Episode Details

Evergy, Inc. (EVRG) Q2 2026 — Q2 2026 (quarter ended June 30, 2026): adjusted EPS $0.88 vs $0.82, up 7.3%, against a $0.811 bar - an 8.5% beat on the same adjusted basis Evergy guides on. GAAP EPS was HIGHER at $0.91, up 23.0%, because a $7.9M venture gain was excluded. Revenues $1,500.1M vs a $1,363.3M bar. 2026 guidance REAFFIRMED at $4.14-4.34. The 8-K hit 7:00am ET Thursday Aug 6, BEFORE the open, so Thursday IS the reaction: EVRG opened $84.75 (up 2.03%, the day HIGH), fell to $82.41 and closed $83.02 - DOWN 0.05% and 2.04% below its own open. Friday closed $83.38. Evergy raised its 2026-2030 capital plan by about $1 billion to $21.6 billion and lifted rate-base growth to roughly 12% a year through 2030. In the same release it REAFFIRMED its long-term adjusted EPS growth target at 6% to 8%+. Twelve percent of assets, six to eight percent of earnings - and the filing gives all four reasons. One: the settlement in Evergy Kansas Central's 2025 Kansas rate case requires refunding customers 50% of annual earnings above a 9.7% return on equity, at the largest of the three utilities. Two: they are not reaching 9.7% anyway - Kansas Central reported no refund obligation for 2025 and expects none for 2026, and group trailing ROE is 9.2%. Three: regulatory lag - Evergy Metro asked Missouri for $140M at a 10.5% ROE in FEBRUARY, and new rates are not expected until JANUARY 2027. Four: dilution and interest - diluted shares went 232.7M to 236.5M, 5.2M shares sit in unsettled ATM forwards at an average $79.36, and in July Kansas Central refinanced 2.55% bonds with 5.30% bonds. The load itself is real: $8.9 BILLION of contracted minimum revenue, 15-year average term, 80% take-or-pay floor, and 2,600 MW of data-centre agreements signed in 2026. THE CALL: HOLD (3/5, THE BEST-CONTRACTED DATA-CENTRE LOAD BOOK IN THE REGULATED SPACE, AT A PRICE THAT ALREADY PAYS FOR IT) — base-case value ~$77.0 vs ~$83.38 today. KEY METRICS: - CALL: HOLD 3/5, fair value $77 vs the $83.38 Aug 7 close (-8%). Bull $99, bear $71, buy under $66. Street: HOLD, 7 buy / 9 hold / 2 sell, average target $89.67. - THE PRINT: adjusted EPS $0.88 +7.3% vs a $0.811 bar; GAAP $0.91 +23% on a venture gain. Revenue $1,500.1M. 2026 guide REAFFIRMED at $4.14-4.34. - THE GAP: rate base compounds 12% to 2030 on a $21.6B plan, EPS 6-8%. Kansas refunds 50% above a 9.7% ROE; trailing ROE 9.2%; price to book 1.88x. What to watch: UP: the Missouri rate case - hearing OCTOBER 2026, new rates expected JANUARY 2027, $140M requested at a 10.5% ROE; if it lands near the ask, group ROE moves toward the allowed level and our $60 residual-income frame inverts to about $73. The day Kansas Central finally OWES a Kansas earnings refund is the day the biggest utility is finally earning its allowed return. Management says at least one more electric service agreement is coming in 2026. DOWN: leaning harder on the $1.2B ATM (about $800M still open) makes the 6-8% EPS target harder; net debt is 5.8x EBITDA and 61.6% of capital against a 67.5% covenant; first-half operating cash FELL 8.1% while capex rose 48.5%. DATES: Q3 2026 results on November 5, 2026. Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.