Investment by Brookfield Super-Core
Infrastructure Partners Supports FirstEnergy's Capital Growth
Program, Strengthens Balance Sheet
AKRON,
Ohio, May 31, 2022 /PRNewswire/ -- FirstEnergy
Corp. (NYSE: FE) today announced that its subsidiary FirstEnergy
Transmission, LLC (FET), has completed the sale of a 19.9% minority
equity stake to Brookfield Super-Core Infrastructure Partners for
$2.375 billion. FirstEnergy retains
an 80.1% equity interest in FET and FirstEnergy's workforce will
continue to maintain and operate the company's transmission
system.
FirstEnergy announced the agreement with Brookfield in November
2021, along with a $1 billion
equity investment in FirstEnergy common stock by Blackstone
Infrastructure partners, which closed in December.
FirstEnergy is using the combined $3.4
billion in proceeds from these strategic financings to
strengthen its balance sheet, fund its capital program and address
its equity plans, with the exception of annual issuances of up to
$100 million under regular stock
investments and employee benefit plans. FirstEnergy's sustainable
capital investment program of $17
billion from 2021 through 2025 is focused on developing a
more resilient and modern grid and prioritizes emerging
technologies, electric vehicle infrastructure, renewable generation
and programs to help customers optimize their energy use.
"With the completion of these transformative investments,
FirstEnergy is well-positioned to continue delivering financial and
operational excellence, drive our long-term strategies to support
smart grid and clean energy initiatives, and transform our company
into a more innovative, resilient and industry-leading
organization," said FirstEnergy President and Chief Executive
Officer Steven E. Strah.
"We are pleased to have completed this transaction and to see
this marquee, high-quality investment in our portfolio," said
Eduardo Salgado, Managing Partner in
Brookfield's Infrastructure Group
and head of Brookfield Super-Core Infrastructure Partners. "Our
partnership with FirstEnergy will position us well to capture
unique capital investment and value creation opportunities over the
long-term in-line with our mutual objectives around the
decarbonization and electrification of the economy."
FirstEnergy is dedicated to integrity, 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 24,000 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. Such 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 the potential liabilities, increased costs
and unanticipated developments resulting from government
investigations and agreements, including those associated with
compliance with or failure to comply with the Deferred Prosecution
Agreement with the U.S. Attorney's Office for the Southern District
of Ohio; the risks and
uncertainties associated with government investigations and audits
regarding Ohio House Bill 6, as passed by Ohio's 133rd General Assembly ("HB 6") and
related matters, including potential adverse impacts on federal or
state regulatory matters, including, but not limited to, matters
relating to rates; the risks and uncertainties associated with
litigation, arbitration, mediation, and similar proceedings,
particularly regarding HB 6 related matters, including risks
associated with obtaining court approval of the definitive
settlement agreement in the derivative shareholder lawsuits;
weather conditions, such as temperature variations and severe
weather conditions, or other natural disasters affecting future
operating results and associated regulatory actions or outcomes in
response to such conditions; legislative and regulatory
developments, including, but not limited to, matters related to
rates, compliance and enforcement activity, cybersecurity, and
climate change; the ability to accomplish or realize anticipated
benefits from our FE Forward initiative and our other strategic and
financial goals, including, but not limited to, overcoming current
uncertainties and challenges associated with the ongoing government
investigations, executing our transmission and distribution
investment plans, greenhouse gas reduction goals, controlling
costs, improving our credit metrics, growing earnings,
strengthening our balance sheet, and satisfying the conditions
necessary to close the sale of the minority interest in FirstEnergy
Transmission, LLC; the risks associated with cyber-attacks and
other disruptions to our, or our vendors', information technology
system, which may compromise our operations, and data security
breaches of sensitive data, intellectual property and proprietary
or personally identifiable information; mitigating exposure for
remedial activities associated with retired and formerly owned
electric generation assets; 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, including the
increasing number of financial institutions evaluating the impact
of climate change on their investment decisions; the extent and
duration of the COVID-19 pandemic and the related impacts to our
business, operations and financial condition resulting from the
outbreak of COVID-19 including, but not limited to, disruption of
businesses in our territories, supply chain disruptions, additional
costs, workforce impacts and governmental and regulatory responses
to the pandemic, such as moratoriums on utility disconnections and
workforce vaccination mandates; 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;
changes in assumptions regarding factors such as 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, economic conditions, the
impact of climate change, or energy efficiency and peak demand
reduction mandates; changes in national and regional economic
conditions, including recession and inflationary pressure,
affecting us and/or our customers and those vendors with which we
do business; the potential of non-compliance with debt covenants in
our credit facilities; the ability to comply with applicable
reliability standards and energy efficiency and peak demand
reduction mandates; changes to 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, or
causing us to make contributions sooner, or in amounts that are
larger, than currently anticipated; labor disruptions by our
unionized workforce; changes to significant accounting policies;
any changes in tax laws or regulations, or adverse tax audit
results or rulings; the risks and other factors discussed from time
to time in our Securities and Exchange Commission ("SEC") filings.
Dividends declared from time to time on FirstEnergy Corp.'s common
stock during any period may in the aggregate vary from prior
periods due to circumstances considered by FirstEnergy Corp.'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 Corp.'s filings with the SEC,
including, but not limited to, the most recent Annual Report on
Form 10-K and any subsequent 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 Corp.'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 Corp. expressly disclaims
any obligation to update or revise, except as required by law, any
forward-looking statements contained herein or in the information
incorporated by reference as a result of new information, future
events or otherwise.
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SOURCE FirstEnergy Corp.