American Electric Power Co., Inc. (NYSE:AEP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET


American Electric Power Co., Inc. (NYSE:AEP) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the American Electric Power Second Quarter 2020 Earnings Call. [Operator Instructions] And as a reminder, today's conference call is being recorded.

I would now like to turn the conference over to Darcy Reese. Please go ahead.

Darcy Reese

Thank you, Cynthia. Good morning, everyone, and welcome to the Second Quarter 2020 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 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 Brian Tierney, our Chief Financial Officer. We will take your questions following their remarks.

I will now turn the call over to Nick.

Nicholas K. Akins

Okay. Thanks, Darcy. And welcome, everyone, to American Electric Power's Second Quarter 2020 Earnings Call. While we continue to see the effects of COVID-19 pandemic, AEP has responded well with not only ensuring the safety of our employees and redefining the business processes to accommodate the changed environment and reducing our costs in response to lower revenues, but we also are responding to hurricane and storm activity to ensure the safe and reliable service to our customers. Our team at AEP Texas, with support from internal and external resources, performed well through Hurricane Hanna to restore power to over 200,000 customers during that recent weather event. And we're now supporting recovery efforts in the Northeast as well. While COVID cases were escalated in some areas, we continue to engage our employees on safe practices to prevent the virus spread, both at work and outside of work to set an example in our communities.

On the financial front, our operating earnings performance has been strong in the face of these challenges. AEP's operating earnings came in for the quarter at $1.08 per share, bringing our year-to-date operating earnings to $2.10 per share versus $1 a share for second quarter 2019 and $2.19 per share year-to-date 2019. We are reaffirming our originally stated guidance range of $4.25 to $4.45 per share and our 5% to 7% long-term growth rate. AEP is also adjusting our capital upward during the five year capital forecast period from $33 billion to $35 billion to accommodate the North Central wind project addition. Also, as we stated in the last quarter earnings call, we have continued to evaluate the short-term deferral of $500 million in our 2020 capital program that we talked about last quarter, and we are placing $100 million back into the 2020 plan at this point. So all in all, a constructive quarter given the headwinds of the economy due to COVID.

In fact, we continue to make progress toward our target of achieving at least