Evergy (EVRG) 7 Nov 24 2024 Q3 Earnings call transcript

In the third quarter of 2024, Evergy Inc. reported adjusted earnings of $2.02 per share, marking a significant increase from the previous year's $1.88 per share. The company attributed the growth primarily to demand growth, new retail sales, and FERC investments, while acknowledging challenges from cooler summer weather and higher depreciation and amortization expenses.

David Campbell, Evergy's Chairman and CEO, emphasized the company's solid year-to-date results and the reaffirmation of its adjusted EPS guidance range of $3.73 to $3.93 per share for 2024. He also announced the establishment of a new 2025 adjusted EPS guidance range of $3.92 to $4.12 per share and a long-term growth target of 4% to 6% through 2029.

The company's strategic focus on balancing cost-effective and resilient generation investments with emissions-free renewable resources was highlighted, including plans for new combined cycle natural gas plants and solar farms. The investments are expected to create jobs, generate substantial property tax revenues, and contribute to economic development in Kansas and Missouri.

Evergy also announced a 4% increase in its quarterly dividend to $2.67 per share, reflecting its updated growth outlook and a commitment to maintain a 60% to 70% target payout ratio.

The call also featured updates on regulatory and legislative priorities, including the introduction of House Bill 2527 in Kansas, which is expected to support infrastructure investment and economic development. The company is working closely with regulators and stakeholders to ensure a clear and stable framework for regulatory capital structure and authorized returns.

Investor questions touched on various topics, including the company's financial outlook, regulatory lag, and the impact of large customer negotiations on growth projections. Evergy's executives provided insights into their strategies for managing regulatory lag, maintaining affordability, and capitalizing on economic development opportunities.

Overall, Evergy's third quarter earnings call underscored the company's strong financial performance, strategic investments, and commitment to sustainable growth. The company's focus on balancing cost-effective generation with renewable resources, maintaining affordability, and advancing economic development positions it well for continued success in the years ahead.