33 per share, down from $1.59 in Q3 2021, primarily due to:
    • A Virginia regulatory asset write-off tied to previously closed coal plants.
    • Additional loss recognition from the amended Kentucky Power sale agreement.
  • Year-to-date operating earnings reached $4.04 per share vs. $3.76 in 2021.
  • AEP reaffirmed 2022 operating earnings guidance of $4.97 to $5.07 with a midpoint of $5.02.
  • 2023 guidance introduced at $5.19 to $5.31 per share, midpoint $5.29.
  • Long-term earnings growth target remains 6% to 7% supported by a $40 billion capital plan (2023–2027).

Capital & Liquidity

  • FFO-to-debt improved to 14.5% (up over 1% from the prior quarter), now within the targeted 14% to 15% range.
  • Debt-to-capital ratio steady at 61.4%.
  • Available liquidity: $3.6 billion from revolving credit facilities.
  • Pension funding level remains strong at 105.3%.

Segment Performance (Q3 Operating Earnings)

  • Vertically Integrated Utilities: $0.97 per share, up $0.10 YoY due to rate changes, APCo ruling benefits, favorable weather, and transmission revenue.

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Operator: Ladies and Gentlemen, thank you for standing by and welcome to the American Electric Power Third Quarter 2022 Conference Call. At this time all participants are in listen-only mode. Later we will conduct a question and answer session. [Operator Instructions]. And as a reminder, your conference is being recorded. I would now like to turn the conference over to you host Vice President of Investor Relations Darcy Reese. Please go ahead. Darcy Reese : Thank you, Louis. Good morning, everyone and welcome to the third quarter 2022 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 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 Chair, and Chief Executive Officer; and Julie Sloat, our President 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 everyone to American Electric Powers third quarter 2022 earnings call. We continue to make significant progress on our commitments, we have leveraged our scale, our financial strength, portfolio management and transition t

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