Evergy(US:EVRG)2025-05-07 21:41Financial Performance - Operating revenues for Q1 2025 increased to $1,374.5 million, up 3.4% from $1,331.0 million in Q1 2024[31]. - Net income attributable to Evergy, Inc. for Q1 2025 was $125.0 million, a 2.0% increase from $122.7 million in Q1 2024[31]. - Basic earnings per share for Q1 2025 was $0.54, compared to $0.53 in Q1 2024, indicating a growth of 1.9%[31]. - Comprehensive income attributable to Evergy, Inc. for Q1 2025 was $126.4 million, compared to $124.0 million in Q1 2024, reflecting a 1.9% increase[31]. - Total operating revenues for Q1 2025 were $709.1 million, an increase of 2.7% from $693.2 million in Q1 2024[45]. - Net income attributable to Evergy Kansas Central, Inc. for Q1 2025 was $107.8 million, slightly down from $108.5 million in Q1 2024[45]. - Total operating revenues for Evergy increased to $1,374.5 million in Q1 2025, up from $1,331.0 million in Q1 2024, representing a growth of 3.2%[1]. - Evergy Kansas Central's total revenue from contracts with customers rose to $707.0 million in Q1 2025, compared to $688.8 million in Q1 2024, marking an increase of 2.5%[1]. - Evergy Metro's total electric retail revenue increased to $369.2 million in Q1 2025, up from $361.6 million in Q1 2024, reflecting a growth of 2.2%[2]. Assets and Liabilities - Total assets increased to $32,454.2 million as of March 31, 2025, compared to $32,282.1 million on December 31, 2024, reflecting a growth of 0.53%[25]. - Current assets totaled $1,834.4 million, slightly down from $1,839.3 million, indicating a decrease of 0.24%[25]. - Total current liabilities decreased to $3,314.4 million in Q1 2025 from $3,662.4 million in Q4 2024, reflecting a reduction of 9.5%[28]. - Long-term debt increased to $12,405.5 million in Q1 2025, up from $11,809.2 million in Q4 2024, representing a rise of 5.0%[28]. - Total liabilities increased to $9,768.9 million as of March 31, 2025, compared to $9,724.2 million as of December 31, 2024[42]. - Total equity as of March 31, 2025, was $9,967.9 million, slightly down from $9,989.2 million as of December 31, 2024[28]. - Total long-term liabilities rose to $8,272.2 million as of March 31, 2025, compared to $7,696.1 million as of December 31, 2024[42]. Cash Flow - Cash flows from operating activities for Q1 2025 were $449.6 million, significantly higher than $317.3 million in Q1 2024, marking an increase of 41.6%[34]. - Cash flows from operating activities increased to $299.8 million in Q1 2025, compared to $231.6 million in Q1 2024[47]. - Cash dividends paid in Q1 2025 amounted to $50.0 million[64]. - Evergy's total cash, cash equivalents, and restricted cash increased to $52.2 million as of March 31, 2025, compared to $29.9 million as of December 31, 2024, reflecting a growth of 74.5%[75]. Regulatory and Compliance - The Missouri S.B. 4 legislation allows electric utilities to recover costs associated with new natural gas-fired generating units, including certain construction costs in the rate base, effective until the end of 2035[88]. - The EPA's proposed rule to disapprove the Ozone Interstate Transport State Implementation Plans (ITSIPs) could have a material impact on Evergy's operations and compliance costs[174]. - The final rule lowering the primary annual PM NAAQS from 12.0 µg/m3 to 9.0 µg/m3 could result in significant compliance costs for Evergy[177]. - The EPA's final GHG regulations and guidelines may impose material compliance costs on Evergy, with ongoing judicial reviews affecting implementation[183]. - Evergy's operations are believed to be in substantial compliance with current federal, state, and local environmental standards, but potential changes in regulations could impact financial results[172]. - The Evergy Companies are unable to accurately assess the impact of environmental contingencies due to evolving laws and regulations, which could result in material costs[173]. - The Kansas ITSIP was previously approved in April 2022, but the EPA's recent proposal to disapprove it could have significant implications for Evergy's operations[175]. Investments and Future Plans - Evergy plans to construct two combined-cycle natural gas plants in Kansas, each with an initial generating capacity of approximately 705 MW, expected to begin operations in summer 2029 and summer 2030[91]. - Evergy Kansas Central intends to build a 159 MW solar generation facility called Kansas Sky, expected to begin operations by summer 2027, pending regulatory approvals[94]. - Evergy Kansas Central filed for a retail revenue increase of approximately $196 million, with a return on equity of 10.5%, expected to be effective in September 2025[4]. - Evergy Kansas Central's new transmission delivery charge is projected to increase annual retail revenues by $55.9 million compared to 2024, effective May 2025[4]. - Evergy Kansas Central's planned investments in renewable energy projects are awaiting final orders from the KCC, expected in July 2025[4]. Derivative Instruments and Risk Management - Evergy's commodity risk management activities utilize derivative instruments to mitigate the effects of fluctuations in wholesale sales and fuel costs[137]. - Evergy's total derivative assets decreased from $87.4 million as of December 31, 2024, to $82.3 million as of March 31, 2025, reflecting a decline of approximately 6.0%[146]. - The total derivative liabilities also decreased from $75.7 million to $71.2 million, a reduction of about 6.0%[146]. - The maximum exposure related to derivative assets due to counterparty non-performance was $32.9 million as of March 31, 2025[150]. - The potential loss after considering netting arrangements and collateral received was $20.0 million for Evergy and Evergy Kansas Central combined[150]. Environmental and Legal Matters - Two lawsuits were filed against Evergy Metro in January 2025 regarding alleged damages from the Montrose Station coal ash landfill, but the company believes the claims are without merit[187]. - Evergy's asset retirement obligations (AROs) may require future revisions due to new regulatory evaluations, which could materially impact operations and financial results[186].