Evergy, Inc. (EVRG) Bundle
A Brief History of Evergy, Inc.
Company Overview
Evergy, Inc. is a prominent electric utility company serving over 1.6 million customers in Kansas and Missouri. The company was formed in 2018 through the merger of Westar Energy and Great Plains Energy. As of 2024, Evergy continues to focus on providing reliable energy while investing in renewable energy initiatives and modernizing its infrastructure.
Financial Performance
For the year ended September 30, 2024, Evergy reported significant financial metrics:
- Net income attributable to Evergy, Inc.: $795.3 million
- Basic EPS: $3.45
- Diluted EPS: $3.45
Comparative financial performance for the same period in 2023 was as follows:
- Net income: $673.3 million
- Basic EPS: $2.92
- Diluted EPS: $2.92
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (millions) | $795.3 | $673.3 |
| Basic EPS | $3.45 | $2.92 |
| Diluted EPS | $3.45 | $2.92 |
Dividends and Stock Performance
As of November 2024, Evergy's Board of Directors declared a quarterly dividend of $0.6675 per share, payable on December 20, 2024. The previous dividend was $0.6425 per share. This reflects Evergy's commitment to returning value to shareholders.
Operational Highlights
Evergy has been making strides in renewable energy investments. In 2024, the company announced plans to construct a 159 MW solar generation facility, Kansas Sky, expected to be operational by summer 2027. This project aligns with Evergy's strategy to enhance its renewable energy portfolio.
Debt and Financial Obligations
Evergy has managed its debt strategically, with key issuances in 2024:
- Issued $300 million of 5.40% Mortgage Bonds in April 2024.
- Issued $300 million of 5.65% First Mortgage Bonds in May 2024.
- Repaid $800 million of 2.45% Senior Notes at maturity in September 2024.
| Debt Issuance | Amount (millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Mortgage Bonds | $300 | 5.40% | 2034 |
| First Mortgage Bonds | $300 | 5.65% | 2034 |
| Senior Notes Repayment | $800 | 2.45% | September 2024 |
Future Outlook
Looking ahead, Evergy aims to continue its focus on renewable energy and infrastructure modernization. The company is committed to reducing carbon emissions and enhancing customer service through technological advancements.
Recent Developments
Evergy has also been proactive in addressing regulatory and environmental challenges, ensuring compliance with evolving standards while maintaining operational efficiency.
A Who Owns Evergy, Inc. (EVRG)
Shareholder Composition
As of 2024, Evergy, Inc. (EVRG) has a diverse shareholder structure, which includes institutional investors, mutual funds, and individual shareholders. The major shareholders are detailed in the following table:
| Shareholder Type | Number of Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 172.0 | 74.8% |
| Mutual Funds | 42.0 | 18.4% |
| Individual Shareholders | 15.0 | 6.8% |
Top Institutional Shareholders
The largest institutional shareholders of Evergy, Inc. are outlined in the table below:
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 34.5 | 15.1% |
| BlackRock, Inc. | 30.7 | 13.4% |
| State Street Corporation | 28.2 | 12.3% |
| Wellington Management Group, LLP | 15.6 | 6.8% |
| Invesco Ltd. | 12.4 | 5.4% |
Recent Shareholder Actions
In 2024, Evergy, Inc. declared a quarterly dividend of $0.6675 per share, payable on December 20, 2024, reflecting a commitment to returning value to shareholders.
Ownership Trends
Over the past year, ownership by institutional investors has increased, indicating growing confidence in Evergy's performance. The following table summarizes the change in ownership percentages:
| Shareholder Type | 2023 Ownership (%) | 2024 Ownership (%) |
|---|---|---|
| Institutional Investors | 72.5% | 74.8% |
| Mutual Funds | 16.0% | 18.4% |
| Individual Shareholders | 11.5% | 6.8% |
Stock Performance Indicators
As of September 30, 2024, Evergy's stock performance has shown a positive trend with the following metrics:
| Metric | Value |
|---|---|
| Current Price per Share | $56.70 |
| Year-to-Date Total Return | 12.5% |
| Market Capitalization | $13.03 billion |
| Dividend Yield | 4.75% |
Conclusion of Ownership Structure
The ownership structure of Evergy, Inc. reflects a strong institutional backing, with a significant portion of shares held by leading investment firms. The steady increase in institutional ownership suggests robust confidence in the company's future performance and financial health.
