- 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, Inc. (NASDAQ: EVRG) today announced third quarter 2024
GAAP earnings of $465.6 million, or $2.02 per share, compared to
GAAP earnings of $351.6 million, or $1.53 per share, for the third
quarter 2023.
Evergy’s third quarter 2024 adjusted earnings (non-GAAP) and
adjusted earnings per share (non-GAAP) were $465.6 million and
$2.02, respectively, compared to $432.3 million and $1.88 in 2023.
Adjusted earnings (non-GAAP) and adjusted earnings per share
(non-GAAP) are reconciled to GAAP earnings in the financial table
included in this release.
Third quarter 2024 adjusted earnings (non-GAAP) per share were
higher than last year due primarily to new retail rates, FERC
regulated investments and growth in weather-normalized demand,
partially offset by cooler summer weather and higher depreciation
and amortization expense.
"We were pleased to announce a unanimous settlement agreement in
our Missouri West rate case which, if approved by the Missouri
Public Service Commission (MPSC), delivers a constructive outcome
for our Missouri West customers," said David Campbell, Evergy
chairman and chief executive officer. "We also recently announced
the sites of two 705 megawatt combined-cycle natural gas plants
that will help us meet the growing energy needs in our region,
while creating jobs and tax dollars and ensuring we can attract and
serve new businesses to our area given the historic opportunities
ahead of us in Kansas and Missouri."
"We're also excited to announce our 2025E-2029E capital
investment plan of $16.2 billion, which reflects the infrastructure
investment needed to enable these opportunities," continued
Campbell. "This update incorporates a significant portion of the
new generation needed to serve our growing customer base as
outlined in our 2024 Integrated Resource Plans, along with other
beneficial projects to modernize our transmission and distribution
systems to deliver affordable, reliable and sustainable power to
the communities we serve."
"We are reaffirming our 2024 adjusted earnings per share (EPS)
guidance range of $3.73 to $3.93 and establishing 2025 adjusted EPS
guidance of $3.92 to $4.12. Based on our updated financial outlook,
we expect long-term adjusted EPS growth in the upper half of our 4%
to 6% range starting in 2026.”
Earnings Guidance
The Company reaffirmed its 2024 GAAP EPS guidance range of $3.73
to $3.93, along with its 2024 adjusted EPS (non-GAAP) guidance
range to $3.73 to $3.93. Additionally, the Company established its
2025 GAAP EPS guidance range of $3.92 to $4.12, along with its 2025
adjusted EPS (non-GAAP) guidance range of $3.92 to $4.12. The
Company also established its long-term adjusted EPS (non-GAAP)
annual growth target of 4% to 6% through 2029 based on the 2025
adjusted EPS (non-GAAP) guidance midpoint of $4.02. The Company
expects adjusted EPS growth in the upper half of the 4% to 6% range
beginning in 2026. Adjusted EPS (non-GAAP) guidance is reconciled
to GAAP EPS guidance in the financial table included in this
release.
Dividend Declaration
The Board of Directors declared a dividend on the Company’s
common stock of $0.6675 per share payable on December 20, 2024. The
dividends are payable to shareholders of record as of November 21,
2024.
Earnings Conference Call
Evergy management will host a conference call Thursday, November
7, with the investment community at 9:00 a.m. ET (8:00 a.m. CT). To
view the webcast and presentation slides, please go to
investors.evergy.com. To access via phone, investors and analysts
will need to register using this link where they will be provided a
phone number and access code.
This earnings announcement, a package of detailed third quarter
financial information, the Company's quarterly report on Form 10-Q
for the period ended September 30, 2024, and other filings the
Company has made with the Securities and Exchange Commission are
available on the Company's website at
http://investors.evergy.com.
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 Evergy's
recurring earnings, assist in the comparability of results and are
consistent with how management reviews performance.
Evergy's adjusted earnings (non-GAAP) and adjusted EPS
(non-GAAP) for the three months ended and year to date September
30, 2024 were $465.6 million or $2.02 per share and $797.3 million
or $3.46 per share, respectively. For the three months ended and
year to date September 30, 2023, Evergy's adjusted earnings
(non-GAAP) and adjusted EPS (non-GAAP) were $432.3 million or $1.88
per share and $754.5 million or $3.27 per share, respectively.
In addition to net income attributable to Evergy, Inc. and
diluted EPS, Evergy's management uses adjusted earnings (non-GAAP)
and adjusted EPS (non-GAAP) to evaluate earnings and EPS
without:
- 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 a June 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 Evergy's operations across periods
because it excludes certain items that management does not believe
are indicative of Evergy's ongoing performance or that can create
period to period earnings volatility.
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.
Evergy, Inc
Consolidated Earnings and
Diluted Earnings Per Share
(Unaudited)
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Three Months Ended September 30
2024
2023
(millions, except per share
amounts)
Net income attributable to Evergy,
Inc.
