Summary

Brief Company Summary

FirstEnergy Corp (NYSE:FE) is an American holding company that operates in electric utility industry and is involved in the transmission, distribution, and generation of electricity. The company serves over six million customers in the Midwest and Mid-Atlantic regions. FirstEnergy is a holding company with its primary assets being its subsidiaries. Substantially all the businesses are conducted by the subsidiaries as well. FirstEnergy’s 10 regulated distribution companies form one of the nation’s largest investor-owned electric systems. The infrastructure of the company includes 269,000 miles of distribution lines; transmission operations include over 24,000 miles of transmission lines and two regional transmission operation centers. The 10 subsidiaries of the company are Ohio Edison (OE), The Cleveland Electric Illuminating Company (CEI), Toledo Edison (TE), Met-Ed (ME), Penelec, Penn Power (PE), West Penn Power (WP), Jersey Central Power & Light (JCP&L), Mon Power (MP), and Potomac Edison (PE). However, apart from these subsidiaries, the company has more subsidiaries (in some cases under the ownership of other subsidiaries).

The subsidiaries of the company can be broadly classified into two categories - regulated utility operating subsidiaries and regulated transmission operating subsidiaries. The revenue of the company is generated from service provided by the Utilities and Transmission Companies. However, the company has two operating segments - regulated distribution and regulated transmission.

FirstEnergy is listed in the New York Stock Exchange (NYSE) under the symbol FE. As of May, 2023, 52-week price range of the company was $42.29 to $33.76. Trailing P/E of the company is 58.30 times, price to sales ratio is 1.90 times, profit margin is 3.28%, return on assets (ttm) is 2.60%, return on equity is 4.73%. Trailing annual dividend yield of the company as of May, 2023 is 4.43%, payout ratio is 219.72%. Diluted earnings per share for the first quarter of 2023 is $0.51, which was $0.50 for the same quarter a year earlier, total number of shares outstanding on March 31, 2023 is 572,836,882.

Recent Developments

• On March 27, 2023, FirstEnergy announced that the FE Board had appointed Brian X. Tierney to the position of President and Chief Executive Officer, effective as of June 1, 2023. John W. Somerhalder II will cease serving as Interim President and Chief Executive Officer at the conclusion of May 31, 2023, and will continue to serve as the Chair of the FE Board.

Recent Financial Activities

• On February 2, 2023, FE along with FET (FirstEnergy Transmission, LLC, the parent company of ATSI, MAIT and TrAIL) entered in FET P&SA II with Brookfield and Brookfield Guarantors where the latter agreed to purchase an additional 30% equity of FET for a purchase price of $3.5 billion, of which $1.75 billion will be in the form of promissory note issuance and the rest is cash.