Evergy(US:EVRG)2023-08-04 17:35Financial Data and Key Metrics Changes - For Q2 2023, Evergy reported adjusted earnings of $186.1 million or $0.81 per share, down from $194.5 million or $0.84 per share in Q2 2022, primarily due to a 13% decrease in cooling degree days which drove an $0.08 decrease in EPS [23][28] - Year-to-date adjusted earnings were $322 million or $1.40 per share compared to $324 million or $1.41 per share for the same period last year, reflecting a similar trend in weather impacts [34] Business Line Data and Key Metrics Changes - Weather-normalized demand growth was 1.1% in Q2 2023, driven by residential and commercial sectors, while year-to-date growth was 1.6% [53][34] - Decreased O&M expenses contributed positively with a $0.29 variance year-over-year, attributed to operational efficiencies and timing of expenditures [24][52] Market Data and Key Metrics Changes - The local labor market remains strong, with unemployment rates in Kansas and Kansas City Metro area at 2.8%, below the national average of 3.6% [54] - The company anticipates resolution on the securitization of extraordinary costs from Winter Storm Uri later this year, which will impact financials [20] Company Strategy and Development Direction - Evergy plans to add over 3,000 megawatts of new wind and solar resources over the next 10 years, influenced by federal subsidies and regional capacity needs [30] - The company aims to cease all coal operations in Lawrence units 4 and 5 and convert Lawrence Unit 5 to natural gas by 2028, reflecting a shift towards sustainability [30] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the 2023 adjusted EPS guidance range of $3.55 to $3.75 per share, indicating confidence in navigating operational challenges [29][36] - The company is focused on affordability, reliability, and sustainability, with ongoing investments in infrastructure to enhance service and meet evolving customer needs [32][33] Other Important Information - The company is preparing for a transition to time-of-use rates in Missouri, with a focus on effective communication to customers about the changes [14][90] - The integrated resource plan reflects the impacts of renewable support from the Inflation Reduction Act and updated load forecasts, indicating a proactive approach to future energy demands [49][50] Q&A Session Summary Question: Can you provide more details on the CapEx outlook and rate base? - Management confirmed confidence in the CapEx and rate base outlook, with ongoing discussions expected to clarify details in the upcoming months [40][42] Question: What is the feedback from stakeholders regarding the Kansas rate cases? - Management indicated that feedback will be clearer after the intervenor testimony is filed on August 29, and they are optimistic about reaching a constructive settlement [57][58] Question: How does the updated IRP impact load forecasts? - Management acknowledged potential upside factors in load forecasts due to electrification and new loads, suggesting a more favorable outlook than previously anticipated [81][82]