Evergy(EVRG) - 2025 Q2 - Quarterly Report

Cautionary Statements Regarding Certain Forward-Looking Information This section outlines the forward-looking nature of statements, emphasizing that actual results may differ materially due to various risks and uncertainties - Forward-looking statements are subject to risks and uncertainties, including economic and weather conditions, regulatory actions, and changes in business strategy[14][15] - Readers are advised to consider information in other SEC filings for additional risks and uncertainties[17] Glossary of Terms This section provides a glossary of frequently used abbreviations and acronyms throughout the report to aid reader comprehension - The glossary defines common abbreviations and acronyms such as AFUDC (Allowance for funds used during construction), EPS (Earnings per common share), and SPP (Southwest Power Pool, Inc.)[21][23][24] Part I - Financial Information Item 1. Financial Statements This section presents the unaudited consolidated financial statements for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., along with detailed notes Evergy, Inc. Unaudited Consolidated Balance Sheets Evergy, Inc.'s consolidated balance sheets show a slight increase in total assets and liabilities as of June 30, 2025, with equity remaining stable Consolidated Balance Sheet Highlights (Evergy, Inc.): | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total Current Assets | $1,865.5 | $1,839.3 | +$26.2 | | Property, Plant and Equipment, Net | $25,409.8 | $24,930.9 | +$478.9 | | Total Other Assets | $5,636.0 | $5,511.9 | +$124.1 | | TOTAL ASSETS | $32,911.3 | $32,282.1 | +$629.2 | | Total Current Liabilities | $3,709.6 | $3,662.4 | +$47.2 | | Total Long-Term Liabilities | $19,202.5 | $18,630.5 | +$572.0 | | Total Equity | $9,999.2 | $9,989.2 | +$10.0 | | TOTAL LIABILITIES AND EQUITY | $32,911.3 | $32,282.1 | +$629.2 | Evergy, Inc. Unaudited Consolidated Statements of Comprehensive Income Evergy, Inc.'s comprehensive income shows a significant decrease in net income and diluted EPS for the three months and year-to-date periods ended June 30, 2025 Consolidated Statements of Comprehensive Income (Evergy, Inc.): | Metric | 3 Months Ended June 30, 2025 (millions) | 3 Months Ended June 30, 2024 (millions) | Change (millions) | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :-------------------------- | :-------------------------- | :---------------- | | Operating Revenues | $1,437.0 | $1,447.5 | -$10.5 | $2,811.5 | $2,778.5 | +$33.0 | | Total Operating Expenses | $1,093.2 | $1,089.4 | +$3.8 | $2,176.1 | $2,160.2 | +$15.9 | | Income from Operations | $343.8 | $358.1 | -$14.3 | $635.4 | $618.3 | +$17.1 | | Net Income Attributable to Evergy, Inc. | $171.3 | $207.0 | -$35.7 | $296.3 | $329.7 | -$33.4 | | Basic Earnings Per Common Share | $0.74 | $0.90 | -$0.16 | $1.29 | $1.43 | -$0.14 | | Diluted Earnings Per Common Share | $0.74 | $0.90 | -$0.16 | $1.28 | $1.43 | -$0.15 | Evergy, Inc. Unaudited Consolidated Statements of Cash Flows Evergy, Inc.'s cash flow statements show increased operating cash flows, decreased investing cash usage, and decreased financing cash flows year-to-date June 30, 2025 Consolidated Statements of Cash Flows (Evergy, Inc.): | Metric | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :-------------------------- | :---------------- | | Cash Flows from Operating Activities | $773.5 | $634.8 | +$138.7 | | Cash Flows used in Investing Activities | $(1,235.4) | $(1,270.1) | +$34.7 | | Cash Flows from Financing Activities | $467.0 | $643.1 | -$176.1 | | Net Change in Cash, Cash Equivalents and Restricted Cash | $5.1 | $7.8 | -$2.7 | Evergy, Inc. Unaudited Consolidated Statements of Changes in Equity This section details changes in Evergy, Inc.'s consolidated equity, highlighting movements from net income, common stock issuances, and dividends declared Evergy, Inc. Shareholders' Equity: | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Common Stock | $7,258.1 | $7,245.9 | +$12.2 | | Retained Earnings | $2,721.8 | $2,732.9 | -$11.1 | | Accumulated Other Comprehensive Loss | $(21.1) | $(23.8) | +$2.7 | | Total Evergy, Inc. Shareholders' Equity | $9,958.8 | $9,955.0 | +$3.8 | - Net income for the three months ended June 30, 2025, was $171.3 million, contributing to retained earnings[38] - Dividends declared on common stock were $0.6675 per share for the quarter ended June 30, 2025, totaling $153.6 million[38] Evergy Kansas Central, Inc. Unaudited Consolidated Balance Sheets Evergy Kansas Central, Inc.'s balance sheets show an increase in total assets and equity, with decreased current liabilities and increased long-term liabilities Consolidated Balance Sheet Highlights (Evergy Kansas Central, Inc.): | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total Current Assets | $1,031.4 | $978.2 | +$53.2 | | Property, Plant and Equipment, Net | $13,162.4 | $12,880.1 | +$282.3 | | Total Other Assets | $1,231.7 | $1,150.8 | +$80.9 | | TOTAL ASSETS | $15,425.5 | $15,009.1 | +$416.4 | | Total Current Liabilities | $1,643.9 | $2,028.1 | -$384.2 | | Total Long-Term Liabilities | $8,272.3 | $7,696.1 | +$576.2 | | Total Equity | $5,509.3 | $5,284.9 | +$224.4 | | TOTAL LIABILITIES AND EQUITY | $15,425.5 | $15,009.1 | +$416.4 | Evergy Kansas Central, Inc. Unaudited Consolidated Statements of Income Evergy Kansas Central, Inc.'s income statements show a slight decrease in net income year-over-year, despite an increase in operating revenues Consolidated Statements of Income (Evergy Kansas Central, Inc.): | Metric | 3 Months Ended June 30, 2025 (millions) | 3 Months Ended June 30, 2024 (millions) | Change (millions) | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :-------------------------- | :-------------------------- | :---------------- | | Operating Revenues | $733.5 | $727.3 | +$6.2 | $1,442.6 | $1,420.5 | +$22.1 | | Total Operating Expenses | $552.3 | $544.6 | +$7.7 | $1,087.6 | $1,074.5 | +$13.1 | | Income from Operations | $181.2 | $182.7 | -$1.5 | $355.0 | $346.0 | +$9.0 | | Net Income Attributable to Evergy Kansas Central, Inc. | $120.4 | $121.4 | -$1.0 | $228.2 | $229.9 | -$1.7 | Evergy Kansas Central, Inc. Unaudited Consolidated Statements of Cash Flows Evergy Kansas Central, Inc.'s cash flow statements show increased operating cash flows, increased investing cash usage, and slightly increased financing cash flows Consolidated Statements of Cash Flows (Evergy Kansas Central, Inc.): | Metric | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :-------------------------- | :---------------- | | Cash Flows from Operating Activities | $388.9 | $347.9 | +$41.0 | | Cash Flows used in Investing Activities | $(673.7) | $(629.7) | -$44.0 | | Cash Flows from Financing Activities | $287.1 | $279.6 | +$7.5 | | Net Change in Cash and Cash Equivalents | $2.3 | $(2.2) | +$4.5 | Evergy Kansas Central, Inc. Unaudited Consolidated Statements of Changes in Equity This section details changes in Evergy Kansas Central, Inc.'s consolidated equity, showing an increase primarily due to net income, partially offset by dividends Evergy Kansas Central, Inc. Shareholder's Equity: | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :----------------------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Common Stock | $2,737.6 | $2,737.6 | $0.0 | | Retained Earnings | $2,731.3 | $2,513.1 | +$218.2 | | Total Evergy Kansas Central, Inc. Shareholder's Equity | $5,468.9 | $5,250.7 | +$218.2 | - Net income for the three months ended June 30, 2025, was $120.4 million[52] - Dividends declared on common stock were $10.0 million for the year-to-date period ended March 31, 2025[52] Evergy Metro, Inc. Unaudited Consolidated Balance Sheets Evergy Metro, Inc.'s consolidated balance sheets show an increase in total assets, current liabilities, and equity, with a slight increase in long-term liabilities Consolidated Balance Sheet Highlights (Evergy Metro, Inc.): | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total Current Assets | $714.9 | $701.5 | +$13.4 | | Property, Plant and Equipment, Net | $8,333.8 | $8,292.4 | +$41.4 | | Total Other Assets | $1,064.4 | $982.8 | +$81.6 | | TOTAL ASSETS | $10,113.1 | $9,976.7 | +$136.4 | | Total Current Liabilities | $1,227.5 | $1,139.9 | +$87.6 | | Total Long-Term Liabilities | $5,488.9 | $5,460.6 | +$28.3 | | Total Equity | $3,396.7 | $3,376.2 | +$20.5 | | TOTAL LIABILITIES AND EQUITY | $10,113.1 | $9,976.7 | +$136.4 | Evergy Metro, Inc. Unaudited Consolidated Statements of Comprehensive Income Evergy Metro, Inc.'s comprehensive income statements show a slight decrease in net income year-over-year, despite a slight increase in operating revenues year-to-date Consolidated Statements of Comprehensive Income (Evergy Metro, Inc.): | Metric | 3 Months Ended June 30, 2025 (millions) | 3 Months Ended June 30, 2024 (millions) | Change (millions) | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :-------------------------- | :-------------------------- | :---------------- | | Operating Revenues | $471.2 | $474.0 | -$2.8 | $898.9 | $894.9 | +$4.0 | | Total Operating Expenses | $358.1 | $351.2 | +$6.9 | $706.9 | $693.5 | +$13.4 | | Income from Operations | $113.1 | $122.8 | -$9.7 | $192.0 | $201.4 | -$9.4 | | Net Income | $68.8 | $74.6 | -$5.8 | $105.7 | $107.3 | -$1.6 | Evergy Metro, Inc. Unaudited Consolidated Statements of Cash Flows Evergy Metro, Inc.'s cash flow statements show increased operating cash flows, decreased investing cash usage, and decreased financing cash flows Consolidated Statements of Cash Flows (Evergy Metro, Inc.): | Metric | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :-------------------------- | :---------------- | | Cash Flows from Operating Activities | $287.0 | $239.0 | +$48.0 | | Cash Flows used in Investing Activities | $(323.0) | $(364.7) | +$41.7 | | Cash Flows from Financing Activities | $37.1 | $125.0 | -$87.9 | | Net Change in Cash and Cash Equivalents | $1.1 | $(0.7) | +$1.8 | Evergy Metro, Inc. Unaudited Consolidated Statements of Changes in Equity This section details changes in Evergy Metro, Inc.'s consolidated equity, showing an increase primarily due to net income, partially offset by dividends Evergy Metro, Inc. Total Equity: | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Common Stock | $1,563.1 | $1,563.1 | $0.0 | | Retained Earnings | $1,830.4 | $1,809.7 | +$20.7 | | Accumulated Other Comprehensive Income | $3.2 | $3.4 | -$0.2 | | Total Equity | $3,396.7 | $3,376.2 | +$20.5 | - Net income for the three months ended June 30, 2025, was $68.8 million[68] - Dividends declared on common stock were $35.0 million for the quarter ended June 30, 2025[68] Combined Notes to Unaudited Consolidated Financial Statements This section provides combined notes to the unaudited consolidated financial statements for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., detailing organizational structure, accounting policies, and significant financial disclosures Note 1: Organization and Basis of Presentation This note describes Evergy's organizational structure as a public utility holding company and details the basis of presentation for its financial statements - Evergy operates as a public utility holding company with subsidiaries Evergy Kansas Central, Evergy Metro, Evergy Missouri West, and Evergy Transmission Company[71][75] - The Evergy Companies collectively have approximately 15,800 MWs of owned generating capacity and renewable power purchase agreements, serving about 1.7 million customers in Kansas and Missouri[73][224] - Evergy plans to construct two combined-cycle natural gas plants in Kansas (705 MW each, operational by 2029/2030) and a 440 MW simple-cycle natural gas plant in Missouri (operational by 2030)[101][102][233][234] - Evergy Kansas Central intends to construct a 159 MW solar facility (Kansas Sky) by summer 2027, and Evergy Missouri West plans two solar facilities (Sunflower Sky, 65 MW; Foxtrot, 100 MW) by summer 2027[103][104][236][237] Note 2: Revenue This note disaggregates operating revenues by customer class for Evergy, Evergy Kansas Central, and Evergy Metro for the three months and year-to-date periods Evergy Operating Revenues by Customer Class (YTD June 30, millions): | Customer Class | 2025 | 2024 | Change | | :--------------- | :----- | :----- | :----- | | Residential | $1,001.8 | $1,015.7 | -$13.9 | | Commercial | $904.1 | $918.5 | -$14.4 | | Industrial | $305.5 | $335.1 | -$29.6 | | Wholesale | $139.8 | $144.3 | -$4.5 | | Transmission | $262.3 | $237.8 | +$24.5 | | Other | $162.3 | $90.8 | +$71.5 | | Total Operating Revenues | $2,811.5 | $2,778.5 | +$33.0 | - Evergy Kansas Central's total operating revenues increased by $22.1 million year-to-date June 30, 2025, to $1,442.6 million, primarily driven by wholesale and transmission revenues[107] - Evergy Metro's total operating revenues increased by $4.0 million year-to-date June 30, 2025, to $898.9 million, with a significant decrease in wholesale revenue offset by increases in other revenues[108] Note 3: Receivables This note details the Evergy Companies' receivables, including customer accounts, other receivables, and the allowance for credit losses, and describes the sale of accounts receivable Evergy Receivables, Net (millions): | Category | June 30, 2025 | December 31, 2024 | Change | | :----------------------------------- | :-------------- | :---------------- | :----- | | Customer accounts receivable - unbilled | $248.0 | $108.4 | +$139.6 | | Other receivables | $153.4 | $150.0 | +$3.4 | | Allowance for credit losses | $(12.7) | $(15.7) | +$3.0 | | Total Receivables, net | $390.8 | $245.4 | +$145.4 | - The allowance for credit losses for Evergy decreased from $15.7 million at December 31, 2024, to $12.7 million at June 30, 2025, due to write-offs exceeding credit loss expense and recoveries[113] - Evergy Kansas Central, Evergy Metro, and Evergy Missouri West extended their receivable sale facilities from November 2025 to April 2028[115] Note 4: Rate Matters and Regulation This note outlines significant regulatory proceedings and rate matters affecting the Evergy Companies, including rate cases and predetermination applications - Evergy Kansas Central reached a unanimous settlement for its 2025 Rate Case, providing a $128.0 million increase to retail revenues, effective September 29, 2025, subject to KCC approval[118][226] - The KCC approved Evergy Kansas Central's predetermination for natural gas plant investments, allowing a CWIP rider one year after construction begins, and for the Kansas Sky solar investment, allowing recovery through a levelized revenue requirement[121][123] - The MPSC approved Evergy Missouri West's CCN requests for planned renewable and natural gas plant investments, establishing their prudency and allowing the use of SB 4 CWIP inclusion and PISA[129][130] Note 5: Goodwill This note discusses Evergy's annual goodwill impairment test, conducted as of May 1, 2025, which indicated no impairment - Evergy's goodwill, totaling $2,336.6 million, was tested for impairment as of May 1, 2025[133] - The fair value of the reporting unit (Evergy's consolidated operations) exceeded its carrying amount, resulting in no impairment of goodwill[133] Note 6: Pension Plans and Post-Retirement Benefits This note details the Evergy Companies' participation in defined benefit pension plans and post-retirement benefits, providing components of net periodic benefit costs and expected contributions - Evergy, Evergy Kansas Central, and Evergy Metro participate in qualified non-contributory defined benefit pension plans and provide post-retirement benefits[136][138] Net Periodic Benefit Costs (YTD June 30, 2025, millions): | Entity | Pension Benefits | Post-Retirement Benefits | | :-------------------- | :--------------- | :----------------------- | | Evergy | $24.7 | $(1.9) | | Evergy Kansas Central | $6.4 | $(0.6) | | Evergy Metro | $16.8 | $(1.0) | - Evergy expects to make additional cash pension contributions of $24.4 million in 2025, with $8.6 million from Evergy Kansas Central and $15.8 million from Evergy Metro[144] Note 7: Short-Term Borrowings and Short-Term Bank Lines of Credit This note describes the Evergy Companies' $2.5 billion master credit facility, its expiration in 2028, and compliance with debt covenants - Evergy Companies have a $2.5 billion master credit facility expiring in 2028, with specific sublimits for each borrower[146] Committed Credit Facilities (June 30, 2025, millions): | Entity | Master Credit Facility | Commercial