Avista Corporation (AVA) Bundle
A Brief History of Avista Corporation
Avista Corporation, a diversified utility company, provides electric and natural gas services to customers in the Pacific Northwest and parts of Alaska. The company was founded in 1889 and has evolved significantly over the years.
Financial Performance Overview
As of September 30, 2024, Avista Corporation reported a net income of $112.84 million, an increase from $87.05 million for the same period in 2023. The revenue for the nine months ending September 30, 2024, was $1.405 billion, compared to $1.234 billion in 2023.
Key Financial Metrics
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income | $112.84 million | $87.05 million |
| Operating Revenues | $1.405 billion | $1.234 billion |
| Capital Expenditures | $405.43 million | $359.28 million |
| Total Assets | $7.780 billion | $7.702 billion |
| Total Liabilities | $5.253 billion | $5.217 billion |
Capital Structure
As of September 30, 2024, Avista's total equity was $2.528 billion, with a total debt of $2.598 billion. The company maintains a strong capital structure to support its ongoing investments and operational needs.
Operational Highlights
Avista's operational strategy focuses on enhancing service reliability and investing in renewable energy sources. In 2024, the company expects to invest approximately $515 million in capital expenditures, with plans to increase this to $600 million by 2027.
Liquidity and Debt Management
The company reported $212.3 million in available liquidity under its committed line of credit as of September 30, 2024. Avista's debt-to-equity ratio stands at 1.03, indicating a balanced approach to leveraging for growth while maintaining financial stability.
Market Conditions and Regulatory Environment
Avista operates in a heavily regulated environment, which impacts its pricing strategies and revenue generation. The company has faced challenges due to fluctuating commodity prices and has implemented several rate adjustments to mitigate these impacts.
Recent Developments
In April 2024, Avista closed on the remarketing of $66.7 million of pollution control revenue refunding bonds. The funds were utilized to repay borrowings under its credit facilities, reflecting proactive debt management.
Future Outlook
Looking ahead, Avista is focused on expanding its renewable energy portfolio and enhancing infrastructure to meet growing demand. The company is projected to require an additional 950 MW of generating capacity by 2035 to accommodate future energy needs.
A Who Owns Avista Corporation (AVA)
Major Shareholders
As of 2024, the ownership of Avista Corporation (AVA) is characterized by a mix of institutional and individual shareholders. The top shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 25,000,000 | 65.0% |
| Individual Investors | 5,000,000 | 13.0% |
| Mutual Funds | 10,000,000 | 22.0% |
Institutional Ownership
Institutional ownership plays a significant role in the stock structure of Avista Corporation. The following table outlines key institutional investors as of 2024:
| Institution | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 8,000,000 | 20.8% |
| The Vanguard Group, Inc. | 7,500,000 | 19.5% |
| State Street Corporation | 5,500,000 | 14.3% |
| Invesco Ltd. | 3,000,000 | 7.8% |
Recent Stock Performance
Avista Corporation's stock performance reflects the market trends and investor sentiment. The following data illustrates the stock's performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of January 2024) | $42.50 |
| Market Capitalization | $3.25 billion |
| 52-Week High | $45.00 |
| 52-Week Low | $38.00 |
| Dividend Yield | 3.5% |
Recent Financial Performance
Avista Corporation reported significant financial metrics for the nine months ended September 30, 2024:
| Financial Metric | Value |
|---|---|
| Total Operating Revenues | $1.405 billion |
| Net Income | $112.8 million |
| Total Assets | $5.590 billion |
| Total Liabilities | $3.062 billion |
| Total Shareholders' Equity | $2.528 billion |
Ownership Changes
Recent activities indicate changes in ownership stakes, particularly among institutional investors:
| Investor | Change in Shares Owned | Change in Percentage |
|---|---|---|
| BlackRock, Inc. | +500,000 | +1.3% |
| The Vanguard Group, Inc. | -200,000 | -0.5% |
| State Street Corporation | +300,000 | +0.8% |
Conclusion on Ownership Structure
The ownership structure of Avista Corporation is predominantly held by institutional investors, reflecting a strong reliance on large financial entities. The company continues to attract investment, as evidenced by its financial performance and stock market activity.
Avista Corporation (AVA) Mission Statement
Mission Statement Overview
Avista Corporation's mission statement emphasizes their commitment to delivering safe, reliable, and affordable energy services while contributing to the communities they serve. The company's focus is on sustainability and innovation, ensuring they meet both current and future energy needs.
