PPL(PPL) - 2024 Q1 - Quarterly Results

Financial and Operational Highlights PPL Corporation reported strong Q1 2024 results, reaffirming full-year EPS forecast and long-term growth targets, supported by infrastructure investments and O&M savings Q1 2024 Earnings Per Share Summary | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Reported Earnings (GAAP) per Share | $0.42 | $0.39 | +7.7% | | Earnings from Ongoing Operations (non-GAAP) per Share | $0.54 | $0.48 | +12.5% | - Reaffirmed 2024 ongoing earnings forecast range of $1.63 to $1.75 per share, with a midpoint of $1.69 per share[3][7] - Reaffirmed projection of 6% to 8% annual earnings per share and dividend growth through at least 2027, without the need for equity issuances[6][7] - The company is on track for over $3 billion in 2024 infrastructure improvements as part of a $14.3 billion plan through 2027 to modernize and strengthen the grid[4] - PPL continues to target annual operation and maintenance savings of at least $175 million by 2026 from its 2021 baseline, with $120-$130 million expected by the end of 2024[5] Detailed Financial Performance First-quarter financial performance was driven by growth across all regulated segments, with special items resulting in a net after-tax charge of $95 million First-Quarter 2024 Earnings Details PPL's Q1 2024 reported earnings (GAAP) and ongoing operations earnings (non-GAAP) both increased year-over-year, reaching $307 million and $402 million respectively Q1 Earnings Comparison (2024 vs. 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Reported Earnings | $307M | $285M | +8% | | Reported EPS | $0.42 | $0.39 | +8% | | Earnings from Ongoing Operations | $402M | $352M | +14% | | Ongoing Operations EPS | $0.54 | $0.48 | +13% | First-Quarter 2024 Earnings by Segment All regulated segments reported year-over-year growth in Q1 2024 ongoing operations earnings, with Kentucky, Pennsylvania, and Rhode Island segments each contributing to the increase Q1 2024 Earnings from Ongoing Operations per Share by Segment | Segment | Q1 2024 EPS | Q1 2023 EPS | | :--- | :--- | :--- | | Kentucky Regulated | $0.25 | $0.22 | | Pennsylvania Regulated | $0.22 | $0.19 | | Rhode Island Regulated | $0.11 | $0.10 | | Corporate and Other | ($0.04) | ($0.03) | | Total | $0.54 | $0.48 | - Kentucky Regulated: Earnings increased by $0.03 per share, primarily due to higher sales volumes compared to mild weather in Q1 2023[16] - Pennsylvania Regulated: Earnings from ongoing operations increased by $0.03 per share, driven by higher transmission revenue and lower operating costs[17] - Rhode Island Regulated: Earnings from ongoing operations increased by $0.01 per share, attributed to higher distribution revenue from capital investments, higher transmission revenue, and lower operating costs[18] 2024 Full-Year Forecast PPL Corporation reaffirmed its 2024 full-year ongoing operations earnings forecast of $1.63 to $1.75 per share, without providing a GAAP equivalent due to unpredictable special items - The 2024 earnings from ongoing operations forecast range is maintained at $1.63 to $1.75 per share, with a midpoint of $1.69 per share[22] - PPL management cannot provide an equivalent GAAP measure for its earnings guidance due to the inability to forecast the occurrence or amount of special items, which are non-recurring or not reflective of ongoing operations[23] Condensed Consolidated Financial Statements The condensed financial statements for Q1 2024 show total assets of $39.6 billion, with operating income increasing to $545 million despite lower revenues, and operating cash flow at $282 million Balance Sheet As of March 31, 2024, PPL Corporation's total assets increased slightly to $39.63 billion, with shifts observed in short-term and long-term debt Condensed Balance Sheet Data (in Millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $39,631 | $39,236 | | Total Liabilities | $26,472 | $26,322 | | Total Equity | $13,159 | $12,914 | Statement of Income Q1 2024 operating revenues decreased to $2.30 billion, but reduced operating expenses led to higher operating income of $545 million and net income of $307 million Condensed Statement of Income (in Millions) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Revenues | $2,304 | $2,415 | | Total Operating Expenses | $1,759 | $1,917 | | Operating Income | $545 | $498 | | Net Income | $307 | $285 | Statement of Cash Flows Net cash from operating activities decreased to $282 million in Q1 2024, while net cash used in investing activities increased to $591 million Condensed Statement of Cash Flows (in Millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $282 | $430 | | Net cash used in investing activities | ($591) | ($503) | | Net cash provided by financing activities | $248 | $177 | Supplemental Information This section provides supplemental operating data and detailed reconciliations of GAAP to non-GAAP earnings, highlighting increased electricity sales and special item adjustments Operating Data - Electricity Sales Total electricity sales for Pennsylvania and Kentucky regulated segments increased by 4.4% year-over-year to 17,248 GWh in Q1 2024, with Kentucky seeing a 7.6% rise Electricity Sales (GWh) | Segment | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | PA Regulated (Retail) | 9,627 | 9,442 | +2.0% | | KY Regulated (Total) | 7,621 | 7,085 | +7.6% | | Total | 17,248 | 16,527 | +4.4% | Reconciliation of GAAP to Non-GAAP Earnings Detailed reconciliations bridge GAAP to non-GAAP earnings, with Q1 2024 special items totaling a $95 million charge, primarily for acquisition integration and a billing issue - For Q1 2024, Reported Earnings of $307 million were adjusted by $95 million in net special item expenses to arrive at Earnings from Ongoing Operations of $402 million[42] - The primary special items in Q1 2024 were acquisition integration costs related to Rhode Island Energy ($80 million) and expenses from a PPL Electric billing issue ($11 million)[42][43] - The 2024 forecast reconciliation shows an estimated $0.12 per share in special item charges recorded through March 31, 2024, adjusting the midpoint Reported EPS estimate of $1.57 to the Ongoing Operations EPS forecast of $1.69[46]