Core Viewpoint - Evergy Energy is positioned to benefit from the increasing energy demand driven by AI data centers, particularly in the Kansas City region where major tech companies operate [2][3][5] Group 1: Company Overview - Evergy Energy is an electrical utility serving the greater Kansas City area, providing a critical infrastructure for numerous hyperscalers like Alphabet, Meta Platforms, and NVIDIA-backed Lambda [2][3] - The company is not an AI tool itself but serves as a power provider that supports AI operations [2] Group 2: Market Position and Demand - Analysts predict a significant energy demand boom associated with AI data centers, with Evergy Energy well-positioned to capitalize on this trend [3][5] - The company has a project backlog of 15 GW in capacity awaiting budgetary approvals, which are expected soon, enhancing its market outlook [5][6] Group 3: Analyst Sentiment and Stock Performance - Analyst coverage for Evergy Energy has increased, with 10 out of 11 ratings currently at Buy, indicating strong market sentiment [6] - The consensus target price is trending higher, forecasting a potential 10% upside by mid-December, with a high-range suggesting a 25% upside possible by 2026 [6] Group 4: Dividend Appeal - Evergy Energy offers an annualized dividend of $2.78 in 2025, yielding approximately 3.75%, with expectations for annual growth [7] - The company has a history of increasing dividends for 22 consecutive years, positioning it for potential inclusion in the Dividend Aristocrat Index by 2029 [7] - The current payout ratio is sustainable at 70%, aligning distribution growth with earnings growth [7]

Core Insights - Utility stocks had been performing well in 2025 but have recently experienced a pullback, suggesting potential for a rebound in the sector Group 1: Brookfield Infrastructure - Brookfield Infrastructure operates globally with significant assets in utilities, including 3,500 kilometers of natural gas pipelines and 3,100 kilometers of electricity transmission lines [4][6] - The company has a market cap of $6.1 billion, with a current price of $46.33 and a dividend yield of 4.9% [5][6] - Brookfield Infrastructure's funds from operations (FFO) are diversified, with only 5% sensitive to oil and gas market conditions, indicating stability [6] Group 2: Enbridge - Enbridge operates an extensive pipeline network, transporting approximately 30% of North America's crude oil and 20% of the natural gas used in the U.S. [7][8] - The company has a market cap of $104 billion, with a current price of $47.55 and a forward dividend yield of 5.9% [9][10] - Enbridge has a strong track record of dividend increases, having raised its dividend for 30 consecutive years, and has $50 billion in visible growth opportunities through 2030 [11] Group 3: Evergy - Evergy operates in Kansas and Missouri, providing power and has outperformed both the S&P 500 and the utilities sector this year [12][13] - The company has a market cap of $17 billion, with a current price of $73.80 and a dividend yield of 3.8% [14][15] - Evergy is well-positioned for growth due to the construction of new data centers in its service areas, with management anticipating growth opportunities through 2030 and beyond [16]

Core Insights - Evergy, Inc. (EVRG) is expanding its operations in the transmission market through collaborations, strategic acquisitions, and partnerships while aiming for carbon neutrality by 2045 [1] Growth Outlook - The Zacks Consensus Estimate for 2025 earnings per share (EPS) is $4.01, with a slight increase of 0.47% for 2026 EPS to $4.28 over the past 60 days [2] - The revenue estimate for 2025 is $5.95 billion, indicating a year-over-year improvement of 1.80%, while the 2026 revenue estimate is $6.23 billion, implying a growth of 4.59% [2] - The long-term earnings growth rate for EVRG is projected at 5.78% over the next three to five years [2] Capital Return Program - EVRG has been increasing shareholder value through consistent dividend payments, with a current quarterly dividend of 69.5 cents per share, leading to an annualized dividend of $2.78 [3] - The current dividend yield stands at 3.61%, significantly higher than the Zacks S&P 500 composite average of 1.12% [3] Debt Structure - The capital-intensive nature of the Utilities sector necessitates substantial investments for upgrades and expansions, with the Federal Reserve's interest rate reduction benefiting utilities [4] - EVRG's total debt to capital ratio is 55.84%, which is better than the industry average of 59.51% [4] Times Interest Earned Ratio - Evergy's times interest earned (TIE) ratio at the end of Q3 2025 was 2.5, indicating a strong ability to meet long-term debt obligations [5] Share Price Performance - Over the past year, EVRG's shares have increased by 18.8%, outperforming the industry's growth of 15.6% [6]

