American Electric Power Company, Inc. Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance

  • Q4 2022 operating earnings were $1.05 per share, up 7% from $0.98 per share in Q4 2021.
  • Full-year 2022 operating earnings were $5.09 per share, up from $4.74 per share in 2021.
  • GAAP earnings for Q4 2022 were $0.75 per share (vs. $1.07 per share in Q4 2021) due to transaction-related non-operating charges.
  • The quarterly dividend increased from $0.78 to $0.83 per share in October 2022.
  • AEP reaffirmed its 2023 full-year operating earnings guidance of $5.19 to $5.39 per share.

Business Updates

  • Kentucky Operations Sale: AEP refiled with FERC on Feb. 14, 2023, targeting an April 26 closing. A shortened 45‑day comment period signals FERC’s willingness to review on an expedited basis.
  • Unregulated Renewables Sale: AEP announced sale of 1,365 MW to IRG Acquisition Holdings for $1.2B, targeting Q2 2023 close.
  • Retail Business Review: Strategic review ongoing; expected completion in H1 2023. Retail contributed $0.05 EPS in 2022 and is projected at $0.04 in 2023.
  • ROE: Earned regulated ROE was 9.1% in 2022; AEP expects 2023 earned ROE to be ~9.4%.

Load & Customer Growth

  • 2022 saw strongest normalized load growth in 15+ years at 2.8% (vs. strong 2021 comparisons).

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Operator: Welcome to the American Electric Power Fourth Quarter 2022 Earnings Call. [Operator Instructions]. I would now like to turn the call over to our host Ms. Darcy Reese. Please go ahead. Darcy Reese: Thank you, Brad. Good morning everyone and welcome to the Fourth Quarter 2022 Earnings Call for American Electric Power. We appreciate you taking time today to join us. 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 discuss of these factors. Joining me this morning for opening remarks are Julie Sloat, our President and Chief Executive Officer; and Anne Kelly, our Chief Financial Officer. We will take your questions following their remarks. I will now turn the call over to Julie. Julia Sloat: Thanks, Darcy. Welcome, everyone, to American Electric Power's Fourth Quarter 2022 Earnings Call. I'm happy to be here with all of you this morning, and I'm pleased to be joined by our recently appointed CFO, Ann Kelly, who joined our team in late November. So here we go. We're making great progress and have a lot to share with you today, starting with the financial performance of our fourth quarter and year. I'll provide update on our Kentucky operations sale, unregulated renewable sale and retail business strategic rev

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