$
465.6
$
2.02
$
351.6
$
1.53
Non-GAAP reconciling items:
Mark-to-market impact of JEC economic
hedges, pre-tax(a)
—
—
6.8
0.03
Customer refund related to COLI rate
credits, pre-tax(d)
—
—
96.5
0.42
Income tax benefit(e)
—
—
(22.6
)
(0.10
)
Adjusted earnings (non-GAAP)
$
465.6
$
2.02
$
432.3
$
1.88
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Earnings (Loss)
Earnings (Loss) per Diluted
Share
Year to Date September 30
2024
2023
(millions, except per share
amounts)
Net income attributable to Evergy,
Inc.
$
795.3
$
3.45
$
673.3
$
2.92
Non-GAAP reconciling items:
Mark-to-market impact of JEC economic
hedges, pre-tax(a)
2.6
0.01
4.8
0.02
Non-regulated energy marketing costs
related to February 2021 winter weather event, pre-tax(b)
—
—
0.2
—
Electric subdivision rebate program costs
refund, pre-tax(c)
—
—
2.6
0.01
Customer refunds related to COLI rate
credits, pre-tax(d)
—
—
96.5
0.42
Income tax benefit (e)
(0.6
)
—
(22.9
)
(0.10
)
Adjusted earnings (non-GAAP)
$
797.3
$
3.46
$
754.5
$
3.27
(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 Evergy Kansas Central's 8% ownership share of JEC that
are included in operating revenues on the consolidated statements
of comprehensive income.
(b)
Reflects non-regulated energy marketing
incentive compensation costs related to the February 2021 winter
weather event that are included in operating and maintenance
expense on the consolidated statements of comprehensive income.
(c)
Reflects 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 a June 2020 KCC order that are
included in operating revenues on the consolidated statements of
comprehensive income.
(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 September 2023 KCC rate case unanimous settlement agreement
reached between Evergy, the KCC staff and other intervenors that
are included in operating revenues on the consolidated statements
of comprehensive income.
(e)
Reflects an income tax effect calculated
at a statutory rate of approximately 22%.
GAAP to Non-GAAP
Earnings Guidance
Original 2023 Earnings per
Diluted Share
Guidance
2024 Earnings per
Diluted Share
Guidance
2025 Earnings per
Diluted Share
Guidance
Net income attributable to Evergy,
Inc.
$3.55 - $3.75
$3.73 – $3.93
$3.92 – $4.12
Non-GAAP reconciling items:
-
-
-
-
Adjusted earnings (non-GAAP)
$3.55 - $3.75
$3.73 – $3.93
$3.92 – $4.12
About Evergy
Evergy, Inc. (NASDAQ: EVRG) serves 1.7 million customers in
Kansas and Missouri. Evergy’s mission is to empower a better
future. Our focus remains on producing, transmitting and delivering
reliable, affordable, and sustainable energy for the benefit of our
stakeholders. Today, about half of Evergy’s power comes from
carbon-free sources, creating more reliable energy with less impact
to the environment. We value innovation and adaptability to give
our customers better ways to manage their energy use, to create a
safe, diverse and inclusive workplace for our employees, and to add
value for our investors. Headquartered in Kansas City, our
employees are active members of the communities we serve.
For more information about Evergy, visit us at
http://investors.evergy.com.
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 Evergy's strategic plan, including, without
limitation, those related to earnings per share, dividend,
operating and maintenance expense and capital investment goals; the
outcome of legislative efforts and regulatory and legal
proceedings; future energy demand, including demand driven by
existing and future customers; future power prices; plans with
respect to existing and potential future generation resources; the
availability and cost of generation resources and energy storage;
target emissions reductions; and other matters relating to expected
financial performance or affecting future operations.
Forward-looking statements are often accompanied by forward-looking
words such as "anticipates," "believes," "expects," "estimates,"
"forecasts,“ "guidance," "should," "could," "may," "seeks,"
"intends," "predict," "potential," "opportunities," "proposed,“
"projects," "planned," "target," "outlook," "remain confident,"
"goal," "will" or other words of similar meaning. Forward-looking
statements involve risks, uncertainties and other factors that
could cause actual results to differ materially from the
forward-looking information.
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 Securities and Exchange Commission (SEC). Additional risks
and uncertainties are discussed from time to time in current,
quarterly and annual reports filed by the Evergy Companies with the
SEC. New factors emerge from time to time, and it's not possible
for the Evergy Companies to predict all such factors, nor can the
Evergy Companies assess the impact of each such factor on the
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained or implied in any forward-looking statement. Given these
uncertainties, undue reliance should not be placed on these
forward-looking statements. The Evergy Companies undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107116537/en/
Investor Contact: Pete Flynn Director, Investor Relations
Phone: 816-652-1060 Peter.Flynn@evergy.com
Media Contact: Gina Penzig Director, Corporate
Communications Phone: 785-508-2410 Gina.Penzig@evergy.com Media
line: 888-613-0003
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