Evergy - $EVRG - Earnings Analysis: Solid financial results in 2024
Business Model
Evergy generates revenue through the regulated sale of electricity, transmission services, and wholesale power transactions to its 1.7 million customers in Kansas and Missouri. Revenue sources are categorized by customer class such as Residential, Commercial, Industrial, and Wholesale.
Revenue Sources
- Residential customers (37% of total revenues)
- Commercial customers (34% of total revenues)
- Industrial customers (12% of total revenues)
- Wholesale transactions (5% of total revenues)
- Transmission services (8% of total revenues)
- Other revenues (4% of total revenues)
Income Statement Analysis
- Operating revenues increased, driven by higher retail revenues
- Fuel and purchased power costs decreased slightly
- Operating and maintenance expenses increased slightly
- Depreciation and amortization expense increased
- Taxes other than income tax increased
- Operating income and net income both increased significantly
Balance Sheet Analysis
- Total assets increased, reflecting investments in infrastructure
- Total stockholders equity increased, driven by net income
- Total liabilities increased
Cash Flow Analysis
- Net cash from operating activities remained relatively stable
- Net cash used in investing activities decreased
- Net cash from financing activities decreased
Capital Allocation
Capital allocation strategy focuses on infrastructure investments, debt management and shareholder returns. Reaffirmed a long-term dividend payout ratio of 60% to 70%.
Management Commentary
We had a solid year. Overcoming weather headwinds in the fourth quarter and throughout the year, we reported adjusted earnings of 3.81 per share compared to $3.54 per share a year ago.
In 2024, we also executed on our capital investment plan to improve reliability and resiliency, investing $2,300,000,000 in infrastructure to modernize our grid and replace aging equipment.
With respect to resolution, we typically, like most parties, really drive towards trying to seek a constructive settlement.
Overall Sentiment: Overall the sentiment is positive as Management discusses solid performance in the year.
Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.