American Electric Power Reports Q3 2024 Earnings and Introduces New Growth Rate and Capital Plan

American Electric Power (AEP) has disclosed its financial results for the third quarter of 2024. The company reported a strong performance with GAAP earnings of $1.80 per share, amounting to $960 million. These figures compare favorably to the same period in 2023, showing a slight decrease from $1.83 per share and $954 million, respectively.

Operating earnings for the third quarter of 2024 were $1.85 per share, or $985 million. This marked an improvement compared to the operating earnings of $1.77 per share or $924 million reported in the third quarter of 2023. The company’s revenue saw a modest increase from $5.3 billion in 2023 to $5.4 billion in the third quarter of 2024.

AEP has made adjustments to its full-year 2024 operating earnings guidance, narrowing the range to $5.58 to $5.68 per share. The company emphasized that operating earnings could vary from GAAP earnings due to factors such as impairments or changes in accounting principles. Notable highlights include a revised 2024 EPS guidance reconciliation, depicting estimated EPS on a GAAP basis from $5.55 to $5.65, with an operating EPS guidance range of $5.58 to $5.68.

Bill Fehrman, President and CEO of AEP, expressed optimism in the company’s ability to deliver value to stakeholders. Fehrman highlighted the company’s commitment to operational excellence, financial discipline, and sustainable growth. A new long-term growth rate of 6% to 8% has been introduced based on the 2025 operating earnings guidance of $5.75 to $5.95 per share. This growth rate aligns with an expanded capital plan of $54 billion over the next five years.

AEP’s strategic focus remains on investing in reliable and resilient energy infrastructure to meet the increasing demands of customers and communities. The company’s 2025 earnings guidance is based on substantial growth in regulated businesses, coupled with lower contributions expected from the Generation & Marketing segment.

Commercial load for AEP has surged by over 10% year-over-year, with estimates pointing towards an average annual growth of 20% over the next three years. This off-take structure signifies an eagerness among consumers, with financial agreements covering 20 gigawatts of commercial and industrial load additions until the end of the decade, mainly concentrated in regions such as Ohio, Texas, and Indiana.

Moreover, AEP’s dedication to transparent costing and regulatory compliance ensures affordability for customers and sustainable economic development. The company continues to adapt its organizational structure to streamline decision-making processes and enhance support for key revenue-generating segments.

In conclusion, AEP’s strong performance in the third quarter of 2024 and its strategic initiatives underscore the company’s commitment to operational excellence and long-term growth. The revised guidance and capital plan reflect AEP’s proactive approach towards meeting evolving customer needs and sustainability goals.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read American Electric Power’s 8K filing here.

American Electric Power Company Profile

American Electric Power Company, Inc, an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments.