Evergy Q1 2026 Earnings Report

Evergy EPS Results

• Actual EPS: $0.69
• Consensus EPS: $0.63
• Beat/Miss: Beat by +$0.06
• One Year Ago EPS: $0.54

Evergy Revenue Results

• Actual Revenue: $1.44 billion
• Expected Revenue: $1.27 billion
• Beat/Miss: Beat by +$172.69 million
• YoY Revenue Growth: +5.00%

Evergy Announcement Details

• Quarter: Q1 2026
• Date: 5/7/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, May 7, 2026
• Conference Call Time: 9:00AM ET

Evergy (NASDAQ:EVRG), Inc. is a regulated electric utility that generates, transmits and distributes electricity to residential, commercial and industrial customers primarily across Kansas and western Missouri. The company provides core utility services including retail electric delivery, grid operations, customer service and outage restoration, operating under state regulatory frameworks. Evergy serves a mix of urban and rural communities, including portions of the Kansas City metropolitan area and other population centers in its service territory.

The company’s business activities span power generation, system planning, transmission and distribution infrastructure, and customer-facing programs such as energy efficiency and demand-side management. Evergy operates a portfolio of generation resources and has been investing in modernization of its grid to improve reliability, integrate variable renewable resources and support distributed energy resources. It also offers commercial and industrial solutions, including energy management and reliability services for larger customers.

Evergy was created through the combination of two Kansas-based utilities in the late 2010s, bringing together legacy operations and customer bases to form a single regional provider. As a publicly traded company listed on the NASDAQ, it operates under the oversight of state utility commissions in Kansas and Missouri and must balance capital investment, reliability, regulatory compliance and customer affordability in its planning and operations.

The company emphasizes grid resilience, regulatory engagement and a transition toward cleaner energy sources while maintaining core service delivery. Evergy’s management and board oversee strategic initiatives focused on infrastructure investment, customer service improvements and the integration of renewable generation within the regulated utility framework.

Evergy Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Signed a 5th large-customer ESA (data center in Kansas Central) and amended two prior ESAs, bringing LLPS steady-state peak to ~2.5 GW (3.0 GW including non-LLPS) and management expects at least one more ESA in 2026, which management says bolsters adjusted EPS, demand growth, and credit metrics.
• Positive Sentiment: First-quarter adjusted EPS was $0.69 versus $0.55 a year ago, driven by recovery/return on regulated investments and 4.7% weather‑normalized demand growth; the company reaffirmed 2026 adjusted EPS guidance of $4.14–$4.34 (midpoint $4.24) and gave Q2 guidance of 17%–19% vs. that midpoint.
• Neutral Sentiment: Higher load and capital outlook: retail load CAGR was raised to ~7%–8% through 2030 (up from 6%), expected capacity served of up to ~2.25 GW by 2030, and a modest upward bias to the $21.6B five‑year capital plan that lifts rate base CAGR to ~12%; planned equity issuance remains $700M–$900M/year (2026–2029) and FFO/debt is forecasted at ~14%–15% (2026–2028).
• Neutral Sentiment: Regulatory/affordability updates: Evergy will file 2026 IRPs in Kansas and Missouri, Kansas will flow back >$100M/year of nuclear production tax credits over three years to customers (affordability tailwind), Missouri Metro rate case is progressing toward new rates ~Jan 1, 2027, and Missouri West may see above‑inflation rate increases over the next five years to fund needed generation investments.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to the Evergy's first quarter 2026 earnings conference call. At this time, all paticipants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone . You will then hear an automated message advising your hand is raised. To withdraw your question please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Peter Flynn. Please go ahead.

[Peter Flynn, Senior Director of Investor Relations at Evergy]

Thank you, Dana, and good morning, everyone. Welcome to Evergy's first quarter 2026 earnings conference call. Our webcast slides and supplemental financial information are available on our investor relations website at investors.evergy.com. Today's discussion will include forward-looking information. Slide two and the disclosures in our SEC filings contain a list of some of the factors that could cause future results to differ materially from our expectations. They also include additional information on our non-GAAP financial measures. Joining us on today's call are David Campbell, Chairman and Chief Executive Officer, and Bryan Buckler, Executive Vice President and Chief Financial Officer. David will cover first quarter highlights, provide an economic development update, and discuss our regulatory agenda and integrated resource plan. Bryan will cover our first quarter results, retail sales trends, and our financial outlook.

[Peter Flynn, Senior Director of Investor Relations at Evergy]

Other members of management are with us and will be available during the Q&A portion of the call. I'll now turn the call over to David.

[David Campbell, Chairman and CEO at Evergy]

Thanks, Pete. Good morning, everyone. I'll begin on slide five. This morning, we are pleased to announce the signing of a 5th large customer electric service agreement and the favorable amendment of two previously signed contracts. As I'll discuss in a moment, Evergy's large customer team continues to excel in bringing economic development to Kansas and Missouri. We also are reporting solid first quarter results as we delivered adjusted earnings of $0.69 per share compared to $0.55 per share a year ago. The increase was primarily driven by recovery regulated investments, growth in weather normalized demand, and revenues from our large load customers. Other factors impacting results were the effect of mild weather, higher operations and maintenance expense, and higher depreciation expense. Bryan will cover these results in more detail.

