Financial Data and Key Metrics Changes - In Q4 2025, revenue was $220 million, a slight decrease from $222 million in Q4 2024. Net income for the quarter was $11.5 million, or $0.19 per diluted share, compared to $19.7 million, or $0.33 per diluted share in the prior year [10][11] - For the full year 2025, operating revenue was $1 billion, compared to $1.37 billion in 2024. However, when compared to non-GAAP 2024 revenue of $949.3 million, revenue increased by $50.8 million or approximately 5.4% [12] - Net income attributed to the group was $128.2 million, down from $190.8 million in 2024, but increased by $1.4 million or 1% when compared to non-GAAP 2024 income [12][13] Business Line Data and Key Metrics Changes - The company invested a record $517 million into infrastructure systems in 2025, including $52.3 million in Q4 alone, representing a 19.8% increase over construction levels in 2024 [8][14] - The company maintained an A+ stable credit rating from S&P, one of the highest-rated credit utilities in North America [9] Market Data and Key Metrics Changes - The company experienced a significant weather impact in December 2025, which negatively affected financial results due to exceptionally wet and cold weather across California [7][10] - The company implemented a 3% interim rate increase in California in January 2026, following a delay in the rate case decision [9][10] Company Strategy and Development Direction - The company announced the acquisition of Nevada and Oregon operations from Nexus Water, which will expand its geographical footprint and regulatory diversification [4][20] - The company is focused on timely completion of acquisitions and regulatory activities, including the 2024 rate case in California and other rate cases in different states [37][39] - The primary growth engine is the reinvestment of existing capital into the rate base, with a target of maintaining a 10% year-over-year increase in capital expenditures [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment, noting that the current case is being prioritized by the commission, which is expected to lead to more timely decisions in the future [45][52] - The company is committed to maintaining affordable rates while ensuring the reliability and quality of water services, especially in light of rising costs in California [39][52] Other Important Information - The company declared its 324th consecutive quarterly dividend of $0.33 per share and announced an intended annual dividend of $1.34 per share for 2026, marking the 59th consecutive increase [17][18] - The company plans to spend between $50 million and $70 million on PFAS programs in 2026, in addition to ongoing capital investments [63][64] Q&A Session Summary Question: Is the delay of cases something that should be expected as a new norm? - Management indicated that recent efforts by the California Water Association have focused on educating commissioners about the impacts of delays, leading to a more timely process for future cases [48][50] Question: What are the regulatory mechanisms in Oregon and Nevada? - Management highlighted that Nevada has a reasonable commission allowing phased-in statewide rates and a hybrid rate environment, while Oregon also has a hybrid system with mechanisms for interim rates [56][57] Question: Update on PFAS funding and plans? - Management confirmed ongoing plans to comply with new MCLs for PFAS, with significant investments planned for 2026 to enhance water quality and safety [63][64]

Financial Data and Key Metrics Changes - IDACORP's diluted earnings per share (EPS) increased to $5.90 in 2025 from $5.50 in 2024, marking the 18th consecutive year of EPS growth [4] - The company ended 15 cents per share above the midpoint of its original EPS guidance for 2025, which included approximately $40 million in additional tax credit amortization [4] - The full-year 2026 earnings guidance is estimated to be in the range of $6.25-$6.45, reflecting an expected EPS growth rate of 8% over 2025 [34][35] Business Line Data and Key Metrics Changes - Idaho Power's customer base grew by 2.3% in 2025, with residential customers increasing by 2.5%, totaling over 660,000 metered customers [8] - The company achieved record energy sales to retail customers and maintained high reliability scores [6][8] - Operating income was positively impacted by a January rate increase and customer growth, contributing approximately $75 million [20] Market Data and Key Metrics Changes - The company is experiencing robust growth across its service area, outperforming national trends, driven by significant industrial projects such as Micron's semiconductor facility and Meta's data center [8][9] - The inquiries from prospective large customers are diverse, including data centers and manufacturing, indicating strong demand in the region [41] Company Strategy and Development Direction - IDACORP is focused on maintaining affordability for customers while managing significant capital expenditures, with a forecast of $1.4 billion in average annual CapEx from 2026 to 2030 [24][26] - The company is actively working on major infrastructure projects, including the B2H transmission project and the Swift North Transmission Project, to support future growth [13][15] - A definitive agreement has been made to sell its Oregon distribution assets, allowing the company to concentrate on rapidly growing Idaho communities [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong cash flows and the potential for large load revenues to support growth without necessitating immediate rate cases [32][35] - The company is monitoring hydropower conditions closely, with current forecasts indicating normal levels, which is crucial for operational planning [78] Other Important Information - The company plans to file requests for Certificates of Public Convenience and Necessity (CPCNs) for new resources in the near term, including a natural gas plant [17] - The anticipated completion of the Oregon asset sale is subject to regulatory approvals, which could take up to 10 months [19] Q&A Session