Reports first quarter 2024 GAAP earnings of $0.44 per share and operating (non-GAAP) earnings of $0.55 per share, above the midpoint of guidance Affirms targeted 6-8% long-term annual operating earnings per share growth Increased total equity on balance sheet by 25% with closing on $3.5 billion FET LLC transaction; deployed $2.3 billion of proceeds; expects to receive remaining $1.2 billion later this year AKRON, Ohio, April 25, 2024 /PRNewswire/ -- FirstEnergy Corp. (NYSE:FE) today reported first quarter 2024 GAAP earnings of $253 million, or $0.44 per basic and diluted share, on revenue of $3.3 billion. This compares to first quarter 2023 GAAP earnings of $292 million, or $0.51 per basic and diluted share, on revenue of $3.2 billion. GAAP results include the impact of special items listed below. Operating (non-GAAP) earnings for the first quarter of 2024 were $0.55 per share, in the upper half of the company's guidance. In the first quarter of 2023 operating (non-GAAP) earnings were $0.60 per share.  "Despite a mild winter, we're off to a solid start in 2024. Our first quarter financial results are above the midpoint of our guidance, reflecting strong execution across each of our businesses," said Brian X. Tierney, President and Chief Executive Officer. "We also completed a pivotal milestone in the company's transformation as we significantly strengthened our balance sheet, supporting long-term organic investments in our fully regulated businesses to enhance reliability and the customer experience. As a result of this progress, we were pleased to receive upgrades to investment grade ratings from both Moody's and S&P." FirstEnergy provided a second quarter earnings guidance range of $290 million to $345 million, or $0.50 to $0.60 per share based on 576 million shares outstanding. The company also affirmed its 2024 operating (non-GAAP) earnings guidance range of $2.61 to $2.81 per share based on 576 million shares outstanding, and its long-term, 6% to 8% targeted annual operating earnings growth rate, which is based off the previous year's operating earnings guidance midpoint and supported by the company's refreshed and extended $26 billion, five-year capital investment plan, Energize365. First Quarter Results First quarter 2024 results primarily reflect the impact of recently approved base rate cases in Maryland, New Jersey and West Virginia, distribution capital investment riders and transmission rate base growth, and improved weather-related demand. These drivers were more than offset by higher planned operating expenses and financing costs. Total distribution deliveries increased 1.5% compared to the first quarter of 2023. While heating degree days were 5% higher than the historically mild first quarter of 2023, they remained 14% below normal. Usage increased 1% among residential customers and industrial sales increased 3%, while sales were essentially flat in the commercial sector.  As previously announced, the company is introducing new segment reporting in 2024 to enhance transparency and align with its operating structure. Segment results for 2023 have been recast for comparative purposes. A full reconciliation is available in the company's Strategic and Financial Highlights document, available online at www.firstenergycorp.com/ir. FirstEnergy's Distribution segment includes its Ohio and Pennsylvania pure-play distribution-only companies. It represents $10.9 billion in 2023 rate base, serves 4.2 million customers, and accounts for about 45% of FirstEnergy's forecasted 2024 operating earnings. First quarter operating earnings in the Distribution segment decreased compared to the first quarter of 2023 as higher revenues from capital investment programs and weather-related demand were offset by higher planned operating expenses incurred during 2024. The Integrated segment includes FirstEnergy's Jersey Central Power & Light subsidiary, which operates distribution and transmission assets in New Jersey; Potomac Edison, which operates distribution and transmission in Maryland and West Virginia; and Monongahela Power, which operates distribution, transmission and generation in West Virginia. This segment represents $8.7 billion in 2023 rate base, serves 2 million customers, and accounts for about 35% of FirstEnergy's forecasted 2024 operating earnings. First quarter operating earnings in the Integrated segment increased compared to the first quarter of 2023, primarily due to the approval of recent base rate cases in Maryland, New Jersey and West Virginia, investments in formula rate capital programs, and higher weather-related demand. These items were offset, in part, by higher planned operating expenses. The Stand-Alone Transmission segment includes FirstEnergy's transmission-only subsidiaries, consisting of its ownership interest in FirstEnergy Transmission, LLC, as well as Keystone Appalachian Transmission Company. This segment represents $7.7 billion in 2023 rate base and accounts for about 20% of forecasted 2024 operating earnings. First quarter operating earnings in the Stand-Alone Transmission segment increased compared to the first quarter of 2023, primarily due to rate base growth in formula rates from its capital investment program. Finally, Corporate/Other primarily represents holding company interest, legacy investment in the Signal Peak coal mine, and retained pension and other postemployment benefits associated with former subsidiaries. First quarter results in Corporate/Other primarily reflect the expected lower earnings contribution from Signal Peak and higher interest costs associated with the $1.5 billion, May 2023 low-cost convertible debt issuance, partially offset by higher discrete income tax benefits.