Pinnacle West Reports Slightly Lower 2024 Third-Quarter Results Compared to a Year Ago
Pinnacle West (NYSE: PNW) reported Q3 2024 consolidated net income of $395.0 million, or $3.37 per diluted share, slightly down from $398.2 million, or $3.50 per share, year-over-year. The decrease was primarily due to higher operations and maintenance expenses, increased depreciation, and higher interest charges. The company experienced record-setting summer heat, with customer growth of 2.3% and weather-normalized sales growth of 5.9%. Customers set a peak energy demand of 8,210 MW on August 4. Based on positive weather impact and growth, PNW adjusted its 2024 earnings guidance upward to $5.00-$5.20 per share, and projects 2025 earnings of $4.40-$4.60 per share.
Pinnacle West (NYSE: PNW) ha riportato un reddito netto consolidato per il terzo trimestre del 2024 di 395,0 milioni di dollari, ovvero 3,37 dollari per azione diluita, leggermente inferiore rispetto ai 398,2 milioni di dollari, o 3,50 dollari per azione, dell'anno precedente. La diminuzione è stata principalmente dovuta a maggiori costi operativi e di manutenzione, aumenti nell'ammortamento e carichi di interessi più elevati. L'azienda ha registrato un'estate con temperature record, con una crescita dei clienti del 2,3% e una crescita delle vendite normalizzate rispetto al clima del 5,9%. I clienti hanno registrato una domanda energetica di picco di 8.210 MW il 4 agosto. Basandosi su un impatto positivo del clima e sulla crescita, PNW ha aumentato la sua guida sugli utili per il 2024 a un intervallo di 5,00-5,20 dollari per azione e prevede utili per il 2025 di 4,40-4,60 dollari per azione.
Pinnacle West (NYSE: PNW) reportó un ingreso neto consolidado del tercer trimestre de 2024 de 395.0 millones de dólares, o 3.37 dólares por acción diluida, ligeramente inferior a los 398.2 millones de dólares, o 3.50 dólares por acción, del año anterior. La disminución se debió principalmente a mayores gastos operativos y de mantenimiento, mayor depreciación y mayores cargos por intereses. La compañía experimentó un calor intenso durante el verano, con un crecimiento de clientes del 2.3% y un crecimiento de ventas normalizado por el clima del 5.9%. Los clientes establecieron una demanda máxima de energía de 8,210 MW el 4 de agosto. Basándose en un impacto climático positivo y crecimiento, PNW ajustó su guía de ganancias para 2024 al alza a 5.00-5.20 dólares por acción y proyecta ganancias de 4.40-4.60 dólares por acción para 2025.
피나클 웨스트 (NYSE: PNW)는 2024년 3분기 통합 순이익이 3억 9,500만 달러, 즉 희석 주당 3.37달러로 전년 동기 대비 3억 9,820만 달러, 주당 3.50달러에서 약간 감소했다고 보고했습니다. 감소의 주요 원인은 운영 및 유지관리 비용 증가, 감가상각비 상승, 이자 비용 증가였습니다. 회사는 기록적인 여름 더위를 경험했으며, 고객 수는 2.3% 증가하고 기후 정상화 판매 성장률은 5.9%에 달했습니다. 고객들은 8월 4일에 8,210MW의 최대 에너지 수요를 기록했습니다. 긍정적인 기후 영향과 성장을 기반으로 PNW는 2024년 주당 수익 전망을 5.00-5.20달러로 상향 조정했으며, 2025년 주당 수익을 4.40-4.60달러로 예상하고 있습니다.
