American Electric Power (AEP) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 27, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the American Electric Power Second Quarter 2022 Earnings Conference Call. At this time, all lines are in a listen-only mode. Later there will be an opportunity for questions-and-answers session. And as a reminder, your conference call is being recorded.

I'll now turn the conference call over to your host, Vice President of Investor Relations, Darcy Reese. Go ahead.

Darcy Reese - VP, IR

Thank you Alan. Good morning, everyone and welcome to the second 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 Chairman, President and Chief Executive Officer; and Julie Sloat, our Chief Financial Officer. We will take your questions following their remarks.

I will now turn the call over to Nick.

Nick Akins - Chairman, President & CEO

Okay. Thanks Darcy. Welcome everyone to American Electric Power's second quarter 2022 earnings call. AEP continues to make progress on the strategic initiatives we announced earlier this year with strong execution against our plan resulting in another solid quarter. Later in the call Julie will walk you through our second quarter performance drivers including the strong load increases we're experiencing in our territory, as well as provide additional details surrounding our financial position.

But I'll start with the key financial highlights for the quarter. We'll then move to an update on our Kentucky operations sale process and timeline. I will also spend time discussing the progress we are making in our transition to a clean energy future as we simplify and derisk our business profile by divesting unregulated renewable assets while maintaining focus on our responsible generation fleet transformation and regulated renewables execution. I will close by providing some additional insights into our ongoing regulatory activities including our transmission business.

We are very pleased with our positive momentum this quarter, delivering operating earnings of $1.20 per share or $618 million. We are moving full speed ahead towards the increased operating earnings guidance range and long-term earnings growth rate we provided during our fourth quarter 2021 earnings call and we are reaffirming both financial targets this quarter.