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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 23, 2019



Commission
 
Registrant; State of Incorporation;
 
I.R.S. Employer
File Number
 
Address; and Telephone Number
 
Identification No.
 
 
 
 
 
333-21011
 
FIRSTENERGY CORP.
 
34-1843785
 
 
(An Ohio Corporation)
 
 
 
 
76 South Main Street
 
 
 
 
Akron, OH  44308
 
 
 
 
Telephone (800)736-3402
 
 
 
 
 
 
 



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.






Item 2.02 Results of Operations and Financial Condition

On April 23, 2019, FirstEnergy Corp. (FirstEnergy or Company) issued two public documents regarding, among other things, results for the three months ended March 31, 2019, affirming operating (non-GAAP) earnings guidance for 2019, and providing operating (non-GAAP) earnings guidance for the second quarter of 2019. FirstEnergy’s Press Release and 1Q 2019 Strategic and Financial Highlights (which is provided in lieu of the former Consolidated Report), which are attached as Exhibits 99.1 and 99.2, respectively, hereto and incorporated herein by reference, contain non-GAAP financial measures. Pursuant to the requirements of Regulation G and Item 10(e)(i) of Regulation S-K, FirstEnergy has provided quantitative reconciliations within the Press Release and 1Q 2019 Strategic and Financial Highlights of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). The information set forth in and incorporated into this Item 2.02 of this Current Report on Form 8-K is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any of the Company’s filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.

The attached Press Release and 1Q 2019 Strategic and Financial Highlights contain references to non-GAAP financial measures including, among others, Operating earnings (loss); Operating earnings (loss) per share; Operating earnings (loss) per share on a segment basis. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Operating earnings (loss), Operating earnings (loss) per share and Operating earnings (loss) per share by segment are not calculated in accordance with GAAP to the extent they exclude the impact of “special items.” Special items represent charges incurred or benefits realized that management believes are not indicative of or may obscure trends useful in evaluating the Company’s ongoing core activities and results of operations or otherwise warrant separate classification. Special items also reflect the adjustment to include the full impact of share dilution from the $2.5 billion equity issuance in January 2018. Special items are not necessarily non-recurring. The Company’s management cannot estimate on a forward-looking basis the impact of these items in the context of Operating earnings (loss) per share growth projections because these items, which could be significant, are difficult to predict and may be highly variable. Consequently, the Company is unable to reconcile Operating earnings (loss) per share growth projections to a GAAP measure without unreasonable effort. Operating earnings (loss) per share and Operating earnings (loss) per share for each segment is calculated by dividing Operating earnings (loss), which excludes special items as discussed above, for the periods presented in 2018 by 538 million shares, 539 million shares in the first quarter of 2019 and by 540 million shares for the full year 2019, which reflects the full impact of share dilution from the equity issuance in January 2018. Management uses non-GAAP financial measures such as Operating earnings (loss) and Operating earnings (loss) per share to evaluate the Company’s performance and manage its operations and frequently references these non-GAAP financial measures in its decision-making, using them to facilitate historical and ongoing performance comparisons. Additionally, management uses Operating earnings (loss) per share by segment to further evaluate FirstEnergy’s performance by segment and references this non-GAAP financial measure in its decision-making. Management believes that the non-GAAP financial measures of Operating earnings (loss), Operating earnings (loss) per share and Operating earnings (loss) per share by segment provide consistent and comparable measures of performance of its businesses on an ongoing basis. Management also believes that such measures are useful to shareholders and other interested parties to understand performance trends and evaluate the Company against its peer group by presenting period-over-period operating results without the effect of certain charges or benefits that may not be consistent or comparable across periods or across the Company’s peer group. All of these non-GAAP financial measures are intended to complement, and are not considered as alternatives to, the





most directly comparable GAAP financial measures. Also, the non-GAAP financial measures may not be comparable to similarly titled measures used by other entities.







Item 9.01 Financial Statements and Exhibits
(d)
Exhibits

Exhibit No.
 
Description
99.1
 
99.2
 











Forward-Looking Statements: This Form 8-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Unless the context requires otherwise, as used herein, references to “we,” “us,” “our,” and “FirstEnergy” refer to FirstEnergy Corp. Forward-looking statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” "forecast," "target," "will," "intend," “believe,” "project," “estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following (see Glossary of Terms for definitions of capitalized terms): the ability to successfully execute an exit from commodity-based generation, including, without limitation, mitigating exposure for remedial activities associated with formerly owned generation assets; the risks associated with the Chapter 11 bankruptcy proceedings involving FirstEnergy Solutions Corp. (FES), its subsidiaries, and FirstEnergy Nuclear Operating Company (FENOC) (FES Bankruptcy) that could adversely affect us, our liquidity or results of operations, including, without limitation, that conditions to the FES Bankruptcy settlement agreement may not be met or that the FES Bankruptcy settlement agreement may not be otherwise consummated, and if so, the potential for litigation and payment demands against us by FES or FENOC or their creditors; the ability to accomplish or realize anticipated benefits from strategic and financial goals, including, but not limited to, our strategy to operate and grow as a fully regulated business, to execute our transmission and distribution investment plans, to continue to reduce costs through FE Tomorrow, which is the FirstEnergy initiative launched in late 2016 to identify our optimal organization structure and properly align corporate costs and systems to efficiently support FirstEnergy as a fully regulated company going forward, and other initiatives, and to improve our credit metrics, strengthen our balance sheet and grow earnings; legislative and regulatory developments at the federal and state levels, including, but not limited to, matters related to rates, compliance and enforcement activity; economic and weather conditions affecting future operating results, such as significant weather events and other natural disasters, and associated regulatory events or actions; changes in assumptions regarding economic conditions within our territories, the reliability of our transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; changes in customers' demand for power, including, but not limited to, the impact of state and federal energy efficiency and peak demand reduction mandates; changes in national and regional economic conditions affecting us and/or our major industrial and commercial customers or others with which we do business; the risks associated with cyber-attacks and other disruptions to our information technology system that may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to comply with applicable state and federal reliability standards and energy efficiency and peak demand reduction mandates; changes to federal and state environmental laws and regulations, including, but not limited to, those related to climate change; changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts and other trust funds, or causing us to make additional contributions sooner, or in amounts that are larger, than currently anticipated; the risks associated with the decommissioning of our retired and former nuclear facilities; the risks and uncertainties associated with litigation, arbitration, mediation and like proceedings; labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, including the Tax Act, or adverse tax audit results or rulings; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us; actions that may be taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; and the risks and other factors discussed from time to time in FirstEnergy’s Securities and Exchange Commission (SEC) filings. Dividends declared from time to time on FirstEnergy’s common stock, and thereby on FirstEnergy’s preferred stock, during any period may in the aggregate vary from prior periods due to circumstances considered by FirstEnergy’s Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These





forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy’s filings with the SEC, including but not limited to the most recent Quarterly Report on Form 10-Q, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein as a result of new information, future events or otherwise.







SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

April 23, 2019

 
 FIRSTENERGY CORP.
 
 Registrant
 
 
 
 
 By:
/s/ Jason J. Lisowski
 
Jason J. Lisowski
Vice President, Controller and
Chief Accounting Officer






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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


Exhibit 99.1
FirstEnergy Corp.
For Release: April 23, 2019
76 South Main Street
 
 
Akron, Ohio 44308
 
 
www.firstenergy.com
 
 
 
 
 
News Media Contact:
Investor Contact:
Tricia Ingraham
Irene Prezelj
(330) 384-5247
(330) 384-3859

FirstEnergy Announces First Quarter 2019 Financial Results

Akron, Ohio - FirstEnergy Corp. (NYSE: FE) today reported first quarter 2019 GAAP earnings of $315 million or $0.59 per basic and diluted share, on revenues of $2.9 billion. In the first quarter of 2018, the company recorded GAAP earnings of $1.2 billion or $2.55 per basic share ($2.54 diluted), on revenues of $2.9 billion. GAAP earnings for the first quarter of 2018 included a gain on the deconsolidation of FirstEnergy Solutions Corp., its subsidiaries, and FirstEnergy Nuclear Operating Company as a result of their bankruptcy filing on March 31, 2018. GAAP earnings for both periods include the impact of special items listed below.

Operating (non-GAAP) earnings* were $0.67 per share in both the first quarter of 2019 and 2018.

“We are pleased with our solid first quarter results, which reflect the continued success of our regulated strategies,” said Charles E. Jones, FirstEnergy president and chief executive officer. “We are off to a great start for the year, and we are well positioned to continue meeting our commitments to investors, including our compound annual growth rate of 6 to 8 percent.”

In addition to affirming its compound annual growth projection of 6 to 8 percent through 2021**, FirstEnergy is updating its 2019 GAAP earnings forecast range to $2.37 to $2.67 per share, and affirming its operating (non-GAAP) earnings guidance of $2.45 to $2.75 per share. The company is also providing an earnings guidance range of $0.55 to $0.65 per share on both a GAAP and operating earnings basis for the second quarter of 2019.

In FirstEnergy’s Regulated Distribution business, first quarter 2019 earnings were flat compared to the same period in 2018. Stronger weather-adjusted residential load and lower net financing costs were offset by higher depreciation.


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Heating degree days were 1 percent higher than the same period of 2018, and flat compared to normal weather.
  
Total distribution deliveries decreased slightly compared to the first quarter of 2018. Residential sales increased 0.7 percent, while deliveries to commercial customers decreased 1.4 percent. Deliveries to industrial customers were essentially flat as lower demand from steel and automotive customers offset continued growth in the shale and chemical sectors.

In the Regulated Transmission business, first quarter earnings increased as a result of a higher rate base from continued investments in the company’s Energizing the Future initiative, partially offset by higher operating expenses at the stated-rate transmission companies.

In the Corporate/Other segment, results for the first quarter of 2019 reflect the absence of commodity margin from the Pleasants Power Station and higher net financing costs, partially offset by a lower effective tax rate.












2




 
 
 
 
Consolidated GAAP Earnings Per Share to Operating (Non-GAAP) EPS* Reconciliation

 
 
 
Three Months Ended March 31,
 
 
2019 Estimates
 
 
 
2019
2018
 
 
Second Quarter
Full Year
 
 
Earnings Per Share (GAAP)

$0.59
$2.55
 
 
$0.55 - $0.65
$2.37 - $2.67
 
 
Excluding Special Items*:
 
 
 
 
 
 
 
 
Regulatory charges
(0.01)
0.01
 
 
(0.01)
 
 
Exit of competitive generation
0.09
(1.89)
 
 
0.09
 
 
    Total Special Items*
0.08
(1.88)
 
 
0.08
 
 
Operating EPS (non-GAAP)

$0.67
$0.67
 
 
 $0.55 - $0.65
 $2.45 - $2.75
 
 
 
 
 
 
 
 
 
 
 
 
Per share amounts for the special items and earnings drivers above are based on the after-tax effect of each item divided by number of shares outstanding assuming full impact of dilution from the $2.5 billion equity issuance in January 2018. The current and deferred income tax effect was calculated by applying the subsidiaries’ statutory tax rate to the pre-tax amount if deductible/taxable. The income tax rates range from 21% to 29% in the first quarter of 2019 and 2018. 2019F Earnings (Loss) Per Share and 2019F Operating Earnings (Loss) Per Share - Non-GAAP are based on 540M shares outstanding.
 


