Core Viewpoint - IDACORP, Inc. reported strong first-quarter 2025 earnings, exceeding estimates, driven by customer growth and operational efficiency [1][3]. Financial Performance - Earnings per share for Q1 2025 were $1.10, surpassing the Zacks Consensus Estimate of $1.03 by 6.8% and improving 15.8% from $0.95 in the same quarter last year [1]. - Total revenues for Q1 2025 were $432.4 million, down 5.6% from the Zacks Consensus Estimate of $458 million and down 3.8% from $449 million in the prior year [2]. - Net income increased to $59.6 million, a rise of 23.4% from the previous year [3]. Operational Highlights - Customer growth rate in service areas rose by 2.6% year over year, contributing an additional $7.3 million to operating income [3]. - Total operating expenses decreased to $377.5 million, down 5.5% from the year-ago quarter, attributed to lower purchased power and fuel costs [3]. Cash Flow and Debt - As of March 31, 2025, cash and cash equivalents stood at $634.5 million, up from $368.9 million at the end of 2024 [4]. - Long-term debt increased to $3.44 billion from $3.05 billion as of December 31, 2024 [4]. - Net cash provided by operating activities was $124.3 million, compared to $109.7 million in the prior year [4]. Guidance - IDACORP maintained its full-year 2025 earnings guidance of $5.65-$5.85 per share, with the Zacks Consensus Estimate at $5.81 [5]. - Expected capital expenditures for 2025 are projected to be between $1 billion and $1.1 billion [5]. - The company anticipates O&M expenses to range from $465 million to $475 million and plans to add hydropower capacity of 7-8.5 MWh in 2025 [5].

Financial Data and Key Metrics Changes - IDACORP's diluted earnings per share increased to $1.1 from $0.95 in the first quarter of the previous year [5] - Net income rose by $11.4 million compared to the first quarter last year, primarily driven by higher retail revenues and incremental tax credits [19] - The company reaffirmed its full-year diluted earnings per share guidance range of $5.65 to $5.85 [5][36] Business Line Data and Key Metrics Changes - Retail customer growth was reported at 2.6%, with residential customer growth at 2.9% [6] - Retail revenues per megawatt hour increased, contributing an additional $11.3 million to operating income [20] - Other operating and maintenance expenses rose by $7.2 million, largely due to wildfire mitigation program costs [21] Market Data and Key Metrics Changes - The five-year forecast for retail sales growth is projected at 8.3% annually, necessitating additional system investments [9] - The company expects good hydropower generation in 2025, ranging from 7 million to 8.5 million megawatt hours [38] Company Strategy and Development Direction - The company is focused on executing infrastructure projects to meet customer demand, with significant investments planned [10][27] - IDACORP is actively monitoring tariffs and regulatory changes to ensure affordability for customers [13] - A general rate case is planned to recover substantial capital investments, with rates expected to be effective no earlier than January 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer growth and economic expansion within Idaho Power's service area [6] - The company is committed to maintaining a strong balance sheet while targeting a 50/50 debt-equity capital ratio [29] - Management highlighted the importance of timely recovery mechanisms for infrastructure investments to reduce regulatory lag [81] Other Important Information - The company is actively engaged in discussions regarding wildfire mitigation plans and legislative changes [16][90] - A significant expansion project by Chobani and a new distribution center by Tractor Supply Company were noted as indicators of strong customer interest [6][8] Q&A Session Summary Question: Changes to wildfire mitigation plans due to new legislation - Management does not anticipate significant changes to the wildfire mitigation program but may make modifications over time [42] Question: Thoughts on rate case mechanisms to improve ROEs - The company is preparing its case and considering options to reduce regulatory lag [44] Question: Impact of chaotic periods on the agricultural community - Management noted it is too early to measure impacts but remains optimistic about agricultural conditions [54] Question: Capacity for proposing multiyear mechanisms to the PUC - Management is open to discussing creative solutions to help with the volume of filings [60] Question: Status of contract negotiations with a data center - Ongoing negotiations are still in progress [78] Question: Timely recovery of transmission project costs - Management is exploring various mechanisms for timely cost recovery [80]

