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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Organization and Basis of Presentation
- ORGANIZATION AND BASIS OF PRESENTATION
Organization
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.
Evergy Kansas Central, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central hasone active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).
Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
Evergy Missouri West, Inc. (Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
Evergy Transmission Company, LLC (Evergy Transmission Company) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile,345 kilovolt (kV) double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.
Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,800 megawatts (MWs) of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.7 million customers in the states of Kansas and Missouri.
Basis of Presentation
These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements in the Evergy Companies' combined 2024 Form 10-K.
These unaudited consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments necessary to fairly present the unaudited consolidated financial statements for each of the Evergy Companies for these interim periods. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Principles of Consolidation
Each of Evergy's, Evergy Kansas Central's and Evergy Metro's unaudited consolidated financial statements includes the accounts of their subsidiaries and the variable interest entities (VIE) of which Evergy and Evergy Kansas Central are the primary beneficiaries. Undivided interests in jointly-owned generation facilities are included on a proportionate basis. Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate inone segment).
Cash, Cash Equivalents and Restricted Cash
Cash equivalents consist of highly liquid investments with original maturities of three months or less at acquisition. Evergy has restricted cash included in Other Current Assets and Other Non-current Assets on Evergy's consolidated balance sheet to facilitate the servicing of Evergy Missouri West Storm Funding I, LLC's debt and the funding requirements for a jointly-owned generation facility. The following table summarizes the cash, cash equivalents and restricted cash included on Evergy's consolidated balance sheet.
| March 312025 | December 312024 | |
|---|---|---|
| Evergy · (millions) | ||
| Current assets | ||
| Cash and cash equivalents | $35.3 | $22.0 |
| Other | 15.2 | 6.2 |
| Other assets | ||
| Other | 1.7 | 1.7 |
| Total cash, cash equivalents and restricted cash | $52.2 | $29.9 |
Fuel Inventory and Supplies
The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies.
| March 312025 | December 312024 | |
|---|---|---|
| Evergy · (millions) | ||
| Fuel inventory | $252.5 | $264.2 |
| Supplies | 615.2 | 603.2 |
| Fuel inventory and supplies | $867.7 | $867.4 |
| Evergy Kansas Central | ||
| Fuel inventory | $142.5 | $154.2 |
| Supplies | 324.0 | 318.3 |
| Fuel inventory and supplies | $466.5 | $472.5 |
| Evergy Metro | ||
| Fuel inventory | $74.0 | $71.9 |
| Supplies | 215.1 | 211.9 |
| Fuel inventory and supplies | $289.1 | $283.8 |
Property, Plant and Equipment
The following tables summarize the property, plant and equipment of Evergy, Evergy Kansas Central and Evergy Metro.
| March 31, 2025 | Evergy | Evergy Kansas Central | Evergy Metro |
|---|---|---|---|
| (millions) | |||
| Electric plant in service | $37,118.7 | $18,335.2 | $13,675.5 |
| Electric plant acquisition adjustment | 742.9 | 724.9 | — |
| Accumulated depreciation | (14,356.4) | (6,989.8) | (5,852.7) |
| Plant in service, net | 23,505.2 | 12,070.3 | 7,822.8 |
| Construction work in progress | 1,383.6 | 848.9 | 360.6 |
| Nuclear fuel, net | 189.7 | 94.7 | 95.0 |
| Property, plant and equipment, net | $25,078.5 | $13,013.9 | $8,278.4 |
| December 31, 2024 | Evergy | Evergy Kansas Central | Evergy Metro |
| (millions) | |||
| Electric plant in service | $36,444.9 | $17,914.9 | $13,468.3 |
| Electric plant acquisition adjustment | 742.9 | 724.9 | — |
| Accumulated depreciation | (14,165.5) | (6,914.4) | (5,752.6) |
| Plant in service, net | 23,022.3 | 11,725.4 | 7,715.7 |
| Construction work in progress | 1,707.0 | 1,053.7 | 476.1 |
| Nuclear fuel, net | 200.9 | 100.3 | 100.6 |
| Plant to be retired, net(a) | 0.7 | 0.7 | — |
| Property, plant and equipment, net | $24,930.9 | $12,880.1 | $8,292.4 |
(a) As of December 31, 2024, represents the planned retirement of Evergy Kansas Central analog meters prior to the end of their remaining useful lives.