[David Campbell, Chairman and CEO at Evergy]

During the quarter, we worked closely with two of our large customers to refine their anticipated load profiles and amend their electric service agreements or ESAs. As a result, we will receive a boost to 2026 margins, helping to offset the impact of the mild winter weather earlier this year. The first quarter demonstrated ongoing momentum in our large customer strategy. During our year-end earnings call in February, we signaled our expectation to execute at least one more ESA in 2026 that was not yet incorporated into our financial plan. Today, I'm excited to announce a new ESA with a premier developer for a new data center project in our Kansas Central service territory that will drive affordability benefits for our customers.

[David Campbell, Chairman and CEO at Evergy]

This new customer will take service under our Large Load Power Service tariff, the framework under which new large customers pay a premium rate that covers their fair share of existing and new system costs. This ESA will bolster our adjusted EPS growth, demand growth, and credit metrics throughout our five-year plan. Bryan will also cover this in more detail. With this solid start, we are reaffirming our 2026 adjusted EPS guidance range of $4.14 $4.34 per share. We are also reaffirming our long-term adjusted EPS growth target of 6%-8%+ through 2030 off of the 2026 midpoint of $4.24. We expect adjusted EPS growth to exceed 8% annually beginning in 2028 through 2030. Slide 6 summarizes our recent data center announcements.

[David Campbell, Chairman and CEO at Evergy]

As I mentioned, the fifth ESA is for a data center in Kansas Central. While customer specifics are confidential, we can confirm that the customer is a large, well-known developer with strong investment-grade credit ratings and is working with a hyperscaler off-taker. We anticipate further disclosure in the coming months. In aggregate, we have executed ESAs for five data center projects under our LLPS tariffs, securing the strong protections that the tariff requires for our existing customers. These 5 ESAs include steady-state peak load of approximately 2.5 GW, including the 450 MW of steady-state peak load from non-LLPS customers such as the Panasonic Electric Vehicle Battery Manufacturing Plant that total reaches 3 GW. We continue to make progress with other large customers. We expect at least 1 additional ESA in 2026.

[David Campbell, Chairman and CEO at Evergy]

As a reminder, any additional ESAs would represent upside to the financial plan that we are sharing with you today. These economic development wins solidify Kansas and Missouri as premier destinations for data center customers and will empower investments and growth, helping to drive prosperity for our region. Slide seven summarizes the progress we've made in converting our large customer pipeline into signed agreements and provides an update on activity further down the queue. Starting in the top row, the 3 GW include the five announced ESAs and large customers that have already commenced operations. This tier one demand enables a transformative growth opportunity, supporting our revised estimate of 7%-8% annual retail load growth through 2030. This total consists of projects already in operation progressing toward a steady state of 1.2 GW.

[David Campbell, Chairman and CEO at Evergy]

Remaining 1.7 GW represent additional projects that have executed ESAs contractually requiring minimum monthly bill payments, whether or not the capacity is fully utilized. Regionally, these will deliver significant benefits, billions of investment that will create jobs, support a leading-edge digital economy, and expand the tax base, while enabling us to spread system costs over a broader base to maintain affordability for all customers. In the next category, we highlight approximately 1 to 1.5 GW of expansion opportunities with existing customers who have signed ESAs. These expansions would require amending load ramps that are already in existing contracts. We are working on the transmission and generation solutions to enable them. To be clear, our five-year financial plan does not incorporate any upside from the potential expansion projects, which could materialize both before or after 2030, depending on individual project timing.

[David Campbell, Chairman and CEO at Evergy]

We remain in advanced discussions with multiple new customers in our tier two category, representing approximately 1.5 to 3 GW. These customers have acquired land or land rights, signed letters of agreement. We are actively reviewing transmission and generation capacity solutions. The opportunity from these customers is primarily beyond 2030. Taken collectively, the opportunity set with tier one expansion and tier two category customers gives us confidence that our exceptional earnings and load growth will continue into the 2030s. The remaining pipeline totaling well over 10 additional gigawatts highlights the robust activity and sustained interest in our region. Serving this load will require working in tandem to identify creative solutions with our customers who stand ready to move forward as capacity opens, allowing us to prioritize the best-fit projects as the queue evolves.

[David Campbell, Chairman and CEO at Evergy]

Moving to slide eight, I'll provide a brief update on our regulatory priorities in both Kansas and Missouri. In Kansas, we expect to file our 2026 integrated resource plan in the second quarter. This year's update will reflect several key developments, including higher long-term demand growth driven by new electric service agreements, the fact of Southwest Power Pool's capacity reserve requirements, changes to federal tax credit policies, new construction cost estimates reflecting the results of RFPs, and coal plant retirement schedules. Together with other key inputs, these factors will inform the selection of future generation projects and shape the recommended resource mix in our preferred plan. Once the IRP is filed, we anticipate related generation predetermination filings over the balance of the year.

