Core Viewpoint - Pinnacle West Capital Corporation (PNW) is expected to report second-quarter 2025 results on August 6, following a significant negative earnings surprise of 180% in the previous quarter [1] Group 1: Factors Impacting Q2 Performance - PNW's Q2 earnings are anticipated to benefit from retail customer growth and increased retail electricity sales, driven by higher electricity demand from new large manufacturing facilities and data centers [2] - The bottom line is expected to improve due to lower core operations and maintenance expenses, with Arizona Public Service's Energy Management System enhancing the integration of renewable and energy storage assets [3] - However, higher depreciation, amortization, and property taxes are likely to offset some of the positive impacts on PNW's performance [4] Group 2: Q2 Expectations - The Zacks Consensus Estimate for earnings is $1.58 per share, reflecting a year-over-year decrease of 10.2% [5] - The revenue estimate stands at $1.27 billion, indicating a year-over-year decline of 3% [5] - Total electric sales are estimated at 9,757.73 gigawatt-hours, down 1.7% from the previous year's quarter [5] Group 3: Earnings Prediction - The current model does not predict an earnings beat for PNW, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6][7] - Other industry players like IDACORP and Xcel Energy are expected to report earnings beats, with IDACORP having an Earnings ESP of +1.56% and a Zacks Rank of 2 [8][10]

As a percentage of NRG's recent stock price of $159.87, this dividend works out to approximately 0.28%, so look for shares of NRG Energy Inc to trade 0.28% lower — all else being equal — when NRG shares open for trading on 8/1/25. Similarly, investors should look for EMA to open 1.56% lower in price and for PNW to open 1.00% lower, all else being equal. Below are dividend history charts for NRG, EMA, and PNW, showing historical dividends prior to the most recent ones declared. NRG Energy: NRG tickertech On ...

Core Insights - The article compares Portland General Electric (POR) and Pinnacle West (PNW) to determine which stock offers better value for investors [1] Valuation Metrics - Portland General Electric has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Pinnacle West, which has a Zacks Rank of 4 (Sell) [3] - POR has a forward P/E ratio of 12.44, while PNW has a forward P/E of 19.66, suggesting that POR is more undervalued [5] - The PEG ratio for POR is 3.72, compared to PNW's PEG ratio of 9.27, indicating that POR's expected earnings growth is more favorable [5] - POR's P/B ratio is 1.14, while PNW's P/B ratio is 1.55, further supporting the notion that POR is a better value option [6] - Based on these metrics, POR has earned a Value grade of B, while PNW has a Value grade of C [6] Earnings Outlook - The improving earnings outlook for POR enhances its attractiveness in the Zacks Rank model, positioning it as the superior value option at this time [7]

Group 1 - Pinnacle West (PNW) and Avista Corporation (AVA) are both regulated electric utilities operating in the Western U.S. but have different investment profiles [1] - Pinnacle West is based in Arizona and is characterized by growth potential [1] Group 2 - Joseph Jones, a professor with over fifteen years of market study experience, focuses on portfolio construction from a dividend growth investor's perspective [1]