Other Expense
The table below shows the detail of other expense for each of the Evergy Companies.
| Three Months Ended March 31 | 2025 | 2024 |
|---|---|---|
| Evergy · (millions) | ||
| Non-service cost component of net benefit cost | $(3.1) | $(4.6) |
| Corporate-owned life insurance | (5.8) | (4.5) |
| Other | (0.6) | (0.4) |
| Other expense | $(9.5) | $(9.5) |
| Evergy Kansas Central | ||
| Non-service cost component of net benefit cost | $0.6 | $0.5 |
| Corporate-owned life insurance | (5.5) | (4.2) |
| Other | (0.2) | — |
| Other expense | $(5.1) | $(3.7) |
| Evergy Metro | ||
| Non-service cost component of net benefit cost | $(2.5) | $(3.0) |
| Corporate-owned life insurance | (0.3) | (0.3) |
| Other | (0.1) | (0.3) |
| Other expense | $(2.9) | $(3.6) |
Earnings Per Share
To compute basic earnings per common share (EPS), Evergy divides net income attributable to Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from restricted share units, convertible notes and a warrant. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock method, the contingently issuable share method or the if-converted method, as applicable.
The following table reconciles Evergy's basic and diluted EPS.
| Three Months Ended March 31 | 2025 | 2024 |
|---|---|---|
| Income · (millions, except per share amounts) | ||
| Net income | $128.1 | $125.8 |
| Less: net income attributable to noncontrolling interests | 3.1 | 3.1 |
| Net income attributable to Evergy, Inc. | $125.0 | $122.7 |
| Common Shares Outstanding | ||
| Weighted average number of common shares outstanding - basic | 230.4 | 230.2 |
| Add: effect of dilutive securities | 1.7 | 0.2 |
| Diluted average number of common shares outstanding | 232.1 | 230.4 |
| Basic and Diluted EPS | $0.54 | $0.53 |
The effect of dilutive securities for the three months ended March 31, 2025 included 1.3 million shares resulting from Evergy's convertible notes. There wasno dilution resulting from Evergy's convertible notes for the three months ended March 31, 2024. There wereno anti-dilutive shares excluded from the computation of diluted EPS for the three months ended March 31, 2025. Anti-dilutive securities excluded from the computation of diluted EPS for the three months ended March 31, 2024 were 3,950,000 common shares issuable pursuant to a warrant that expired in 2024.
Supplemental Cash Flow Information
| Evergy | ||
|---|---|---|
| Three Months Ended March 31 | 2025 | 2024 |
| Cash paid for (received from): · (millions) | ||
| Interest, net of amount capitalized | $97.0 | $105.3 |
| Income taxes, net of refunds | 4.0 | (0.2) |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 4.9 | 1.9 |
| Right-of-use assets obtained in exchange for new finance lease liabilities | 10.4 | 5.1 |
| Non-cash investing transactions: | ||
| Property, plant and equipment additions | 91.0 | 105.1 |
| Evergy Kansas Central | ||
|---|---|---|
| Three Months Ended March 31 | 2025 | 2024 |
| Cash paid for (received from): · (millions) | ||
| Interest, net of amount capitalized | $53.2 | $48.8 |
| Income taxes, net of refunds | — | (0.2) |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 1.7 | 0.7 |
| Right-of-use assets obtained in exchange for new finance lease liabilities | 4.2 | 1.3 |
| Non-cash investing transactions: | ||
| Property, plant and equipment additions | 51.0 | 47.6 |
| Evergy Metro | ||
|---|---|---|
| Three Months Ended March 31 | 2025 | 2024 |
| Cash paid for (received from): · (millions) | ||
| Interest, net of amount capitalized | $18.8 | $21.3 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 3.2 | 1.0 |
| Right-of-use assets obtained in exchange for new finance lease liabilities | 5.2 | 3.5 |
| Non-cash investing transactions: | ||
| Property, plant and equipment additions | 25.1 | 39.9 |
Dividends Declared
In May 2025, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $0.6675 per share on Evergy's common stock. The common dividend is payable on June 20, 2025, to shareholders of record as of May 23, 2025.