Summary Question: Update on customer and load pipeline - Management noted strong inquiries from diverse industries, including data centers and manufacturing, with many customers moving beyond initial inquiries to construction studies [40][41][42] Question: Equity needs and funding split for incremental CapEx - The company indicated that incremental CapEx would likely be financed on a 50/50 debt-equity basis, with large load customers potentially impacting cash flow needs [44][46][47] Question: Size of investment opportunity for Micron Fab 2 - Management is currently working with Micron to determine the size of the investment opportunity and will provide updates as more information becomes available [52][53] Question: FFO to debt ratio and credit rating outlook - The company reported an FFO to debt ratio of approximately 14.3% at the end of 2025, with expectations for improvement due to large load revenues and a strong balance sheet [55][57] Question: Standardized large load tariff - Management stated that there are no current plans for a standardized large load tariff, as each customer has unique needs that are addressed through tailored contracts [66][67] Question: Hydropower conditions and drought impact - Management expressed optimism about hydropower generation, noting that while there have been fluctuations, current conditions are normal and supportive of operational needs [78][79]

Core Insights - The company achieved a 9% EPS growth for the fourth time in five years, driven by favorable rate case outcomes and effective interim recovery mechanisms [1] Financial Performance - The company has maintained a strategy of keeping customer charges nearly flat by distributing fixed costs over a rapidly expanding load base, with data centers expected to reduce residential delivery charges [1] Growth Forecast - The Houston Electric peak load growth forecast has been accelerated to 50% by 2029, reaching this milestone two years earlier than previously planned due to reshoring and data center demand [1] Capacity and Infrastructure - The company attributes its ability to meet rapid load growth to existing system capacity, which facilitates quick interconnection of large projects with manageable upgrades [1] - The ten-year capital plan has been increased to $65 billion to include a third 765 kV import line necessary for regional resiliency and reliability [1] Project Management - The focus has shifted from unconstrained interconnection queues to a pipeline of firmly committed projects, totaling 7.5 gigawatts either under construction or energized by 2028 [1] Operational Efficiency - The company managed O&M expenses by accelerating reliability work into 2025, resulting in a reduction of over 100 million outage minutes in the Greater Houston region [1]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for 2025 were $5.64, an increase of 8.9% from $5.18 in 2024 [4][10] - Revenues increased by $1.70 per share, driven by authorized rate increases and acquisitions [10] - Operating costs increased, with O&M expenses up by $0.42 per share, primarily due to employee-related costs and higher production costs [11] Business Line Data and Key Metrics Changes - The company invested over $3 billion in infrastructure in 2025 to enhance service reliability and quality [5] - The company completed six rate cases in 2025, with significant revenue increases authorized [11][12] Market Data and Key Metrics Changes - The company serves approximately 14 million people, maintaining residential water bills under 1% of median household income [5][20] - The company has 104,000 customer connections under agreement heading into 2026, indicating growth in customer base [6][21] Company Strategy and Development Direction - The company is focused on addressing aging infrastructure and water quality challenges while ensuring affordability for customers [8] - A definitive merger agreement with Essential Utilities was announced, expected to close by the end of Q1 2027, which aims to enhance service offerings [6][9] Management's Comments on Operating Environment and Future Outlook - Management affirmed 2026 EPS guidance of $6.02-$6.12, representing an expected 8% growth compared to 2025 [7][14] - The company is committed to responsible investments and operational efficiencies to support customer affordability and regulatory compliance [15][20] Other Important Information - The company plans to issue approximately $2.5 billion in external equity from 2026 to 2030 to fund growth [15][17] - The company maintains a strong financial position with an A-rated credit rating and stable outlook from S&P and Moody's [17] Q&A Session Summary Question: What are the plans for the People's Gas business post-merger? - The company will review strategic alternatives for People's after the merger closes, with proceeds potentially used for debt repayment and business reinvestment [24] Question: What is the 2025 realized FFO to debt? - The company typically does not disclose FFO to debt but suggests it can be calculated from financial statements [25] Question: Expectations for settlements in Pennsylvania, New Jersey, and Illinois rate cases? - The company is progressing as expected in rate cases and is open to constructive settlements [26] Question: Key approvals remaining for Nexus? - The company has received approvals in several states for Nexus but still requires approvals in about five states [29] Question: How does affordability scrutiny affect rate cases in Pennsylvania? - Rate cases are driven by necessary investments, and the company does not foresee changes in the current pace of filings [34] Question: How does the New Jersey rate case timing interact with the BPU study? - The New Jersey case is also driven by system investments, and the company maintains that its bills remain below 1% of median household income [36]

2025 Fourth Quarter & Year-End Earnings Conference Call February 19, 2026 Aaron Musgrave Vice President, Investor Relations 2 FORWARD-LOOKING STATEMENTS Safe Harbor This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to ...

