ALLENTOWN, Pa. - PPL Corporation (NYSE: NYSE:PPL), a leading U.S. energy company with a market capitalization of $23.5 billion, announced today that its current Executive Vice President (EVP) and Chief Operating Officer (COO), Francis X. Sullivan, will retire on April 4. Coinciding with Sullivan's retirement, the company will eliminate the COO role. According to InvestingPro data, PPL maintains a GOOD overall financial health score, suggesting strong operational stability during this transition.
David J. Bonenberger and Lonnie Bellar, both seasoned veterans in the utility industry, will take on expanded leadership roles following Sullivan's departure. Bonenberger will become Executive Vice President and Chief Operating Officer-Utilities, and Bellar will step into the role of Executive Vice President of Engineering, Construction and Generation. They will report directly to PPL President and CEO Vincent Sorgi.
Sorgi expressed gratitude for Sullivan's contributions, particularly highlighting his leadership in operational and safety function transformations. He also emphasized the pivotal role Sullivan played in the design and execution of PPL's utility of the future and OnePPL strategies.
Looking ahead, Sorgi is confident in the abilities of Bonenberger and Bellar to continue the progress made under Sullivan's tenure. Their combined experience, nearly 80 years, is expected to further PPL's strategy to create smarter, stronger, cleaner utilities, delivering increased value for customers and shareholders.
Bonenberger has been with PPL Electric Utilities since 1984 and has overseen utility operations and customer service across PPL's utilities. Bellar joined Kentucky Utilities in 1987 and has managed enterprise-wide engineering and construction services, energy supply, analysis, and environmental compliance. With the COO role's dissolution, Bellar will also oversee PPL's Kentucky generation fleet.
Sullivan, who became EVP and COO in January 2023, has a career spanning over 40 years, including senior roles at NRG Energy (NYSE:NRG) and Public Service Enterprises Group before joining PPL.
PPL, headquartered in Allentown, Pennsylvania, serves more than 3.5 million customers across the United States. The company is recognized for its high-performing utilities and commitment to sustainable energy solutions, having maintained dividend payments for 54 consecutive years. This leadership transition is part of PPL's ongoing efforts to adapt and respond to the evolving energy landscape. With analysts setting a consensus target price up to $38, InvestingPro subscribers can access detailed analysis and 6 additional ProTips about PPL's future prospects through comprehensive Research Reports.
This article is based on a press release statement from PPL Corporation.
In other recent news, PPL Corp has been the focus of several analyst adjustments and strategic developments. Jefferies anticipates PPL Corp to outperform its peers by 2025, backed by strong rate base growth and an expected improvement in earnings per share. Despite a slight reduction in the price target to $38.00, Jefferies maintains a Buy recommendation for the stock. Citi has also revised its outlook on PPL Corp, increasing the company's price target to $36.00 while retaining a Neutral rating. BMO Capital Markets initiated coverage on the company, assigning an Outperform rating with a price target of $36.00.
In terms of financial performance, PPL Corp reported narrowed ongoing earnings for 2024, with GAAP earnings of $0.29 per share, and ongoing earnings of $0.42 per share. The company is on track to complete infrastructure improvements worth approximately $3.1 billion and aims for annual O&M savings between $120 million and $130 million.
Recent developments reflect PPL Corp's strategic focus on substantial infrastructure investments and maintaining a robust balance sheet. The company is expected to meet the increasing data center demand despite supply chain constraints. PPL Corp has also outlined significant infrastructure investments totaling $14.3 billion from 2024 to 2027. The company also expects 6% to 8% annual growth in earnings per share and dividends through at least 2027. These developments indicate PPL's strategy to ramp up generation capacity to meet increasing data center demand. Despite supply chain constraints, the company remains confident in executing its construction plans.
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