Non-GAAP Financial Measures:
* Operating earnings (loss) excludes “special items” as described below, and is a non-GAAP financial measure. Special items represent charges incurred or benefits realized that management believes are not indicative of, or may obscure trends useful in evaluating the company’s ongoing core activities and results of operations or otherwise warrant separate classification. Special items also reflect the adjustment to include the full impact of share dilution from the $2.5 billion equity issuance in January 2018. Special items are not necessarily non-recurring. Management uses Operating earnings (loss) and Operating earnings (loss) per share to evaluate the company’s performance and manage its operations and frequently references these non-GAAP financial measures in its decision making, using them to facilitate historical and ongoing performance comparisons. Additionally, management uses Operating earnings (loss) per share by segment to further evaluate the company's performance by segment and references this non-GAAP financial measure in its decision making. Operating earnings (loss) per share and operating earnings (loss) per share for each segment is calculated by dividing Operating earnings (loss), which excludes specials items as discussed herein, for the periods presented in 2018 by 538 million shares, 539 million shares in the first quarter of 2019 and by 540 million shares for the full year 2019, which reflects the full impact of share dilution from the equity issuance in January 2018. Management believes that the non-GAAP financial measures of Operating earnings (loss) and Operating earnings (loss) per share and Operating earnings (loss) per share by segment provide consistent and comparable measures of performance of its businesses on an ongoing basis. Management also believes that such measures are useful to shareholders and other interested parties to understand performance trends and evaluate the company against its peer group by presenting period-over-period operating results without the effect of certain charges or benefits that may not be consistent or comparable across periods or across the company’s peer group. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). These non-GAAP financial measures are intended to complement, and are not considered as alternatives to, the most directly comparable GAAP financial measures. Also, the non-GAAP financial measures may not be comparable to similarly titled measures used by other entities. Pursuant to the requirements of Regulation G, FirstEnergy has provided, where possible without unreasonable effort, quantitative reconciliations within this presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

** The Company’s management team cannot estimate on a forward-looking basis the impact of special items in the context of Operating earnings (loss) per share growth projections because special items, which could be significant, are difficult to predict and may be highly variable. Consequently, the Company is unable to reconcile Operating earnings (loss) per share growth projections to a GAAP measure without unreasonable effort.









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Investor Materials and Teleconference

FirstEnergy’s Strategic and Financial Highlights and Investor Factbook are posted on the company’s Investor Information website - www.firstenergycorp.com/ir. Click on the First Quarter 2019 Financial Results link.

The company invites investors, customers and other interested parties to listen to a live Internet webcast of its teleconference for financial analysts and view slides associated with the presentation at 10:00 a.m. EDT tomorrow. FirstEnergy management will present an overview of the company’s financial results, followed by a question-and-answer session. The teleconference and presentation can be accessed on the website by selecting the First Quarter 2019 Earnings Conference Call link. The webcast and presentation will be archived on the website.

FirstEnergy is dedicated to safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate more than 24,500 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy on Twitter @FirstEnergyCorp or online at www.firstenergycorp.com


Forward-Looking Statements: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Unless the context requires otherwise, as used herein, references to “we,” “us,” “our,” and “FirstEnergy” refer to FirstEnergy Corp. Forward-looking statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” "forecast," "target," "will," "intend," “believe,” "project," “estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following (see Glossary of Terms for definitions of capitalized terms): the ability to successfully execute an exit from commodity-based generation, including, without limitation, mitigating exposure for remedial activities associated with formerly owned generation assets; the risks associated with the Chapter 11 bankruptcy proceedings involving FirstEnergy Solutions Corp. (FES), its subsidiaries, and FirstEnergy Nuclear Operating Company (FENOC) (FES Bankruptcy) that could adversely affect us, our liquidity or results of operations, including, without limitation, that conditions to the FES Bankruptcy settlement agreement may not be met or that the FES Bankruptcy settlement agreement may not be otherwise consummated, and if so, the potential for litigation and payment demands against us by FES or FENOC or their creditors; the ability to accomplish or realize anticipated benefits from strategic and financial goals, including, but not limited to, our strategy to operate and grow as a fully regulated business, to execute our transmission and distribution investment plans, to continue to reduce costs through FE Tomorrow, which is the FirstEnergy initiative launched in late 2016 to identify our optimal organization structure and properly align corporate costs and systems to efficiently support FirstEnergy as a fully regulated company going forward, and other initiatives, and to improve our credit metrics, strengthen our balance sheet and grow earnings; legislative and regulatory developments at the federal and state levels, including, but not limited to, matters related to rates, compliance and enforcement activity; economic and weather conditions affecting future operating results, such as significant weather events and other natural disasters, and associated regulatory events or actions; changes in assumptions regarding economic conditions within our territories, the reliability of our transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; changes in customers' demand for power, including, but not limited to, the impact of state and federal energy efficiency and peak demand reduction mandates; changes in national and regional economic conditions affecting us and/or our major industrial and commercial customers or others with which we do business; the risks associated with cyber-attacks and other disruptions to our information technology system that may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to comply with applicable state and federal reliability standards and energy efficiency and peak demand reduction mandates; changes to federal and state environmental laws and regulations, including, but not limited to, those related to climate change; changing market conditions affecting the measurement of certain liabilities and the value of assets held in

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our pension trusts and other trust funds, or causing us to make additional contributions sooner, or in amounts that are larger, than currently anticipated; the risks associated with the decommissioning of our retired and former nuclear facilities; the risks and uncertainties associated with litigation, arbitration, mediation and like proceedings; labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, including the Tax Act, or adverse tax audit results or rulings; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us; actions that may be taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; and the risks and other factors discussed from time to time in FirstEnergy’s Securities and Exchange Commission (SEC) filings. Dividends declared from time to time on FirstEnergy’s common stock, and thereby on FirstEnergy’s preferred stock, during any period may in the aggregate vary from prior periods due to circumstances considered by FirstEnergy’s Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy’s filings with the SEC, including but not limited to the most recent Quarterly Report on Form 10-Q, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein as a result of new information, future events or otherwise.