Core Viewpoint - Investors in the Utility - Electric Power sector should consider Edison International (EIX) and Pinnacle West (PNW) for potential value investment opportunities [1] Group 1: Zacks Rank and Earnings Estimates - Edison International has a Zacks Rank of 2 (Buy), while Pinnacle West has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for EIX [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that EIX is likely experiencing an improvement in its earnings outlook compared to PNW [3] Group 2: Valuation Metrics - EIX has a forward P/E ratio of 9.12, significantly lower than PNW's forward P/E of 20.71, indicating that EIX may be undervalued [5] - The PEG ratio for EIX is 1.30, while PNW's PEG ratio is 9.77, further suggesting that EIX is more attractive in terms of expected earnings growth relative to its price [5] - EIX's P/B ratio is 1.23 compared to PNW's P/B of 1.63, reinforcing the notion that EIX is undervalued relative to its book value [6] - These metrics contribute to EIX's Value grade of A and PNW's Value grade of C, indicating a stronger value proposition for EIX [6]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a loss of $0.04 per share compared to earnings of $0.15 per share in Q1 2024, primarily due to the sale of Wright Canyon Energy in 2024 which provided a one-time benefit of $0.15 [15][16] - The increase in O&M, interest expense, and depreciation and amortization negatively impacted financial results, while new rates effective March 8, 2024, provided a $0.29 year-over-year benefit [16][19] - Weather-normalized sales growth was 2.1% for the quarter, with expectations of overall growth meeting guidance of 4% to 6% for the year [19][20] Business Line Data and Key Metrics Changes - Customer growth for the quarter was strong at 2.3%, near the high end of annual guidance, driven by significant growth in manufacturing and data center customers [18][19] - The company experienced a weather-normalized sales growth of 2.1%, with C&I growth at 5.3% due to the ramp-up of manufacturing and data center customers [19][20] Market Data and Key Metrics Changes - Arizona's economy is thriving, with significant investments in semiconductor manufacturing, including TSMC's increased investment to $165 billion, which is expected to create tens of thousands of high-paying jobs [6][20] - Arizona's total international exports rose nearly 12% in 2024, the highest growth rate in the country, led by sectors such as mining, semiconductors, and aerospace products [8] Company Strategy and Development Direction - The company is focused on enhancing customer experience and reliability, with ongoing investments in grid infrastructure and advanced digital platforms [9][12] - A rate case filing is planned for midyear, aiming to recover costs and develop a modernized rate structure to support high load factor customers [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing their strategy while creating customer and shareholder value, highlighting the robust growth in Arizona's economy and the need for continued investments [14][22] - The company is preparing for a significant increase in demand due to the growth of high load factor customers and ongoing economic development in the region [20][22] Other Important Information - The company has been recognized as one of the most trustworthy companies in America for 2024 by Newsweek [12] - The company is actively evaluating project proposals for new resources to be in service between 2028 and 2030, seeking at least 2,000 megawatts [11][55] Q&A Session Summary Question: Impact of TSMC customer additions on long-term forecast - The first fabrication facility is included in the forecast, and the ramp-up in C&I sales is attributed to TSMC and data centers [27][28] Question: Confirmation of retail rate return on new disclosures - The pipeline of opportunities extends beyond the three-year plan, with strategic transmission projects and generation investments highlighted [31][32] Question: Update on high load factor customer pipeline - The company remains committed to four gigawatts and has interest from over 10 gigawatts, with ongoing assessments of customer needs [43][44] Question: Regulatory lag expectations for 2026 - The focus is on minimizing regulatory lag through the upcoming rate case, with intentions to design a formula rate plan to address this issue [40][41] Question: Update on coal plant closure - The Cholla coal plant has been retired in accordance with federal law, and the company is exploring future repurposing options for the site [94][95] Question: Clarification on residential sales growth trends - The underlying sales growth trends are strong, with adjustments in accounting for unbilled revenues impacting reported figures [102][103] Question: Timing for formula rate adjustments - The intent is to have the first formula rate adjustment in 2027 following the conclusion of the current rate case [107][108]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a loss of $0.04 per share compared to earnings of $0.15 per share in Q1 2024, primarily due to the sale of Wright Canyon Energy in 2024 which provided a one-time benefit of $0.15 [14][15] - The increase in operational and maintenance (O&M) expenses, interest expense, and depreciation and amortization negatively impacted financial results, while new rates effective March 8, 2024, provided a $0.29 year-over-year benefit [15][20] - Weather-normalized sales growth was 2.1% for the quarter, driven by strong commercial and industrial (C&I) growth of 5.3% [18][19] Business Line Data and Key Metrics Changes - Customer growth for the quarter was strong at 2.3%, near the high end of annual guidance, with Maricopa County being the third fastest growing county in the US [16] - The company’s capital plan is designed to meet the needs of ongoing customer growth and ensure reliable service [16][20] - The company expects overall weather-normalized sales growth to meet guidance expectations of 4% to 6% for the year [18] Market Data and Key Metrics Changes - Arizona's economy is thriving, with significant investments in semiconductor and advanced manufacturing, including TSMC's increased investment to $165 billion [5][19] - Arizona's total international exports rose nearly 12% in 2024, the highest growth rate in the country, driven by sectors such as mining and aerospace [6][7] Company Strategy and Development Direction - The company is focused on providing reliable service and enhancing customer experience through investments in digital platforms and infrastructure [11][12] - A rate case filing is planned for midyear 2025 to recover costs and investments, aiming to modernize the rate structure and reduce regulatory lag [12][21] - The company is actively evaluating project proposals for new resources to be in service between 2028 and 2030, seeking at least 2,000 megawatts [10][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the strategy while creating customer and shareholder value [13] - The regulatory environment is being addressed to minimize lag and ensure competitive returns on equity [40][42] - The company is exploring future opportunities for repurposing retired coal plant sites for new generation technologies [92] Other Important Information - The company was recognized by Newsweek as one of the most trustworthy companies in America for 2024 [11] - The company is in the final stages of planned maintenance activities for generation units, with Palo Verde unit one expected to return to service in early May [10][12] Q&A Session Summary Question: Impact of TSMC customer additions on long-term outlook - The first fabrication facility is in full production, and the ramp-up in C&I sales is partly due to TSMC and data centers [28] - Future fabs are expected to accelerate, with ongoing evaluations of infrastructure needs [30] Question: Current pipeline of high load factor customers - The company remains committed to four gigawatts and is assessing interest from an additional 10 gigawatts [44] Question: Regulatory lag and formula rate plan - The intent is to minimize regulatory lag through the upcoming rate case, with a formula rate plan designed for annual adjustments [40][42][104] Question: Update on Eldorado investment - A gain was recognized due to higher profitability from a long-standing investment in an electric switchgear company [87][88] Question: Coal plant closure and future plans - The Cholla coal plant has been retired, and the site is being evaluated for potential new generation technologies [92][93] Question: Sales growth trends and residential usage - Underlying sales growth trends remain strong, with adjustments in accounting impacting reported figures [96][98]

