FirstEnergy Corp. (NYSE: FE) announced on July 17, 2024, that it has received the remaining $1.2 billion in proceeds from the $3.5 billion sale of a 30% ownership interest in its FirstEnergy Transmission, LLC (FET) subsidiary to Brookfield Super-Core Infrastructure Partners (Brookfield). The initial proceeds of $2.3 billion were received from Brookfield when the transaction closed in March. The remaining $1.2 billion in interest-bearing notes were extinguished with Brookfield's final payment on July 17.
FirstEnergy is utilizing these proceeds to improve its credit standing and support its five-year, $26 billion Energize365 grid investment program.
Since late 2021, FirstEnergy has completed approximately $7 billion in strategic equity financings at an equivalent share price of $87 per share or a 36x trailing price-to-earnings valuation. Following the closing of this transaction in March, Moody's and S&P upgraded FirstEnergy's corporate credit rating, restoring it to investment grade at all three ratings agencies. Subsidiary credit ratings were also upgraded.
"With the successful execution of these strategic transactions, FirstEnergy now has a strong balance sheet to support important investments in our regulated businesses that enhance service reliability, the customer experience and the transition to a more electrified economy," said Brian X. Tierney, FirstEnergy President and Chief Executive Officer. "FirstEnergy has a straightforward, transparent operating model and a culture focused on continuous improvement and driving results, making us well-positioned to become a premier electric company benefiting our customers, investors, communities and employees."
FirstEnergy is committed to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems serving more than six million customers across Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines connecting the Midwest and Mid-Atlantic regions.
Forward-looking statements within this release are based on current information available to management but are subject to certain risks and uncertainties.
For media inquiries: Tricia Ingraham at (330) 384-5247; for investor inquiries: Gina Caskey at (330) 761-4185.