Core Insights - Evergy (EVRG) is highlighted as a strong investment option due to its steady dividend growth and stable fundamentals [1] - The company serves 1.7 million customers in Kansas and Missouri, benefiting from rising energy demand, particularly from data centers [1] Group 1 - Evergy's Relative Strength Rating has improved to 72, indicating better technical performance [2] - The company has seen a rise in its Relative Strength Rating to 73, reflecting its improving market position [4] - Evergy's stock is noted for its rising fortunes as demand for electricity soars [4] Group 2 - The utility sector, including Evergy, is experiencing increased demand, which is positively impacting its performance [1] - Evergy's stock is approaching key technical benchmarks, suggesting potential for further growth [4] - The company has received multiple upgrades in its Relative Strength Ratings, indicating strong market leadership [4]

Core Viewpoint - Citigroup has raised the target price for Evergy Inc. (EVRG.US) from $79 to $89 while maintaining a "Buy" rating, citing clearer information on the company's growing data center load from its Q3 earnings call [1] Group 1: Company Performance - Evergy reported progress in partnerships with two major data center clients, signing service agreements totaling approximately $200 million, which are expected to generate about 600 megawatts of peak demand by 2029 [1] - The company has adjusted its load growth forecast to a compound annual growth rate of 4%-5% due to these developments [1] - Evergy has also introduced a third data center project, indicating significant advancements in early agreements and project expansions [1] Group 2: Financial Guidance - Evergy has narrowed its adjusted EPS guidance for 2025 to a range of $3.92 to $4.02, impacted by lower-than-expected summer temperatures [2] - The management emphasized the company's long-term fundamentals remain strong, supported by what they describe as "generational economic development opportunities" and the necessary investments to achieve this growth [2] - On November 6, the company announced a 4% increase in its quarterly dividend, marking the 20th consecutive year of dividend growth [2]

Core Insights - Evergy, Inc. is recognized as one of the 15 overlooked dividend stocks to consider for investment [1] - Citi has raised its price target for Evergy from $79 to $89, citing a strong outlook for data center growth [2] - The company reported significant progress with major data center customers, securing service agreements worth approximately $200 million [3] Financial Performance - In Q3 2025, Evergy narrowed its adjusted EPS guidance to a range of $3.92 to $4.02, influenced by cooler-than-normal summer weather [4] - The company announced a 4% increase in its quarterly dividend, marking the 20th consecutive year of dividend growth [4] Business Operations - Evergy provides clean, reliable, and safe energy to around 1.7 million customers across Kansas and Missouri through its subsidiaries [5] - The company expects data center projects to generate about 600 MW of peak demand by 2029, leading to an overall load growth forecast of 4-5% compound annual rate [3]

Core Viewpoint - The focus is on generating a 7%+ income yield through investments in energy stocks while minimizing principal loss risk [1] Group 1: Investment Strategy - The investment strategy involves a portfolio of energy stocks, including both traditional and renewable energy companies, targeting those with competitive advantages and strong dividend yields [1] - The leader of the investing group emphasizes managing risk through options while providing both micro and macro-analysis of energy companies [1] Group 2: Subscriber Benefits - Subscribers gain early access to investment ideas that are not publicly released, along with in-depth research not available to the general public [1] - All subscribers can access the analyst's work without needing a subscription to Seeking Alpha Premium [1]