Financial Data and Key Metrics Changes - IDACORP's diluted earnings per share increased to $1.1 from $0.95 in the same quarter last year, reaffirming the full-year guidance range of $5.65 to $5.85 [4][33] - Net income rose by $11.4 million compared to the first quarter of the previous year, primarily driven by higher retail revenues and customer growth [17][18] - Operating cash flow is insufficient to finance ongoing projects, necessitating growth capital to maintain a balanced debt-equity ratio [26][27] Business Line Data and Key Metrics Changes - Idaho Power's customer base grew by 2.6% year-over-year, with residential customers increasing by 2.9% [5] - Retail revenues per megawatt hour increased operating income by $11.3 million, attributed to higher base rates from a previous rate case [18] - Other operating and maintenance expenses rose by $7.2 million, influenced by wildfire mitigation and insurance costs [19] Market Data and Key Metrics Changes - The five-year forecast for retail sales growth is projected at 8.3% annually, necessitating additional system investments [7] - The company is actively pursuing large customer projects, including significant expansions in the food processing and warehousing sectors [5][6] Company Strategy and Development Direction - The company is focused on executing infrastructure projects to meet customer demand, with several major projects underway [10][11] - A general rate case is planned to recover substantial capital investments, with a filing expected in May [13] - The company is committed to maintaining affordability for customers while monitoring tariffs and regulatory changes [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of customer demand and the execution of infrastructure projects, emphasizing the importance of timely energy availability [31] - The favorable snowpack conditions are expected to support reliable hydropower generation in 2025 [16][35] - Management is optimistic about the ongoing interest from businesses looking to expand within Idaho Power's service area [5][6] Other Important Information - The company is actively monitoring the impact of tariffs on battery storage assets and other projects [12] - Legislative changes regarding wildfire mitigation have been positively received, establishing a standard of care for future operations [15][78] Q&A Session Summary Question: Changes to wildfire mitigation plans due to new legislation - Management does not anticipate significant changes to existing wildfire mitigation plans but may make modifications over time [38] Question: Thoughts on rate case mechanisms to improve ROEs - The company is preparing its rate case and considering options to reduce regulatory lag [40][41] Question: Impact of chaotic periods on the agricultural community - Management noted it is too early to measure impacts on agriculture but remains optimistic about interest in expansion [46][47] Question: Future dispatchable resources timeline - Dispatchable resources are expected to be included in the Integrated Resource Plan (IRP) for 2029 and 2030 [57] Question: Capacity in the 2028 RFP shortlist - The shortlist includes several hundred megawatts, with Idaho Power projects also represented [73] Question: Timely recovery of transmission project costs - The company is exploring mechanisms for timely cost recovery and is open to various options [72]

Earnings Conference Call 1st Quarter 2025 May 1, 2025 Forward-Looking Statements This presentation (and oral statements relating to this presentation) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical facts, that express or involve discussions of expectations, beliefs, plans, objectives, outlooks, assumptions, or future events or performance are forward-looking. Forward-looking statements are no ...

