FirstEnergy Corp. (FE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Firstenergy Corp. has a market cap of $11.44 billion; its shares were traded at around $37.13 with a P/E ratio of 10.69 and P/S ratio of 0.88. The dividend yield of Firstenergy Corp. stocks is 5.86%. Firstenergy Corp. had an annual average earning growth of 3.9% over the past 10 years.FE is in the portfolios of Jean-Marie Eveillard of First Eagle Investment Management, LLC, Brian Rogers of T Rowe Price Equity Income Fund, Stanley Druckenmiller of Duquesne Capital Management, LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, Pioneer Investments, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC, David Dreman of Dreman Value Management.
FirstEnergy incurred approximately $14 million ($11 million after tax) of merger transaction costs in the third quarter and approximately $35 million ($26 million after tax) of merger transaction costs in the first nine months of 2010. These costs are charged to expense as incurred.
On August 20, 2010, FES completed the remarketing of $250 million of PCRBs. Of the $250 million, $235 million of PCRBs were converted from a variable interest rate to a fixed interest rate. The remaining $15 million of PCRBs continue to bear a fixed interest rate. The interest rate conversion minimizes financial risk by converting the long-term debt into a fixed rate and, as a result, reducing exposure to variable interest rates over the short-term. These remarketings included two series: $235 million of PCRBs that now bear a per-annum rate of 2.25% and are subject to mandatory purchase on June 3, 2013; and $15 million of PCRBs that now bear a per-annum rate of 1.5% and are subject to mandatory purchase on June 1, 2011.
On October 22, 2010, Signal Peak and Global Rail entered into a $350 million syndicated two-year senior secured term loan facility among the two limited liability companies that comprise Signal Peak and Global Rail, as borrowers, Sovereign Bank, CoBank, Credit Agricole, U.S. Bank, BBVA Compass, Royal Bank of Canada, Fifth Third, Comerica Bank, CIBC Inc. and First Merit banks, as lenders, and Union Bank, N.A. as lender, administrative agent, collateral agent and syndication agent. FirstEnergy, together with WMB Loan Ventures LLC and WMB Loan Ventures II LLC, the entities that share ownership with FEV in the borrowers, have provided a guaranty of the borrowers obligations under the facility. The loan proceeds were used to repay $258 million of notes payable to FirstEnergy, including $9 million of interest and $63 million of bank loans that were scheduled to mature on November 16, 2010. Additional proceeds will be used for general company purposes, including an $11 million repayment of a third-party sellers note maturing October 29, 2010.
On October 20, 2010, the PPUC approved the results of the final of four auctions held to procure the default service requirements for Met-Ed and Penelec customers who choose not to shop with an alternative supplier. For the five-month period of January 1, 2011 to May 31, 2011, the tranche-weighted average prices ($/MWh) for Met-Eds residential and commercial classes were $67.10 and $68.28, respectively; Penelecs tranche-weighted average prices were $55.76 and $58.24 for its residential and commercial classes, respectively. The October 2010 auction is the second of four auctions to procure commercial default service requirements for the 12-month period of June 1, 2011 to May 31, 2012 and residential requirements for the 24-month period of June 1, 2011 to May 31, 2013. For Met-Ed and Penelec commercial customers the tranche-weighted average price ($/MWh) was $63.97 and $54.33, respectively, and for residential customers the tranche-weighted average price was $66.66 and $55.74, respectively. In addition, the October 2010 auction procured supply for Met-Ed and Penelec industrial customers choosing the Fixed Price Service. For Met-Ed and Penelec, the average 12-month price ($/MWh) was $95.00 and $83.73, respectively. The remaining two auctions for these products will be conducted in January 2011 and March 2011.
On October 20, 2010, the PPUC also approved the default service RFP for the Residential Fixed Block On-Peak and Off-Peak energy products. For Penelec, the average price ($/MWh) for On-Peak and Off-Peak was $47.25 and $38.62, respectively. For Met-Ed, the average price ($/MWh) for On-Peak and Off-Peak was $55.07 and $40.81, respectively.
Read the The complete Report
Firstenergy Corp. has a market cap of $11.44 billion; its shares were traded at around $37.13 with a P/E ratio of 10.69 and P/S ratio of 0.88. The dividend yield of Firstenergy Corp. stocks is 5.86%. Firstenergy Corp. had an annual average earning growth of 3.9% over the past 10 years.FE is in the portfolios of Jean-Marie Eveillard of First Eagle Investment Management, LLC, Brian Rogers of T Rowe Price Equity Income Fund, Stanley Druckenmiller of Duquesne Capital Management, LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, Pioneer Investments, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC, David Dreman of Dreman Value Management.