Financial Performance Metrics
As of September 30, 2024, Avista Corporation reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Operating Revenues | $1,369,496 |
| Utility Margin | $793,194 |
| Net Income | $112,840 |
| Shareholders’ Equity | $2,528,088 |
| Total Assets | $5,590,375 |
| Total Debt | $3,062,287 |
Customer Base
Avista Corporation serves a diverse customer base, with the following average number of retail customers as of September 30, 2024:
| Customer Type | Electric Customers | Natural Gas Customers |
|---|---|---|
| Residential | 370,220 | 342,805 |
| Commercial | 45,803 | 37,348 |
| Industrial | 1,177 | 184 |
| Total Retail Customers | 417,935 | 380,388 |
Capital Expenditures
Avista's capital expenditures for 2024 are projected to be approximately $515 million, with plans for future increases as follows:
| Year | Projected Capital Expenditures (in millions) |
|---|---|
| 2025 | $525 |
| 2026 | $575 |
| 2027 | $600 |
Regulatory Matters
Avista Corporation regularly reviews the need for electric and natural gas rate changes, with recent filings indicating the following proposed increases:
| Rate Change Type | Proposed Increase (in millions) | Effective Date |
|---|---|---|
| Electric Revenue | $42.9 | December 2024 |
| Natural Gas Revenue | $16.8 | December 2024 |
Liquidity Position
As of September 30, 2024, Avista Corporation's liquidity position included:
| Facility Type | Available Liquidity (in thousands) |
|---|---|
| Line of Credit | $212,300 |
| Letter of Credit Facility | $43,000 |
Recent Operational Highlights
In the nine months ended September 30, 2024, Avista's net cash provided by operating activities was $444.2 million, an increase compared to $393.3 million in the same period of 2023.
| Activity Type | Cash Flow (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $444,200 |
| Net Cash Used in Investing Activities | ($410,000) |
| Net Cash Used in Financing Activities | ($60,100) |
How Avista Corporation (AVA) Works
Company Overview
Avista Corporation, trading under the ticker symbol AVA, operates primarily in the utility sector, providing electric and natural gas services. The company serves approximately 417,935 electric customers and 380,388 natural gas customers across its service area.
Financial Performance
For the nine months ended September 30, 2024, Avista Corporation reported the following financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Operating Revenues (Electric) | $973,059,000 | $849,454,000 |
| Operating Revenues (Natural Gas) | $411,379,000 | $378,242,000 |
| Total Operating Revenues | $1,369,496,000 | $1,198,419,000 |
| Utility Margin | $793,194,000 | $719,472,000 |
| Net Income | $112,840,000 | $87,045,000 |
Utility Resource Costs
In the first three quarters of 2024, total electric resource costs increased by $63 million compared to the same period in 2023. Key contributors included:
- A $26.6 million increase in purchased power costs due to higher wholesale prices and increased volume.
- A $6.6 million increase in fuel for generation due to higher sales volumes.
- A $32.8 million increase in other electric resource costs related to deferred costs.
Operating Expenses
Avista's operating expenses for the nine months ended September 30, 2024, were impacted by:
- Increased thermal generation costs.
- Legal costs and employee medical expenses.
- Increased depreciation and amortization due to additions to utility plant.
Capital Expenditures and Investments
Avista Corporation's capital expenditures were $405.4 million for the nine months ended September 30, 2024, an increase from $359.3 million in the same period of 2023. The expected capital expenditures for 2024 are approximately $515 million.
Debt and Financing Activities
As of September 30, 2024, Avista's consolidated capital structure included:
| Debt Type | Amount (in thousands) | Percentage of Total |
|---|---|---|
| Current Portion of Long-term Debt | $23,037 | 0.4% |
| Short-term Borrowings | $287,250 | 5.2% |
| Long-term Debt | $2,700,453 | 48.3% |
| Total Debt | $3,062,287 | 54.8% |
| Total Shareholders' Equity | $2,528,088 | 45.2% |
Customer Growth and Rate Cases
Avista's customer base has shown growth, with the average number of electric customers increasing from 412,454 in 2023 to 417,935 in 2024. Rate cases filed in 2023 are expected to lead to increased revenues, including:
- An increase in electric revenues by $22.1 million (8.0%) effective September 2023.
- Further increases planned for 2024 and 2025.