Core Insights - Pinnacle West Capital Corporation (PNW) reported a first-quarter 2025 loss of 4 cents per share, missing the Zacks Consensus Estimate of earnings of 5 cents by 180% [1] - Total revenues for the quarter were $1.03 billion, exceeding the Zacks Consensus Estimate of $0.96 billion by 7.7% and increasing 8.4% from $0.95 billion in the year-ago quarter [1] Operational Highlights - Total operating expenses rose to $975 million, a 10.2% increase year over year, attributed to higher fuel and purchased power costs, as well as increased operations and maintenance expenses [2] - Operating income decreased to $57.2 million, down 14.4% from $66.8 million in the prior-year quarter [2] - Total interest expenses increased to $104.9 million, up 5.1% from $99.8 million in the previous year [2] Financial Highlights - As of March 31, 2025, cash and cash equivalents were $10 million, compared to $3.84 million as of December 31, 2024 [3] - Long-term debt, less current maturities, was $8.06 billion, slightly down from $8.058 billion as of December 31, 2024 [3] - Net cash flow from operating activities for the first quarter of 2025 was $401.9 million, compared to $347.3 million in the year-ago period [3] Guidance - The company expects consolidated earnings for 2025 to be in the range of $4.40-$4.60 per share, with the Zacks Consensus Estimate at $4.51, above the midpoint of the company's guidance [4] - Pinnacle West plans to invest $7.6 billion during the 2025-2027 period to enhance its operations [4] - Management anticipates a retail customer increase of 1.5-2.5% in 2025 [4] Zacks Rank - Pinnacle West currently holds a Zacks Rank 3 (Hold) [5]

Core Insights - Pinnacle West reported a quarterly loss of $0.04 per share, missing the Zacks Consensus Estimate of a loss of $0.05, compared to earnings of $0.15 per share a year ago, resulting in an earnings surprise of -180% [1] - The company generated revenues of $1.03 billion for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 7.71% and showing an increase from $951.71 million year-over-year [2] - Pinnacle West shares have increased approximately 12.3% since the beginning of the year, contrasting with a -5.3% decline in the S&P 500 [3] Earnings Outlook - The earnings outlook for Pinnacle West is mixed, with the current consensus EPS estimate for the upcoming quarter at $1.62 on revenues of $1.27 billion, and $4.51 on revenues of $5.08 billion for the current fiscal year [7] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Utility - Electric Power industry, to which Pinnacle West belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Renewed, Reliable and Resilient First-Quarter Financial Results May 1, 2025 Forward Looking Statements This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "wil ...