(042319)


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Section 3: EX-99.2 (EXHIBIT 99.2)

a1q2019strategicandfinan
Exhibit 99.2 1Q 2019 Strategic & Financial Highlights Charles E. Jones, President and CEO Steven E. Strah, SVP and CFO April 2019


 
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including, among others, Operating earnings (loss), Operating earnings (loss) per share and Operating earnings (loss) per share by segment. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). Operating earnings (loss), Operating earnings (loss) per share and Operating earnings (loss) per share by segment are not calculated in accordance with GAAP to the extent they exclude the impact of “special items.” Special items represent charges incurred or benefits realized that management believes are not indicative of, or may obscure trends useful in evaluating the company’s ongoing core activities and results of operations or otherwise warrant separate classification. Special items also reflect the adjustment to include the full impact of share dilution from the $2.5 billion equity issuance in January 2018. Special items are not necessarily non-recurring. FirstEnergy Corp. (FE or the Company) management cannot estimate on a forward-looking basis the impact of these items in the context of Operating earnings (loss) per share growth projections because these items, which could be significant, are difficult to predict and may be highly variable. Consequently, the Company is unable to reconcile Operating earnings (loss) per share growth projections (i.e. CAGR) to a GAAP measure without unreasonable effort. Operating earnings (loss) per share and Operating earnings (loss) per share for each segment is calculated by dividing Operating earnings (loss), which excludes special items as discussed above, for the periods presented in 2018 by 538 million shares, 539 million shares in the first quarter of 2019 and by 540 million shares for the full year 2019, which reflects the full impact of share dilution from the equity issuance in January 2018. Management uses non-GAAP financial measures such as Operating earnings (loss) and Operating earnings (loss) per share to evaluate the company’s performance and manage its operations and frequently references these non-GAAP financial measures in its decision-making, using them to facilitate historical and ongoing performance comparisons. Additionally, management uses Operating earnings (loss) per share by segment to further evaluate the company’s performance by segment and references this non-GAAP financial measure in its decision-making. Management believes that the non-GAAP financial measures of Operating earnings (loss), Operating earnings (loss) per share and Operating earnings (loss) per share by segment provide consistent and comparable measures of performance of its businesses on an ongoing basis. Management also believes that such measures are useful to shareholders and other interested parties to understand performance trends and evaluate the company against its peer group by presenting period-over-period operating results without the effect of certain charges or benefits that may not be consistent or comparable across periods or across the company’s peer group. All of these non-GAAP financial measures are intended to complement, and are not considered as alternatives to, the most directly comparable GAAP financial measures. Also, the non-GAAP financial measures may not be comparable to similarly titled measures used by other entities. Pursuant to the requirements of Regulation G, FirstEnergy has provided, where possible without unreasonable effort, quantitative reconciliations within this presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. 2 April 2019 1Q 2019 Strategic & Financial Highlights


 
Financial and Business Updates 1Q 2019 Results ■ Reported GAAP earnings of $0.59 per share ■ Reported Operating (non-GAAP) earnings of $0.67 per share* – Above the midpoint of our 1Q earnings guidance range of $0.60 - $0.70 Transmission Updates ■ Energizing the Future: on pace for $1.2B in planned investments in 2019 – Currently have ~1,000 projects underway; expect to bring 600-700 projects in-service in 2019 ■ Opened Center for Advanced Energy Technology (CAET); – One of the most comprehensive grid technology testing and training centers in the country * Refer to slide 10 for reconciliation between GAAP and Operating (non-GAAP) earnings 3 April 2019 1Q 2019 Strategic & Financial Highlights


 
Financial and Business Updates (Continued) Distribution Updates ■ In February, the Ohio utilities requested approval for two-year extension of Distribution Modernization Rider (Rider DMR) ■ Ohio supplemental stipulation on tax reform and grid modernization remains pending ■ Reached settlement on Jersey Central Power & Light’s (JCP&L) infrastructure investment program – 2-year, $97M program aimed at reliability, resiliency and safety enhancements (June 2019 - Dec. 2020) – Expect final approval from NJ BPU ■ On March 22, received final order in Potomac Edison-Maryland (PE-MD) rate case – MD PSC order fully resolved tax reform and allows for a rate increase of $6.2M – Includes new, 4-year Electric Distribution Investment Surcharge (EDIS); recovers incremental costs related to three reliability programs – Previously, in January, MD PSC approved a 5-year, $12M pilot program for electric vehicle charging stations PE-MD Rate Case Summary PE-MD Electric Vehicle Program Authorized ROE 9.65% • Plans to install 59 public charging stations across service Capital Structure 47% debt / 53% equity territory Rate Base $462M • Residential customers will be eligible for rebates for the Test Year Historic; 12 mo. ended June 30, 2018 installation of EV charging stations at their home 4 April 2019 1Q 2019 Strategic & Financial Highlights


 
Financial and Business Updates (Continued) Corporate Responsibility ■ Continuing our efforts to offer greater transparency and engagement with our ESG goals – Plan to publish a Corporate Responsibility report later this year to examine our efforts on issues as wide- ranging as diversity and inclusion, our environmental footprint, corporate governance and community support ■ On April 1, published our first Climate Report – Achieved a 62% reduction in CO2 as of year-end 2018 and expect to reach 80% later this year – well on our way to achieving our goal of at least 90% below 2005 levels by 2045 set in 2015 FES Update ■ Key component of our settlement agreement was our substantial support for FES to both emerge from bankruptcy and meet any legacy and future obligations – including all environmental responsibilities that could occur when the plants are eventually retired ■ In light of FES’ commitment to engage with the Department of Justice and other concerned parties, our previous assessment of the obligations, and the surety and funding that are already in place, we see no increased risk to removing the broad third-party releases from the comprehensive settlement – This change does not, in our assessment and experience, increase liabilities or obligations to our company ■ Believe FES will continue to work constructively with all parties to ensure both timely approval of their plan and their bankruptcy exit 5 April 2019 1Q 2019 Strategic & Financial Highlights


 
Financial and Business Updates (Continued) Earnings Guidance ■ Updating 2019 GAAP earnings forecast to $2.37 - $2.67 per share ■ Affirming 2019 Operating (non-GAAP) earnings guidance of $2.45 - $2.75 per fully diluted share* ■ Introducing 2Q19 GAAP and Operating (non-GAAP) earnings guidance of $0.55 - $0.65 per share* ■ Affirming Long-Term Operating (non-GAAP) EPS CAGR* projection of 6% - 8% through 2021 * Refer to slide 2 for information on Non-GAAP Financial Matters and slide 16 for 2019F reconciliation between GAAP and Operating (non-GAAP) earnings. 6 April 2019 1Q 2019 Strategic & Financial Highlights


