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AEP Texas Inc.

For the period ended Sep 30, 2026. Filed Oct 28, 2026.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2026 · Filed Oct 28, 2026

AEP$127.84-0.4%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits

Item 1. CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended · Nine Months Ended
September 30,September 30,
2026202520262025
REVENUES
Vertically Integrated Utilities$3,923$3,511$10,338$9,531
Transmission and Distribution Utilities1,8531,6805,0154,638
Generation & Marketing9226942,5461,976
Other Revenues134126398416
TOTAL REVENUES6,8326,01118,29716,561
EXPENSES
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation2,0871,9815,8085,375
Other Operation1,0287982,5922,088
Maintenance4474051,3021,114
Asset Impairments and Other Related Charges——31—
Depreciation and Amortization1,0258792,8422,566
Taxes Other Than Income Taxes4334261,3031,213
TOTAL EXPENSES5,0204,48913,87812,356
OPERATING INCOME1,8121,5224,4194,205
Other Income (Expense):
Other Income6122635
Allowance for Equity Funds Used During Construction8159226173
Non-Service Cost Components of Net Periodic Benefit Cost253482104
Interest Expense(606)(509)(1,743)(1,493)
INCOME BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS1,3181,1183,0103,024
Income Tax Expense12513922113
Equity Earnings of Unconsolidated Subsidiaries25217980
NET INCOME1,2181,0002,8683,091
Net Income Attributable to Noncontrolling Interests31289493
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS$1,187$972$2,774$2,998
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING544,431,979534,867,357543,566,814534,186,206
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS$2.18$1.82$5.10$5.61
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING550,103,235537,988,799549,270,434536,364,715
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS$2.16$1.81$5.05$5.59
See Condensed Notes to Condensed Financial Statements of Registrants beginning on page 108.
Three Months Ended · Nine Months Ended
September 30,September 30,
2026202520262025
Net Income$1,218$1,000$2,868$3,091
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Cash Flow Hedges, Net of Tax of $1 and $(4) for the Three Months Ended September 30, 2026 and 2025, Respectively, and $3 and $(7) for the Nine Months Ended September 30, 2026 and 2025, Respectively5(16)12(26)
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $0 and $0 for the Three Months Ended September 30, 2026 and 2025, Respectively, and $1 and $0 for the Nine Months Ended September 30, 2026 and 2025, Respectively1—31
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)6(16)15(25)
TOTAL COMPREHENSIVE INCOME1,2249842,8833,066
Total Comprehensive Income Attributable To Noncontrolling Interests31289493
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS$1,193$956$2,789$2,973
See Condensed Notes to Condensed Financial Statements of Registrants beginning on page 108.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

AEP Common Shareholders
Common Stock · Accumulated Other Comprehensive Income (Loss)
Shares · Amount · Paid-in Capital · Retained Earnings · Noncontrolling Interests · Total
TOTAL EQUITY – DECEMBER 31, 2024534$3,472$9,606$13,869$(3)$42$26,986
Issuance of Common Stock176875
Common Stock Dividends(500)(a)(1)(501)
Other Changes in Equity(22)(22)
Net Income8002802
Other Comprehensive Income2424
TOTAL EQUITY – MARCH 31, 20255353,4799,65214,169214327,364
Issuance of Common Stock145357
Common Stock Dividends(499)(a)(1)(500)
Other Changes in Equity88
Midwest Transmission Holdings NCI Transaction1,7919922,783
Net Income1,226631,289
Other Comprehensive Loss(33)(33)
TOTAL EQUITY – JUNE 30, 20255363,48311,50414,896(12)1,09730,968
Issuance of Common Stock—35255
Capital Contributions from NCI3434
Common Stock Dividends(499)(a)(499)
Dividends Paid to NCI(69)(69)
Other Changes in Equity66
Net Income972281,000
Other Comprehensive Loss(16)(16)
TOTAL EQUITY – SEPTEMBER 30, 2025536$3,486$11,562$15,369$(28)$1,090$31,479
TOTAL EQUITY – DECEMBER 31, 2025542$3,523$12,138$15,441$36$1,080$32,218
Issuance of Common Stock321337358
Capital Contributions from NCI9696
Common Stock Dividends(520)(a)(520)
Dividends Paid to NCI(35)(35)
Other Changes in Equity(28)(28)
Net Income87429903
Other Comprehensive Loss(14)(14)
TOTAL EQUITY – MARCH 31, 20265453,54412,44715,795221,17032,978
Issuance of Common Stock124547
Capital Contributions from NCI6060
Common Stock Dividends(519)(a)(519)
Dividends Paid to NCI(54)(54)
Other Changes in Equity77
Net Income71334747
Other Comprehensive Income2323
TOTAL EQUITY – JUNE 30, 20265463,54612,49915,989451,21033,289
Issuance of Common Stock—11112
Capital Contributions from NCI113113
Common Stock Dividends(519)(a)(519)
Dividends Paid to NCI(86)(86)
Other Changes in Equity1010
Net Income1,187311,218
Other Comprehensive Income66
TOTAL EQUITY – SEPTEMBER 30, 2026546$3,547$12,520$16,657$51$1,268$34,043