[David Campbell, Chairman and CEO at Evergy]

Additionally, the Kansas Corporation Commission approved a unanimous stipulation and agreement to return all deferred nuclear production tax credits to customers over a three-year period, which is a constructive outcome for our Kansas customers. In total, we are expecting to monetize in excess of $100 million of nuclear production tax credits per year that will be flowed back to our customers over time, further enhancing affordability. Pivoting to Missouri, we filed our Missouri Metro rate case on February 6. The procedural schedule calls for staff and intervener testimony by June 30, settlement conferences on September 23 and 24, and hearings beginning October 5, with the new rates effective around January 1, 2027. We look forward to working collaboratively with the Missouri Public Service Commission staff and our stakeholders to achieve a constructive outcome for our metro customers.

[David Campbell, Chairman and CEO at Evergy]

Later today, we will file our 2026 integrated resource plan in Missouri. Similar to Kansas, we anticipate multiple CCN filings for the balance of the year as we advance the next phase of our all of the above generation strategy. I'll conclude my remarks with slide nine, which highlights the core tenets of our strategy. We will continue to prioritize customer affordability in our long-term plan. While capital investments are higher than historical levels, so too is load growth. Serving new large customers has a dual advantage. The premium rates help cover not only the cost to serve them, but also any new investment needed. In addition, the higher energy sales allow us to spread system costs over far more kilowatt hours.

[David Campbell, Chairman and CEO at Evergy]

We expect to see customer rate increases over the next several years to be in line with or below inflation for the significant majority of our residential customers. Missouri West is our smallest utility with the lowest rates in our system and some of the lowest rates in the nation, partly because the utility is in need of infrastructure investment, in particular dispatchable baseload generation. As a result, as new generation plants come online to serve that jurisdiction, these customers may see rate increases above inflation over the next five years. We still anticipate their rates will remain regionally competitive, and these investments will reduce the reliance on market-provided energy, making rates more stable for our Missouri West customers.

[David Campbell, Chairman and CEO at Evergy]

Longer term, as the full benefits from large load customers are realized, we are confident that we can manage residential rates to a level consistent with inflation, and all Evergy customers will benefit from these infrastructure investments for decades to come. Affordability has been at the forefront of our strategy since the merger that created Evergy back in 2018. Evergy's prices in Kansas and Missouri have been stable in recent years, with our overall rates today about 5.1% cumulatively higher than in 2017, an increase of well under 1% per year, far below inflation during that time. By prioritizing affordability, we also contribute to the robust economic development pipeline ahead of us and support the substantial economic potential within our states. Ensuring reliability is also a core element of our strategy.

[David Campbell, Chairman and CEO at Evergy]

We are targeting top-tier performance and reliability, customer service, and generation as measured by key metrics such as SAIFI, grid resiliency, and generation fleet availability. Our teams delivered strong results in these areas in 2025, and we are pleased to report a strong start to these metrics in 2026. With respect to sustainability, we continue to advance the evolution of our generation fleet, as will be outlined in our 2026 IRP updates. Our primary objective is to implement a cost-effective all-of-the-above generation strategy. Informed by the analysis from the IRP process, we will advance this objective through targeted investments in natural gas, energy storage, and solar resources to serve our customers. We remain focused on maintaining a balanced portfolio of resource additions to support long-term growth and prosperity across our states. With that, I will now turn the call over to Bryan.

[Bryan Buckler, EVP and CFO at Evergy]

Thank you, David. Thank you, Pete and Kyle, good morning, everyone. Let's begin on slide 11 with a review of our results for the quarter. For the first quarter of 2026, Evergy delivered adjusted earnings of $162 million or $0.69 per share, compared to $128 million or $0.55 per share in the first quarter of 2025. As shown on the slide from left to right, the year-over-year drivers are as follows. First, load impacts were essentially flat versus the prior year quarter. Reflecting our exceptional business fundamentals, weather normalized demand was strong in the quarter, growing 4.7%, while mild winter weather resulted in fewer heating degree days compared to the prior year and versus normal, impacting EPS by approximately $0.06 compared to budget. These drivers effectively offset each other in the quarter.

[Bryan Buckler, EVP and CFO at Evergy]

The strong start to the year in weather normalized load growth is consistent with the overall 3%-4% full-year load growth expectations we shared with you in February and reflective of the positive economic development outlook in our service areas. In fact, in the first quarter, we saw strong results from Panasonic and from the startup of operations of a large data center in March, which was a couple months ahead of plan. In tandem, these two large customers drove a $0.02 EPS benefit in the quarter compared to prior year. As we look to the full year 2026 outlook, other revenues and incremental large load margin from the amended ESAs David mentioned are projected to fully offset Q1 mild weather and place us in a solid position to meet the midpoint of our 2026 EPS guidance of $4.24.

[Bryan Buckler, EVP and CFO at Evergy]

The next driver Q1 results to mention is recovery of and return on regulated investments driven primarily by new retail rates and FERC regulated infrastructure investments, which in total contributed $0.15 of EPS. A combination of higher O&Ms and increased depreciation in net interest expense related to our capital infrastructure investments drove a $0.10 decrease in EPS. Other items contributed a positive $0.09 variance in the quarter. To assist investors and analysts with their modeling, we are providing second quarter adjusted EPS guidance of 17%-19% as measured against the $4.24 midpoint of our 2026 adjusted EPS guidance range. Turning to slide 12, I'll provide more detail on sales trends. As I mentioned earlier, weather normalized retail demand grew 4.7% in the first quarter, with strong growth across customer classes.

