On February 29, 2024, Evergy Inc (EVRG, Financial), a leading regulated electric utility, released its 8-K filing, announcing its financial results for the full year and fourth quarter of 2023. The company, which serves 1.7 million customers across Kansas and Missouri, reported a decrease in full-year GAAP earnings compared to the previous year, while fourth-quarter earnings saw a significant increase.
Company Overview
Evergy is a prominent player in the Utilities - Regulated industry, with a strong commitment to delivering reliable, affordable, and sustainable energy. The company operates a substantial rate base and is recognized as one of the largest wind energy suppliers in the United States. Evergy's strategic focus on affordability, reliability, and sustainability has been crucial in navigating the challenges and opportunities within the energy sector.
Financial Performance and Challenges
The full-year 2023 adjusted earnings per share were impacted by a combination of factors, including higher interest expenses, increased depreciation and amortization, and unfavorable weather conditions. These were partially offset by a reduction in operations and maintenance expenses, tax items, and higher proceeds from corporate-owned life insurance. The company's president and CEO, David Campbell, highlighted the strategic advancements made in 2023, despite facing challenges from the higher interest rate environment, regulatory lag, and mild weather towards the year's end.
"In 2023, we advanced our strategic objectives of affordability, reliability and sustainability. The Kansas rate case settlement delivered significant benefits for customers and enhanced our regional rate competitiveness, we achieved a nearly 10% improvement in reliability, and we furthered our responsible energy transition with the addition of the Persimmon Creek wind farm," said David Campbell, Evergy president and chief executive officer.
Evergy's financial achievements, particularly the 12% reduction in adjusted operations and maintenance costs, underscore the company's commitment to cost management and operational efficiency. These efforts are vital for maintaining competitive rates and ensuring the company's ability to attract investment capital, which is essential for the Utilities - Regulated industry.
2024 Outlook and Dividend Declaration
Looking ahead to 2024, Evergy has set a GAAP EPS guidance range of $3.73 to $3.93 and reaffirmed its long-term adjusted EPS annual growth target of 4% to 6% through 2026. This guidance reflects the company's focus on operational and financial execution and its pursuit of constructive regulatory policies. Additionally, the Board of Directors declared a dividend of $0.6425 per share, demonstrating Evergy's commitment to delivering shareholder value.
The company also updated its five-year capital investment plan, increasing it to $12.5 billion from 2024 through 2028. This plan is indicative of Evergy's ongoing investment in infrastructure to support long-term growth and reliability.
Investor and Analyst Engagement
Evergy management will engage with the investment community in a conference call to discuss the earnings report and future plans. The call is an opportunity for investors and analysts to gain further insights into the company's strategies and financial outlook.
Evergy's performance in 2023, despite some headwinds, demonstrates the company's resilience and strategic focus. With a clear vision for the future and a commitment to sustainability, Evergy is well-positioned to navigate the evolving energy landscape and continue delivering value to its customers, employees, and shareholders.
For more detailed information, investors are encouraged to review the full earnings announcement and other financial filings available on Evergy's website at investors.evergy.com.
Explore the complete 8-K earnings release (here) from Evergy Inc for further details.