Pinnacle West (NYSE: PNW) a annoncé un bénéfice net consolidé de 395,0 millions de dollars pour le troisième trimestre 2024, soit 3,37 dollars par action diluée, en légère baisse par rapport à 398,2 millions de dollars, ou 3,50 dollars par action, l'année précédente. Cette baisse est principalement due à l'augmentation des frais d'exploitation et de maintenance, à une dépréciation accrue et à des charges d'intérêts plus élevées. L'entreprise a connu une chaleur estivale record, avec une croissance de sa clientèle de 2,3 % et une croissance des ventes normalisées en fonction des conditions météorologiques de 5,9 %. Les clients ont enregistré une demande énergétique de pointe de 8 210 MW le 4 août. Sur la base d'un impact climatique positif et d'une croissance, PNW a révisé à la hausse ses prévisions de bénéfices pour 2024 à un montant compris entre 5,00 et 5,20 dollars par action et prévoit des bénéfices de 4,40 à 4,60 dollars par action pour 2025.
Pinnacle West (NYSE: PNW) berichtete einen konsolidierten Nettogewinn von 395,0 Millionen US-Dollar für das dritte Quartal 2024, was 3,37 US-Dollar pro verwässerter Aktie entspricht, leicht rückläufig von 398,2 Millionen US-Dollar oder 3,50 US-Dollar pro Aktie im Vorjahr. Der Rückgang war hauptsächlich auf höhere Betriebs- und Wartungskosten, gestiegene Abschreibungen und höhere Zinsaufwendungen zurückzuführen. Das Unternehmen erlebte heiße Sommerrekorde mit einem Kundenwachstum von 2,3% und einem witterungsbereinigten Verkaufswachstum von 5,9%. Die Kunden stellten am 4. August eine Spitzenenergie-Nachfrage von 8.210 MW fest. Basierend auf den positiven Witterungseinflüssen und dem Wachstum hob PNW die Prognose für die Erträge 2024 auf 5,00-5,20 US-Dollar pro Aktie an und prognostiziert für 2025 Erträge von 4,40-4,60 US-Dollar pro Aktie.
- Customer base grew 2.3% year-over-year
- Weather-normalized sales growth of 5.9%
- Upward revision of 2024 earnings guidance to $5.00-$5.20 per share
- Record peak energy demand of 8,210 MW indicates strong customer usage
- Q3 net income decreased to $395.0M from $398.2M year-over-year
- EPS declined to $3.37 from $3.50 year-over-year
- Higher operations and maintenance expenses
- Increased depreciation and interest charges
- 2025 earnings guidance ($4.40-$4.60) projects lower earnings compared to 2024
Insights
Pinnacle West's Q3 2024 results show a slight decline in net income to
The upward revision of 2024 earnings guidance to
The record peak energy demand of 8,210 MW and innovative deployment of the Cool Rewards program showcases PNW's operational resilience and technological advancement. The network of 95,000+ smart thermostats functioning as a virtual power plant capable of conserving 160 MW demonstrates forward-thinking grid management. This infrastructure optimization, combined with
- Record-setting summer heat drives increase in customer sales and usage
- Operating performance, reliability remain strong for customers
- Creative approach used to address monsoon outages, restore power
The results reflect a decrease of about
“For a second consecutive quarter, we experienced a historic run of record heat that led to summer 2024 being the hottest on record,” said Pinnacle West Chairman, President and Chief Executive Officer Jeff Guldner. “Consequently, our customers used more energy to cool their homes and businesses than under normal weather conditions. And, while this quarter’s net income was down slightly from the same period a year ago, the collective increase in energy consumption and the growing number of customers we serve led to strong financial results.”
Providing Reliable Power, Customer Assistance During Record Summer Heat
In addition to robust customer growth of
This summer’s stretch of 113 consecutive days above 100 degrees in
The warmer temperatures meant air conditioners were running around the clock to keep homes and businesses cool. As a result, the number of residential cooling degree-days (a utility’s measure of the effects of weather) in this year’s third quarter were
“Our employees take to heart the importance of keeping our 1.4 million customers cool and safe,” Guldner shared. “They deliver reliable power year-round, but especially on the hottest summer days when customers need it most. As more people and businesses move to
“Even so, sustained excessive heat can deeply affect people’s pocketbooks as they use more power to stay cool and safe. If someone is struggling to pay their bill, the first step is to reach out to us. We have the largest energy support program in the state, and we can connect customers with other assistance programs.”