In May 2025, Evergy Kansas Central's Board of Directors and Evergy Metro's Board of Directors each declared a cash dividend to Evergy of up to $50.0 million payable on or before June 19, 2025.
Missouri Legislation
In April 2025, Missouri S.B. 4 was signed into law by the Governor of Missouri. Most notably, S.B. 4 establishes new mechanisms for Missouri electric utilities to recover the costs associated with the construction of new natural gas-fired generating units. The utilities will be able to include certain costs of construction work in progress (CWIP) in rate base. The inclusion of CWIP will be in lieu of allowance for funds used during construction (AFUDC) applicable to the construction of the new natural gas-fired generating units. The Public Service Commission of the State of Missouri (MPSC) will determine the amount of CWIP that may be included in rate base. Additionally, amounts collected arising from the inclusion of CWIP in rate base are subject to refund under certain circumstances. These provisions are scheduled to expire at the end of 2035.
Additionally, the law extends Missouri's existing plant-in service accounting (PISA) provisions to include certain natural gas-fired generating units as qualifying electric plant and extends the sunset date of these provisions through the end of 2035. These provisions allow electric utilities to defer to a regulatory asset for recovery in a subsequent general rate case 85% of depreciation expense and the associated return on investment for qualifying electric plant rate base additions for assets placed in-service between general rate cases.
Natural Gas Plant Investments
The Evergy Companies use a triennial integrated resource plan (IRP), a detailed analysis that estimates factors that influence the future supply and demand for electricity, to inform the manner in which they supply electricity. The most recent IRPs incorporate the latest SPP resource adequacy requirements and anticipated load growth. Based on these and other factors, the IRP indicated the addition of new supply side resources, including combined and simple cycle natural gas plants, would be needed.
In October 2024, Evergy announced its plan to construct two combined-cycle natural gas plants located in Kansas. Evergy Kansas Central and Evergy Missouri West will jointly-own each plant and expect each plant to have an initial generating capacity of approximately 705 MW. The first plant is expected to begin operations by summer of 2029 and the second plant is expected to begin operations by summer of 2030.
Additionally, Evergy Missouri West plans to construct a 440 MW simple-cycle natural gas plant located in Missouri. The plant is expected to begin operations in 2030.
In 2024, Evergy Kansas Central and Evergy Missouri West requested predetermination from the KCC and a CCN from the MPSC, respectively, for their planned natural gas investments. In April 2025, Evergy Kansas Central and intervenors in the case reached a non-unanimous partial settlement agreement regarding its investments in its planned natural gas plants. See "Applications for Predetermination" and "Requests for Certificate of Convenience and Necessity" in Note 4 for information regarding Evergy Kansas Central's and Evergy Missouri West's applications for predetermination and Certificate of Convenience and Necessity (CCN) for their investments in these natural gas plants.
Renewable Plant Investments
Evergy Kansas Central intends to construct and own an approximately 159 MW solar generation facility to be located in Kansas and called Kansas Sky. The solar generation facility is expected to begin operations by summer of 2027. The construction of Kansas Sky is subject to the granting by the Kansas Corporation Commission (KCC) of predetermination with reasonably acceptable terms and other closing conditions. In April 2025, Evergy Kansas Central and intervenors in the case reached a unanimous partial settlement agreement regarding the Kansas Sky solar investment. See "Applications for Predetermination" in Note 4 for additional information regarding Evergy Kansas Central's application for predetermination for its investment in this renewable generating plant.
In 2024, Evergy Missouri West entered into agreements to own two solar generation facilities currently under development. The first facility, to be called Sunflower Sky, is a solar generation facility to be located in Kansas with an expected generating capacity of approximately 65 MW. The second facility, to be called Foxtrot, is a solar generation facility to be located in Missouri with an expected generating capacity of approximately 100 MW. The solar generation facilities are expected to begin operations by summer of 2027. The agreements are subject to regulatory approvals and closing conditions, including the granting by the MPSC of a CCN with reasonably acceptable terms. See "Requests for Certificate of Convenience and Necessity" in Note 4 for information regarding Evergy Missouri West's application for a CCN for its investment in this renewable generating plant.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.