Financial Data and Key Metrics Changes - Net income for Q1 2026 was $4.8 million or $0.47 per share, down from $5.3 million or $0.51 per share in the same quarter last year [6] - Gas margins increased nominally, while lower interest expenses were noted due to Fed rate cuts, but these were offset by higher costs in personnel, IT, property taxes, and depreciation [6] Business Line Data and Key Metrics Changes - Total gas volumes remained flat compared to Q1 2025, with residential usage increasing by 8% and commercial volumes rising due to an 11% increase in heating degree days [5] - The company installed 0.6 new main miles and connected 196 new services, which is consistent with the previous year [4] Market Data and Key Metrics Changes - The recent cold snap, referred to as Winter Storm Fern, resulted in a 53% increase in heating degree days compared to normal, significantly impacting gas demand [10] - Natural gas prices experienced an unprecedented spike, multiplying by a factor of approximately 10 during the cold snap [11] Company Strategy and Development Direction - The company is focused on enhancing safety and reliability for customers, with a backlog of approximately 2.5 miles of new main to install [4] - Legislative activity in Virginia is being monitored, with a focus on ensuring that new laws do not hinder natural gas usage or development [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the local economy, despite a potential plant closure of a major industrial customer later in 2026 [9] - The company anticipates a weaker second quarter due to weather-related construction delays, but remains optimistic about making up for lost time in the spring and summer [15] Other Important Information - An expedited rate case was filed seeking approximately $4.3 million in incremental annual revenue, with interim rates effective from January 1, 2026 [13] - The company expects an estimated undercollection of $8 million to $10 million in gas costs related to Winter Storm Fern, which will be addressed with the commission [12] Q&A Session Summary Question: What is the impact of the recent cold snap on operations? - Management noted that the distribution system performed flawlessly during the cold snap, and there were no customer losses [10] Question: How is the company addressing the rate case? - The company filed an expedited rate case seeking $4.3 million in additional revenue, with interim rates already in effect [13] Question: What are the expectations for capital expenditures moving forward? - The capital forecast remains at $22 million for the fiscal year, but weather conditions may impact the second quarter's performance [15]

Financial Data and Key Metrics Changes - In 2025, the company reported earnings of $190.4 million, or $0.93 per share, compared to $281.1 million, or $1.37 per share in 2024, reflecting a decrease in overall earnings [3][15] - Income from continuing operations was $191.4 million, or $0.93 per diluted share, compared to $181.1 million, or $0.88 per diluted share in 2024, indicating an increase in continuing operations [15] - The consolidated debt-to-capitalization ratio increased slightly to 49.1% due to the acquisition of Badger Wind Farm [19] Business Line Data and Key Metrics Changes - The electric utility segment reported earnings of $64.9 million in 2025, down from $74.8 million in 2024, primarily due to higher operation and maintenance expenses [15][16] - The natural gas utility segment saw earnings rise to $56.1 million, a 19.6% increase from $46.9 million in 2024, driven by higher retail sales revenue [15][16] - The pipeline business achieved record earnings of $68.2 million in 2025, slightly up from $68 million in 2024, supported by expansion projects and customer demand [15][17] Market Data and Key Metrics Changes - The utility experienced a combined retail customer growth of 1.5% compared to 2024, aligning with the targeted annual growth rate of 1%-2% [3] - The company has 580 MW of data center load under signed electric service agreements, with various phases of load ramping online through 2027 [9] Company Strategy and Development Direction - The company is focused on executing its capital investment plans, with a revised capital investment plan of $3.1 billion for 2026 through 2030 [4] - The acquisition of Badger Wind Farm is a strategic move to enhance the company's diversified generation portfolio [4] - The company anticipates a long-term EPS growth rate of 6%-8% and targets a 60%-70% annual dividend payout ratio [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute long-term growth strategies and emphasized the importance of operational focus and financial discipline [13] - The company initiated earnings per share guidance for 2026 in the range of $0.93-$1.00, reflecting strong performance across segments while accounting for equity financing [12] Other Important Information - The company completed a follow-on public offering of over 10.15 million shares at a price of $19.70 per share, which is expected to meet equity issuance needs for 2026 and a significant portion of 2027 [19] - The company filed for recovery of the Badger Wind Farm investment in North Dakota, which was approved by the North Dakota Public Service Commission [5] Q&A Session Summary Question: Can you elaborate on the 2026 guidance and year-over-year headwinds? - Management indicated that while 2025 showed strong growth, 2026 guidance reflects various rate case activities and the impact of equity issuance, with expectations for growth despite potential headwinds [25][26] Question: What are the next steps for the Bakken East Pipeline project? - Management outlined that the binding open season is currently ongoing, with discussions with customers and a timeline for final investment decision following customer agreements [27][28]