APS increased energy support and crisis bill assistance; maintained a summer moratorium on disconnects for past-due bills; assisted customers with payment arrangements; and partnered with more than 100 local non-profit and community agencies to connect the state’s most vulnerable populations with helpful resources.
Responding to Storm-Caused Outages with Innovation
Despite one of the driest monsoon seasons on record, APS customers experienced powerful storms that produced extreme weather, including hurricane-force winds.
In the sweltering heat of July, APS employees responded to one of the area’s strongest storms. Severe winds of up to 75 mph, fueled by multiple downbursts, caused extensive statewide damage, especially impacting one southwest
To protect nearby neighborhoods, APS partnered with customers enrolled in the company’s Cool Rewards smart thermostat program in a unique and historic way. APS technology experts targeted a specific portion of customer-owned smart thermostats to voluntarily help conserve power. The creative approach – along with operational back-ups including rerouting electricity – helped relieve strain on the storm-ravaged electric system. This resourcefulness marked the first time the company’s Cool Rewards program was utilized in such a targeted manner.
A collaboration with customers, APS Cool Rewards is a network of 95,000-plus smart thermostats that acts like a virtual power plant capable of conserving nearly 160 MW of energy, similar to that produced by a small power plant.
Financial Outlook
Given the positive impact of weather and customer and sales growth through the first three quarters of the year – partially offset by higher than previously forecasted operations and maintenance expenses – the company is adjusting its 2024 consolidated earnings guidance upward to a range of
Looking forward, the Company estimates its 2025 consolidated earnings will be within a range of
Key factors and assumptions underlying the 2024 and 2025 outlook can be found in the third-quarter 2024 earnings presentation slides at pinnaclewest.com/investors.
Conference Call and Webcast
Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the Company’s financial results and recent developments, and to provide an update on the company’s long-term financial outlook, at 11 a.m. ET (9 a.m.
General Information
Pinnacle West Capital Corp., an energy holding company based in
Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West’s operating statistics and earnings, please visit pinnaclewest.com/investors.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:
- uncertainties associated with the current and future economic environment, including economic growth rates, labor market conditions, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects;
- our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels;
- variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customer, and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements;
- the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business;
- power plant and transmission system performance and outages;
- competition in retail and wholesale power markets;
- regulatory and judicial decisions, developments, and proceedings;
- new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets;
- fuel and water supply availability;
- our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investment;
- the ability of APS to meet renewable energy and energy efficiency mandates and recover related costs;
-
the ability of APS to achieve its clean energy goals (including a goal by 2050 of
100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition, and results of operations; - risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty;
-
current and future economic conditions in
Arizona ; - the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events or similar occurrences;
- the development of new technologies which may affect electric sales or delivery, including as a result of delays in the development and application of new technologies;
- the cost of debt, including increased cost as a result of rising interest rates, and equity capital and our ability to access capital markets when required;
- environmental, economic, and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions;
- volatile fuel and purchased power costs;
- the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements;
- the liquidity of wholesale power markets and the use of derivative contracts in our business;
- potential shortfalls in insurance coverage;
- new accounting requirements or new interpretations of existing requirements;
- generation, transmission and distribution facilities and system conditions and operating costs;
- our ability to meet the anticipated future need for additional generation and associated transmission facilities in our region;
- the willingness or ability of our counterparties, power plant participants and power plant landowners to meet contractual or other obligations or extend the rights for continued power plant operations; and
- restrictions on dividends or other provisions in our credit agreements and Arizona Corporation Commission orders.
