• Ongoing Earnings: $1.69 per share for 2024, midpoint of original guidance.
• 2025 Ongoing Earnings Forecast: Range of $1.75 to $1.87 per share, with a midpoint of $1.81 per share.
• GAAP Earnings: $0.24 per share for Q4 2024, compared to $0.15 per share in Q4 2023.
• Special Items: $0.10 per share in Q4 2024 due to integration and IT transformation costs.
• 2024 GAAP Earnings: $1.20 per share, compared to $1 per share in 2023.
• Capital Investments: $3.1 billion executed in 2024; $20 billion planned from 2025 through 2028.
• Dividend: Quarterly dividend of $0.275 per share, approximately a 6% increase.
• Rate Base Growth: Expected annual growth of 9.5% to 10% through 2028.
• O&M Savings: Achieved $130 million in cumulative annual savings from a 2021 baseline.
• Equity Needs: $2.5 billion expected through 2028 to support capital investments.
• 2024 Ongoing Segment Drivers: Kentucky and Pennsylvania segments flat; Rhode Island segment decreased by $0.03 per share.
• 2025 Segment Projections: Kentucky and Pennsylvania segments expected to increase by $0.05 per share; Rhode Island segment by $0.04 per share.

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Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PPL Corp (NYSE:PPL) achieved ongoing earnings of $1.69 per share, meeting the midpoint of their original 2024 guidance.
• The company executed $3.1 billion of planned infrastructure investments on time and on budget, enhancing grid reliability and resilience.
• PPL Corp (NYSE:PPL) achieved the top end of their cumulative annual O&M savings target of $130 million from a 2021 baseline.
• The integration of Rhode Island Energy was completed successfully, exiting over 130 transition services with minimal impact on customers and employees.
• PPL Corp (NYSE:PPL) announced a quarterly common stock dividend increase of approximately 6%, reflecting confidence in their financial strategy.

Negative Points

• PPL Corp (NYSE:PPL) fell short by $0.01 of their increased ongoing earnings midpoint guidance due to mild weather in December.
• The company anticipates needing $2.5 billion of equity through 2028 to support increased capital investments, which may dilute existing shareholders.
• Higher operating costs, including increased vegetation management expenses, impacted financial performance in the Kentucky and Pennsylvania segments.
• The Rhode Island segment experienced a decrease in earnings due to lower transmission and distribution revenues.
• PPL Corp (NYSE:PPL) faces regulatory lag and the need for equity financing, which may impact earnings growth relative to rate base growth.

Q & A Highlights

Q: Can you provide an update on the Kentucky CPCN filing and the associated capital investment? A: Vincent Sorgi, President and CEO, explained that the capital plan includes $2.5 billion for generation, covering two new combined cycle plants and 400 megawatts of battery storage. The CPCN filing is expected by the end of the first quarter, with a decision anticipated by the fourth quarter.

Q: How do you plan to manage the $2.5 billion equity issuance? A: Joseph Bergstein, CFO, stated that they have flexibility on timing due to a strong balance sheet. They plan to issue $400 million to $500 million this year and will adjust based on market conditions, potentially using other equity-like financing structures.

Q: Can you elaborate on the potential for regulated generation in Pennsylvania and the legislative outlook? A: Vincent Sorgi mentioned ongoing constructive discussions with the Governor's office and legislators. Proposed legislation could include allowing utilities to invest in generation, creating incentives for long-term power purchase agreements, and possibly establishing a fund similar to Texas's Energy Fund.

Q: What is the expected impact of increased capital investments on customer bills? A: Vincent Sorgi emphasized that affordability remains a priority. They aim to keep average bill increases within the rate of inflation by driving efficiencies and managing O&M costs, ensuring the updated plan is affordable for customers.

Q: How does the updated capital plan affect PPL's earnings growth trajectory? A: Joseph Bergstein noted that while the plan includes significant capital investments, the earnings growth rate remains at 6% to 8% annually. The focus is on long-term value and maintaining a strong balance sheet, with growth driven by rate base expansion and operational efficiencies.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.