PPL (PPL) Q4 2023 earnings summary

Executive summary

• Delivered electricity and natural gas to more than 3.5 million customers, with first-quartile T&D reliability and first-decile generation fleet performance.

• 2023 ongoing EPS was $1.60, up 8.1% from pro forma 2022 and above the forecast midpoint despite more than $0.10/share in weather and storm impacts.

• Completed the $2.4B 2023 capital plan and achieved $75M in O&M savings from the 2021 baseline, exceeding the savings target.

Financial highlights

• Q4 2023 reported EPS was $0.15 vs. $0.26 in Q4 2022; ongoing EPS was $0.40 vs. $0.28.

• FY 2023 reported EPS was $1.00 vs. $1.02 in 2022; ongoing EPS rose to $1.60 from $1.41.

• 2023 ongoing EPS growth reflected higher transmission revenue, distribution rider recovery and Rhode Island Energy contributions, partly offset by sales volumes and interest expense.

Outlook and guidance

• 2024 EPS forecast is $1.63–$1.75, midpoint $1.69; midpoint implies 7% growth from the midpoint of the 2023 ongoing EPS target.

• Annual EPS and dividend growth targets of 6%–8% extended through at least 2027; no equity issuances planned through at least 2027.

• O&M savings targets: $120M–$130M by end-2024, $150M by 2025 and at least $175M by 2026, relative to the 2021 baseline.

• 2024 priorities include $3.1B of capital expenditures, completing Rhode Island Energy integration and exiting National Grid TSAs by mid-2024.