These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.
| PINNACLE WEST CAPITAL CORPORATION | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (unaudited) | |||||||||||||||
| (dollars and shares in thousands, except per share amounts) | |||||||||||||||
| THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
| Operating Revenues | $ |
1,768,801 |
|
$ |
1,637,759 |
|
$ |
4,029,507 |
|
$ |
3,704,417 |
|
|||
| Operating Expenses | |||||||||||||||
| Fuel and purchased power |
|
631,382 |
|
|
614,520 |
|
|
1,426,418 |
|
|
1,416,778 |
|
|||
| Operations and maintenance |
|
308,061 |
|
|
250,019 |
|
|
837,905 |
|
|
777,337 |
|
|||
| Depreciation and amortization |
|
229,450 |
|
|
203,438 |
|
|
664,761 |
|
|
590,445 |
|
|||
| Taxes other than income taxes |
|
52,777 |
|
|
53,169 |
|
|
170,592 |
|
|
167,949 |
|
|||
| Other expenses |
|
145 |
|
|
350 |
|
|
2,306 |
|
|
1,648 |
|
|||
| Total |
|
1,221,815 |
|
|
1,121,496 |
|
|
3,101,982 |
|
|
2,954,157 |
|
|||
| Operating Income |
|
546,986 |
|
|
516,263 |
|
|
927,525 |
|
|
750,260 |
|
|||
| Other Income (Deductions) | |||||||||||||||
| Allowance for equity funds used during construction |
|
9,588 |
|
|
11,976 |
|
|
28,790 |
|
|
40,071 |
|
|||
| Pension and other postretirement non-service credits - net |
|
12,188 |
|
|
10,174 |
|
|
36,633 |
|
|
30,513 |
|
|||
| Other income |
|
6,774 |
|
|
15,941 |
|
|
43,234 |
|
|
28,424 |
|
|||
| Other expense |
|
(4,013 |
) |
|
(6,972 |
) |
|
(14,580 |
) |
|
(15,916 |
) |
|||
| Total |
|
24,537 |
|
|
31,119 |
|
|
94,077 |
|
|
83,092 |
|
|||
| Interest Expense | |||||||||||||||
| Interest charges |
|
109,925 |
|
|
96,909 |
|
|
318,590 |
|
|
278,860 |
|
|||
| Allowance for borrowed funds used during construction |
|
(11,901 |
) |
|
(9,092 |
) |
|
(36,078 |
) |
|
(34,131 |
) |
|||
| Total |
|
98,024 |
|
|
87,817 |
|
|
282,512 |
|
|
244,729 |
|
|||
| Income Before Income Taxes |
|
473,499 |
|
|
459,565 |
|
|
739,090 |
|
|
588,623 |
|
|||
| Income Taxes |
|
74,227 |
|
|
57,045 |
|
|
110,539 |
|
|
74,125 |
|
|||
| Net Income |
|
399,272 |
|
|
402,520 |
|
|
628,551 |
|
|
514,498 |
|
|||
| Less: Net income attributable to noncontrolling interests |
|
4,306 |
|
|
4,306 |
|
|
12,918 |
|
|
12,918 |
|
|||
| Net Income Attributable To Common Shareholders | $ |
394,966 |
|
$ |
398,214 |
|
$ |
615,633 |
|
$ |
501,580 |
|
|||
| Weighted-Average Common Shares Outstanding - Basic |
|
113,729 |
|
|
113,464 |
|
|
113,682 |
|
|
113,411 |
|
|||
| Weighted-Average Common Shares Outstanding - Diluted |
|
117,119 |
|
|
113,838 |
|
|
115,717 |
|
|
113,718 |
|
|||
| Earnings Per Weighted-Average Common Share Outstanding | |||||||||||||||
| Net income attributable to common shareholders - basic | $ |
3.47 |
|
$ |
3.51 |
|
$ |
5.42 |
|
$ |
4.42 |
|
|||
| Net income attributable to common shareholders - diluted | $ |
3.37 |
|
$ |
3.50 |
|
$ |
5.32 |
|
$ |
4.41 |
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106868645/en/
Media Contact: Alan Bunnell (602) 250-3376
Analyst Contact: Amanda Ho (602) 250-3334
Website: pinnaclewest.com
Source: Pinnacle West Capital Corp.
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