Core Viewpoint - IdaCorp reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, and showing an increase from $0.95 per share a year ago, representing an earnings surprise of 6.80% [1][2] Financial Performance - The company posted revenues of $432.46 million for the quarter ended March 2025, which was 5.65% below the Zacks Consensus Estimate and a decrease from $448.94 million year-over-year [2] - Over the last four quarters, IdaCorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - IdaCorp shares have increased approximately 8.1% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.69 for the coming quarter and $5.81 for the current fiscal year, alongside revenues of $459.06 million and $1.88 billion respectively [7] - The Zacks Industry Rank places Utility - Electric Power in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] Estimate Revisions - The trend for estimate revisions for IdaCorp is mixed, currently resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance - IDACORP reported Q1 2025 net income of $59.6 million, or $1.10 per diluted share, up from $48.2 million, or $0.95 per diluted share in Q1 2024, representing a 23.5% increase in net income[1][4]. - The increase in net income was primarily driven by higher retail revenues per megawatt-hour (MWh), which contributed an additional $11.3 million, and customer growth that added $7.3 million to operating income[5][6][7]. - IDACORP reaffirms its 2025 earnings guidance in the range of $5.65 to $5.85 per diluted share, expecting to utilize $60 million to $77 million in additional tax credits under the Idaho regulatory mechanism[3][14]. Customer Growth - Customer growth at Idaho Power increased by approximately 16,500 customers, or 2.6%, during the twelve months ended March 31, 2025[7]. Operating Expenses - Operating expenses increased by $7.2 million due to higher other operations and maintenance (O&M) expenses, including a $3.2 million rise in wildfire mitigation program costs[8]. - Non-operating expenses increased by $2.2 million due to higher interest expenses from long-term debt and customer deposits[12]. - Depreciation expense rose by $5.8 million in Q1 2025 compared to Q1 2024, primarily due to an increase in plant-in-service[9]. Capital Investment and Regulatory Plans - The company is focused on executing its capital investment and regulatory plan, with major transmission projects set to begin construction[2]. - IDACORP's hydropower generation guidance for 2025 has been adjusted to 7.0 – 8.5 million MWh, up from the previous estimate of 6.5 – 8.5 million MWh[14]. Future Outlook and Risks - IDACORP and Idaho Power's forward-looking statements include expectations regarding future financial performance, power generation, and capital expenditures[18]. - The company anticipates potential impacts from regulatory decisions by the Idaho and Oregon public utilities commissions and the Federal Energy Regulatory Commission on cost recovery and return on investment[18]. - Risks associated with capital expenditures and utility infrastructure projects may lead to delays or increased costs due to tariffs or regulatory prudence[18]. - Economic conditions, including inflation and interest rates, could affect operations, capital investments, and customer demand for electricity[18]. - The company faces challenges related to workforce factors, including attracting and retaining skilled workers and the costs associated with unionization[18]. - Changes in laws and regulations may result in increased compliance costs and impact recovery of costs through rates[18]. Environmental and Strategic Initiatives - The company is planning the cessation of coal-fired operations and conversion to natural gas, which may incur remediation costs[19]. - IDACORP aims to provide 100% clean energy by 2045, leveraging its diverse energy mix and low-cost hydropower projects[16]. - The emergence of new energy and transmission markets in the western United States may change market dynamics affecting the company[19]. - The company aims to maintain dividend payments and achieve target payout ratios based on financial performance and capital requirements[19]. - The company disclaims any obligation to update forward-looking statements except as required by law[19].

