Q2 2024 Pinnacle West Capital Corp Earnings Call Transcript
Key Points
- Pinnacle West Capital Corp (PNW) experienced a significant increase in earnings per share (EPS) to $1.76, up by $0.82 compared to the same quarter last year.
- The company saw robust sales growth, with total weather-normalized sales increasing by 5.5% year-over-year.
- Pinnacle West Capital Corp (PNW) has made substantial progress in customer service, achieving first quartile rankings in the 2024 J.D. Power residential and business survey results.
- The company has successfully executed agreements on multiple projects from its 2023 all-source RFP, adding over 400 megawatts of APS-owned resources to its capital plan.
- Positive economic indicators in Arizona, such as a 2.1% customer growth rate and a record-low unemployment rate of 3.3%, support continued growth in Pinnacle West Capital Corp (PNW)'s service territory.
- Higher interest expenses and increased depreciation and amortization costs were primary negative drivers for the quarter.
- The company is facing regulatory uncertainties, particularly around the regulatory lag docket, which could impact future rate case filings and financial planning.
- Despite strong sales growth, there are concerns about the variability in ramp rates for large high-load factor customers, which could affect future sales guidance.
- Pinnacle West Capital Corp (PNW) has significant planned outages in the second half of the year, which could impact operational and financial performance.
- The company is managing increased financing costs due to higher debt balances and interest rates, which could affect profitability.
Good morning, everyone, and welcome to the Pinnacle West Capital Corporation 2024 second-quarter earnings conference Call. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, Amanda Ho. Ma'am, the floor is yours.
Thank you, Matthew. I would like to thank everyone for participating in this conference call and webcast to review our second-quarter 2024 earnings, recent developments, and operating performance. Our speakers today will be our Chairman and CEO, Jeff Guldner; and our CFO, Andrew Cooper. Ted Geisler, APS President; Jacob Tetlow, Executive Vice President of Operations; and Jose Esparza, Senior Vice President, Public Policy, are also here with us.
First, I need to cover a few details with you. The slides that we will be using are available on our investor relations website, along with our earnings release and related information. Today's comments and our slides contain forward-looking statements based on current expectations, and actual results may
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