 
(GAAP) (Non-GAAP) 1Q 2019 Earnings Results 1Q19 vs. 1Q18 EPS Variance Basic EPS Operating EPS* Regulated Distribution ($0.06) – Quarter-over-Quarter (Basic EPS / Operating EPS*) Regulated Transmission ($0.02) +$0.01 Corporate / Other ($1.88) ($0.01) 1Q Results FE Consolidated ($1.96) – ■ Continue to present all operating results and projections on a fully diluted basis – Additional information on quarterly results is available in our Strategic and Financial Highlights document ■ Reported 1Q 2019 GAAP earnings of $0.59 per basic and diluted share – Results include regulatory charges, exit of competitive generation and the impact of full dilution from the equity issuance in 2018 – 1Q 2018 results included a $1.2B gain from the deconsolidation of FES, its subsidiaries, and FENOC ■ Reported 1Q 2019 Operating (non-GAAP) earnings* of $0.67 per share ■ Regulated Distribution ($0.06) / $0.00 – Results due to favorable weather-adjusted load and lower net financing costs, offset by higher depreciation – Special items – include regulatory charges, exit of competitive generation and impact of full dilution ■ Regulated Transmission: ($0.02) / +$0.01 – Favorable results due to higher rate base from continued investments in Energizing the Future, partially offset by higher operating expenses at the stated rate transmission companies ■ Corporate / Other: ($1.88) / ($0.01) – Unfavorable results due to higher interest expense and the absence of commodity margin from the Pleasants Power station in 1Q 2018, partially offset by a lower effective tax rate – Special items – include exit of competitive generation and impact of full dilution Per share amounts for the special items and earnings drivers above and throughout this report are based on the after-tax effect of each item divided by the number of shares outstanding for the period assuming full impact of dilution from the $2.5 billion equity issuance in January 2018. The current and deferred income tax effect was calculated by applying the subsidiaries' statutory tax rate to the pre-tax amount if deductible/taxable. The income tax rates range from 21% to 29% in the first quarter of 2019 and 2018. * Refer to slide 10 for reconciliation between GAAP and Operating (non-GAAP) earnings 7 April 2019 1Q 2019 Strategic & Financial Highlights


 
Rating Agency and Financing Updates Recent Rating Actions ■ In late March, Moody’s issued one-notch upgrades to American Transmission Systems, Incorporated (ATSI), Mid-Atlantic Interstate Transmission, LLC (MAIT) and JCP&L ■ Last week, Fitch issued one-notch upgrades to JCP&L, Monongahela Power Company, Allegheny Generating Company and Potomac Edison ■ These actions reflect our improved risk profile and we expect to see continued positive momentum Financing Activities ■ Issued new senior notes totaling $900M at JCP&L and Metropolitan Edison Company (ME) to repay $600M of maturing debt, repay short-term borrowings, and to fund capital expenditures ■ Issued $500M of new debt at FirstEnergy Transmission, LLC (FET) and $100M of new debt at ATSI primarily to repay short-term borrowings and to fund continued capital investments REGULATED DISTRIBUTION REGULATED TRANSMISSION Year Entity Amount Purpose Year Entity Amount Purpose  ME $500M $300M at 7.70% maturing 1/15/19  ATSI $100M New Issuance 2019 2019  JCP&L $400M $300M at 7.35% maturing 2/1/19  FET $500M New Issuance We are a forward-thinking electric utility powered by a diverse team of employees committed to making customers’ lives brighter, the environment better and our communities stronger 8 April 2019 1Q 2019 Strategic & Financial Highlights


 
Earnings Supplement to the Financial Community TABLE OF CONTENTS (Slide) 10. 1Q 2019 and 1Q 2018 Earnings Summary and Reconciliation 11. 1Q 2019 Earnings Drivers by Segment 12. Special Items Descriptions 13. 1Q 2019 Earnings Results 14. 1Q 2018 Earnings Results 15. Quarter-over-Quarter Earnings Comparison 16. 2019F GAAP to Operating (Non-GAAP) Earnings Reconciliation 17. Forward-Looking Statements Irene M. Prezelj, Vice President Gina E. Caskey, Senior Advisor Jake M. Mackin, Consultant prezelji@firstenergycorp.com caskeyg@firstenergycorp.com mackinj@firstenergycorp.com 330.384.3859 330.761.4185 330.384.4829 9 April 2019 1Q 2019 Strategic & Financial Highlights


 
Quarterly Summary   1Q 2019 1Q 2018 Change GAAP Earnings (Loss) Per Basic Share $0.59 $2.55 $(1.96) Special Items $0.08 $(1.88) $1.96 Operating (Non-GAAP) Earnings Per Share $0.67 $0.67 $— Quarterly Reconciliation FirstEnergy EPS Variance Analysis Regulated Regulated Corporate / Corp. (in millions, except per share amounts) Distribution Transmission Other Consolidated 1Q 2018 Net Income attributable to Common Stockholders (GAAP) $322 $99 $792 $1,213 1Q 2018 Basic Earnings Per Share (avg. shares outstanding 476M) $0.68 $0.21 $1.66 $2.55 Special Items - 2018 Impact of full dilution (0.08) (0.03) 0.11 — Regulatory charges 0.01 — — 0.01 Exit of competitive generation — — (1.89) (1.89) Total Special Items - 1Q 2018 (0.07) (0.03) (1.78) (1.88) 1Q 2018 Operating Earnings (Loss) Per Share - Non-GAAP (538M fully diluted shares) $0.61 $0.18 $(0.12) $0.67 Distribution Deliveries 0.01 — — 0.01 Transmission Margin — 0.02 — 0.02 Net Operating and Miscellaneous Expenses — (0.01) — (0.01) Depreciation (0.02) — — (0.02) Net Financing Costs 0.01 — (0.01) — Absence of Pleasants Commodity Margin — — (0.03) (0.03) Effective Tax Rate — — 0.03 0.03 1Q 2019 Operating Earnings (Loss) Per Share - Non-GAAP (539M fully diluted shares) $0.61 $0.19 $(0.13) $0.67 Special Items - 2019 Impact of full dilution 0.01 — (0.01) — Regulatory charges 0.01 — — 0.01 Exit of competitive generation (0.01) — (0.08) (0.09) Total Special Items - 1Q 2019 0.01 — (0.09) (0.08) 1Q 2019 Basic Earnings (Loss) Per Share (avg. shares outstanding 530M) $0.62 $0.19 $(0.22) $0.59 1Q 2019 Net Income (Loss) attributable to Common Stockholders (GAAP) $329 $104 $(118) $315 Per share amounts for the special items and earnings drivers above and throughout this report are based on the after-tax effect of each item divided by the number of shares outstanding for the period assuming full impact of dilution from the $2.5 billion equity issuance in January Note: Refer to slide 2 for information 2018. The current and deferred income tax effect was calculated by applying the subsidiaries' statutory tax rate to the pre-tax amount if on Non-GAAP Financial Matters. deductible/taxable. The income tax rates range from 21% to 29% in the first quarter of 2019 and 2018. 10 April 2019 1Q 2019 Strategic & Financial Highlights


