Pinnacle West(PNW) - 2024 Q4 - Annual Results

Financial Performance - Pinnacle West reported consolidated net income of $608.8 million, or $5.24 per diluted share, for full-year 2024, an increase from $501.6 million, or $4.41 per diluted share, in 2023[2]. - For Q4 2024, the company experienced a consolidated net loss of $6.8 million, or a loss of $0.06 per diluted share, compared to a net loss of $23,000 for the same period in 2023[3]. - The full-year 2024 results reflect an increase of approximately $107 million, driven by new customer rates, increased customer usage, and higher revenue from the Lost Fixed Cost Recovery adjustor mechanism[4]. - Net income attributable to common shareholders for the twelve months ended December 31, 2024, was $608,806, compared to $501,557 in 2023, marking a growth of 21.4%[24]. - Earnings per share (diluted) for the twelve months ended December 31, 2024, increased to $5.24 from $4.41 in 2023, an increase of 18.8%[24]. Revenue and Sales Growth - Operating revenues for the three months ended December 31, 2024, increased to $1,095,408 from $991,574 in 2023, representing a growth of 10.5%[24]. - Retail sales growth was 5.7% in 2024, with annual retail customer growth at 2.1%[7][8]. - APS anticipates average annual customer growth of 1.5% to 2.5% through 2027, contributing to expected retail electricity sales growth of 4% to 6% annually over the next three years[8]. Operating Income and Expenses - Operating income for the twelve months ended December 31, 2024, rose to $1,012,063, up from $824,640 in 2023, reflecting a year-over-year increase of 22.8%[24]. - Total operating expenses for the three months ended December 31, 2024, were $1,010,870, compared to $917,194 in 2023, indicating an increase of 10.2%[24]. - Interest charges for the twelve months ended December 31, 2024, were $425,742, up from $374,887 in 2023, reflecting a rise of 13.5%[24]. - Fuel and purchased power expenses for the twelve months ended December 31, 2024, increased to $1,822,566 from $1,792,657 in 2023, a rise of 1.7%[24]. Future Projections and Plans - For 2025, the company estimates consolidated earnings will be in the range of $4.40 to $4.60 per diluted share on a weather-normalized basis[15]. - APS plans to add 9,805 megawatts of renewable power, battery storage, and natural gas to the grid between 2025 and 2028, with over 90% being carbon-free[9]. Operational Metrics - The Palo Verde Generating Station achieved a capacity factor of 93.7% and exceeded 30 million MWh of net generation for the 16th consecutive year[9]. - The weighted-average common shares outstanding (diluted) for the twelve months ended December 31, 2024, were 116,232, compared to 113,804 in 2023, an increase of 2.1%[24]. - The company reported a net loss attributable to common shareholders of $6,827 for the three months ended December 31, 2024, compared to a loss of $23 in 2023[24]. - The company’s income (loss) before income taxes for the three months ended December 31, 2024, was $(2,531), compared to $7,070 in 2023, indicating a decline[24].