PPL(US:PPL)2021-11-04 18:32Financial Data and Key Metrics Changes - The company reported third quarter earnings of $0.27 per share, reflecting special items of $0.09 per share related to debt extinguishment losses [38] - Adjusted earnings from ongoing operations were $0.36 per share, up from $0.30 per share a year ago, bringing year-to-date earnings to $0.83 per share [38][39] Business Line Data and Key Metrics Changes - The Pennsylvania regulated segment recorded earnings of $0.16 per share, a decrease of $0.01 per share compared to the previous year, primarily due to higher operations and maintenance expenses [39] - The Kentucky regulated segment reported earnings of $0.21 per share, an increase of $0.04 per share compared to Q3 2020, driven by higher base retail rates and lower interest expenses [39] Market Data and Key Metrics Changes - The company continues to focus on grid modernization and resilience, with plans for at least $1 billion in incremental capital investments in Pennsylvania and Kentucky through 2025 [12][13] - The company has allocated an additional $500 million for share repurchases, expecting to repurchase approximately $1 billion of common stock by year-end [13][14] Company Strategy and Development Direction - The company is advancing its Clean Energy strategy with a goal of net-zero carbon emissions by 2050, including renewable power purchase agreements and partnerships for carbon capture technology [15][16][19] - The acquisition of Narragansett Electric is a key strategic move, with four out of five necessary regulatory approvals secured [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging as a leading U.S. energy company post-transformation, focusing on delivering utilities of the future and driving long-term value [41] - The company anticipates a competitive EPS growth rate of 4% to 8%, with most expectations in the tighter range of 5% to 7% [76] Other Important Information - The company has been recognized for its customer service and innovation, with awards for vegetation management and dynamic line rating technology [28][30] - A significant economic development announcement includes plans for a $6 billion electric battery complex in Kentucky, expected to have a positive impact on local communities [32][33] Q&A Session Summary Question: Allocation of $1 billion in new CapEx - Management indicated that the allocation will focus on grid modernization and resilience, with a balanced approach across Pennsylvania and Kentucky [46][49] Question: Thoughts on remaining unallocated portion between CapEx and buybacks - Management emphasized that investing in utilities is a priority, and they aim to fund capital needs without issuing equity [52][54] Question: Clarification on utility CapEx and equity content - Management clarified that the announced CapEx is primarily asset-based, and they are focused on maintaining financial strength to execute robust business plans [60][110] Question: EPS growth trajectory - Management reiterated expectations for a competitive EPS growth rate of 4% to 8%, with a tighter range of 5% to 7% anticipated [76] Question: Impact of supply chain issues on CapEx implementation - Management acknowledged some extended lead times on materials but does not expect significant delays in current projects [100]