Financial Data and Key Metrics Changes - For 2025, the company exceeded its adjusted earnings per share guidance, delivering $3.61 per share, which is an increase of over 8% from 2024's actual result [10] - The company raised its annual guidance for 2026 by $0.03, now expecting earnings per share between $3.83 and $3.90, representing 6%-8% growth from 2025 actual results [11][22] - The company has a target dividend payout ratio of approximately 55% over time, continuing its practice of growing dividends for over 20 years [12] Business Line Data and Key Metrics Changes - The utility segment is expected to provide $4.28-$4.33 of adjusted earnings per share, driven by normal weather and constructive regulatory outcomes [23] - Northstar is anticipated to contribute $0.25-$0.30 to earnings per share, benefiting from favorable capacity contracts and renewable projects [23] Market Data and Key Metrics Changes - The company reported that its residential natural gas rate is 28% below the national average, reflecting its commitment to affordability [10] - The company has seen a 3% load growth in Michigan, with expectations of 2%-3% growth over the five-year plan [56] Company Strategy and Development Direction - The company has received approval for a 20-year renewable energy plan, providing approximately $14 billion of customer investment opportunity over the next decade [5][8] - The company is focused on maintaining affordability while making significant investments in infrastructure, with a five-year $24 billion utility customer investment plan [12][15] - The company is actively pursuing data center opportunities, with a large load tariff designed to protect existing customers while attracting new business [4][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a constructive outcome in the pending electric and gas rate cases, expecting a return on equity (ROE) of 9.9% or better [9][53] - The management highlighted the importance of a constructive regulatory environment in Michigan, which supports long-term investments and customer benefits [7][8] Other Important Information - The company has invested over $1 billion in gas infrastructure to ensure reliable service during cold weather [6] - The company has achieved significant savings for customers through its energy efficiency programs, amounting to approximately $1.2 billion [17] Q&A Session Summary Question: Update on data center opportunities - Management reported progress in discussions with data centers and highlighted the importance of the large load tariff in attracting these customers [35][36] Question: Clarification on the growth plan and its components - Management explained that the data center investments are not included in the current plan, but they expect a low double-digit compound annual growth rate (CAGR) when considering additional opportunities [38][41] Question: Concerns about authorized returns and regulatory feedback - Management expressed confidence in achieving a ROE of 9.9% or better, dismissing concerns about the recent Proposal for Decision as an outlier [50][53] Question: Impact of Integrated Resource Plan on capacity needs - Management clarified that the Integrated Resource Plan will address capacity gaps and that additional load growth will require significant investment [54][56]

Financial Data and Key Metrics Changes - For 2025, the company exceeded its adjusted earnings per share guidance, delivering $3.61 per share, which is an increase of over 8% from 2024's actual result [10] - The company raised its annual guidance for 2026 by $0.03, now expecting earnings per share between $3.83 and $3.90, representing 6%-8% growth from 2025 actual results [11][22] - The company has a target dividend payout ratio of approximately 55% over time, continuing a trend of dividend growth for over 20 years [12] Business Line Data and Key Metrics Changes - The utility segment is expected to provide $4.28-$4.33 of adjusted earnings per share, driven by normal weather and constructive regulatory outcomes [23] - Northstar is projected to contribute $0.25-$0.30 to earnings per share, benefiting from favorable capacity contracts and renewable projects [23] Market Data and Key Metrics Changes - The company reported that its residential natural gas rate is 28% below the national average, reflecting a balance between system investment and customer affordability [10] - The company aims to keep residential bills below the national average and Midwest average, with recent electric bill increases among the