Idacorp (IDA) Q4 2012 earnings summary

Executive summary

• 2012 diluted EPS was $3.37 vs. $3.36 in 2011; operating income rose to $242.6M from $155.4M, reflecting regulatory changes and higher irrigation sales, partly offset by customer earnings sharing.

• Langley Gulch entered service ahead of schedule and within budget; regulatory mechanisms supported timely recovery of investments and expenses.

Financial highlights

• Revenue was $1.081B vs. $1.027B in 2011; net income attributable to IDACORP was $168.8M vs. $166.7M.

• 2012 operating income benefited by $65.2M from rate and regulatory changes and $16.1M from higher sales volumes; customer-sharing provisions reduced operating income by $21.8M.

• 2011 results included a $56.9M tax benefit from resolution of prior-year tax matters; 2011 customer-sharing provisions reduced operating income by $47.4M.

• Construction expenditures were $240M in 2012 vs. $338M in 2011, reflecting lower Langley Gulch construction activity.

Outlook and guidance

• 2013 diluted EPS guidance: $3.20–$3.35; expected O&M $340M–$350M, capital expenditures $245M–$255M, hydro generation 6.0–8.0M MWh, and additional ADITC amortization below $5M.

• 2013 hydro generation forecast of 6.0–8.0M MWh compares with 8.0M MWh in 2012 and 8.6M MWh median annual generation.

• Total capital expenditures were estimated at $815M–$835M for 2013–2015; 2013 focus included expense control, liquidity, transmission permitting, and completion of the 2013 resource plan.

• Management anticipated recommending a quarterly dividend increase of at least 10% in September 2013, subject to board approval and meeting earnings and cash-flow estimates.