Paper | Available Borrowings Capacity | Weighted Average Interest Rate | | :-------------------- | :--------------------- | :--------------- | :---------------------------- | :----------------------------- | | Evergy, Inc. | $500.0 | $341.5 | $157.8 | 4.57% | | Evergy Kansas Central | $900.0 | $502.2 | $396.8 | 4.57% | | Evergy Metro | $600.0 | $305.9 | $293.0 | 4.57% | | Evergy Missouri West | $500.0 | $273.6 | $226.4 | 4.75% | | Total Evergy | $2,500.0 | $1,423.2 | $1,074.0 | | - As of June 30, 2025, Evergy, Evergy Kansas Central, Evergy Metro, and Evergy Missouri West were in compliance with all debt covenants, including a total indebtedness to total capitalization ratio not greater than 0.65 to 1.00[147][278] Note 8: Long-Term Debt This note details recent long-term debt issuances by Evergy Kansas Central and remarketing of pollution control bonds by Evergy Metro - In March 2025, Evergy Kansas Central issued $300.0 million of 5.25% First Mortgage Bonds maturing in 2035 and $300.0 million of 4.70% Notes maturing in 2028[150][151] - In July 2025, Evergy Metro remarketed $23.4 million of its Series 2008 EIRR bonds, maturing in 2038, at a fixed rate of 4.05% through June 2030[152] Note 9: Derivative Instruments This note explains the Evergy Companies' use of derivative instruments to manage market risks associated with electricity, natural gas, and interest rates - Evergy Companies use derivative instruments to manage commodity price volatility (electricity, natural gas) and interest rate fluctuations, and for non-regulated energy marketing[153][154][155] Evergy's Total Derivative Assets and Liabilities (June 30, 2025, millions): | Category | Assets | Liabilities | | :-------------------- | :----- | :---------- | | Total Derivative Assets | $64.5 | | | Total Derivative Liabilities | | $65.4 | - As of June 30, 2025, Evergy's and Evergy Kansas Central's maximum exposure to credit risk from derivative assets was $35.0 million, with a potential loss of $25.9 million after netting arrangements and collateral[165] Note 10: Fair Value Measurements This note outlines the hierarchical framework for fair value measurements and provides tables summarizing the fair values of financial assets and liabilities - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), Level 3 (significant unobservable inputs), and NAV (investments without readily determinable fair value)[169][170][171][172] Evergy Long-Term Debt Fair Value (June 30, 2025, millions): | Entity | Book Value | Fair Value | | :----- | :--------- | :--------- | | Evergy | $13,050.5 | $12,437.6 | | Evergy Kansas Central | $5,178.9 | $4,707.1 | | Evergy Metro | $3,224.6 | $3,016.8 | - Evergy's nuclear decommissioning trust assets totaled $929.8 million as of June 30, 2025, with $72.5 million measured at NAV[177][179] Note 11: Commitments and Contingencies This note details environmental matters and legal proceedings that could impact the Evergy Companies, including regulations related to ozone, particulate matter, and greenhouse gases - The EPA's proposed and final rules on Ozone NAAQS, ITFIPs, and Regional Haze Rule could materially impact Evergy Companies' operations and compliance costs, with ongoing litigation and reconsideration plans[189][190][191][194][195][196] - New GHG regulations from the EPA, including CO2 limitations for power plants and potential CCS requirements, are under reconsideration and judicial review, posing material compliance cost risks[197] - Lawsuits were filed against Evergy Metro alleging damages from CCRs associated with Montrose Station, and a nuclear antitrust class action was filed against Wolf Creek Nuclear Operating Corporation, in which Evergy has a 94% indirect ownership[202][203] Note 12: Related Party Transactions and Relationships This note describes related party transactions among Evergy Kansas Central, Evergy Metro, and Evergy Missouri West, including jointly-owned plants, shared services, and money pool arrangements - Evergy Kansas Central, Evergy Metro, and Evergy Missouri West engage in related party transactions for jointly-owned plants and shared services[204][205] Operating