(a)Cash dividends declared per AEP common share were $0.95 and $0.93 in 2026 and 2025, respectively.

See Condensed Notes to Condensed Financial Statements of Registrants beginning on page 108.

ASSETS

September 30,December 31,
20262025
CURRENT ASSETS
Cash and Cash Equivalents$418$197
Restricted Cash(September 30, 2026 and December 31, 2025 Amounts Include $89 and $71, Respectively, Related to Restoration Funding, Appalachian Consumer Rate Relief Funding, Appalachian Recovery Funding, Storm Recovery Funding and Cost Recovery Funding)8971
Other Temporary Investments(September 30, 2026 and December 31, 2025 Amounts Include $239 and $209, Respectively, Related to EIS)252220
Accounts Receivable:
Customers1,4211,166
Accrued Unbilled Revenues422421
Pledged Accounts Receivable – AEP Credit1,6001,272
Miscellaneous10160
Allowance for Credit Losses(54)(52)
Total Accounts Receivable3,4902,867
Fuel506576
Materials and Supplies1,2871,046
Risk Management Assets588352
Accrued Tax Benefits34485
Regulatory Asset for Under-Recovered Fuel Costs504426
Prepayments and Other Current Assets362212
TOTAL CURRENT ASSETS7,8406,052
PROPERTY, PLANT AND EQUIPMENT
Electric:
Generation27,67428,388
Transmission44,50942,557
Distribution35,25133,364
Other Property, Plant and Equipment (Including Coal Mining and Nuclear Fuel)9,8438,635
Construction Work in Progress10,9077,635
Total Property, Plant and Equipment128,184120,579
Accumulated Depreciation and Amortization27,95628,205
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET100,22892,374
OTHER NONCURRENT ASSETS
Regulatory Assets4,9674,804
Securitized Assets2,221933
Spent Nuclear Fuel and Decommissioning Trusts5,2564,916
Goodwill5353
Long-term Risk Management Assets266265
Operating Lease Assets660661
Deferred Charges and Other Noncurrent Assets4,2044,402
TOTAL OTHER NONCURRENT ASSETS17,62716,034
TOTAL ASSETS$125,695$114,460
See Condensed Notes to Condensed Financial Statements of Registrants beginning on page 108.