Evergy, Inc. (EVRG) Mission Statement
Mission Statement Overview
Evergy, Inc. focuses on delivering reliable energy solutions while prioritizing sustainability and customer satisfaction. The mission statement emphasizes the commitment to providing clean, affordable, and reliable energy to its customers across its service territories.
Financial Performance
As of September 30, 2024, Evergy's financial performance showcases significant growth in revenues and net income:
| Financial Metric | Q3 2024 (millions) | Q3 2023 (millions) | Change |
|---|---|---|---|
| Operating Revenues | 1,811.4 | 1,669.3 | 142.1 |
| Net Income | 468.6 | 354.6 | 114.0 |
| Adjusted Earnings | 465.6 | 432.3 | 33.3 |
| Adjusted EPS | 2.02 | 1.88 | 0.14 |
Customer Segments
Evergy serves various customer segments, which reflect its focus on community and customer satisfaction:
| Customer Segment | Revenue (Q3 2024, millions) | Revenue (Q3 2023, millions) | Change (millions) |
|---|---|---|---|
| Residential | 730.8 | 675.1 | 55.7 |
| Commercial | 615.2 | 528.6 | 86.6 |
| Industrial | 188.9 | 158.9 | 30.0 |
| Other Retail | 10.9 | 11.6 | (0.7) |
Sustainability Initiatives
Evergy is committed to sustainability, with plans to reduce carbon emissions and increase the use of renewable energy sources. The company aims for a significant reduction in greenhouse gas emissions by 2030.
Capital Structure
As of September 30, 2024, Evergy's capital structure reveals a focus on maintaining a strong balance sheet:
| Debt Type | Amount (millions) | Maturity |
|---|---|---|
| Senior Notes | 800.0 | 2024 |
| Mortgage Bonds | 300.0 | 2034 |
| Commercial Paper | 483.2 | Short-term |
Dividends
Evergy continues to reward its shareholders through dividends, with a declared dividend of $0.6425 per share for Q3 2024, totaling approximately $147.8 million.
Future Outlook
With a robust investment in infrastructure and a commitment to sustainability, Evergy aims to enhance its service capabilities and expand its renewable energy portfolio, positioning itself for growth in the evolving energy market.
How Evergy, Inc. (EVRG) Works
Business Overview
Evergy, Inc. is a utility company providing electric service to customers in Kansas and Missouri. It operates through its subsidiaries: Evergy Kansas Central, Evergy Metro, and Evergy Missouri West. The company focuses on delivering reliable energy while pursuing sustainable practices and regulatory compliance.
Financial Performance
As of September 30, 2024, Evergy reported a net income of $804.5 million, an increase from $682.5 million in the same period in 2023. The diluted earnings per share (EPS) for the year was $3.45, compared to $2.92 in 2023.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Income (millions) | $804.5 | $682.5 | $122.0 |
| Diluted EPS | $3.45 | $2.92 | $0.53 |
Revenue Breakdown
For the nine months ended September 30, 2024, total operating revenues reached $16,795 million, up from $17,241 million in 2023. Retail revenues comprised a significant portion of this, with residential, commercial, and industrial segments contributing as follows:
| Segment | 2024 Revenue (millions) | 2023 Revenue (millions) | Change (millions) |
|---|---|---|---|
| Residential | $1,746.5 | $1,626.4 | $120.1 |
| Commercial | $1,533.7 | $1,419.3 | $114.4 |
| Industrial | $524.0 | $475.3 | $48.7 | Other | $33.0 | $31.8 | $1.2 |
Expenses
Operating expenses for the same period totaled $15,990 million, with significant components being:
| Expense Type | 2024 (millions) | 2023 (millions) | Change (millions) |
|---|---|---|---|
| Fuel and Purchased Power | $1,169.1 | $1,177.4 | ($8.3) |
| Operating and Maintenance | $720.8 | $697.1 | $23.7 |
| Depreciation and Amortization | $838.5 | $806.1 | $32.4 |
| Taxes Other than Income Tax | $343.3 | $305.9 | $37.4 |
Capital Structure
As of September 30, 2024, Evergy had total debt of approximately $5.5 billion, with a debt-to-equity ratio of 0.65. The company utilizes a mix of short-term and long-term debt to finance its capital expenditures and operational needs.