 
Earnings Drivers: 1Q 2019 vs. 1Q 2018 Regulated Distribution (RD) ▪ Distribution Deliveries: Total distribution deliveries increased earnings $0.01 per share primarily reflecting an increase in weather-adjusted usage and customer count in the residential class. Q-o-Q Weather-Adjusted Distribution Deliveries Q-o-Q Actual Distribution Deliveries 2.6% 0.7% 0.7% (0.1)% (0.2)% (0.8)% (0.1)% (1.4)% Residential Commercial Industrial Total Residential Commercial Industrial Total ▪ Depreciation: Higher depreciation expense decreased earnings $0.02 per share, primarily due to a higher asset base. ▪ Net Financing Costs: Lower net financing costs increased earnings $0.01 per share, primarily reflecting lower interest expense as a result of various debt maturities and refinancings at lower rates. ▪ Special Items: In the first quarter of 2019 and 2018, special items totaled ($0.01) per share and ($0.07) per share, respectively. Regulated Transmission (RT) ▪ Transmission Margin: Higher transmission margin increased earnings $0.02 per share, primarily due to higher rate base at Mid-Atlantic Interstate Transmission, LLC (MAIT) and American Transmission Systems, Incorporated (ATSI). ▪ Net Operating and Miscellaneous Expenses: Higher operating expenses at the stated rate transmission companies decreased earnings $0.01 per share. ▪ Special Items: In the first quarter of 2019 and 2018, special items were $0.00 per share and ($0.03) per share, respectively. Corporate / Other (Corp) ▪ Net Financing Costs: Higher net financing costs decreased results $0.01 per share. ▪ Absence of Pleasants Commodity Margin: The absence of commodity margin from the Pleasants Power Station recognized in the first quarter of 2018 decreased results $0.03 per share. ▪ Effective Tax Rate: Lower consolidated effective income tax rate increased results $0.03 per share. ▪ Special Items: In the first quarter of 2019 and 2018, special items totaled $0.09 per share and ($1.78) per share, respectively. 11 April 2019 1Q 2019 Strategic & Financial Highlights


 
Special Items Descriptions ▪ Regulatory charges: Primarily reflects the impact of regulatory agreements or orders requiring certain commitments and/or disallowing the recoverability of costs, net of related credits. ▪ Exit of competitive generation: Primarily reflects charges or credits resulting from the exit of competitive operations, including the impact of deconsolidating FES, its subsidiaries and FENOC, following their voluntary petitions for bankruptcy protection on March 31, 2018. ▪ Impact of full dilution: Represents the dilutive impact of increasing weighted average shares outstanding to reflect the full impact of share dilution from the $2.5 billion equity issuance in January 2018, including preferred dividends and conversion of preferred stock to common shares. ▪ In the Corp segment, this includes the addback of preferred share dividends of $43 million and $5 million in the first quarter of 2018 and 2019, respectively, and non-cash deemed dividends for the amortization of the beneficial conversion feature of $113 million in the first quarter of 2018. These amounts are considered a deduction to arrive at Net Income (loss) attributable to Common Stockholders under GAAP, and are added back to the calculation of Operating (Non-GAAP) earnings given the assumption that all preferred stock is converted. Note: Special items represent charges incurred or benefits realized, including share dilution, that management believes are not indicative of, or may obscure trends useful in evaluating the company’s ongoing core activities and results of operations or otherwise warrant separate classification. Special items are not necessarily non-recurring. 12 April 2019 1Q 2019 Strategic & Financial Highlights