Highlight of Business Operations:
Earnings available to FirstEnergy in the third quarter of 2010 were $179 million, or basic and diluted earnings of $0.59 per share of common stock, compared with $234 million, or basic and diluted earnings of $0.77 per share of common stock in the third quarter of 2009. Results in the third quarter of 2010 were adversely affected by an impairment charge for certain coal-fired generation units. Earnings available to FirstEnergy in the first nine months of 2010 were $599 million or basic earnings of $1.97 ($1.96 diluted) per share of common stock, compared with $768 million, or basic earnings of $2.52 per share of common stock ($2.51 diluted) in the first nine months of 2009.FirstEnergy incurred approximately $14 million ($11 million after tax) of merger transaction costs in the third quarter and approximately $35 million ($26 million after tax) of merger transaction costs in the first nine months of 2010. These costs are charged to expense as incurred.
On August 20, 2010, FES completed the remarketing of $250 million of PCRBs. Of the $250 million, $235 million of PCRBs were converted from a variable interest rate to a fixed interest rate. The remaining $15 million of PCRBs continue to bear a fixed interest rate. The interest rate conversion minimizes financial risk by converting the long-term debt into a fixed rate and, as a result, reducing exposure to variable interest rates over the short-term. These remarketings included two series: $235 million of PCRBs that now bear a per-annum rate of 2.25% and are subject to mandatory purchase on June 3, 2013; and $15 million of PCRBs that now bear a per-annum rate of 1.5% and are subject to mandatory purchase on June 1, 2011.
On October 22, 2010, Signal Peak and Global Rail entered into a $350 million syndicated two-year senior secured term loan facility among the two limited liability companies that comprise Signal Peak and Global Rail, as borrowers, Sovereign Bank, CoBank, Credit Agricole, U.S. Bank, BBVA Compass, Royal Bank of Canada, Fifth Third, Comerica Bank, CIBC Inc. and First Merit banks, as lenders, and Union Bank, N.A. as lender, administrative agent, collateral agent and syndication agent. FirstEnergy, together with WMB Loan Ventures LLC and WMB Loan Ventures II LLC, the entities that share ownership with FEV in the borrowers, have provided a guaranty of the borrowers obligations under the facility. The loan proceeds were used to repay $258 million of notes payable to FirstEnergy, including $9 million of interest and $63 million of bank loans that were scheduled to mature on November 16, 2010. Additional proceeds will be used for general company purposes, including an $11 million repayment of a third-party sellers note maturing October 29, 2010.
On October 20, 2010, the PPUC approved the results of the final of four auctions held to procure the default service requirements for Met-Ed and Penelec customers who choose not to shop with an alternative supplier. For the five-month period of January 1, 2011 to May 31, 2011, the tranche-weighted average prices ($/MWh) for Met-Eds residential and commercial classes were $67.10 and $68.28, respectively; Penelecs tranche-weighted average prices were $55.76 and $58.24 for its residential and commercial classes, respectively. The October 2010 auction is the second of four auctions to procure commercial default service requirements for the 12-month period of June 1, 2011 to May 31, 2012 and residential requirements for the 24-month period of June 1, 2011 to May 31, 2013. For Met-Ed and Penelec commercial customers the tranche-weighted average price ($/MWh) was $63.97 and $54.33, respectively, and for residential customers the tranche-weighted average price was $66.66 and $55.74, respectively. In addition, the October 2010 auction procured supply for Met-Ed and Penelec industrial customers choosing the Fixed Price Service. For Met-Ed and Penelec, the average 12-month price ($/MWh) was $95.00 and $83.73, respectively. The remaining two auctions for these products will be conducted in January 2011 and March 2011.
On October 20, 2010, the PPUC also approved the default service RFP for the Residential Fixed Block On-Peak and Off-Peak energy products. For Penelec, the average price ($/MWh) for On-Peak and Off-Peak was $47.25 and $38.62, respectively. For Met-Ed, the average price ($/MWh) for On-Peak and Off-Peak was $55.07 and $40.81, respectively.
Read the The complete Report
