Evergy Announces Third Quarter 2024 Results, Increases Quarterly Dividend, Reaffirms 2024 Guidance, Establishes 2025 Guidance
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Third Quarter 2024 GAAP EPS of
$2.02 , compared to$1.53 in 2023 -
Third Quarter 2024 Adjusted EPS (Non-GAAP) of
$2.02 , compared to$1.88 in 2023 -
Increases quarterly dividend 4% to
$0.6675 per share -
Introduces 2025E-2029E capital investment plan of
$16.2 billion -
Reaffirms 2024 GAAP and Adjusted (Non-GAAP) EPS guidance of
$3.73 to$3.93 -
Establishes 2025 GAAP and Adjusted (Non-GAAP) EPS guidance of
$3.92 to$4.12
Evergy’s third quarter 2024 adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were
Third quarter 2024 adjusted earnings (non-GAAP) per share were higher than last year due primarily to new retail rates,
"We were pleased to announce a unanimous settlement agreement in our Missouri West rate case which, if approved by the
"We're also excited to announce our 2025E-2029E capital investment plan of
"We are reaffirming our 2024 adjusted earnings per share (EPS) guidance range of
Earnings Guidance
The Company reaffirmed its 2024 GAAP EPS guidance range of
Dividend Declaration
The Board of Directors declared a dividend on the Company’s common stock of
Earnings Conference Call
This earnings announcement, a package of detailed third quarter financial information, the Company's quarterly report on Form 10-Q for the period ended
Adjusted Earnings (non-GAAP) and Adjusted Earnings Per Share (non-GAAP)
Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of
In addition to net income attributable to
-
the mark-to-market impacts of economic hedges related to
Evergy Kansas Central's 8% ownership share of JEC; -
the costs resulting from non-regulated energy marketing margins from the
February 2021 winter weather event; -
the second quarter 2023 recognition of a regulatory liability for the refund to customers of revenues previously collected since
October 2019 for costs related to an electric subdivision rebate program to be refunded to customers in accordance with aJune 2020 KCC order; and -
the recognition of a regulatory liability for future refund of amounts of revenues previously collected from customers related to COLI rate credits in accordance with a
September 2023 KCC rate case unanimous settlement agreement.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to aid an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.
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Consolidated Earnings and Diluted Earnings Per Share |
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(Unaudited) |
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Earnings (Loss) |
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Earnings (Loss) per Diluted Share |
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Earnings (Loss) |
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Earnings (Loss) per Diluted Share |
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Three Months Ended |
2024 |
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2023 |
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(millions, except per share amounts) |
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Net income attributable to |
$ |
465.6 |
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$ |
2.02 |
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$ |
351.6 |
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$ |
1.53 |
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Non-GAAP reconciling items: |
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Mark-to-market impact of JEC economic hedges, pre-tax(a) |
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— |
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— |
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6.8 |
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|
|
0.03 |
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Customer refund related to COLI rate credits, pre-tax(d) |
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— |
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— |
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96.5 |
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0.42 |
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Income tax benefit(e) |
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— |
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— |
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(22.6 |
) |
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(0.10 |
) |
Adjusted earnings (non-GAAP) |
$ |
465.6 |
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$ |
2.02 |
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$ |
432.3 |
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$ |
1.88 |
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Earnings (Loss) |
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Earnings (Loss) per Diluted Share |
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Earnings (Loss) |
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Earnings (Loss) per Diluted Share |
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Year to Date |
2024 |
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2023 |
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(millions, except per share amounts) |
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Net income attributable to |
$ |
795.3 |
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$ |
3.45 |
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$ |
673.3 |
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$ |
2.92 |
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Non-GAAP reconciling items: |
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Mark-to-market impact of JEC economic hedges, pre-tax(a) |
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2.6 |
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|
|
0.01 |
|
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4.8 |
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|
|
0.02 |
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Non-regulated energy marketing costs related to |
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— |
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|
|
— |
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|
0.2 |
|
|
|
— |
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Electric subdivision rebate program costs refund, pre-tax(c) |
|
— |
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|
|
— |
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2.6 |
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|
|
0.01 |
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Customer refunds related to COLI rate credits, pre-tax(d) |