LIABILITIES AND EQUITY

September 30,December 31,
20262025
CURRENT LIABILITIES
Accounts Payable$3,944$3,429
Short-term Debt:
Securitized Debt for Receivables – AEP Credit900900
Other Short-term Debt975608
Total Short-term Debt1,8751,508
Long-term Debt Due Within One Year (September 30, 2026 and December 31, 2025 Amounts Include $201 and $207, Respectively, Related to DCC Fuel, Restoration Funding, Appalachian Consumer Rate Relief Funding, Appalachian Recovery Funding, Storm Recovery Funding, Transource Energy and Cost Recovery Funding)2,6773,194
Risk Management Liabilities209132
Customer Deposits770507
Accrued Taxes1,3632,002
Accrued Interest719544
Obligations Under Operating Leases95100
Other Current Liabilities3,6341,898
TOTAL CURRENT LIABILITIES15,28613,314
NONCURRENT LIABILITIES
Long-term Debt(September 30, 2026 and December 31, 2025 Amounts Include $2,519 and $1,294, Respectively, Related to DCC Fuel, Restoration Funding, Appalachian Consumer Rate Relief Funding, Appalachian Recovery Funding, Storm Recovery Funding, Transource Energy and Cost Recovery Funding)49,86444,128
Long-term Risk Management Liabilities214178
Deferred Income Taxes11,72110,951
Regulatory Liabilities and Deferred Investment Tax Credits8,7488,362
Asset Retirement Obligations3,6693,556
Employee Benefits and Pension Obligations262232
Obligations Under Operating Leases584578
Deferred Credits and Other Noncurrent Liabilities1,228905
TOTAL NONCURRENT LIABILITIES76,29068,890
TOTAL LIABILITIES91,57682,204
Rate Matters (Note 4)
Commitments, Guarantees and Contingencies (Note 5)
Contingently Redeemable Performance Share Awards7638
EQUITY
Common Stock – Par Value – $6.50 Per Share:
20262025
Shares Authorized900,000,000600,000,000
Shares Issued545,692,925542,048,288
(1,186,815 Shares were Held in Treasury as of September 30, 2026 and December 31, 2025, Respectively)3,5473,523
Paid-in Capital12,52012,138
Retained Earnings16,65715,441
Accumulated Other Comprehensive Income (Loss)5136
TOTAL AEP COMMON SHAREHOLDERS’ EQUITY32,77531,138
Noncontrolling Interests1,2681,080
TOTAL EQUITY34,04332,218
TOTAL LIABILITIES AND EQUITY$125,695$114,460
See Condensed Notes to Condensed Financial Statements of Registrants beginning on page 108.
Nine Months Ended September 30,
20262025
OPERATING ACTIVITIES
Net Income$2,868$3,091
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
Depreciation and Amortization2,8422,566
Deferred Income Taxes515124
Asset Impairments and Other Related Charges31—
Allowance for Equity Funds Used During Construction(226)(173)
Mark-to-Market of Risk Management Contracts(116)(193)
Pension Contributions to Qualified Plan Trust—(95)
Property Taxes564541
Deferred Fuel Over/Under-Recovery, Net133165
Change in Other Noncurrent Assets(838)(720)
Change in Other Noncurrent Liabilities673134
Changes in Certain Components of Working Capital:
Accounts Receivable, Net(528)(212)
Fuel, Materials and Supplies(162)151
Accounts Payable603327
Accrued Taxes, Net(899)(687)
Other Current Assets(81)38
Other Current Liabilities38874
Net Cash Flows from Operating Activities5,7675,131
INVESTING ACTIVITIES
Construction Expenditures(9,107)(6,001)
Purchases of Investment Securities(2,530)(2,407)
Sales of Investment Securities2,4432,349
Acquisitions of Generation Facilities(2,394)(1,657)
Acquisitions of Nuclear Fuel(97)(89)
Contribution in Aid of Construction Advances572148
Other Investing Activities(58)(92)
Net Cash Flows Used for Investing Activities(11,171)(7,749)
FINANCING ACTIVITIES
Capital Contribution from Noncontrolling Interest26934
Issuance of Common Stock417187
Issuance of Long-term Debt7,0266,249
Issuance of Short-term Debt with Original Maturities greater than 90 Days—320
Change in Short-term Debt with Original Maturities less than 90 Days, Net367(1,008)
Retirement of Long-term Debt(1,834)(2,804)
Redemption of Short-term Debt with Original Maturities Greater than 90 Days—(678)
Proceeds from the Midwest Transmission Holdings Noncontrolling Interest Transaction, Net of Transaction Costs—2,783
Dividends Paid on Common Stock(1,558)(1,498)
Dividends Paid to Noncontrolling Interest(175)(71)
Security Deposits1,199—
Other Financing Activities(68)(35)
Net Cash Flows from Financing Activities5,6433,479
Net Increase in Cash, Cash Equivalents and Restricted Cash239861
Cash, Cash Equivalents and Restricted Cash at Beginning of Period268246
Cash, Cash Equivalents and Restricted Cash at End of Period$507$1,107
See Condensed Notes to Condensed Financial Statements of Registrants beginning on page 108.
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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.