AKRON, Ohio - FirstEnergy Corp. (NYSE: NYSE:FE), a utility company currently valued at $22.6 billion, has announced the election of its President and Chief Executive Officer, Brian X. Tierney, as the new Chair of the Board, effective January 1, 2025. Tierney, who has been serving as President and CEO since June 1, 2023, will take over from the current Chair, John W. Somerhalder II, who will continue to serve as a director on the Board. Lisa Winston Hicks will maintain her position as Lead Independent (LON:IOG) Director. According to InvestingPro analysis, the company currently trades near its Fair Value, suggesting stable market positioning as it undergoes this leadership transition.
The decision to appoint Tierney to the dual role was unanimous among the Board members. Somerhalder endorsed the appointment, highlighting the company's progress and expressing confidence in Tierney's leadership. Hicks echoed this sentiment, emphasizing that the integration of the CEO and Chair positions is expected to benefit the company, particularly as it executes its Energize365 capital investment program.
Tierney's leadership experience includes a significant tenure at American Electric Power (NASDAQ:AEP), where he held various senior roles, including Executive Vice President and Chief Financial Officer. His background also includes a stint as Senior Managing Director and Global Head of Operations and Asset Management for Blackstone (NYSE:BX) Infrastructure Partners.
FirstEnergy, an electric utility company, operates one of the largest investor-owned electric systems in the United States, serving customers across six states. The company's transmission subsidiaries manage approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. InvestingPro data shows the company maintains a robust 4.27% dividend yield and has consistently paid dividends for 27 consecutive years. With analyst price targets ranging from $41 to $50 and a FAIR financial health score, FirstEnergy demonstrates stable operational performance. For detailed insights and additional metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The information for this article is based on a press release statement from FirstEnergy Corp.
In other recent news, FirstEnergy Corp has reported a slight dip in GAAP earnings per share in its Third Quarter 2024 Earnings Conference Call, compared to the same quarter in 2023. The company's capital investment plan for 2024 has been increased by 24%, focusing on enhancing grid reliability and customer experience. A joint development agreement for regional transmission projects has been entered, potentially bringing in a $3.8 billion investment.
Scotiabank (TSX:BNS) has upgraded FirstEnergy's stock to Sector Outperform, indicating confidence in the company's recovery and progress. However, Seaport Global Securities has downgraded FirstEnergy's stock rating from Buy to Neutral due to regulatory risks in Ohio. Meanwhile, KeyBanc has maintained its focus on FirstEnergy as an attractive investment within the utility sector, despite slightly lowering the price target.
These are recent developments that reflect FirstEnergy's commitment to its long-term growth and operational excellence. The company has reaffirmed its long-term growth rate at 6% to 8% with a $26 billion five-year capital expenditure plan through 2028. Additionally, FirstEnergy has maintained a quarterly dividend of $0.425 per share, reflecting a continuity in its financial practices.
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