[Bryan Buckler, EVP and CFO at Evergy]

Residential demand grew 3.3%, reflecting solid underlying customer growth as our Kansas and Missouri service areas continue to see migration into our communities. Commercial demand grew 3.8%, driven primarily by the initial ramp-up of data centers. Industrial demand grew 10.1%, driven primarily by Panasonic's continued ramp, as well as higher usage from a large customer that experienced an unplanned outage last year in Q1. We anticipate robust growth in the commercial and industrial classes throughout 2026, given the continued ramps of large customers, including the data center project that energized in March. At a macro level, the robust customer demand in our service areas is supported by a solid labor market as the Missouri, Kansas, and Kansas City metro area unemployment rates remain below the national average.

[Bryan Buckler, EVP and CFO at Evergy]

Moving to slide 13, we highlight our updated large load demand growth profile. This table reflects the results to date from years of dedicated efforts to advance competitive frameworks for capital investment in Kansas and Missouri that is enabling our ability to invest for growth in a way that promotes economic prosperity for our customers and communities, while solidifying our region as a premier destination for advanced manufacturing and data center customers. As indicated on the chart, the large load customer ramps are already underway, and we will continue building in aggregate through 2030 and beyond, supporting our retail load growth CAGR of 7%-8% through 2030. This reflects the impact of the fifth ESA we announced today, as well as the amendments of two ESAs previously signed.

[Bryan Buckler, EVP and CFO at Evergy]

As a reminder, the new ESA and the amended ESAs are all subject to the minimum bill protections previously described. To put in perspective the great progress the team has made in the last couple of months, on this slide, we highlight the significance of the increase in MW served in the five-year plan compared to what we showed you during our February investor call. For example, while not shown on the slide, 2026 large load capacity revenues are starting earlier within that year, leading to EPS benefits in 2026.

[Bryan Buckler, EVP and CFO at Evergy]

As we look to future years, 2027 large load capacity revenue will now be tied to MW in ESAs that are 100 MW greater than previously disclosed, trending up further in 2028 and 2029, with 2030 projections now approximately 500 MW greater than our previous projection of capacity served by the end of that year. In fact, by the end of 2030, we expect to be serving up to 2.25 GW of capacity for this set of new customers. This tells a powerful story of growth anchored by long-term contracts and clear parameters on monthly billings, providing significant visibility into our earnings growth and cash flow streams for the ESA LLPS contracts that generally span 16-17 years long. As a reminder, this plan reflects the contributions from customers under signed ESAs for five large projects.

[Bryan Buckler, EVP and CFO at Evergy]

Furthermore, we continue to make strong progress with several additional large customers and expect to execute at least one more ESA in 2026, whose load and capacity served could represent upside to this five-year forecast, and importantly, well into the next decade. As David described, we'll continue working in a measured fashion through our massive pipeline of prospective customers to build on the success we've achieved thus far. Let's briefly touch on slide 14. This slide highlights our strong load growth profile, which has been further strengthened by today's large customer announcements. As indicated on the chart, the large load customer ramps are already underway and will continue building in aggregate through 2030 and beyond, supporting our retail load growth CAGR of approximately 7%-8% through 2030, up from our previous forecast of 6%.

[Bryan Buckler, EVP and CFO at Evergy]

This exceptional growth trajectory, anchored by long-term contracts and clear parameters on monthly billings, provides significant visibility into our earnings growth and cash flow streams. Importantly, we now expect load growth ranging from 6% to 11% in each of our three utilities over the next five years, paving the way for affordability benefits for customers across our service areas. Let's conclude on slide 15 by summarizing the key updates to the plan we shared with you in February. As previously mentioned, we now anticipate higher load growth and higher revenues for our entire 2026 through 2030 forecast as a result of the fifth ESA we announced today and amendments to two previously signed ESAs. Our forecasted 2025 through 2030 retail load growth CAGR is now approximately 7%-8%, up from our prior forecast of 6%.

[Bryan Buckler, EVP and CFO at Evergy]

The amended ESAs accelerate revenue earlier than our previous plan, and the fifth ESA will begin contributing in early 2027. Regarding our potential upside to the five-year capital plan, we will soon file our integrated resource plans in Missouri and Kansas, which will outline the generation capacity projects needed to serve our projected peak load profile for customers that have been signed to date. This current view of generation needs is referred to as the preferred plan in those IRPs. The preferred plan will represent modest upside to our $21.6 billion capital investment plan, taking our projected rate base CAGR to approximately 12% compared to our previous disclosure of 11.5%.

[Bryan Buckler, EVP and CFO at Evergy]

These IRPs will also articulate the dynamic nature of our customer pipeline and load growth projections, which could require additional capital projects beyond what will be shown in the preferred plan as our business evolves in the months and years ahead. As it relates to our EPS outlook, we are reaffirming our 2026 adjusted EPS guidance midpoint of $4.24. For 2027 through 2030, all years are now strengthened, and we expect annual earnings growth to exceed 8% beginning in 2028, with an upward bias from the ESA additions announced today.

