Evergy Inc
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
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Fair Value Measurements
- FAIR VALUE MEASUREMENTS
Values of Financial Instruments
GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at net asset value (NAV), which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below.
Level 1 – Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges or exchange-traded derivative instruments.
Level 2 – Pricing inputs are not quoted prices in active markets but are either directly or indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets, non-exchange traded derivative instruments with observable forward curves and options contracts.
Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation. The types of assets and liabilities included in Level 3 are non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and transmission congestion rights (TCRs) in the SPP Integrated Marketplace.
NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments.
The Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on their consolidated balance sheets at cost, which approximates fair value due to the short-term nature of these instruments.
Fair Value of Long-Term Debt
The Evergy Companies measure the fair value of long-term debt using Level 2 measurements available as of the measurement date. The book value and fair value of the Evergy Companies' long-term debt are summarized in the following table.
| March 31, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| Book Value | Fair Value | Book Value | Fair Value | |
| Long-term debt(a) · (millions) | ||||
| Evergy(b) | $13,057.4 | $12,411.5 | $12,460.9 | $11,535.0 |
| Evergy Kansas Central | 5,179.0 | 4,703.0 | 4,583.5 | 4,031.7 |
| Evergy Metro | 3,224.0 | 3,007.3 | 3,223.4 | 2,966.3 |
(a)Includes current maturities.
(b)Book value as of March 31, 2025 and December 31, 2024, includes $80.3 million and $81.7 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the merger that created Evergy, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument.
Recurring Fair Value Measurements
The following tables include balances of financial assets and liabilities measured at fair value on a recurring basis.
| Description | March 31, 2025 | Netting | Level 1 | Level 2 | Level 3 | NAV |
|---|---|---|---|---|---|---|
| Evergy Kansas Central · (millions) | ||||||
| Assets | ||||||
| Nuclear decommissioning trust(a) | ||||||
| Domestic equity funds | $137.3 | $— | $128.6 | $— | $— | $8.7 |
| International equity funds | 86.0 | — | 86.0 | — | — | — |
| Core bond fund | 68.6 | — | 68.6 | — | — | — |
| High-yield bond fund | 33.9 | — | 33.9 | — | — | — |
| Emerging markets bond fund | 21.3 | — | 21.3 | — | — | — |
| Alternative investments fund | 47.4 | — | — | — | — | 47.4 |
| Real estate securities fund | 16.4 | — | — | — | — | 16.4 |
| Cash equivalents | 0.6 | — | 0.6 | — | — | — |
| Total nuclear decommissioning trust | 411.5 | — | 339.0 | — | — | 72.5 |
| Rabbi trust | ||||||
| Fixed income funds | 14.1 | — | 14.1 | — | — | — |
| Equity funds | 6.5 | — | 6.5 | — | — | — |
| Combination debt/equity/other fund | 1.7 | — | 1.7 | — | — | — |
| Cash equivalents | 0.2 | — | 0.2 | — | — | — |
| Total rabbi trust | 22.5 | — | 22.5 | — | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 29.4 | (21.6) | 15.9 | 32.9 | 2.2 | — |
| Natural gas | — | (19.5) | 19.5 | — | — | — |
| Total derivative assets | 29.4 | (41.1) | 35.4 | 32.9 | 2.2 | — |
| Total assets | 463.4 | (41.1) | 396.9 | 32.9 | 2.2 | 72.5 |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 37.6 | (12.2) | 9.6 | 37.0 | 3.2 | — |