Financial Performance - IDACORP and Idaho Power are focused on future financial performance, including projected capital expenditures and cash flows[16]. - IDACORP and Idaho Power emphasize the importance of maintaining dividend payouts based on financial performance and capital requirements[18]. - Total operating revenues for Q1 2025 were $432,457, a decrease of 3.3% from $448,936 in Q1 2024[24]. - Net income increased to $59,661 in Q1 2025, up 23.6% from $48,268 in Q1 2024[26]. - Earnings per share (EPS) attributable to IDACORP, Inc. were $1.10 for both basic and diluted shares, compared to $0.95 in Q1 2024, reflecting a 15.8% increase[24]. - Total operating expenses decreased to $377,528 in Q1 2025, down 5.5% from $399,340 in Q1 2024[24]. - The balance of total equity at the end of the period was $3,353,355,000, an increase from $2,922,414,000 at the end of 2024, marking a growth of 14.8%[46]. - The company reported a total comprehensive income of $58,067,000 for the three months ended March 31, 2025, compared to $47,586,000 in the same period of 2024, an increase of 21.0%[41]. - For the three months ended March 31, 2025, total electric utility operating revenues decreased to $431.952 million, down 3.8% from $448.299 million in the same period of 2024[74]. - Revenues from contracts with customers for the three months ended March 31, 2025, were $411.142 million, a decrease of 1.8% compared to $417.897 million in 2024[75]. Capital Expenditures and Investments - Capital expenditures for Idaho Power were $194 million during the three months ended March 31, 2025[222]. - Expected capital expenditures for 2025 are projected to be between $1.00 billion and $1.10 billion, with a total of $3.10 billion to $3.60 billion estimated for 2027-2029[223]. - Idaho Power has spent approximately $431 million on the B2H transmission project through March 31, 2025, with total cost estimates for the project between $1.5 billion and $1.7 billion[227][230]. - The B2H transmission line is expected to begin construction in 2025, with an in-service date no earlier than 2027[226]. - Idaho Power has contracts or plans to purchase, own, and operate 330 MW of battery storage assets with expected useful lives of approximately 20 years[231]. - The company has entered into a contract to purchase and own a 300 MW wind facility and two 20-year agreements to purchase storage capacity from battery storage facilities totaling 250 MW[231]. - Idaho Power expects to incur total costs for its share of the GWW project between $900 million and $1.1 billion, with approximately $71 million expended for the permitting phase as of March 31, 2025[235]. - The SWIP-N project will involve Idaho Power purchasing an approximate 11 percent ownership interest in a planned 285-mile high-voltage transmission line, with construction expected to commence as early as 2025[236]. - The Jackalope Wind Project is expected to supply approximately 300 MW of generation to Idaho Power's system, with operations anticipated to begin in 2027[237]. Regulatory and Compliance Risks - The companies are facing risks related to regulatory decisions that could impact cost recovery and return on investment[16]. - The companies are committed to compliance with environmental regulations, which may increase operational costs[18]. - Idaho Power filed for a $94.8 million net decrease in PCA revenues for the 2025-2026 collection period, primarily due to the collection of the 2023 PCA balancing adjustment[69]. - The proposed 2025-2026 FCA rates represent an annual decrease of $40.7 million, or 5.28%, from current rates[71]. - The EPA proposed regulatory actions could significantly increase operating and construction costs for generating plants[276][277]. - The current Presidential Administration's executive orders may impact Idaho Power's operational costs and regulatory environment[280][281]. Operational Challenges - There are concerns about the ability to meet increasing power demand from new industrial and commercial customers, which may exceed available supply[16]. - Idaho Power's hydropower generation may be affected by variable hydrological conditions in the Snake River Basin[18]. - The companies are actively managing risks associated with supply chain disruptions and price volatility for resources[18]. - The allowance for uncollectible accounts increased to $5,482 thousand as of March 31, 2025, representing 4.0% of customer receivables, up from 3.8% in 2024[80]. Debt and Financing - The company issued $400,000 in long-term debt during Q1 2025, with a retirement of $19,885 in long-term debt[34]. - Long-term debt for IDACORP, including the current portion, was $3,447,008,000 as of March 31, 2025, up from $3,073,662,000 as of December 31, 2024[130]. - Idaho Power repaid $19.9 million in maturing variable rate American Falls Bonds on February 3, 2025, and issued $400 million in 5.70% first mortgage bonds maturing on March 15, 2055[81]. - As of March 31, 2025, Idaho Power had $500 million available for debt issuance under regulatory orders, with a maximum additional first mortgage bond issuance capacity of approximately $1.9 billion[85]. Environmental and Sustainability Initiatives - The companies are monitoring changes in market dynamics due to the emergence of new energy and transmission markets in the western United States[18]. - Idaho Power's reclamation trust fund value exceeded the WDEQ's guarantee requirement for total reclamation obligations as of March 31, 2025[100]. - The company actively monitors environmental regulations that may impact future operations but cannot estimate the financial impact of such regulations[105].

