Slide 1: Third Quarter 2024 Earnings Call
Third Quarter 2024 Earnings Call November 7, 2024
Slide 2: Important Information
Important Information Forward Looking Statements Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements r
Slide 3: Agenda
Agenda David Campbell, Chairman & CEO • Third quarter highlights • Generation update • Regulatory and legislative update • Outlook update Bryan Buckler, EVP & CFO • Third quarter results • Retail sales trends • Guidance update 3 Third Quarter 2024 Earnings Presentation
Slide 4: Business Update
Business Update David Campbell Chairman & CEO
Slide 5: Third Quarter Highlights
Third Quarter Highlights • Third Quarter 2024 EPS Adjusted EPS1 • GAAP: $2.02 $3.46 • Adjusted1: $2.02 $3.27 $2.02 $1.88 • Primary Earnings Drivers ↑ Load growth, new retail rates, FERC investments ↓ Weather, D&A • Bryan Buckler appointed CFO, effective October 1 • Reaffirming 2024 adjusted EPS1 gui
Slide 6: Generation Update
Generation Update • Natural Gas Additions • 705 megawatt (MW) combined-cycle gas turbine (CCGT) located in Sumner County, KS • Targeting commercial operation date (COD) in 2029, jointly owned by Kansas Central (50%) and Missouri West (50%); eligible for construction work in progress (CWIP) in Kansas
Slide 7: Updated Five-Year Capital Expenditure Plan
Updated Five-Year Capital Expenditure Plan Capital Investment Plan Update • Planning $16.2B of infrastructure investment 2025E- ($ millions) 2029E to be financed with balanced mix of debt, equity, and internally generated cash to maintain a $3,795 strong, investment grade credit rating $3,522 $3,323
Slide 8: Adjusted EPS Growth Outlook
Adjusted EPS1 Growth Outlook Top half of 4-6% EPS CAGR3 4-6% EPS CAGR2 $4.02 $3.65 2023 Baseline2 2024E 2025E Baseline3 2026E 2027E 2028E 2029E Expect to be in the top half of 4-6% EPS CAGR from 2025E - 2029E 8 Third Quarter 2024 Earnings Presentation 1Adjusted EPS is a non-GAAP financial measure. S
Slide 9: Missouri West Rate Review
Missouri West Rate Review • Unanimous settlement agreement filed on October 2 • $55M net revenue increase • Includes Dogwood Energy Center acquisition • Black-box settlement does not detail rate base, ROE or equity ratio • Pre-tax rate of return for plant-in-service accounting (PISA) for future inve
Slide 10: Regulatory & Legislative Updates
Regulatory & Legislative Updates Kansas • Electric Infrastructure Investment Bill (HB 2527): became effective July 1; introduced Plant- In-Service Accounting (PISA) with 90% deferral and Construction Work in Progress (CWIP) for natural gas generation • Capital Structure & ROE Workshop: scheduled for
Slide 11: Economic Development & Demand Growth Outlook
Economic Development & Demand Growth Outlook Economic Development Wins1 Weather-Normalized Demand Growth 2024-2029E CAGR • Data Center Base Demand • ~$1B investment + 2-3% New Large Customer Load • EV battery manufacturing plant • ~$4B investment Base Demand • ~4,000 new jobs Growth 0.5-1% • Data Ce
Slide 12: Core Tenets of Evergy Strategy
Core Tenets of Evergy Strategy Affordability: Maintaining Affordability affordable rates while investing in infrastructure and technology to meet customer demand Reliability: Targeting top-tier performance in reliability, customer service and generation Reliability Sustainability Sustainabilit
Slide 13: Financial Update
Financial Update Bryan Buckler EVP & CFO
Slide 14: Third Quarter 2024 Adjusted EPS
Third Quarter 2024 Adjusted EPS1 $2.02 0.05 $1.88 0.01 (0.03) 0.07 0.06 (0.14) 0.10 0.02 12% decrease 0.8% increase in cooling degree days 3Q23 Weather2 Weather New Retail FERC O&M D&A Tax Items Other 3Q24 Normalized Rates Investments Demand 14 Third Quarter 2024 Earnings Presentation 1Adjusted EPS
Slide 15: Retail Sales Trends
Retail Sales Trends YTD Weather-Normalized Retail Sales Growth Unemployment Rate3 Compared to prior year1,2 15% U.S. KC Metro 1.5% Total 0.9% 12% Kansas Retail (0.3%) 0.8% 9% Residential Commercial Industrial 6% 3Q24 Weather-Normalized Retail Sales Growth Compared to prior year1,2 3% 1.6% Total 0.4%
Slide 16: 2025E – 2029E Financing Plan
2025E – 2029E Financing Plan Sources & Uses ($ billions) $16.2 $2.2 $12.5 $5.1 ($3.6) Cash From Operations Dividends Incremental Equity & Equity- 2025E-2029E Debt1,2 Like Securities2 Capex Plan Financing plan reflects balanced mix of debt and equity proceeds to fund growth while supporting our balan
Slide 17: 2025E Adjusted EPS Key Drivers