lowest in the country [17][18] Company Strategy and Development Direction - The company has received approval for a 20-year renewable energy plan, providing approximately $14 billion of customer investment opportunities over the next decade [5][8] - A five-year $24 billion utility customer investment plan has been outlined, with increased investments in electric generation and gas delivery systems [12][15] - The company is focusing on customer affordability while making significant infrastructure investments, leveraging operational efficiencies to save customers money [17][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a constructive outcome in the pending electric and gas rate cases, expecting a return on equity (ROE) of 9.9% or better [9][53] - The management highlighted a strong regulatory environment in Michigan, which supports long-term investments and customer benefits [8][9] - The company is optimistic about the growth potential from data centers and manufacturing customers, with ongoing discussions and agreements in place [19][20] Other Important Information - The company has invested over $1 billion in gas infrastructure improvements to ensure reliability and safety for customers [6] - The company has a strong focus on energy efficiency, with programs expected to save customers approximately $1.2 billion [17] Q&A Session Summary Question: Update on data center opportunities - Management reported progress in discussions with data centers, with a growing pipeline and positive indicators for the Large Load Tariff [36][75] Question: Clarification on the financial plan and growth expectations - Management explained that the data center investments are not included in the current financial plan, but they expect a low double-digit CAGR when considering additional opportunities [42][45] Question: Concerns about authorized returns and regulatory feedback - Management expressed confidence in achieving a constructive outcome in the rate case, emphasizing the strong justification for capital investments and operational needs [50][53] Question: Capacity needs and Integrated Resource Plan (IRP) - Management clarified that the IRP will address capacity gaps and that additional load from data centers would lead to increased rate base growth [56][58]

Financial Data and Key Metrics Changes - The company reported a net loss of $204,000 or $0.02 per share in Q4 2025, compared to a net income of $141,000 or $0.01 per share in the same quarter of the previous year [6][7] - For the full fiscal year 2025, net income was $13.3 million or $1.29 per share, a 15% increase from $11.8 million or $1.16 per share in fiscal 2024 [7][8] - Total capital expenditures (CapEx) for fiscal 2025 were $20.7 million, down 6% from the previous year [5][6] Business Line Data and Key Metrics Changes - The company installed nearly five main miles, which is 50% higher than the total main miles installed in fiscal 2024, and connected over 700 new services compared to approximately 630 in fiscal 2024 [2][3] - Delivered gas volumes increased by 8% in Q4 2025 compared to Q4 2024, with total volumes moving up 14% year-over-year due to colder weather and increased industrial consumption [4][5] Market Data and Key Metrics Changes - The average customer count is expected to reach approximately 65,000 by the end of the second quarter, despite seasonal disconnections [3] - Heating degree days increased by 18%, contributing to the record level of gas delivery [5] Company Strategy and Development Direction - The company is optimistic about continued customer growth in the Roanoke Valley, with a focus on healthcare and medical sector expansions [10][11] - The company filed an expedited rate case seeking a $4.3 million increase in annual revenues, expected to take effect on January 1, 2026, subject to commission review [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged inflationary pressures and higher expenses but expressed confidence in managing these challenges [6][18] - The company anticipates a more challenging fiscal 2026 compared to 2025, with a wider earnings per share guidance range due to uncertainties in volume deliveries and weather [18][19] Other Important Information - The company refinanced debt supporting its investment in the Mountain Valley Pipeline (MVP) to extend maturity to 2032 [8] - A dividend increase of $0.04 per share was authorized, reflecting strong earnings in 2025 [18] Q&A Session Summary Question: How is the weather tracking compared to last year? - Management noted that October had unusual weather patterns, but colder weather has set in recently, which is expected to positively impact gas volumes [21][22] Question: Any capital requirements from the company for EVP projects in 2026? - The CFO indicated that funding for the Boost and Southgate projects would come from refinancing, with expected investments totaling $4-$5 million over the next several years [23] Question: Updates on data centers and Google's investment in the region? - Management highlighted ongoing interest and discussions regarding data centers in Southwest Virginia, with expectations for more announcements from Google in 2026 [25][26]