Expenses and Capital Costs Billed for Jointly-Owned Plants and Shared Services (YTD June 30, 2025, millions): | Billing Entity | To Evergy Missouri West | To Evergy Metro | To Evergy Kansas Central | | :----------------------------- | :---------------------- | :-------------- | :----------------------- | | Evergy Kansas Central | $69.6 | | $26.5 | | Evergy Metro | $55.2 | | $68.1 | - Evergy Kansas Central and Evergy Metro had no outstanding receivables or payables under the Evergy, Inc. money pool as of June 30, 2025[211] Note 13: Taxes This note provides the effective income tax rates for Evergy, Evergy Kansas Central, and Evergy Metro, detailing the reasons for differences from the statutory federal rates Effective Income Tax Rates (YTD June 30, 2025): | Entity | Federal Statutory Rate | Effective Income Tax Rate | | :-------------------- | :--------------------- | :------------------------ | | Evergy | 21.0% | 6.1% | | Evergy Kansas Central | 21.0% | 4.5% | | Evergy Metro | 21.0% | 13.4% | - Key factors causing differences from the federal statutory rate include COLI policies, state income taxes, flow-through depreciation, and federal tax credits[215][216][217] Note 14: Segment Information This note states that Evergy operates in a single reportable segment, with performance assessed based on consolidated net income attributable to Evergy, Inc - Evergy's chief operating decision maker assesses performance and allocates resources on a consolidated basis, meaning Evergy operates in a single reportable segment[218][224] Evergy Operating Revenues and Net Income Attributable to Evergy, Inc. (YTD June 30, millions): | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :----- | :----- | :----- | | Operating Revenues | $2,811.5 | $2,778.5 | +$33.0 | | Net Income Attributable to Evergy, Inc. | $296.3 | $329.7 | -$33.4 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides a combined MD&A for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., covering executive summaries, results of operations, and liquidity and capital resources Evergy, Inc. Executive Summary This executive summary provides an overview of Evergy's business, recent regulatory developments, new legislation, planned investments, and an earnings overview - Evergy Kansas Central's 2025 Rate Case resulted in a unanimous settlement for a $128.0 million retail revenue increase, pending KCC approval, effective September 29, 2025[226] - Missouri SB 4 allows electric utilities to recover costs for new natural gas-fired generating units by including Construction Work in Progress (CWIP) in the rate base and extends Plant-In-Service Accounting (PISA) provisions[229][230] - Kansas HB 2107 establishes a two-year statute of limitations and a $5.0 million punitive damages limit for wildfire-related claims against Kansas electric utilities[231] - Evergy plans significant investments in natural gas plants (two 705 MW combined-cycle in Kansas, one 440 MW simple-cycle in Missouri) and solar facilities (159 MW Kansas Sky, 65 MW Sunflower Sky, 100 MW Foxtrot), with regulatory approvals secured for most[233][234][235][236][237] Evergy, Inc. Earnings Overview (YTD June 30, millions, except EPS): | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :----- | :----- | :----- | | Net income attributable to Evergy, Inc. | $296.3 | $329.7 | -$33.4 | | Diluted Earnings Per Common Share | $1.28 | $1.43 | -$0.15 | Evergy, Inc. Results of Operations This section provides a detailed comparative analysis of Evergy's operating results, including revenues, expenses, and gross margin, for the three months and year-to-date periods Evergy Operating Revenues and Expenses (YTD June 30, millions): | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :----- | | Operating revenues | $2,811.5 | $2,778.5 | +$33.0 | | Fuel and purchased power | $685.7 | $735.4 | -$49.7 | | SPP network transmission costs | $211.3 | $172.7 | +$38.6 | | Operating and maintenance | $487.1 | $469.2 | +$17.9 | | Depreciation and amortization | $576.5 | $556.2 | +$20.3 | | Taxes other than income tax | $215.5 | $226.7 | -$11.2 | | Income from operations | $635.4 | $618.3 | +$17.1 | | Interest expense | $306.3 | $276.8 | +$29.5 | | Net income attributable to Evergy, Inc. | $296.3 | $329.7 | -$33.4 | - Evergy's utility gross margin (non-GAAP) increased by $44.1 million year-to-date June 30, 2025, driven by new Evergy Missouri West retail rates and higher transmission revenue, partially offset by lower retail sales due to unfavorable weather[264] - Other income (expense), net, shifted from a net income of $5.3 million in YTD 2024 to a net expense of $10.4 million in YTD 2025, primarily due to $29.0 million in unrealized losses and impairment losses from non-regulated investments[259][269] Evergy, Inc. Liquidity and Capital Resources This section discusses Evergy's primary sources of liquidity and capital requirements, covering short-term borrowing capacity, debt issuances, credit ratings, pension contributions, and cash flow changes - Evergy relies on cash from operations, short-term borrowings, long-term debt, and equity issuances to fund capital requirements, which include capital expenditures, contractual obligations, and dividends[271] - As of June 30, 2025, Evergy had $1,074.0 million of available borrowing capacity under its $2.5 billion master credit facility[272][149] - Cash flows from operating activities increased by $138.7 million year-to-date June 30, 2025, primarily due to increased cash receipts from retail electric sales and decreased payments for a Wolf Creek refueling outage[281] - Cash flows from financing activities decreased by $176.1 million year-to-date June 30, 2025, mainly due to a $327.3 million decrease in proceeds from long-term debt, net, partially offset by a $197.7 million increase in short-term debt borrowings[282] Evergy Kansas Central, Inc. Management's Narrative Analysis of Results of Operations This section provides a narrative analysis of Evergy Kansas Central's results of operations, including changes in operating revenues, expenses, and gross margin Evergy Kansas Central Operating Revenues and Expenses (YTD June 30, millions): | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :----- | | Operating revenues | $1,442.6 | $1,420.5 | +$22.1 | | Fuel and purchased power | $244.0 | $262.6 | -$18.6 | | SPP network transmission costs | $211.3 | $172.7 | +$38.6 | | Operating and maintenance | $229.2 | $233.6 | -$4.4 | | Depreciation and amortization | $286.3 | $279.7 | +$6.6 | | Taxes other than income tax | $116.8 | $125.9 | -$9.1 | | Income from operations | $355.0 | $346.0 | +$9.0 | | Interest expense | $120.4 | $114.0 | +$6.4 | | Net income attributable to Evergy Kansas Central, Inc. | $228.2 | $229.9 | -$1.7 | - Evergy Kansas Central's utility gross margin (non-GAAP) increased by $2.1 million year-to-date June 30, 2025, driven by increased transmission revenue, partially offset by lower retail sales due to unfavorable weather and the Kansas property tax rider[288] - Operating and maintenance expense decreased by $4.4 million, primarily due to an $8.2 million decrease in plant operating and maintenance expense at fossil-fuel generating facilities, mainly at JEC due to a major maintenance outage in 2024[289] Evergy Metro, Inc. Management's Narrative Analysis of Results of Operations This section provides a narrative analysis of Evergy Metro's results of operations, including changes in operating revenues, expenses, and gross margin Evergy Metro Operating Revenues and Expenses (YTD June 30, millions): | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :----- | | Operating revenues | $898.9 | $894.9 | +$4.0 | | Fuel and purchased power | $282.6 | $282.1 | +$0.5 | | Operating and maintenance | $149.1 | $135.5 | +$13.6 | | Depreciation and amortization | $204.0 | $202.4 | +$1.6 | | Taxes other than income tax | $71.2 | $73.5 | -$2.3 | | Income from operations | $192.0 | $201.4 | -$9.4 | | Interest expense | $70.5 | $76.0 | -$5.5 | | Net income | $105.7 | $107.3 | -$1.6 | - Evergy Metro's utility gross margin (non-GAAP) increased by $3.5 million year-to-date June 30, 2025, primarily due to higher retail sales driven by increased retail pricing, despite unfavorable weather[297] - Operating