Idacorp (IDA) Q4 2014 earnings summary

Executive summary

• Seventh consecutive year of diluted EPS growth: $3.85 in 2014, up from $3.64; net income attributable to IDACORP was $193.5 million.

• Revenue increased 2.9% to $1.283 billion, while operating income declined to $253.7 million from $291.7 million.

• Tax method changes materially supported earnings: a $29.1 million reduction in income tax expense versus 2013.

Financial highlights

• Consolidated operating revenue was $1.283 billion in 2014 versus $1.246 billion in 2013; net income attributable to IDACORP was $193.5 million versus $182.4 million.

• Diluted EPS was $3.85 versus $3.64; operating income was $253.7 million versus $291.7 million.

• Q4 2014 revenue was $289.8 million, operating income $27.6 million, net income attributable to IDACORP $34.6 million, and diluted EPS $0.69.

• 2014 operating cash flow was $364.3 million; construction additions were $274.1 million, and dividends paid were $88.5 million.

• Lower pretax income was more than offset by a $56.7 million net decline in income tax expense, including prior-year tax method benefits and a larger capitalized-repairs deduction.

Outlook and guidance

• 2015 diluted EPS guidance: $3.65–$3.80; no additional ADITC amortization expected. Guidance assumes normal weather, continued tax-method benefits, and ongoing cost management.

• 2015 hydro generation forecast: 7.0–9.0 million MWh; 2014 actual was 6.2 million MWh.

• 2015 O&M estimate: $340–$350 million versus $355 million in 2014; capital expenditures excluding AFUDC estimated at $300–$310 million versus $265 million in 2014.

• Capital expenditure plan totals ~$1.5 billion for 2015–2019; the 2015 Integrated Resource Plan was expected by Q2 2015 and projected slightly higher load growth than the 2013 plan.

• No Idaho or Oregon general rate change filing was anticipated in 2015.