Evergy(EVRG)2024-08-08 21:49Financial Performance - Evergy reported a total revenue of $3.2 billion for the fiscal year ended December 31, 2023, representing a 5% increase compared to the previous year[8]. - The company achieved an earnings per share (EPS) of $2.50, which is a 10% increase year-over-year[8]. - Evergy's customer base grew by 2% to approximately 1.6 million customers, indicating a steady demand for energy services[8]. - Evergy, Inc. reported operating revenues of $1,447.5 million for the three months ended June 30, 2024, compared to $1,354.2 million for the same period in 2023, representing a year-over-year increase of 6.9%[26]. - Net income attributable to Evergy, Inc. for the three months ended June 30, 2024, was $207.0 million, up from $179.1 million in the same period of 2023, reflecting a growth of 15.6%[27]. - Basic and diluted earnings per share for the second quarter of 2024 were both $0.90, compared to $0.78 in the second quarter of 2023, indicating a 15.4% increase[27]. - Operating revenues for Q2 2024 reached $727.3 million, up from $639.6 million in Q2 2023, representing a 13.3% increase[38]. - Total operating revenues for the year ended June 30, 2024, were $2,778.5 million, an increase from $2,651.0 million in 2023, representing a growth of approximately 4.8%[81]. Capital Investment and Infrastructure - The company plans to invest $1.5 billion in capital projects over the next three years to enhance infrastructure and support renewable energy initiatives[9]. - Evergy is developing new technologies in energy storage, with a target to deploy 500 MW of battery storage by 2025[9]. - Additions to property, plant, and equipment amounted to $657.2 million in the first half of 2024, compared to $579.9 million in the first half of 2023[40]. - Evergy's property, plant, and equipment, net, was reported at $24,301.4 million as of June 30, 2024, reflecting ongoing investments in infrastructure[66]. Sustainability and Emission Goals - Evergy aims to reduce carbon emissions by 30% by 2030, aligning with its long-term sustainability goals[9]. - The company anticipates a 4% growth in energy demand over the next five years, driven by economic recovery and population growth[9]. Expenses and Liabilities - Evergy's operating and maintenance expenses are projected to increase by 3% in the upcoming fiscal year due to inflationary pressures[9]. - Total operating expenses for the three months ended June 30, 2024, were $1,089.4 million, an increase from $1,017.6 million in the same period of 2023, marking a rise of 7.0%[26]. - Evergy, Inc. incurred interest expenses of $143.6 million for the three months ended June 30, 2024, compared to $133.7 million in the same period of 2023, representing a rise of 7.1%[26]. - Evergy, Inc. reported total long-term liabilities of $18,788.5 million as of June 30, 2024, compared to $17,778.5 million at the end of 2023, an increase of 5.7%[23]. Cash Flow and Equity - Cash flows from operating activities for the year to date June 30, 2024, were $634.8 million, down from $715.2 million in 2023, a decrease of 11.2%[29]. - The company’s total equity increased to $9,731.7 million as of June 30, 2024, from $9,685.0 million at the end of 2023, reflecting a growth of 0.5%[23]. - Total current assets increased to $1,021.8 million as of June 30, 2024, compared to $945.8 million in the previous year[34]. Dividends and Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.6425 per share on Evergy's common stock, payable on September 20, 2024[74]. - Evergy Kansas Central declared a cash dividend of up to $135.0 million to Evergy, payable on or before September 19, 2024[74]. - Evergy Metro declared a cash dividend of up to $110.0 million to Evergy, also payable on or before September 19, 2024[74]. Regulatory and Compliance Issues - The company anticipates compliance costs related to the EPA's tightened Mercury and Air Toxics Standards (MATS) rule will not be material[160]. - The EPA lowered the primary annual PM NAAQS from 12.0 µg/m3 to 9.0 µg/m3, effective May 2024, which could have a material impact on the company's operations and financial results[164]. - The proposed ITFIP for Missouri and Oklahoma includes reduced ozone season NOx budgets starting in 2023, with additional reductions in future years, potentially affecting the company's compliance costs[162]. Related Party Transactions - Related party transactions for the Evergy Companies showed an increase in billings, with Evergy Kansas Central billing Evergy Missouri West $10.4 million for the three months ended June 30, 2024, compared to $9.9 million for the same period in 2023[177]. - As of June 30, 2024, Evergy Kansas Central had a net payable of $171.3 million to Evergy, down from $274.5 million as of December 31, 2023, indicating a reduction of approximately 37.5%[180].