Core Insights - Evergy, Inc. (EVRG) reported third-quarter 2025 operating earnings per share (EPS) of $2.03, missing the Zacks Consensus Estimate of $2.14 by 5.1% and slightly up from $2.02 in the same quarter last year [1] - The company's total revenues for the quarter were $1.81 billion, consistent with the previous year but falling short of the Zacks Consensus Estimate of $1.87 billion by 3.4% [2][8] - Adjusted EPS increased primarily due to the recovery of regulated investments and higher weather-normalized demand [1] Financial Performance - Fuel and purchased power costs were $393.1 million, a decrease of 9.4% from $433.7 million in the prior year [3] - Operating and maintenance expenses rose to $252.8 million, reflecting a 0.5% year-over-year increase [3][8] - Interest expenses increased by 5.6% year over year, totaling $152 million [3] Financial Position - As of September 30, 2025, cash and cash equivalents stood at $27.5 million, up from $22 million at the end of 2024 [4] - Long-term debt increased to $12.45 billion from $11.81 billion as of December 31, 2024 [4] - Cash provided by operating activities for the first nine months of 2025 was $1.71 billion, compared to $1.59 billion in the same period last year [4] Guidance and Outlook - Evergy has narrowed its 2025 adjusted EPS guidance to a range of $3.92-$4.02, with the Zacks Consensus Estimate at $4.01, which is at the higher end of the company's guidance [5] - The company reaffirmed its annual adjusted EPS growth target of 4-6% through 2029 [5] Zacks Rank - Evergy currently holds a Zacks Rank 2 (Buy) [6]

Financial Data and Key Metrics Changes - The company reported third-quarter adjusted earnings of $2.03 per share, a slight increase from $2.02 per share a year ago, driven by a recovery of regulated investments and growth in weather-normalized demand [5][26] - Year-to-date adjusted earnings are $3.41 per share compared to $3.46 per share a year ago, leading to a narrowed 2025 adjusted EPS guidance range of $3.92-$4.02 per share from the original range of $3.92-$4.12 per share [5][28] - The lower midpoint of guidance is primarily due to weather headwinds impacting results by $0.13 per share [5] Business Line Data and Key Metrics Changes - Weather-normalized demand increased by 2% in the third quarter compared to the previous year, supported by increases in both residential and commercial usage [27] - The recovery of regulated investments contributed an additional $0.11 to EPS, while higher depreciation and interest expenses led to a $0.07 decrease in EPS [26] Market Data and Key Metrics Changes - The unemployment rates in Missouri, Kansas, and the Kansas City metro area remain below the national average of 4.3%, supporting robust customer demand in service areas [27] - The company has a strong economic development pipeline with opportunities exceeding 15 GW, indicating a robust backlog relative to its size [9][10] Company Strategy and Development Direction - The company is focused on a five-year capital investment plan that includes expected generation investments to meet growing demand and regulatory requirements [9][32] - The strategy emphasizes affordability and competitiveness, with a commitment to maintaining a lower rate trajectory compared to regional peers [21][23] - The company aims to attract large new customers through a proposed large load power service tariff that ensures they pay a fair share of system costs [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, bolstered by economic development opportunities and necessary investments [6][30] - The company anticipates significant load growth driven by large data center projects, with expectations of 4-5% annual load growth through 2029 [31][34] - Management highlighted the importance of collaboration with stakeholders to advance regulatory frameworks that support growth [20][19] Other Important Information - A 4% increase in the quarterly dividend to $2.78 per share was announced, aligning with the updated growth outlook [8] - The company is nearing completion of its 27th refueling outage at Wolf Creek, which generates around 1,200 MW of non-carbon emitting energy [8] Q&A Session Summary Question: What are the priorities for the 2026 Missouri legislative session? - Management indicated that the focus will be on implementing elements of SB4-related rulemakings, with expectations for a lighter legislative calendar in 2026 [40][41] Question: How will the growth rate profile look in the upcoming capital plan? - Management refrained from providing specifics but indicated that the updated financial plan will outline the relationship between load growth and capital investments [42][43] Question: How much competition exists in attracting large loads within the service territory? - Management noted strong collaboration between Kansas and Missouri, with legislative truces in place to mitigate competition for economic development [50][51] Question: How much of the $17.5 billion capital expenditure is subject to typical rate case filings? - Management explained that all investments are subject to reviews, with mechanisms in place to mitigate regulatory lag [52][53] Question: What is the impact of the Lambda data center on sales growth? - Management clarified that the Lambda project is expected to contribute to load growth, with further quantification to be provided in future updates [62][64] Question: What is the status of the LLPS tariff discussions? - Management confirmed a unanimous settlement agreement in Kansas and a partial settlement in Missouri, with decisions expected soon [70][71] Question: How will the financing plan be impacted by new agreements? - Management indicated that cash flows from new customers could significantly improve operations, potentially reducing equity funding needs [84][85]