[Bryan Buckler, EVP and CFO at Evergy]

As David discussed on our fourth quarter call, for the later years in our forecast period, we continue to estimate an approximate 250 basis points delta between rate base growth and EPS growth, which is now compared against the approximate 12% rate base CAGR that I described earlier. The benefits of the recently signed and amended ESAs also strengthen our credit metrics. In comparison to an estimated 14% FFO to debt forecast we disclosed on our February call, we now anticipate higher FFO to debt across the entire five-year forecast. From 2026 to 2028, we expect to be in the range of 14%-15%, further strengthening thereafter as our large customers ramp towards their peak load. This target range also reflects the impact of a three-year flow back period for nuclear production tax credits in Kansas.

[Bryan Buckler, EVP and CFO at Evergy]

We understand the importance of a strong balance sheet to our equity and credit investors and many other stakeholders. In short, our strong financial outlook has been bolstered by further execution on the large customer front, which will in turn drive greater affordability benefits for our customers. We believe Evergy has one of the most compelling growth opportunities in the industry, with robust growth into the next decade, resulting in sustainable growth and affordability benefits for our customers and communities over the long term. I speak for the entire leadership team in saying that we are excited about the future at Evergy and are deeply committed to successfully executing our business plan and delivering consistent results for our customers, communities, employees and shareholders. With that, we will open up the call for questions.

[Operator]

Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question you will need to press star one one on your telephone, and wait for your name to be announced. To withdraw your question, please press star one again.. Please stand by while we compile the Q&A roster. Our first question comes from the line of Nicholas Campanella of Barclays. Your line is now open.

[Nicholas Campanella, Analyst at Barclays]

Hey, good morning. Thanks for all the updates.

[Bryan Buckler, EVP and CFO at Evergy]

Morning, Nick.

[David Campbell, Chairman and CEO at Evergy]

Good morning, Nick.

[Nicholas Campanella, Analyst at Barclays]

Hopefully you can hear me.

[Bryan Buckler, EVP and CFO at Evergy]

We can.

[Nicholas Campanella, Analyst at Barclays]

Hey. Yeah. So, hey, I know I just, Bryan, thanks for the clarity on, you know, looks like this 500 MW is worth about 50 basis points of growth to the rate base CAGR, so you're pointing people more towards 12. I know you kind of talked about 250 basis points of lag. You know, it just seems like you could be, you know, well above nine here. Is there anything that you would kind of flag that's an offset to kind of that basic walk?

[David Campbell, Chairman and CEO at Evergy]

Yeah, Nick, yeah, thanks for the question, you know, I think you interpreted exactly what we were trying to communicate. There's a, you know, a lot of great momentum. These are signed ESAs with great counterparties, with minimum bills that just give us tremendous line of sight. You're, it sounds like you're hearing what we want you to hear, which is confidence that not only can we exceed 8% in those out years, but it's trending towards the math you just described.

[Nicholas Campanella, Analyst at Barclays]

Okay. Yeah, sorry, being naive there. I know you've talked about executing one more ESA in 2026. You have this bucket of 1 to 1.5 GW into the 2030 window of, you know, higher probability. Could you just expand on how many customers that's made up of?

[David Campbell, Chairman and CEO at Evergy]

Nick, we don't break out the customer piece, but you can have a sense for how large these customers typically are by the load. You just analyze the load impacts of the five ESAs that we've signed. There's a range of sizes. Some folks are even larger, but there's a range there that's reflected. If you look at our five, they're generating a peak in the 2.4 GW range. I would describe the opportunity set as pretty robust across especially the tier one and tier two categories. There's some natural advantages that come with expansion opportunities because you already have a signed ESA. You know where the site is. You're working with some known parameters, but we also have some very interesting discussions in the tier two category.

[David Campbell, Chairman and CEO at Evergy]

Of course, we're not gonna lose sight of the tier three as well. A little more creative solutions required for tier three, and that's likely to be primarily beyond 2030, but we're excited about each bucket. The most promising is always, of course, the expansion opportunities where you've already got that relationship and you've already got an ESA in place.

[Nicholas Campanella, Analyst at Barclays]

Okay, great. Then just one last confirmation on this new kind of, you know, outlook. You're gonna roll in some additional capital, it looks like, and you have, you know, an increase in the FFO to debt. Just on the new roll, how are you thinking about that communication around equity in 2030?

[Bryan Buckler, EVP and CFO at Evergy]

Hey Nick, this is Bryan again. Yes, for capital updates, you know, it's still where we've described it before. When we updated our capital investment plan back in February, we funded that with about 37% equity, the incremental capital was around 37%. We generally have given a range of 40%-50% assumption on that going forward. I think that still applies here. Nick, as Bryan mentioned in his remarks, as a result of the additional ESA, the ESA amendments and the settlement we reached around the affordability benefits we can provide by flowing back nuclear PTCs over three years, our FFO to debt metrics have strengthened over the plan.

[David Campbell, Chairman and CEO at Evergy]

We're in that 14%-15% range and then trending up in that range, particularly as new customers come online back after the plan.

[Nicholas Campanella, Analyst at Barclays]

Thank you.

[Bryan Buckler, EVP and CFO at Evergy]

Thank you, Nick.

[Operator]

Thank you. Our next question comes from the line of Julien Dumoulin-Smith of Jefferies. Your line is now open.

