COLUMBUS, Ohio - American Electric Power (NASDAQ:AEP), a major utility company with a market capitalization of $48.1 billion, has announced the appointment of Trevor I. Mihalik as its new executive vice president and chief financial officer, effective January 20. Mihalik will succeed Chuck Zebula, who is transitioning to a senior advisor role to the CEO before retiring in March. According to InvestingPro data, AEP maintains a Fair overall financial health rating, making this leadership transition particularly significant for investors.
Mihalik brings over three decades of experience in the energy sector, most recently serving as group president at Sempra. His background includes various leadership positions encompassing finance, risk management, and business operations. Mihalik's appointment is part of AEP's strategy to enhance operating performance and execute a multibillion-dollar capital plan to meet growing energy demands. The company currently trades at a P/E ratio of 18.1x and has demonstrated its financial stability through 54 consecutive years of dividend payments, with 15 consecutive years of dividend increases.
AEP's President and CEO, Bill Fehrman, praised Mihalik's diverse experience and leadership qualities, stating that Mihalik will contribute significantly to the company's senior leadership team and internal succession planning. Mihalik expressed his enthusiasm for joining AEP and his commitment to creating value for stakeholders.
Fehrman also acknowledged Zebula's 25 years of valuable service at AEP, noting his significant contributions and leadership. Zebula will assist in the transition until his retirement.
Mihalik's career in the energy industry includes roles at Iberdrola (OTC:IBDRY) Renewables Holdings, Chevron (NYSE:CVX) Natural Gas, and Bridgeline Holdings. He also chairs the finance committee for the board of directors of the WD-40 Company (NASDAQ:WDFC). He holds a bachelor's degree in accounting and an MBA, and is a certified public accountant in Texas.
American Electric Power, headquartered in Columbus (WA:CLC), Ohio, serves 5.6 million customers across 11 states and is investing $54 billion from 2025 through 2029 to support community energy needs. The company operates the nation's largest electricity transmission system and is one of the largest electricity producers in the U.S. With an EBITDA of $7.3 billion in the last twelve months and a current dividend yield of 4.1%, AEP presents a comprehensive investment case. For detailed analysis and additional insights, investors can access the full Pro Research Report available on InvestingPro, which offers in-depth coverage of AEP among 1,400+ top US stocks.
This executive shift is based on a press release statement and represents a strategic move for AEP as it navigates the evolving energy landscape.
In other recent news, American Electric Power reported robust third-quarter operating earnings of $1.85 per share, equating to $985 million. The company also revised its 2024 full-year earnings guidance to a range of $5.58 to $5.68 per share and introduced a 2025 operating earnings guidance range of $5.75 to $5.95 per share. The company's long-term earnings growth rate is projected at 6% to 8%, supported by a $54 billion capital plan for 2025-2029.
Scotiabank (TSX:BNS) and JPMorgan both downgraded the company's stock from Sector Outperform and Overweight to Sector Perform and Neutral respectively, adjusting the price target to $102. Meanwhile, BMO Capital initially raised the price target to $108.00, maintaining an Outperform rating. However, following AEP's weaker-than-expected guidance for 2025, BMO Capital revised the price target down to $104.00, while still maintaining the Outperform rating.
These recent developments reflect the company's ongoing financial performance and future growth prospects, with analysts from Scotiabank, JPMorgan, and BMO Capital providing their perspectives based on their respective analysis of the company's disclosures and estimates. Despite the downgrades and revised price targets, the long-term value of American Electric Power remains intact according to the analysts.
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