| Natural gas | 0.5 | (20.1) | 20.6 | — | — | — |
| Total derivative liabilities | 38.1 | (32.3) | 30.2 | 37.0 | 3.2 | — |
| Total liabilities | $38.1 | $(32.3) | $30.2 | $37.0 | $3.2 | $— |
| Evergy Metro | ||||||
| Assets | ||||||
| Nuclear decommissioning trust(a) | ||||||
| Equity securities | $349.4 | $— | $349.4 | $— | $— | $— |
| Debt securities | ||||||
| U.S. Treasury | 56.5 | — | 56.5 | — | — | — |
| U.S. Agency | 0.1 | — | — | 0.1 | — | — |
| State and local obligations | 2.2 | — | — | 2.2 | — | — |
| Corporate bonds | 45.0 | — | — | 45.0 | — | — |
| Cash equivalents | 2.6 | — | 2.6 | — | — | — |
| Total nuclear decommissioning trust | 455.8 | — | 408.5 | 47.3 | — | — |
| Self-insured health plan trust(c) | ||||||
| Equity securities | 2.2 | — | 2.2 | — | — | — |
| Debt securities | 14.4 | — | 3.3 | 11.1 | — | — |
| Cash and cash equivalents | 3.8 | — | 3.8 | — | — | — |
| Total self-insured health plan trust | 20.4 | — | 9.3 | 11.1 | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 9.4 | (0.7) | — | — | 10.1 | — |
| Total derivative assets | 9.4 | (0.7) | — | — | 10.1 | — |
| Total assets | 485.6 | (0.7) | 417.8 | 58.4 | 10.1 | — |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | — | (0.7) | — | — | 0.7 | — |
| Total derivative liabilities | — | (0.7) | — | — | 0.7 | — |
| Total liabilities | $— | $(0.7) | $— | $— | $0.7 | $— |
| Description | March 31, 2025 | Netting | Level 1 | Level 2 | Level 3 | NAV |
|---|---|---|---|---|---|---|
| Other Evergy · (millions) | ||||||
| Assets | ||||||
| Rabbi trusts | ||||||
| Core bond fund | $8.0 | $— | $8.0 | $— | $— | $— |
| Total rabbi trusts | 8.0 | — | 8.0 | — | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 1.6 | (0.1) | — | — | 1.7 | — |
| Total derivative assets | 1.6 | (0.1) | — | — | 1.7 | — |
| Total assets | 9.6 | (0.1) | 8.0 | — | 1.7 | — |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | — | (0.1) | — | — | 0.1 | — |
| Total derivative liabilities | — | (0.1) | — | — | 0.1 | — |
| Total liabilities | $— | $(0.1) | $— | $— | $0.1 | $— |
| Evergy | ||||||
| Assets | ||||||
| Nuclear decommissioning trust(a) | $867.3 | $— | $747.5 | $47.3 | $— | $72.5 |
| Rabbi trusts | 30.5 | — | 30.5 | — | — | — |
| Self-insured health plan trust(c) | 20.4 | — | 9.3 | 11.1 | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 40.4 | (22.4) | 15.9 | 32.9 | 14.0 | — |
| Natural gas | — | (19.5) | 19.5 | — | — | — |
| Total derivative assets | 40.4 | (41.9) | 35.4 | 32.9 | 14.0 | — |
| Total assets | 958.6 | (41.9) | 822.7 | 91.3 | 14.0 | 72.5 |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 37.6 | (13.0) | 9.6 | 37.0 | 4.0 | — |
| Natural gas | 0.5 | (20.1) | 20.6 | — | — | — |
| Total derivative liabilities | 38.1 | (33.1) | 30.2 | 37.0 | 4.0 | — |
| Total liabilities | $38.1 | $(33.1) | $30.2 | $37.0 | $4.0 | $— |
| Description | December 31, 2024 | Netting | Level 1 | Level 2 | Level 3 | NAV |
|---|---|---|---|---|---|---|
| Evergy Kansas Central · (millions) | ||||||
| Assets | ||||||
| Nuclear decommissioning trust(a) | ||||||
| Domestic equity funds | $142.9 | $— | $134.0 | $— | $— | $8.9 |
| International equity funds | 81.6 | — | 81.6 | — | — | — |
| Core bond fund | 66.7 | — | 66.7 | — | — | — |
| High-yield bond fund | 33.7 | — | 33.7 | — | — | — |
| Emerging markets bond fund | 20.6 | — | 20.6 | — | — | — |
| Alternative investments fund | 45.6 | — | — | — | — | 45.6 |
| Real estate securities fund | 16.3 | — | — | — | — | 16.3 |
| Cash equivalents | 0.5 | — | 0.5 | — | — | — |
| Total nuclear decommissioning trust | 407.9 | — | 337.1 | — | — | 70.8 |
| Rabbi trust | ||||||