[Julien Dumoulin-Smith, Analyst at Jefferies]

Hey, good morning, team. How you guys all doing?

[David Campbell, Chairman and CEO at Evergy]

Good morning, Julien.

[Bryan Buckler, EVP and CFO at Evergy]

Hey, Julien, good morning.

[Julien Dumoulin-Smith, Analyst at Jefferies]

Hey, hey. Unfortunately, I'm gonna follow the same direction as Nick here. Hopefully, that's okay here. If you can, obviously you've got these five ESAs in hand. How do you think about latitude for six and onwards? What I'm getting at here is: How do you think about spare capacity versus transposing incremental ESAs into further generation and supply resources of various flavors? I just want to understand, you know, sort of the alignment. When you see these next announcements, how much more capital intensity there might be with that. Then also how you think about the sort of the cadence, if you have used up the bulk of your capacity, how you would set expectations on this front. Again, obviously, I'm very cognizant of how you just described things a moment ago.

[David Campbell, Chairman and CEO at Evergy]

Yeah. No, I appreciate that, Julien. It's an insightful question because not every additional ESA is gonna have the exact formulaic impact on capital. 'Cause we, even if you're gonna do some good math and you'll see it, okay, given the amount of MW we added to our peak load, we've got robust improvement in the amount of capital we're describing. That's rate-based growth that goes from 11.5 to approximately 12. Some cases, as you add ESAs, there may be it'll be in that range, but maybe a little more capital impact. What I would emphasize is that on our last call, we signaled our confidence that we'd sign one more ESA. We've announced that ESA here on this call.

[David Campbell, Chairman and CEO at Evergy]

On this call, we are also announcing our confidence that we'll sign at least one additional ESA this year. We have tried to be thoughtful about the long lead time equipment from turbine capacity to the things you need on the T&D side to be in place and have the basically the equipment available so that we can be able to meet that demand that we see. We're not gonna meet everything in our pipeline, but we're confident in the expression that we had today that we're sign at least one additional ESA. We've got turbine reservations beyond what's needed from ESAs that we have announced. We continue to work with customers to be responsive to their needs, and it's typically around the transmission and generation capacity side.

[David Campbell, Chairman and CEO at Evergy]

We've been purposeful in thinking about our queue and being positioned to continue to grow. I described that, if we have additional ESAs, as we expect to have at least one, that will have an impact on the capital plan. It'll create some more upward bias and across the board. It'll be under the ESA framework, that'll have all the protections and the premium rate that comes along with the LLPS tariff. We've got high confidence that we're not done. The team's done tremendous work. We're pleased with how attractive our region is to these large customers. We'll continue to work with them to find the right locations for those opportunities. We've got execution, of course, as we bring the large customers online. We're excited about the momentum, and we really expect to continue it.

[Julien Dumoulin-Smith, Analyst at Jefferies]

Excellent. Maybe just, Bryan, just follow up with that. How do you think about ATM or block? I mean, just as the cumulative capital accelerates here, how do you think about funding it or pre-funding it? We've seen some companies talk about this in recent days. Curious on your latest?

[Bryan Buckler, EVP and CFO at Evergy]

Thanks, Julien. You know, our, you know, our equity issuance plan for now is unchanged. It's $700 million-$900 million per year from 2026 through 2029. Still no needs in 2030, as our credit metrics just become credit stronger and stronger throughout the forecast period. That's $3.3 billion in the aggregate. For 2026, we've already priced $125 million. As for our remaining need in 2026, we have no plans currently for a block issuance, as our needs are easily addressable through our ATM program. You know, basically, we plan to dribble it out as we go through 2026.

[Julien Dumoulin-Smith, Analyst at Jefferies]

Excellent. Hey, thanks for the details, guys. All the best, all right? We'll see you soon.

[David Campbell, Chairman and CEO at Evergy]

Thanks, Julien. See you soon.

[Peter Flynn, Senior Director of Investor Relations at Evergy]

Thanks, Julien.

[Operator]

Thank you. Our next question comes from the line of Shar Pourreza of Wells Fargo. Your line is now open.

[Andrew Kadavy, Analyst at Wells Fargo]

Hi, team. Thanks. Actually, this is Andrew Kadavy on for Shar.

[David Campbell, Chairman and CEO at Evergy]

Hi, Andrew. Good morning.

[Andrew Kadavy, Analyst at Wells Fargo]

Good morning. On the amended ESAs, was there a step-up in the amount of final load you'll be serving, or is this just a change in the ramp profile? Can you offer any insight into what spurred that step-up?

[David Campbell, Chairman and CEO at Evergy]

Sure, Andrew. You know, if you look at in our material, we try to provide a sense. We'll give you a really good view of how the total load has changed in slide 13, so it's in Bryan's section. We're actually detail the MW served each year for our total of our LLPS and our non-LLPS customers. You'll see that the peak demand from these customers relative to last quarter has gone up to 3,000 MW, and it was 2,400 last quarter. That's a cumulative increase of 600 MW. That's the impact of both the amended ESAs and the new ESA. I think it's fair to say that the new ESA is the main driver of the cumulative increase.