Financial Data and Key Metrics Changes - The company reported third-quarter adjusted earnings of $2.03 per share, a slight increase from $2.02 per share a year ago, driven by a recovery of regulated investments and growth in weather-normalized demand [5][26] - Year-to-date adjusted earnings are $3.41 per share compared to $3.46 per share a year ago, leading to a narrowed 2025 adjusted EPS guidance range of $3.92-$4.02 per share from the previous range of $3.92-$4.12 per share [5][28] - The lower midpoint of guidance is primarily due to weather headwinds impacting results by $0.13 per share [5] Business Line Data and Key Metrics Changes - Weather-normalized demand increased by 2% in the third quarter compared to the previous year, following a 1.4% increase in the second quarter, supported by strong residential and commercial usage [27] - The recovery of regulated investments contributed an additional $0.11 to EPS, while higher depreciation and interest expenses led to a $0.07 decrease in EPS [26] Market Data and Key Metrics Changes - The unemployment rates in Missouri, Kansas, and the Kansas City metro area remain below the national average of 4.3%, supporting robust customer demand in service areas [27] - The company has a strong economic development pipeline with opportunities exceeding 15 gigawatts, indicating a robust backlog relative to its size [9][10] Company Strategy and Development Direction - The company is focused on a five-year capital investment plan that includes expected generation investments to serve load and meet increasing reserve margin requirements [9][32] - The strategic focus includes maintaining affordability while investing in infrastructure to support new large customers, with a designed large load power service tariff to ensure new customers pay a fair share [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, bolstered by economic development opportunities and necessary investments [6][30] - The company anticipates a comprehensive financial outlook update in February, including refreshed views on load forecasts and capital investment plans [8][34] Other Important Information - A 4% increase in the quarterly dividend to $2.78 per share was announced, aligning with the updated growth outlook [8] - The company is committed to delivering safe, affordable, and reliable service to its 1.7 million customers, emphasizing the benefits of new large customers for broader cost-sharing [20][24] Q&A Session Summary Question: What are the priorities for the 2026 Missouri legislative session? - Management indicated that the focus will be on implementing elements of SB4-related rulemakings, with a lighter calendar anticipated for 2026 [40][41] Question: How will the growth rate profile look moving towards the end of the decade? - Management refrained from providing specifics but highlighted multiple tailwinds that could positively impact growth [42][43] Question: How much competition exists at the local level for attracting large loads? - Management noted strong collaboration between Kansas and Missouri, with legislative truces to mitigate competition across state lines [50][51] Question: How much of the $17.5 billion CapEx is subject to typical rate case filings? - Management explained that all investments are subject to reviews, with mechanisms in place to mitigate regulatory lag [52][53] Question: Can you elaborate on the third data center's impact on sales growth? - Management confirmed that the third data center would be additive to the load growth potential, with specifics to be provided in future updates [60][61]