Core Viewpoint - IDACORP, Inc. is focusing on long-term investments to enhance infrastructure and increase clean energy generation assets, which is expected to drive financial performance through consistent customer growth [1] Group 1: Positive Factors - IDACORP's regulated electric operations in Idaho provide a stable and growing income stream, with capital expenditures projected at $1-$1.1 billion for 2025, $1.25-$1.35 billion for 2026, and $3.1-$3.6 billion from 2027 to 2029 [2] - The customer base of Idaho Power improved by 2.6% year-over-year in 2024, with expectations for continued growth due to better economic conditions in service territories [3] - A focus on cost control has allowed IDACORP to maintain lower rates than competitors, making the region attractive for new businesses and increasing electricity demand [4] Group 2: Challenges - IDACORP faces significant capital expenditure obligations related to hydropower license renewals, with relicensing costs for the Hells Canyon Hydroelectric Project estimated at $497 million [5] - Adverse weather conditions during summer months may reduce electricity demand, particularly from irrigation customers, impacting overall operations [6] Group 3: Stock Performance - Over the past three months, IDACORP's shares have increased by 3%, outperforming the industry growth of 1.7% [7]

Core Insights - Investing in quality dividend growth stocks tends to yield positive returns over time due to the underlying companies' earnings growth [1] Group 1 - The article emphasizes the benefits of dividend growth investing as a strategy for achieving financial independence [1] - The author has been involved in dividend investing since 2009 and has documented their journey since July 2018 [1] - The article serves as a platform for the author to share insights on dividend growth stocks and growth stocks occasionally [1]

Financial Data and Key Metrics Changes - IDACORP's diluted earnings per share increased to $5.50 compared to $5.14 in the previous year, marking a growth of approximately 7% [7] - The company recorded an additional tax credit amortization of $29.8 million for 2024, compared to no such amortization in 2023 [8] - Net income increased by $28 million compared to 2023, primarily due to higher net income at Idaho Power from a January rate increase and customer growth [32] Business Line Data and Key Metrics Changes - Customer growth for Idaho Power was strong, with nearly 650,000 customers served at the end of 2024, reflecting a 2.6% increase [12] - Total other O&M expenses rose by $61.1 million, driven by increased pension-related expenses and wildfire mitigation costs [34] - Depreciation expense increased by $28.1 million due to ongoing system investments [36] Market Data and Key Metrics Changes - Moody's GDP forecast for the Idaho Power service area predicts growth of 4.5% in 2025 and 3.7% in 2026, indicating a robust local economy [12] - The Idaho labor force surpassed 1 million workers for the first time in December 2024, showing strong economic activity [13] Company Strategy and Development Direction - The company plans to file another general rate case in Idaho in 2025 to collect necessary revenue for operations and ensure a reasonable rate of return [19] - IDACORP is focusing on infrastructure development to support large load customers, including ongoing projects with Meta and Micron [14][16] - The company aims to maintain affordability for customers while managing significant capital expenditures, with a forecasted average annual CapEx of $1.1 billion from 2025 to 2029 [41][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining earnings growth and quality, citing strong customer growth and regulatory support [31][53] - The company anticipates a potential load growth of 8.3% annually, driven by large load projects and infrastructure needs [21] - Management highlighted the importance of regulatory mechanisms to reduce lag and improve credit metrics [72] Other Important Information - The company appointed Scott Madison to the Board of Directors, bringing extensive experience in business strategy and finance [27] - Current snowpack conditions are favorable, exceeding 120% of average, which is expected to positively impact hydropower operations [28] Q&A Session Summary Question: Discussion on replenishing the ADITC mechanism - Management indicated that the process could involve including it in a general rate case request or a separate filing [65] Question: Credit metrics and conversations with rating agencies - IDACORP ended 2024 with approximately 18% cash flow preworking capital over debt, with expectations of a slight reduction in 2025 due to financing needs [68][70] Question: Opportunities for shifting to a period-end rate base framework - Management stated that all options are being explored, including the potential for a period-end rate base in future filings [77][78] Question: Incremental load growth and data center activity - Management noted strong interest from various industries, including data centers, agriculture, and manufacturing, contributing to load growth [82][85] Question: Impact of executive orders from Washington on generation mix - Management is monitoring executive orders and their potential impact on permitting and generation mix, but no immediate changes are anticipated [90][92] Question: Characterization of fourth quarter weather - The fourth quarter experienced a mix of warm and cold weather, with snow occurring unexpectedly after Thanksgiving [98] Question: Customer growth sources - Customer growth is primarily driven by large commercial and industrial customers, with modest contributions from residential in-migration [104][105] Question: Property tax refunds from litigation - The property tax refunds were related to a three-year historic period, with a pretax number of around $10 million recorded in 2024 [107]