[David Campbell, Chairman and CEO at Evergy]

Some of the amendments are higher levels over the interim period. A lot of the predominant impact of the higher peak is from the new ESA. The logic for the amended ESAs is that these customers had a high appetite for basically as, I won't say as much as we could provide, but that wouldn't be much of an exaggeration to say as much as we could provide. We identified an ability to serve them at higher levels. Those customers were interested in doing that. Under the framework of the existing ESAs, we made those amendments. It was a mutual solution to help serve a customer need that we were happy to be able to serve.

[Andrew Kadavy, Analyst at Wells Fargo]

Great. Thank you. Can you give us a little detail on what's included in and what drove the $0.09 in other tailwind bucket in the other bucket on slide 11?

[Bryan Buckler, EVP and CFO at Evergy]

Yeah. Hey, Andrew, it's Bryan. You know, there's a few items in there. You know, our C-O-L-I, so COLI, company-owned life insurance proceeds added about $0.03 year-over-year. We had some incremental power marketing revenues that were also a bit higher than prior year. Lastly, our ETR is lower than prior year. You know, all together, a modest portion of this $0.09 is favorable to our original plan, but a lot of it's just budgeted activity.

[Andrew Kadavy, Analyst at Wells Fargo]

Great. Thanks. I'll leave it there.

[David Campbell, Chairman and CEO at Evergy]

Great. We've got, as we reaffirmed, we're, there was real mild weather this, the start to the winter, but, we're pleased with the start to the year, delivered solid results, and reaffirmed our guidance for the year.

[Andrew Kadavy, Analyst at Wells Fargo]

Thank you.

[Operator]

Thank you. Our next question comes from the line of Michael Sullivan of Wolfe. Your line is now open.

[Michael Sullivan, Analyst at Wolfe Research]

Hey, good morning.

[David Campbell, Chairman and CEO at Evergy]

Morning, Mike.

[Michael Sullivan, Analyst at Wolfe Research]

Hey. Hey.

[Bryan Buckler, EVP and CFO at Evergy]

Morning, Michael.

[Michael Sullivan, Analyst at Wolfe Research]

Hey, Dave. David. On the regulatory side, maybe if you could just give us a sense of potential to settle the Missouri case this year. you seem to be kind of like setting the stage for where rates could be going at Missouri West. When do you plan to file there next, and what is the rate trajectory going to look like after it's been kind of so depressed in recent history?

[David Campbell, Chairman and CEO at Evergy]

Got a lot there, Michael, good questions. On the Metro case, you know, the last few cases we filed in both states, we've been able to reach settlement. We're certainly gonna be working towards getting a constructive solution with staff, OPC, and other stakeholders in Missouri. They won't file their testimony until June. The settlement conference comes later towards the fall timeline, more to come on that. Those settlement discussions actually follow a schedule in Missouri, I noted that in the script when the actual dates are for the settlement conference. More to come, and actually the schedule is after even our next quarterly call. We'll see how that goes. Again, we've had good progress in the last few rate cases in both states in reaching settlements.

[David Campbell, Chairman and CEO at Evergy]

I'll note that in our metro jurisdiction, base rates went down in our last rate case, which was after a four-year stay out in Missouri. The trajectory in metro has been terrific, in terms of the overall rates being. The trajectory has been far lower than the impacts of inflation, and that affordability focus is one we're going to continue to have. Missouri West, the cadence that we've had there is typically every other year or so. That would put us on a timeline to file a case sort of back part of this year, early next year. I'll just, you know, I'll just reiterate the remarks I made in regarding affordability in Missouri West.

[David Campbell, Chairman and CEO at Evergy]

Overall, for the significant majority of our customers, residential customers, we expect to be in line with or below inflation. Missouri West, we do expect is going to be a little higher inflation over the next five years, but manageable over the long term to that inflationary level. That's really a result of Missouri West having a level of infrastructure investment that's lower than other jurisdictions. It's more exposed to market power trends. When there have been price spikes, for example, during Winter Storm Uri or when there were fly-ups in natural gas prices in 2022 and then actually in January this year too, that jurisdiction is a little more susceptible, so it needs that infrastructure investment.

[David Campbell, Chairman and CEO at Evergy]

It's got by far the lowest rates in our system as well, so the jurisdiction's benefited from that lower investment, but eventually we need to make sure they've got adequate capacity. There will be a level over inflation over the next five years, but over the long term, we expect to be in that range of inflation, and we really know that Missouri West will benefit from these investments, these needed investments for decades to come. That's how I describe it for that jurisdiction. It's currently our smallest. It's got very robust load growth. The good news about the LLPS tariff is that it's got a premium rate. Missouri West, we expect to grow 10% to 11% per year in sales growth. That gives a lot more kilowatt hours over which to spread those investments that we're making.

[David Campbell, Chairman and CEO at Evergy]

That's helping to moderate that rate increase trajectory. It's a really great situation in Missouri West, which if we didn't have the large load growth, we would be needing to make this investment, but we wouldn't have the same kind of incremental sales or premium customer to spread it over. I'll leave it at that, Michael.

[Michael Sullivan, Analyst at Wolfe Research]

Okay. That's very helpful, David. Thank you. In terms of when you're signing these ESAs with maybe some of the non AA-rated counterparties, like how important is visibility into ultimately having a hyperscaler off-taker? I think you mentioned this most recent one, we should know more in the next couple of months. I kind of go back to the one deal from last quarter. Where does that kind of stand? Just if you could give us a feel for how important the visibility to a hyperscaler is.