 
1st Quarter 2019 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,512 $ 352 $ (31) $ 2,833 $ — $ — $ — $ — $ 2,512 $ 352 $ (31) $ 2,833 (2) Other 61 4 (15) 50 — — — — 61 4 (15) 50 (3) Total Revenues 2,573 356 (46) 2,883 — — — — 2,573 356 (46) 2,883 (4) Fuel 131 — — 131 — — — — 131 — — 131 (5) Purchased power 777 — 4 781 — — — — 777 — 4 781 (6) Other operating expenses 771 66 (58) 779 (6) (a) (b) — (4) (b) (10) 765 66 (62) 769 (7) Provision for depreciation 209 69 19 297 — — — — 209 69 19 297 (8) Amortization of regulatory assets, net 3 2 — 5 8 (a) — — 8 11 2 — 13 (9) General taxes 198 51 12 261 — — (2) (b) (2) 198 51 10 259 (10) Total Operating Expenses 2,089 188 (23) 2,254 2 — (6) (4) 2,091 188 (29) 2,250 (11) Operating Income (Loss) 484 168 (23) 629 (2) — 6 4 482 168 (17) 633 (12) Miscellaneous income, net 46 4 4 54 — — 4 (b) 4 46 4 8 58 (13) Interest expense (122) (45) (86) (253) — — — — (122) (45) (86) (253) (14) Capitalized financing costs 10 8 — 18 — — — — 10 8 — 18 (15) Total Other Expense (66) (33) (82) (181) — — 4 4 (66) (33) (78) (177) (16) Income (Loss) Before Income Taxes 418 135 (105) 448 (2) — 10 8 416 135 (95) 456 (17) Income taxes (benefits) 89 31 (27) 93 — — 2 (b) 2 89 31 (25) 95 (18) Income (Loss) From Continuing Operations 329 104 (78) 355 (2) — 8 6 327 104 (70) 361 (19) Discontinued operations, net of tax — — (35) (35) — — 35 (b) 35 — — — — (20) Net Income (Loss) 329 104 (113) 320 (2) — 43 41 327 104 (70) 361 (21) Income Allocated to Preferred Stockholders — — 5 5 — — (5) (c) (5) — — — — (22) Net Income (Loss) Attributable to Common $ 329 $ 104 $ (118) $ 315 $ (2) $ — $ 48 $ 46 $ 327 $ 104 $ (70) $ 361 (23) Average Shares Outstanding 530 539 539 (24) Earnings (Loss) per Share $ 0.62 $ 0.19 $ (0.22) $ 0.59 $ (0.01) $ — $ 0.09 $ 0.08 $ 0.61 $ 0.19 $ (0.13) $ 0.67 Special Items (after-tax impact): (a) Regulatory charges $ (6) $ — $ — $ (6) (b) Exit of competitive generation 4 — 43 47 (c) Impact of full dilution — — 5 5 Impact to Earnings $ (2) $ — $ 48 $ 46 13 April 2019 1Q 2019 Strategic & Financial Highlights


 
1st Quarter 2018 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,508 $ 319 $ (21) $ 2,806 $ — $ — $ — $ — $ 2,508 $ 319 $ (21) $ 2,806 (2) Other 68 4 (16) 56 — — — — 68 4 (16) 56 (3) Total Revenues 2,576 323 (37) 2,862 — — — — 2,576 323 (37) 2,862 (4) Fuel 139 — — 139 — — — — 139 — — 139 (5) Purchased power 819 — 1 820 — — — — 819 — 1 820 (6) Other operating expenses 898 54 (12) 940 (7) (a) — (42) (b) (49) 891 54 (54) 891 (7) Provision for depreciation 196 61 20 277 — — — — 196 61 20 277 (8) Amortization (deferral) of regulatory assets, net (152) 4 — (148) — — — — (152) 4 — (148) (9) General taxes 195 47 12 254 — — — — 195 47 12 254 (10) Total Operating Expenses 2,095 166 21 2,282 (7) — (42) (49) 2,088 166 (21) 2,233 (11) Operating Income (Loss) 481 157 (58) 580 7 — 42 49 488 157 (16) 629 (12) Miscellaneous income, net 56 4 7 67 — — — — 56 4 7 67 (13) Interest expense (128) (39) (81) (248) — — 3 (c) 3 (128) (39) (78) (245) (14) Capitalized financing costs 6 9 — 15 — — — — 6 9 — 15 (15) Total Other Expense (66) (26) (74) (166) — — 3 3 (66) (26) (71) (163) (16) Income (Loss) Before Income Taxes (Benefits) 415 131 (132) 414 7 — 45 52 422 131 (87) 466 (17) Income taxes (benefits) 93 32 108 233 2 — (123) (121) 95 32 (15) 112 (18) Income (Loss) From Continuing Operations 322 99 (240) 181 5 — 168 173 327 99 (72) 354 (19) Discontinued operations, net of tax — — 1,188 1,188 — — (1,183) (b) (1,183) — — 5 5 (20) Net Income (Loss) 322 99 948 1,369 5 — (1,015) (1,010) 327 99 (67) 359 (21) Income Allocated to Preferred Stockholders — — 156 156 — — (156) (d) (156) — — — — (22) Net Income (Loss) Attributable to Common $ 322 $ 99 $ 792 $ 1,213 $ 5 $ — $ (859) $ (854) $ 327 $ 99 $ (67) $ 359 (23) Average Shares Outstanding 476 538 538 (24) Earnings (Loss) per Share $ 0.68 $ 0.21 $ 1.66 $ 2.55 $ (0.07) $ (0.03) $ (1.78) $ (1.88) $ 0.61 $ 0.18 $ (0.12) $ 0.67 Special Items (after-tax impact): (a) Regulatory charges $ 5 $ — $ — $ 5 (b) Exit of competitive generation — — (1,017) (1,017) (c) Debt redemption costs — — 2 2 (d) Impact of full dilution — — 156 156 Impact to Earnings $ 5 $ — $ (859) $ (854) 14 April 2019 1Q 2019 Strategic & Financial Highlights


