01—Abstract
Summary
Summary of the 10-Q filed November 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Evergy, Inc. (Evergy) filed this combined Form 10-Q for the quarter ended September 30, 2024, covering Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc. For the nine months ended September 30, 2024, Evergy reported operating revenues of $4.59 billiona, income from operations of $1.25 billion and net income attributable to Evergy, Inc. of $795.3 million, or $3.45 diluted EPS, compared with $673.3 million, or $2.92, a year earlier.
For the three months ended September 30, 2024, net income attributable to Evergy, Inc. was $465.6 millionb, or $2.02 per diluted share, versus $351.6 million, or $1.53, in the prior-year quarter. The filing attributes the quarterly increase mainly to a $96.5 million regulatory liability recorded in Q3 2023 for COLI rate credit refunds, new Evergy Kansas Central retail rates effective December 2023, and higher transmission revenues. Capital spending and financing dominate the balance sheet story.
Year-to-date additions to property, plant and equipment were $1.82 billionc, and Evergy's five-year capital expenditure plan totals $2.48 billion for 2025 rising to $3.80 billion in 2028. Total assets reached $32.15 billion at September 30, 2024, and long-term debt rose to $11.57 billion. Evergy issued $919.6 million of long-term debt year to date and repaid $800.0 million of 2.45% Senior Notes in September 2024.
Cash dividends paid year to date were $443.2 milliond, and the board declared a quarterly dividend of $0.6675 per share in November 2024. Available borrowing capacity under the $2.5 billion master credit facility was $1.07 billion. Regulatory and environmental items to watch include a pending Evergy Missouri West rate case, in which a partial stipulation would increase retail revenues by about $55 million, subject to MPSC approval expected in December 2024.
The filing also describes Kansas legislation (H.B. 2527 and S.B. 410), new solar and natural gas generation plans, and several EPA rules, some of which the company says could have a material cost to comply.
02—Key points
Key Highlights
- Net income attributable to Evergy, Inc. for Q3 2024 was $465.6 million ($2.02 diluted EPS), up from $351.6 million ($1.53) in Q3 2023; year-to-date EPS was $3.45 versus $2.92.
- Year-to-date operating revenues were $4.59 billion, up from $4.32 billion, and income from operations rose to $1.25 billion from $1.10 billion.
- Year-to-date capital expenditures (additions to property, plant and equipment) were $1.82 billion; the five-year plan totals $2.48 billion (2025) rising to $3.80 billion (2028).
- Total assets were $32.15 billion at September 30, 2024; long-term debt, net, was $11.57 billion.
- Evergy issued $919.6 million of long-term debt year to date and repaid $800.0 million of 2.45% Senior Notes in September 2024.
- Evergy Missouri West's rate case partial stipulation would raise retail revenues by about $55 million, pending MPSC approval expected in December 2024 with new rates effective January 2025.
- Evergy announced plans for two ~705 MW combined-cycle gas plants in Kansas (in service 2029 and 2030) and ~159 MW and ~65/100 MW solar projects; the quarterly dividend was declared at $0.6675 per share.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 7, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.81B$1.67B | +8.5% |
| Operating Expenses | $1.18B$1.18B | 0.0% |
| Operating Income | $627.50M$485.90M | +29.1% |
| Interest Expense | $143.90M$136.80M | +5.2% |
| Net Income | $468.60M$351.60M | +33.3% |
| EPS (Basic) | $2.02$1.53 | +32.0% |
| EPS (Diluted) | $2.02$1.53 | +32.0% |
| Shares Outstanding (Basic) | 230.30M230.10M | +0.1% |
| Shares Outstanding (Diluted) | 230.60M230.50M | 0.0% |
05—Questions
Frequently Asked Questions
What drove the increase in Evergy's third-quarter 2024 earnings?
Net income attributable to Evergy, Inc. rose to $465.6 million from $351.6 million. The filing cites lapping a $96.5 million regulatory liability recorded in Q3 2023 for COLI rate credit refunds, new Evergy Kansas Central retail rates effective December 2023, higher transmission revenues and lower mark-to-market losses. These were partly offset by higher property taxes, income tax, depreciation and lower Evergy Kansas Central COLI benefits.
How is Evergy funding its capital expenditure program?
Evergy relies primarily on cash from operations, short-term borrowings, long-term debt and equity issuances. Year-to-date operating cash flow was $1.59 billion. The company issued $919.6 million of long-term debt, and short-term debt, net, increased by $471.0 million. Available borrowing capacity under the $2.5 billion master credit facility was $1.07 billion, and the company filed an uncapped Form S-3 in August 2024.
What are the key regulatory developments for investors?
Evergy Missouri West reached a partial settlement in its 2024 rate case for a retail revenue increase of about $55 million, subject to MPSC approval expected in December 2024. In Kansas, H.B. 2527 created a plant-in-service accounting option, and Evergy Kansas Central and Evergy Metro elected it effective July 2024. Evergy Kansas Central also requested KCC predetermination for new gas and solar projects in November 2024.
What environmental risks does the filing identify?
The filing describes several pending EPA actions, including Ozone Interstate Transport plans affecting Missouri, Oklahoma and Kansas, PM2.5 nonattainment designations in Kansas, Regional Haze, greenhouse gas rules for power plants, and CCR regulations. For several of these, the Evergy Companies state that the cost to comply could be material, or that they cannot yet accurately assess the impact. In the second quarter of 2024, the companies recorded $72.8 million of new ARO liabilities for Evergy, related to the April 2024 CCR regulation.
Did Evergy change its dividend or debt maturities?
Evergy declared a quarterly common dividend of $0.6675 per share in November 2024, payable December 20, 2024. Cash dividends paid year to date were $443.2 million, compared with $422.0 million a year earlier. Evergy repaid $800.0 million of 2.45% Senior Notes at maturity in September 2024, and current maturities of long-term debt were $404.8 million at September 30, 2024.
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