and maintenance expense increased by $13.6 million, primarily due to a $7.1 million increase in general and administrative labor and employee benefits expense and a $4.3 million increase in plant operating and maintenance expense at fossil-fuel generating facilities, mainly at Iatan Station due to a major maintenance outage in 2025[298][300] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section states that Evergy's exposure to market risk has not materially changed since December 31, 2024, and refers readers to the annual report for detailed disclosures - Evergy's exposure to market risk has not materially changed since December 31, 2024[303] - Risks include non-financial and non-quantifiable factors such as business, legal, operational, and credit risks[302] Item 4. Controls and Procedures This section confirms that Evergy, Evergy Kansas Central, and Evergy Metro's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Evergy, Evergy Kansas Central, and Evergy Metro's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[304][307][309] - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, for any of the registrants[305][308][310] Part II - Other Information Item 1. Legal Proceedings This section refers to Notes 4 and 11 of the consolidated financial statements for information regarding material lawsuits and regulatory proceedings - Information on material lawsuits and regulatory proceedings is incorporated by reference from Notes 4 and 11 to the consolidated financial statements[311] Item 1A. Risk Factors This section states that there have been no material changes to the risk factors previously disclosed in the 2024 Form 10-K for Evergy, Evergy Kansas Central, and Evergy Metro - No material changes to risk factors have occurred since the filing of the 2024 Form 10-K for Evergy, Evergy Kansas Central, and Evergy Metro[313] - The business is influenced by many unpredictable factors and uncertainties that may materially affect actual results[312] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section provides information on Evergy's purchases of its equity securities during the three months ended June 30, 2025, specifically shares purchased for withholding taxes related to RSU vesting - Evergy purchased 451 shares of its equity securities at an average price of $69.25 per share during May 2025[315] - These purchases were for withholding taxes related to the vesting of Restricted Share Units (RSUs)[315] Item 3. Defaults Upon Senior Securities This section states that there are no defaults upon senior securities to report - No defaults upon senior securities are reported[316] Item 4. Mine Safety Disclosures This section states that mine safety disclosures are not applicable to the registrant - Mine safety disclosures are not applicable to the registrant[317] Item 5. Other Information This section provides information on where to access SEC filings and other company information, including the SEC's website and Evergy Companies' investor relations website - SEC filings and other information for Evergy Companies are available on sec.gov and **http://investors.evergy.com**[318](index=318&type=chunk) - Material financial information is communicated through SEC filings, press releases, public conference calls, and the Investor Relations section of the company website[319] Item 6. Exhibits This section lists the exhibits filed with the SEC, including certifications, XBRL documents, and other related materials - The exhibits include Rule 13a-14(a)/15d-14(a) Certifications and Section 1350 Certifications from David A. Campbell and W. Bryan Buckler for Evergy, Evergy Metro, and Evergy Kansas Central[321] - XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Labels Linkbase, and Presentation Linkbase Documents are included[321] Signatures This section contains the signatures of the authorized officer for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., certifying the filing of the report - The report is signed by W. Bryan Buckler, Executive Vice President and Chief Financial Officer, on behalf of Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc.[328]