 
1st Quarter 2019 vs 1st Quarter 2018 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 4 $ 33 $ (10) $ 27 $ — $ — $ — $ — $ 4 $ 33 $ (10) $ 27 (2) Other (7) — 1 (6) — — — — (7) — 1 (6) (3) Total Revenues (3) 33 (9) 21 — — — — (3) 33 (9) 21 (4) Fuel (8) — — (8) — — — — (8) — — (8) (5) Purchased power (42) — 3 (39) — — — — (42) — 3 (39) (6) Other operating expenses (127) 12 (46) (161) 1 — 38 39 (126) 12 (8) (122) (7) Provision for depreciation 13 8 (1) 20 — — — — 13 8 (1) 20 (8) Amortization of regulatory assets, net 155 (2) — 153 8 — — 8 163 (2) — 161 (9) General taxes 3 4 — 7 — — (2) (2) 3 4 (2) 5 (10) Total Operating Expenses (6) 22 (44) (28) 9 — 36 45 3 22 (8) 17 (11) Operating Income (Loss) 3 11 35 49 (9) — (36) (45) (6) 11 (1) 4 (12) Miscellaneous income, net (10) — (3) (13) — — 4 4 (10) — 1 (9) (13) Interest expense 6 (6) (5) (5) — — (3) (3) 6 (6) (8) (8) (14) Capitalized financing costs 4 (1) — 3 — — — — 4 (1) — 3 (15) Total Other Expense — (7) (8) (15) — — 1 1 — (7) (7) (14) (16) Income (Loss) Before Income Taxes 3 4 27 34 (9) — (35) (44) (6) 4 (8) (10) (17) Income taxes (benefits) (4) (1) (135) (140) (2) — 125 123 (6) (1) (10) (17) (18) Income (Loss) From Continuing Operations 7 5 162 174 (7) — (160) (167) — 5 2 7 (19) Discontinued operations, net of tax — — (1,223) (1,223) — — 1,218 1,218 — — (5) (5) (20) Net Income (Loss) 7 5 (1,061) (1,049) (7) — 1,058 1,051 — 5 (3) 2 (21) Income Allocated to Preferred Stockholders — — (151) (151) — — 151 151 — — — — (22) Net Income (Loss) Attributable to Common $ 7 $ 5 $ (910) $ (898) $ (7) $ — $ 907 $ 900 $ — $ 5 $ (3) $ 2 (23) Average Shares Outstanding 54 1 1 (24) Earnings (Loss) per Share $ (0.06) $ (0.02) $ (1.88) $ (1.96) $ 0.06 $ 0.03 $ 1.87 $ 1.96 $ — $ 0.01 $ (0.01) $ — 15 April 2019 1Q 2019 Strategic & Financial Highlights


 
2019F GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2019 Forecast 2Q19 Forecast (In $M, except per share amounts) RD RT Corp FE FE 2019F Net Income (Loss) attributable to Common Stockholders (GAAP) $1,175 - $1,280 $435 - $480 ($330) - ($320) $1,280 - $1,440 $295 - $350 2019F Earnings (Loss) Per Share $2.17 - $2.37 $0.81 - $0.89 ($0.61) - ($0.59) $2.37 - $2.67 $0.55 - $0.65 Excluding Special Items: Impact of full dilution (0.01) — 0.01 — — Regulatory charges (0.01) — — (0.01) — Exit of competitive generation 0.01 — 0.08 0.09 — Total Special Items (0.01) — 0.09 0.08 — 2019F Operating Earnings (Loss) Per Share - Non-GAAP (540M fully diluted shares) $2.16 - $2.36 $0.81 - $0.89 ($0.52) - ($0.50) $2.45 - $2.75 $0.55 - $0.65 (1) Operating earnings exclude special items as described in the reconciliation table above and is a non-GAAP financial measure. Per share amounts for the special items above are based on the after-tax effect of each item divided by the number of shares outstanding for the period assuming full impact of dilution from the $2.5B equity issuance in January 2018 (540M fully diluted shares). The current and deferred income tax effect was calculated by applying the subsidiaries' statutory tax rate to the pre-tax amount if deductible/taxable. The income tax rates range from 21% to 29%. 2019F Earnings (Loss) Per Share and 2019F Operating Earnings (Loss) Per Share - Non-GAAP are based on 540M shares outstanding. 16 April 2019 1Q 2019 Strategic & Financial Highlights


 
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Unless the context requires otherwise, as used herein, references to “we,” “us,” “our,” and “FirstEnergy” refer to FirstEnergy Corp. Forward-looking statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” "forecast," "target," "will," "intend," “believe,” "project," “estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following (see Glossary of Terms for definitions of capitalized terms): the ability to successfully execute an exit from commodity-based generation, including, without limitation, mitigating exposure for remedial activities associated with formerly owned generation assets; the risks associated with the Chapter 11 bankruptcy proceedings involving FirstEnergy Solutions Corp. (FES), its subsidiaries, and FirstEnergy Nuclear Operating Company (FENOC) (FES Bankruptcy) that could adversely affect us, our liquidity or results of operations, including, without limitation, that conditions to the FES Bankruptcy settlement agreement may not be met or that the FES Bankruptcy settlement agreement may not be otherwise consummated, and if so, the potential for litigation and payment demands against us by FES or FENOC or their creditors; the ability to accomplish or realize anticipated benefits from strategic and financial goals, including, but not limited to, our strategy to operate and grow as a fully regulated business, to execute our transmission and distribution investment plans, to continue to reduce costs through FE Tomorrow, which is the FirstEnergy initiative launched in late 2016 to identify our optimal organization structure and properly align corporate costs and systems to efficiently support FirstEnergy as a fully regulated company going forward, and other initiatives, and to improve our credit metrics, strengthen our balance sheet and grow earnings; legislative and regulatory developments at the federal and state levels, including, but not limited to, matters related to rates, compliance and enforcement activity; economic and weather conditions affecting future operating results, such as significant weather events and other natural disasters, and associated regulatory events or actions; changes in assumptions regarding economic conditions within our territories, the reliability of our transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; changes in customers' demand for power, including, but not limited to, the impact of state and federal energy efficiency and peak demand reduction mandates; changes in national and regional economic conditions affecting us and/or our major industrial and commercial customers or others with which we do business; the risks associated with cyber-attacks and other disruptions to our information technology system that may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to comply with applicable state and federal reliability standards and energy efficiency and peak demand reduction mandates; changes to federal and state environmental laws and regulations, including, but not limited to, those related to climate change; changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts and other trust funds, or causing us to make additional contributions sooner, or in amounts that are larger, than currently anticipated; the risks associated with the decommissioning of our retired and former nuclear facilities; the risks and uncertainties associated with litigation, arbitration, mediation and like proceedings; labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, including the Tax Act, or adverse tax audit results or rulings; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us; actions that may be taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; and the risks and other factors discussed from time to time in FirstEnergy’s Securities and Exchange Commission (SEC) filings. Dividends declared from time to time on FirstEnergy’s common stock, and thereby on FirstEnergy’s preferred stock, during any period may in the aggregate vary from prior periods due to circumstances considered by FirstEnergy’s Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy’s filings with the SEC, including but not limited to the most recent Quarterly Report on Form 10-Q, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein as a result of new information, future events or otherwise. 17 April 2019 1Q 2019 Strategic & Financial Highlights


 
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