[David Campbell, Chairman and CEO at Evergy]

It's an important consideration, Michael, no doubt about it. The sophistication of the counterparty, their knowledge of how to bring it together, their ability to line up those end-use customers. The LLPS tariff has a set of collateral and credit requirements that every customer has to meet in addition to, you know, our having confidence as to who their off-taker is. We're not announcing the counterparty today, though we did note that it's a premier developer. It actually does have a strong corporate rating, BBB+. All of our customers have to meet the credit and collateral requirements that are in there. If there's not a parent with an investment-grade rating in the system, there's got to be letters of credit that follow the terms of the LLPS.

[David Campbell, Chairman and CEO at Evergy]

In our ESA discussions of the counterparty situation, making sure we've got the right setup in terms of counterparty and credit is a key part of every discussion, is how I'd describe it. Of course, we have two Google. Google is our counterparty for two of the data centers, Meta for another. Those are companies with capitalization levels that I can't all conceive of in the multi-trillions. With the developers that have the strong offtake with the hyperscalers, they're also great counterparties, but they all have to meet the credit and collateral requirements in the LLPS.

[Michael Sullivan, Analyst at Wolfe Research]

Okay. Thank you very much. Appreciate it.

[David Campbell, Chairman and CEO at Evergy]

You bet. Thank you, Michael.

[Bryan Buckler, EVP and CFO at Evergy]

Thanks, Michael.

[Operator]

Thank you. Our next question comes from the line of Paul Fremont of Ladenburg.

[Paul Fremont, Analyst at Ladenburg Thalmann]

Thanks.

[David Campbell, Chairman and CEO at Evergy]

Morning, Paul.

[Paul Fremont, Analyst at Ladenburg Thalmann]

Good morning. Great quarter. I was curious if we could get a sense of, on slide 13, what would be the end date in terms of the 3,000 MW for peak demand?

[David Campbell, Chairman and CEO at Evergy]

You know, obviously we haven't laid that out, but I would describe it as it goes into not quite out to the mid-2030s, but it goes out well into the 2030s. You'll see that we've got an additional 800,000 MW where it'll continue to expand. It's a robust growth rate well into the 2030s. Of course, the pipeline that we have, a lot of those discussions are focused on the 2030 and beyond timeframe. We feel very confident about the growth rate being sustained in that timeline, not only from the signed ESAs, but also from the customer discussions that are underway.

[Paul Fremont, Analyst at Ladenburg Thalmann]

I guess, I'm assuming that most of the all of that increase is based on the new contracts. Has the end year changed significantly from the fourth quarter to the first quarter disclosure?

[David Campbell, Chairman and CEO at Evergy]

When you say end year, you're talking about as a general timeline when folks peak load, has that changed materially?

[Paul Fremont, Analyst at Ladenburg Thalmann]

Yeah. Right.

[David Campbell, Chairman and CEO at Evergy]

For the existing ESAs, no. The new ESA is generally in line in terms of the timeline overall, in terms of when they're ramping up. You know, It's a historic opportunity, so folks are generally on a timeline that moves pretty fast. It's still well into the 2030s, but that timeline hasn't changed significantly, Paul.

[Paul Fremont, Analyst at Ladenburg Thalmann]

I think we're using like a five-year assumption. Is that sort of reasonable for?

[David Campbell, Chairman and CEO at Evergy]

Yeah

[Paul Fremont, Analyst at Ladenburg Thalmann]

To ramp to full load?

[David Campbell, Chairman and CEO at Evergy]

That's right, Paul. You know, these five ESAs, they start in years from 2026 through 2028. Some of the 2028 ESAs go into 2032, for example. Yeah, hopefully that helps.

[Paul Fremont, Analyst at Ladenburg Thalmann]

Perfect.

[David Campbell, Chairman and CEO at Evergy]

Generally, the LLPS has a five-year ramp rate provision and 10-year to 12-year peak provision. That's kind of embedded in the structure of the tariff.

[Paul Fremont, Analyst at Ladenburg Thalmann]

Okay. Thank you very much.

[David Campbell, Chairman and CEO at Evergy]

Thank you.

[Bryan Buckler, EVP and CFO at Evergy]

Thanks, Paul.

[Operator]

I'm showing no further questions at this time. I would now like to turn it back to David Campbell for closing remarks.

[David Campbell, Chairman and CEO at Evergy]

Great. Thank you, Dana. I want to thank everyone for joining our call today. This concludes the call. Have a great day.

[Operator]

Thank you. This does conclude the program. You may now disconnect.

Participants

Executives

• Bryan Buckler, EVP and CFO
• David Campbell, Chairman and CEO
• Peter Flynn, Senior Director of Investor Relations

Analysts

• Andrew Kadavy, Analyst at Wells Fargo
• Julien Dumoulin-Smith, Analyst at Jefferies
• Michael Sullivan, Analyst at Wolfe Research
• Nicholas Campanella, Analyst at Barclays
• Paul Fremont, Analyst at Ladenburg Thalmann