On August 1, 2024, Pinnacle West Capital Corp (PNW, Financial) released its 8-K filing reporting improved financial results for the second quarter of 2024. Pinnacle West, a holding company whose principal subsidiary is Arizona Public Service (APS), serves 1.4 million customers across central Arizona, including Phoenix. APS owns or leases more than 6 gigawatts of power generation capacity, including a 29% stake in the largest nuclear plant in the US, Palo Verde. About half of the electricity supplied by APS comes from clean energy sources, including nuclear.
Performance Overview
Pinnacle West Capital Corp (PNW, Financial) reported consolidated net income attributable to common shareholders of $203.8 million, or $1.76 per diluted share, for the quarter ended June 30, 2024. This represents a significant increase from the $106.7 million, or $0.94 per diluted share, reported for the same period in 2023. The company's performance was bolstered by new customer rates effective from March 2024 and record heat in June, which drove higher energy consumption.
Key Financial Achievements
Operating revenues for the second quarter of 2024 were $1.31 billion, up from $1.12 billion in the same period last year. This increase was driven by higher customer usage, growth, and additional revenue from a surcharge related to the utility’s 2019 Rate Case appeal. However, these gains were partially offset by higher depreciation and amortization expenses due to increased plant and intangible assets, as well as higher interest charges.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Revenues | $1,308,994 | $1,121,703 |
| Net Income Attributable to Common Shareholders | $203,805 | $106,663 |
| Earnings Per Diluted Share | $1.76 | $0.94 |
Operational Highlights
The quarter saw a 5.5% weather-normalized sales growth and a 2.1% increase in customer growth. The average high temperature in Phoenix during Q2 2024 was 97.6 degrees Fahrenheit, contributing to a 52.8% increase in residential cooling degree-days compared to the same period last year. June 2024 was particularly notable, with an average high temperature of 109.4 degrees, marking it as the warmest on record.
"Our second quarter was marked by warmer-than-normal temperatures, including June being the hottest on record in the Phoenix metropolitan area," said Pinnacle West Chairman, President, and CEO Jeff Guldner. "Since weather directly affects how much energy our customers use to cool their homes and businesses, retail sales and financial results were meaningfully higher than a year ago."
Customer Support and Future Plans
APS has expanded its bill assistance, heat relief, and energy efficiency programs to support customers during extreme temperatures. The company continues to plan for reliable energy delivery, focusing on a diverse energy mix that includes solar, wind, battery storage, and nuclear power. APS has also executed agreements for multiple projects scheduled to come online between 2026 and 2028, adding more than 400 megawatts of APS-owned resources.
Financial Outlook
For 2024, Pinnacle West Capital Corp (PNW, Financial) maintains its consolidated earnings guidance in the range of $4.60 to $4.80 per diluted share on a weather-normalized basis. The company’s strong performance in Q2 2024, driven by new customer rates and record heat, positions it well to meet its financial targets for the year.
For more detailed information on Pinnacle West Capital Corp (PNW, Financial)'s financial performance, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Pinnacle West Capital Corp for further details.