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— |
|
|
|
— |
|
|
96.5 |
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|
|
0.42 |
|
Income tax benefit (e) |
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(0.6 |
) |
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— |
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(22.9 |
) |
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(0.10 |
) |
Adjusted earnings (non-GAAP) |
$ |
797.3 |
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|
$ |
3.46 |
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$ |
754.5 |
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$ |
3.27 |
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(a) |
Reflects mark-to-market gains or losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to |
(b) |
Reflects non-regulated energy marketing incentive compensation costs related to the |
(c) |
Reflects the second quarter 2023 recognition of a regulatory liability for the refund to customers of revenues previously collected since |
(d) |
Reflects the recognition of a regulatory liability for the refund to customers for amounts of revenues previously collected related to COLI rate credits in accordance with a |
(e) |
Reflects an income tax effect calculated at a statutory rate of approximately 22%. |
GAAP to Non-GAAP Earnings Guidance |
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Original 2023
Guidance |
2024
Guidance |
2025
Guidance |
Net income attributable to |
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Non-GAAP reconciling items: |
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- |
- |
- |
- |
Adjusted earnings (non-GAAP) |
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About
For more information about
Forward Looking Statements
Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Evergy Companies are providing a number of risks, uncertainties and other factors that could cause actual results to differ from the forward-looking information. These risks, uncertainties and other factors include, but are not limited to: economic and weather conditions and any impact on sales, prices and costs; significant changes in the demand for electricity; changes in business strategy or operations, including with respect to the Evergy Companies' strategy to meet demand requirements of existing and future customers; the impact of federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation, securitization and restructuring of the electric utility industry; the ability to build or acquire generation and transmission facilities to meet the future demand for electricity from customers; the ability to control costs, avoid costs and schedule overruns during the development, construction and operation of generation, transmission, distribution or other projects due to challenges, which include, but are not limited to, changes in labor costs, availability and productivity, challenges with the management of contractors or vendors, subcontractor performance, shortages, delays, increased costs or inconsistent quality of equipment, materials and labor and increased financing costs as a result of changes in interest rates or as a result of project delays; decisions of regulators regarding, among other things, customer rates and the prudency of operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including air and water quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events; risks relating to potential wildfires, including costs of litigation, potential regulatory penalties and damages in excess of insurance liability coverage; the extent to which counterparties are willing to do business with, finance the operations of or purchase energy from the Evergy Companies due to the fact that the Evergy Companies operate coal-fired generation; prices and availability of electricity and natural gas in wholesale markets; market perception of the energy industry and the Evergy Companies; the impact of future pandemic health events on, among other things, sales, results of operations, financial position, liquidity and cash flows, and also on operational issues, such as supply chain issues and the availability and ability of the Evergy Companies' employees and suppliers to perform the functions that are necessary to operate the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, disruptions in the banking industry, including volatility in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of physical and cybersecurity breaches, criminal activity, terrorist attacks, acts of war and other disruptions to the Evergy Companies' facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; impact of geopolitical conflicts on the global energy market, including the ability to contract for non-Russian sourced uranium; ability to carry out marketing and sales plans; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; impacts of tariffs; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; the Evergy Companies' ability to manage their generation, transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including environmental, health, safety, regulatory and financial risks; workforce risks, including those related to the Evergy Companies' ability to attract and retain qualified personnel, maintain satisfactory relationships with their labor unions and manage costs of, or changes in, wages, retirement, health care and other benefits; disruption, costs and uncertainties caused by or related to the actions of individuals or entities, such as activist shareholders or special interest groups, that seek to influence Evergy’s strategic plan, financial results or operations; the impact of changing expectations and demands of the Evergy Companies' customers, regulators, investors and stakeholders, including heightened emphasis on environmental, social and governance concerns; the possibility that strategic initiatives, including mergers, acquisitions and divestitures, and long-term financial plans, may not create the value that they are expected to achieve in a timely manner or at all; difficulties in maintaining relationships with customers, employees, contractors, regulators or suppliers; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not possible to predict all factors. You should also carefully consider the information contained in the Evergy Companies' other filings with the
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Investor Contact:
Director, Investor Relations
Phone: 816-652-1060
Peter.Flynn@evergy.com
Media Contact:
Director, Corporate Communications
Phone: 785-508-2410
Gina.Penzig@evergy.com
Media line: 888-613-0003
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