Idacorp (IDA) Q4 2011 earnings summary

Executive summary

• 2011 diluted EPS rose to $3.36 from $2.95, supported by a $56.9 million tax benefit, stronger sales volumes and favorable hydro conditions; customer-sharing mechanisms offset $47.4 million of earnings benefit.

• Total operating revenue was $1.027 billion, down from $1.036 billion, while net income attributable to shareholders increased to $166.7 million from $142.8 million.

• Management emphasized resource investment and regulatory execution, with Langley Gulch and major transmission projects central to plans for future capacity and reliability.

Financial highlights

• Operating income fell to $164.2 million from $198.7 million; operating expenses rose to $862.5 million from $837.4 million, including higher O&M and purchased power.

• Net income attributable to shareholders was $166.7 million versus $142.8 million; diluted EPS was $3.36 versus $2.95.

• Q4 revenue was $230.6 million, operating income $8.5 million, net income attributable to shareholders $9.0 million and diluted EPS $0.18.

• Operating cash flow reached $310.2 million, up $4.8 million YoY; year-end assets were $4.96 billion, up 6.1%.

Outlook and guidance

• 2012 estimates: O&M $325–$335 million, capital expenditures $230–$240 million excluding AFUDC, hydro generation 7.5–9.5 million MWh, and non-regulated earnings plus holding costs of $0–$3 million.

• 2012–2014 capital expenditures are expected at $720–$740 million; management expected minimal external financing in 2012.

• Langley Gulch was expected in service by July 1, 2012; its construction remained on schedule and below the $427.4 million commitment estimate was expected.

• 2011 IRP forecast peak load growth of 69 MW annually and average-system load growth of 29 aMW annually over 20 years.