2025E Adjusted EPS1 Key Drivers ↑ Load growth, with early-stage ramp ups from Meta and Panasonic ↑ Return on and recovery of infrastructure investments: o Missouri West new rates effective January 1, 2025 o Kansas Central rase case under evaluation; new rates expected to be effective as early as Q4
Slide 18: 2026E – 2029E Adjusted EPS Key Drivers
2026E – 2029E Adjusted EPS1 Key Drivers ↑ Significant load growth at 2-3% CAGR, with additional 6GW pipeline opportunity ↑ Rate base CAGR of ~8% through 2029 ↑ AFUDC3 on investments, along with CWIP4 rider in rates in Kansas for new gas generation ↑ Regular cadence of rate cases to ensure financial
Slide 19: Updated Financial Growth Outlook Summary
Updated Financial Growth Outlook Summary • Reaffirming 2024 adjusted EPS1 guidance of $3.73 - Targeted Adjusted EPS Growth1 $3.93 and establishing 2025 adjusted EPS1 guidance of $3.92 - $4.12 Top half of 4-6% EPS CAGR3 • Establishing long-term adjusted EPS1 target of 4% to 6% off of the 2025E midpoi
Slide 20: Q&A
Q&A 20 Third Quarter 2024 Earnings Presentation
Slide 21: Appendix
Appendix
Slide 22: Year to Date 2024 Adjusted EPS
Year to Date 2024 Adjusted EPS1 0.16 (0.08) (0.11) $3.46 (0.06) 0.11 (0.03) $3.27 0.22 (0.11) 0.09 0.8% increase driven primarily by higher residential and commercial demand YTD23 Weather2 Weather New Retail FERC O&M D&A Interest Tax Items Other YTD24 Normalized Rates Investments Expense Demand & AF
Slide 23: Debt Maturities & Credit Ratings
Debt Maturities & Credit Ratings CFO pre-WC/Debt1 2024E Strong Credit Ratings Moody’s S&P Global Evergy, Inc. Estimate 15.0% Outlook Stable Stable Target2 >15.0% Senior Unsecured Debt Baa2 BBB Commercial Paper P-2 A-2 Evergy Kansas Central Long-Term Debt Maturities3,4 ($ millions) Outlook Stable Sta
Slide 24: Rate Base, Year-End 2024 Estimates
Rate Base, Year-End 2024 Estimates Jurisdictional Allocation Rate Base Growth ($ in billions) FERC +8% 16% $28.0 – $29.0 $19.2 52% Kansas 32% Missouri 2024E 2029E 24 Third Quarter 2024 Earnings Presentation
Slide 25: Evergy Five-Year Capital Investment Plan
Evergy Five-Year Capital Investment Plan $ in millions 2025E 2026E 2027E 2028E 2029E Total New Generation/Renewables 472 852 1158 1557 1228 5,267 General Facilities, IT, and Other 156 160 227 256 262 1,062 Transmission 528 555 682 710 728 3,203 Distribution 984 1139 925 918 941 4,907 Legacy Generati
Slide 26: Kansas Central Five-Year Capital Investment Plan
Kansas Central Five-Year Capital Investment Plan $ in millions 2025E 2026E 2027E 2028E 2029E Total New Generation/Renewables1 188 377 461 724 591 2,340 General Facilities, IT, and Other2 42 50 53 73 75 293 Transmission 357 380 457 467 479 2,140 Distribution2 379 391 331 312 320 1,733 Legacy Generati
Slide 27: Metro Five-Year Capital Investment Plan
Metro Five-Year Capital Investment Plan2 $ in millions 2025E 2026E 2027E 2028E 2029E Total New Generation/Renewables1 28 91 304 334 313 1,070 General Facilities, IT, and Other1 104 104 160 175 179 722 Transmission 87 65 81 101 104 438 Distribution1 309 474 344 370 379 1,876 Legacy Generation1 136 13
Slide 28: Missouri West Five-Year Capital Investment Plan
Missouri West Five-Year Capital Investment Plan $ in millions 2025E 2026E 2027E 2028E 2029E Total New Generation/Renewables1 256 384 393 501 325 1,859 General Facilities, IT, and Other1 11 6 14 7 7 45 Transmission 85 110 144 141 145 625 Distribution1 296 275 249 236 242 1,298 Legacy Generation1 34 2
Slide 29: Generation Project List
Generation Project List Project Fuel Type MW Ownership Regulatory Filings Targeted COD2 PISA Eligibility CWIP EKC (50%) & Predetermination Sumner County Natural Gas 705 2029 Yes (KS) EMW (50%) (KS) & CCN1 (MO) Predetermination Reno County Natural Gas 705 EKC (50%) & TBD 2030 Yes (KS) (KS) & CCN1 (MO
Slide 30: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation Adjusted EPS1 Original 2023E 2024E 2025E GAAP EPS $3.55 - $3.75 $3.73 - $3.93 $3.92 - $4.12 Adjustments - - - Adjusted EPS1 (non-GAAP) $3.55 - $3.75 $3.73 - $3.93 $3.92 - $4.12 1Adjusted earnings and adjusted earnings per share guidance (non-GAAP) are financial me
Slide 31: Third Quarter GAAP to Non-GAAP EPS Reconciliation
Third Quarter GAAP to Non-GAAP EPS Reconciliation 31 Third Quarter 2024 Earnings Presentation
Slide 32: Year to Date GAAP to Non-GAAP EPS Reconciliation
Year to Date GAAP to Non-GAAP EPS Reconciliation 32 Third Quarter 2024 Earnings Presentation