• Diluted Earnings Per Share (EPS): $5.50 for 2024, compared to $5.14 in 2023.
• Net Income Increase: $28 million increase compared to 2023.
• Customer Growth: 2.6% increase, serving nearly 650,000 customers by the end of 2024.
• Revenue Increase from Rate Changes: $50.1 million or 3.7% increase effective January 1, 2025.
• Operating and Maintenance (O&M) Expenses: Increased by $61.1 million, primarily due to pension-related expenses and wildfire mitigation costs.
• Depreciation Expense: Increased by $28.1 million due to system investments.
• Capital Expenditures (CapEx): Forecasted at $1.1 billion per year on average from 2025 to 2029, totaling $5.6 billion over five years.
• Rate Base Growth: Estimated to increase by $5.1 billion by the end of 2029, with a CAGR of 16.1%.
• Cash Flow from Operations: Nearly $600 million in 2024, a net increase of $325 million compared to the previous year.
• 2025 Earnings Guidance: Diluted EPS expected to be in the range of $5.65 to $5.85.
• 2025 O&M Expense Guidance: Expected to be between $465 million and $475 million.
• 2025 CapEx Guidance: Anticipated spending between $1 billion and $1.1 billion.
• Hydropower Generation Forecast: Expected to be within the range of 6.5 million to 8.5 million megawatt hours for 2025.

• Warning! GuruFocus has detected 12 Warning Signs with IDA.

Release Date: February 20, 2025

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

Positive Points

• Idacorp Inc (NYSE:IDA) reported its 17th consecutive year of earnings growth, with diluted earnings per share increasing to $5.50 from $5.14 the previous year.
• The company experienced strong customer growth, with a 2.6% increase, serving nearly 650,000 customers by the end of 2024.
• Idacorp Inc (NYSE:IDA) initiated a 2025 earnings guidance estimate in the range of $5.65 to $5.85 per share, indicating confidence in continued financial performance.
• The company is making significant investments in renewable energy, including a 600-megawatt Wyoming wind project and several solar and battery projects.
• Idacorp Inc (NYSE:IDA) has a robust five-year CapEx forecast, planning to spend $5.6 billion, which is expected to support infrastructure development and customer growth.

Negative Points

• Idacorp Inc (NYSE:IDA) faces regulatory lag challenges, which could impact financial performance and necessitate frequent rate filings to mitigate.
• The company anticipates a reduction in cash flow from operations in 2025 due to the collection of prior year power supply costs not being repeated.
• Idacorp Inc (NYSE:IDA) expects to hover around downgrade thresholds for credit metrics in the next couple of years, which could affect its financial stability.
• The company has significant external financing needs, estimating $1.4 billion in equity and $2.2 billion in debt over the next five years.
• Potential delays in major transmission projects like Boardman to Hemingway could impact the company's ability to meet future energy demands.

Q & A Highlights

Q: Can you discuss the potential filing to replenish the ADITC mechanism? A: Lisa Grow, President and CEO, explained that there are a couple of ways to approach this, either by including it in the general rate case request or through a separate filing. The details are still being worked out.

Q: What are the current credit metrics, and how do you expect them to track in the future? A: Brian Buckham, CFO, stated that for 2024, IDACORP ended near 18% cash flow preworking capital over debt for Moody's and around 14.5% FFO to debt for S&P. He anticipates some diminishment in 2025 due to lower cash flow and additional debt financing needs. They are meeting with rating agencies to discuss these metrics.

Q: Is there an opportunity to shift to a period-end rate base framework with the commission? A: Lisa Grow noted that all options are being explored to reduce regulatory lag, including mechanisms and frequent rate filings. Brian Buckham added that period-end rate base is not off the table, and they are considering various approaches in future rate cases.

Q: Can you elaborate on the incremental load growth and any specific industry trends? A: Lisa Grow highlighted strong growth across various industries, including data centers, agriculture, mining, and healthcare. Adam Richins, COO, added that there is significant interest in dairy and bio digester projects, indicating broad-based growth in Idaho.

Q: How do executive orders from Washington affect your generation mix plans? A: Lisa Grow stated that they are monitoring executive orders and potential changes in permitting and siting processes. While current plans remain unchanged, future tax credits and funding could influence their Integrated Resource Plan (IRP). Adam Richins mentioned potential benefits from fewer restrictions on thermal resources.

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