| Fixed income funds | 14.6 | — | 14.6 | — | — | — |
| Equity funds | 6.9 | — | 6.9 | — | — | — |
| Combination debt/equity/other fund | 1.7 | — | 1.7 | — | — | — |
| Cash equivalents | 0.2 | — | 0.2 | — | — | — |
| Total rabbi trust | 23.4 | — | 23.4 | — | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 35.1 | (20.0) | 11.7 | 40.5 | 2.9 | — |
| Natural gas | 1.3 | (17.7) | 18.9 | 0.1 | — | — |
| Total derivative assets | 36.4 | (37.7) | 30.6 | 40.6 | 2.9 | — |
| Total assets | 467.7 | (37.7) | 391.1 | 40.6 | 2.9 | 70.8 |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 43.5 | (9.5) | 4.5 | 44.2 | 4.3 | — |
| Natural gas | 2.3 | (17.7) | 19.9 | 0.1 | — | — |
| Total derivative liabilities | 45.8 | (27.2) | 24.4 | 44.3 | 4.3 | — |
| Total liabilities | $45.8 | $(27.2) | $24.4 | $44.3 | $4.3 | $— |
| Evergy Metro | ||||||
| Assets | ||||||
| Nuclear decommissioning trust(a) | ||||||
| Equity securities | $368.8 | $— | $368.8 | $— | $— | $— |
| Debt securities | ||||||
| U.S. Treasury | 55.3 | — | 55.3 | — | — | — |
| State and local obligations | 2.1 | — | — | 2.1 | — | — |
| Corporate bonds | 42.7 | — | — | 42.7 | — | — |
| Cash equivalents | 3.0 | — | 3.0 | — | — | — |
| Total nuclear decommissioning trust | 471.9 | — | 427.1 | 44.8 | — | — |
| Self-insured health plan trust(c) | ||||||
| Equity securities | 2.3 | — | 2.3 | — | — | — |
| Debt securities | 14.3 | — | 3.2 | 11.1 | — | — |
| Cash and cash equivalents | 2.3 | — | 2.3 | — | — | — |
| Total self-insured health plan trust | 18.9 | — | 7.8 | 11.1 | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 8.1 | (2.0) | — | — | 10.1 | — |
| Total derivative assets | 8.1 | (2.0) | — | — | 10.1 | — |
| Total assets | 498.9 | (2.0) | 434.9 | 55.9 | 10.1 | — |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | — | (2.0) | — | — | 2.0 | — |
| Total derivative liabilities | — | (2.0) | — | — | 2.0 | — |
| Total liabilities | $— | $(2.0) | $— | $— | $2.0 | $— |
| Description | December 31, 2024 | Netting | Level 1 | Level 2 | Level 3 | NAV |
|---|---|---|---|---|---|---|
| Other Evergy · (millions) | ||||||
| Assets | ||||||
| Rabbi trusts | ||||||
| Core bond fund | $8.0 | $— | $8.0 | $— | $— | $— |
| Total rabbi trusts | 8.0 | — | 8.0 | — | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 2.5 | (0.7) | — | — | 3.2 | — |
| Total derivative assets | 2.5 | (0.7) | — | — | 3.2 | — |
| Total assets | 10.5 | (0.7) | 8.0 | — | 3.2 | — |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | — | (0.7) | — | — | 0.7 | — |
| Total derivative liabilities | — | (0.7) | — | — | 0.7 | — |
| Total liabilities | $— | $(0.7) | $— | $— | $0.7 | $— |
| Evergy | ||||||
| Assets | ||||||
| Nuclear decommissioning trust(a) | $879.8 | $— | $764.2 | $44.8 | $— | $70.8 |
| Rabbi trusts | 31.4 | — | 31.4 | — | — | — |
| Self-insured health plan trust(c) | 18.9 | — | 7.8 | 11.1 | — | — |
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 45.7 | (22.7) | 11.7 | 40.5 | 16.2 | — |
| Natural gas | 1.3 | (17.7) | 18.9 | 0.1 | — | — |
| Total derivative assets | 47.0 | (40.4) | 30.6 | 40.6 | 16.2 | — |
| Total assets | 977.1 | (40.4) | 834.0 | 96.5 | 16.2 | 70.8 |
| Liabilities | ||||||
| Derivative instruments - commodity contracts(b) | ||||||
| Power | 43.5 | (12.2) | 4.5 | 44.2 | 7.0 | — |
| Natural gas | 2.3 | (17.7) | 19.9 | 0.1 | — | — |
| Total derivative liabilities | 45.8 | (29.9) | 24.4 | 44.3 | 7.0 | — |
| Total liabilities | $45.8 | $(29.9) | $24.4 | $44.3 | $7.0 | $— |
(a)With the exception of investments measured at NAV, fair value is based on quoted market prices of the investments held by the trust and/or valuation models.