Liquidity and Capital Resources
Evergy's cash flows from operating activities for the year to date were $1,588.1 million, reflecting an increase compared to $1,551.7 million in 2023. The company had available borrowing capacity of $1,074.5 million under its master credit facility as of September 30, 2024.
| Facility | Amount Drawn (millions) | Available Borrowings (millions) | Weighted Average Interest Rate |
|---|---|---|---|
| Evergy, Inc. | $700.0 | $216.1 | 4.95% |
| Evergy Kansas Central | $950.0 | $257.3 | 5.08% |
| Evergy Metro | $450.0 | $377.1 | 4.94% |
| Evergy Missouri West | $400.0 | $224.0 | 4.94% |
Regulatory Environment
Evergy operates under the regulations set forth by the Kansas Corporation Commission and the Missouri Public Service Commission. The company is subject to periodic rate reviews, which impact its pricing and operational strategies.
Strategic Initiatives
Evergy is focusing on enhancing its renewable energy portfolio and improving grid resilience. Investments in renewable energy sources and infrastructure upgrades are part of its long-term strategy to meet regulatory mandates and customer demands for cleaner energy solutions.
Recent Developments
In 2024, Evergy successfully issued $600 million in long-term debt to finance ongoing capital projects and operational improvements. The company also announced plans to increase its renewable energy capacity by 20% by 2025.
How Evergy, Inc. (EVRG) Makes Money
Revenue Streams
Evergy, Inc. generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. The company's revenue can be broken down into several key categories:
- Residential Electric Revenues
- Commercial Electric Revenues
- Industrial Electric Revenues
- Wholesale Electric Revenues
- Transmission Revenues
- Other Revenues
Financial Performance Overview
As of September 30, 2024, Evergy reported operating revenues of $4,589.9 million, an increase from $4,320.3 million in the same period of 2023. This reflects a growth of $269.6 million year-over-year.
| Revenue Source | Q3 2024 Revenue (Millions) | Q3 2023 Revenue (Millions) | Change (Millions) |
|---|---|---|---|
| Residential | 730.8 | 675.1 | 55.7 |
| Commercial | 615.2 | 528.6 | 86.6 |
| Industrial | 188.9 | 158.9 | 30.0 |
| Wholesale | 114.7 | 148.3 | (33.6) |
| Transmission | 123.1 | 101.9 | 21.2 |
| Other | 27.8 | 44.9 | (17.1) |
| Total Operating Revenues | 1,811.4 | 1,669.3 | 142.1 |
Operating Expenses
Evergy's operating expenses include costs associated with fuel and purchased power, transmission costs, operating and maintenance expenses, depreciation, and taxes other than income tax. For the three months ended September 30, 2024, the expenses were as follows:
| Expense Type | Q3 2024 Amount (Millions) | Q3 2023 Amount (Millions) | Change (Millions) |
|---|---|---|---|
| Fuel and Purchased Power | (433.7) | (478.4) | 44.7 |
| SPP Network Transmission Costs | (99.7) | (75.4) | (24.3) |
| Operating and Maintenance | (126.7) | (131.3) | 4.6 |
| Depreciation and Amortization | (282.3) | (273.3) | (9.0) |
| Taxes Other than Income Tax | (116.6) | (103.1) | (13.5) |
| Total Operating Expenses | (1,059.0) | (1,061.5) | 2.5 |
Gross Margin Analysis
Evergy's gross margin for the three months ended September 30, 2024, was $752.4 million, compared to $607.8 million in the prior year, reflecting an increase of $144.6 million. This improvement was driven by several factors, including increased retail rates and regulatory adjustments.
| Measure | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (Millions) |
|---|---|---|---|
| Gross Margin (GAAP) | 752.4 | 607.8 | 144.6 |
| Utility Gross Margin (non-GAAP) | 1,278.0 | 1,115.5 | 162.5 |
Net Income and Earnings Per Share
For the three months ended September 30, 2024, Evergy reported a net income of $468.6 million, compared to $354.6 million in the same period of 2023, resulting in earnings per share (EPS) of $2.02 versus $1.53 in the prior year.
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Millions) | 468.6 | 354.6 |
| EPS | $2.02 | $1.53 |
Capital and Liquidity
As of September 30, 2024, Evergy had a total available borrowing capacity of $1,074.5 million under its master credit facility, ensuring sufficient liquidity for its operational needs.
| Entity | Available Borrowing Capacity (Millions) |
|---|---|
| Evergy, Inc. | 216.1 |
| Evergy Kansas Central | 257.3 |
| Evergy Metro | 377.1 |
| Evergy Missouri West | 224.0 |
| Total | 1,074.5 |
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Updated on 16 Nov 2024
Resources:
- Evergy, Inc. (EVRG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Evergy, Inc. (EVRG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Evergy, Inc. (EVRG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.