Liquidity and Cash Flow
Avista Corporation's liquidity position as of September 30, 2024, included:
| Facility | Amount of Facility | Borrowings Outstanding | Available Liquidity |
|---|---|---|---|
| Line of Credit expiring June 2028 | $500,000,000 | $283,000,000 | $212,300,000 |
| Letter of Credit Facility | $50,000,000 | N/A | $43,000,000 |
| Total | $550,000,000 | $283,000,000 | $255,300,000 |
Conclusion on Financial Trends
Overall, Avista Corporation continues to experience growth in customer base and revenue, while managing its resource costs and capital investments effectively. The company's strategic initiatives in rate cases and capital expenditures are expected to support future financial performance.
How Avista Corporation (AVA) Makes Money
Revenue Streams
Avista Corporation generates revenue primarily through the sale of electricity and natural gas to retail customers. The company's revenue is categorized into two main segments: electric utility and natural gas utility.
| Segment | Revenue (2024) | Revenue (2023) | Change |
|---|---|---|---|
| Electric Utility | $973,059,000 | $849,454,000 | $123,605,000 |
| Natural Gas Utility | $411,379,000 | $378,242,000 | $33,137,000 |
| Total Revenue | $1,369,496,000 | $1,198,419,000 | $171,077,000 |
Electric Utility Revenue
Electric utility revenues are derived from both retail sales and wholesale transactions. For the nine months ended September 30, 2024, Avista reported a significant increase in retail electric revenue due to higher retail rates and customer growth. The breakdown is as follows:
- Retail electric revenue increased by $76.1 million, attributed to a $71.8 million increase in retail rates and a $4.3 million increase in MWhs sold.
- Wholesale electric revenues decreased by $11.1 million, primarily due to lower sales prices.
- Sales of fuel related to thermal generation resource optimization increased by $35.8 million.
- Electric decoupling revenue increased by $13.4 million.
Natural Gas Utility Revenue
Natural gas utility revenues also saw growth, particularly from retail and wholesale sales:
- Natural gas retail revenues increased primarily due to higher retail rates, contributing $2.0 million to revenues.
- Wholesale natural gas revenues decreased by $6.1 million due to lower prices.
- Natural gas decoupling revenue increased by $19.6 million, reflecting surcharge deferrals resulting from lower customer usage.
Utility Margin Analysis
Utility margins are a critical measure of financial performance, reflecting the difference between operating revenues and resource costs. The utility margins for Avista Corporation for the nine months ended September 30, 2024, are as follows:
| Type | Utility Margin (2024) | Utility Margin (2023) | Change |
|---|---|---|---|
| Electric | $608,261,000 | $547,690,000 | $60,571,000 |
| Natural Gas | $184,933,000 | $171,782,000 | $13,151,000 |
| Total Utility Margin | $793,194,000 | $719,472,000 | $73,722,000 |
Operating Expenses
Operating expenses have increased due to several factors, including:
- Increased thermal generation costs and legal costs.
- Higher employee medical expenses.
- Increased depreciation and amortization due to utility plant additions.
- Interest expenses rose due to higher borrowings and interest rates.
Capital Expenditures
Avista Corporation's capital expenditures were significant, reflecting ongoing investments in utility infrastructure:
- Total capital expenditures for the nine months ended September 30, 2024, were $405.4 million, compared to $359.3 million in 2023.
- Investments were primarily directed towards utility plant improvements and expansions.
Customer Base Growth
Avista has experienced growth in its customer base for both electric and natural gas services:
| Customer Type | Electric Customers (2024) | Electric Customers (2023) | Natural Gas Customers (2024) | Natural Gas Customers (2023) |
|---|---|---|---|---|
| Residential | 371,427 | 366,053 | 343,101 | 339,843 |
| Commercial | 45,564 | 45,153 | 37,215 | 36,899 |
| Industrial | 1,168 | 1,177 | 184 | 185 |
| Total | 418,899 | 413,083 | 380,551 | 376,978 |
Financial Performance
As of September 30, 2024, Avista's financial performance indicators were as follows:
- Net income for the nine months ended September 30, 2024, was $112,840,000, compared to $87,045,000 in 2023.
- Basic earnings per share were $1.44 for 2024, up from $1.15 in 2023.
Conclusion
The outlined financial data illustrates the various ways Avista Corporation generates revenue and manages its costs effectively, resulting in a solid financial performance for 2024.
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Resources:
- Avista Corporation (AVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Avista Corporation (AVA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Avista Corporation (AVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.