(b)Derivative instruments classified as Level 1 consist of exchange-traded derivative instruments with fair value based on quoted market prices. Derivative instruments classified as Level 2 consist of non-exchange traded derivative instruments with observable forward curves and option contracts priced with models using observable inputs. Derivative instruments classified as Level 3 consist of non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and TCRs valued at the most recent auction price in the SPP Integrated Marketplace.
(c)Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 1 are comprised of U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities.
Certain Evergy and Evergy Kansas Central investments included in the table above are measured at NAV as they do not have readily determinable fair values. In certain situations, these investments may have redemption restrictions. The following table provides additional information on these Evergy and Evergy Kansas Central investments.
| March 31, 2025 · December 31, 2024 · March 31, 2025 | ||||||
|---|---|---|---|---|---|---|
| Fair | Unfunded | Fair | Unfunded | Redemption | Length of | |
| Value | Commitments | Value | Commitments | Frequency | Settlement | |
| Evergy Kansas Central · (millions) | ||||||
| Nuclear decommissioning trust: | ||||||
| Domestic equity funds | $8.7 | $1.3 | $8.9 | $1.3 | (a) | (a) |
| Alternative investments fund(b) | 47.4 | — | 45.6 | — | Quarterly | 65 days |
| Real estate securities fund(b) | 16.4 | — | 16.3 | — | Quarterly | 65 days |
| Total Evergy investments at NAV | $72.5 | $1.3 | $70.8 | $1.3 | ||
(a)This investment is infour long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the underlying investments have been liquidated, which may take years from the date of initial liquidation. All funds have begun to make distributions.
(b)There is a holdback on final redemptions.
The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of Evergy Kansas Central. The Evergy Companies record net realized and unrealized gains and losses on the nuclear decommissioning trusts in regulatory liabilities on their consolidated balance sheets and record net realized and unrealized gains and losses on the Evergy Companies' rabbi trusts in the consolidated statements of income and comprehensive income.
The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.
| Three Months Ended March 31 | 2025 | 2024 |
|---|---|---|
| Evergy · (millions) | ||
| Nuclear decommissioning trust - equity securities | $(19.3) | $30.3 |
| Nuclear decommissioning trust - debt securities | 1.5 | (1.3) |
| Rabbi trusts - equity securities | 0.7 | 0.4 |
| Total | $(17.1) | $29.4 |
| Evergy Kansas Central | ||
| Nuclear decommissioning trust - equity securities | $0.9 | $8.5 |
| Rabbi trust - equity securities | 0.6 | 0.5 |
| Total | $1.5 | $9.0 |
| Evergy Metro | ||
| Nuclear decommissioning trust - equity securities | $(20.2) | $21.8 |
| Nuclear decommissioning trust - debt securities | 1.5 | (1.3) |
| Total | $(18.7) | $20.5 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.