Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - WESTAR ENERGY INC /KS | wr-09302016x8xkexhibit992.htm |
| EX-99.1 - EXHIBIT 99.1 - WESTAR ENERGY INC /KS | wr-09302016x8xkexhibit991.htm |
| 8-K - 8-K - WESTAR ENERGY INC /KS | wr-09302016xearningsreleas.htm |
Westar Energy
Investor Update – November 1, 2016
Forward-Looking Disclosures
NOVEMBER 1, 2016 INVESTOR UPDATE 2
Forward Looking Statements
Forward-looking statements: Certain matters discussed in this news release are “forward-looking statements.” The Private Securities Litigation
Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words
like “believe,” “anticipate,” “target,” “expect,” “pro forma,” “estimate,” “intend,” “guidance” or words of similar meaning. Forward-looking
statements describe future plans, objectives, expectations or goals. Although Westar Energy believes that its expectations are based on reasonable
assumptions, all forward-looking statements involve risk and uncertainty. The factors that could cause actual results to differ materially from these
forward-looking statements include those discussed herein as well as (1) those discussed in the company's Annual Report on Form 10-K for the
year ended Dec. 31, 2015 (a) under the heading, “Forward-Looking Statements,” (b) in ITEM 1. Business, (c) in ITEM 1A. Risk Factors, (d) in
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and (e) in ITEM 8. Financial Statements and
Supplementary Data: Notes 13 and 15; (2) those discussed in the company's Quarterly Reports on Form 10-Q filed on Aug. 2, 2016 and Nov. 1,
2016, (a) under the heading "Forward-Looking Statements." (b) in ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations, (c) in Part I, Financial Information, ITEM 1. Financial Statements: Notes 3, 11 and 12, and (d) ITEM 1A. Risk Factors; and
(3) other factors discussed in the company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as
of the date such statement was made, and the company does not undertake any obligation to update any forward-looking statement to reflect
events or circumstances after the date on which such statement was made.
Year Over Year Earnings Variance
$0.97
$1.09
$1.84
$2.06
Q3 2015 Q3 2016 YTD Q3
2015
YTD Q3
2016
EPS
2015 vs 2016
NOVEMBER 1, 2016 INVESTOR UPDATE 3
Q3 Earnings Variance Drivers
Gross Margin
Higher revenues from regulatory rate review
SPP Assessment – ($7M)
Higher COLI – $10M
Higher distribution O&M for improving long-term grid
reliability – ($4M)
YTD Q3 Variance Drivers
Gross Margin
Higher revenues from regulatory rate review
SPP Assessment – ($7M)
Lower interest expense – $13M
Merger expenses – ($10M)
Full Earnings Package is available under Supplemental
Materials within the investor section of the company
website at www.WestarEnergy.com.
Additional Earnings Detail
Merger Related Expenses
Q3 -- $1.9M
YTD Q3 -- $9.8M
Weather Estimate
Q3 -- $0.01 /share weather compared to 2015 -- $0.02/share compared to normal
YTD Q3 – ($0.03)/share weather compared to 2015 -- ($0.01)/share compared to normal
COLI
Q3 -- $10.2M
YTD Q3 -- $16.7M
Will record at least an additional $4.7M of COLI in Q4
Sales
≈50% of industrial decline is due to chemical and oil sector down both for the year and quarter
Top 3 customers of sector showed 2.5% growth in the Q3
Construction & pet products sectors are up for the quarter and year
Reaffirm 2016 Guidance $2.38 - $2.53, with a bias towards the upper end
O&M/SGA guidance driver does not include the merger related expenses for the year
NOVEMBER 1, 2016 INVESTOR UPDATE 4
Status of Approval Process
NOVEMBER 1, 2016 INVESTOR UPDATE
Successful
Execution
5
Approval Process
Stakeholder Filing Approval Add’l Info
KCC
FERC
NRC
SEC
HSR Act
FCC
Docket No. 16-KCPE-593-ACQ
Docket No. 50-482
Docket No. EC16-146
WR Shareholders
GXP Shareholders
Declared effective August 19, 2016
Shareholders Approved - September 26, 2016
≈92% of votes cast approved
Shareholders Approved - September 26, 2016
≈96% of votes cast approved
Early termination of HSR waiting period
MPSC
Settlement w/ Staff & OPC reached awaiting
MPSC approval (Case No. EE-2017-0113)
DOJ Voluntary antitrust inquiry closed 10/21/16
Timeline of Approval Process
NOVEMBER 1, 2016 INVESTOR UPDATE 6
5/31/16
Announcement
6/28/16
KCC Filing
7/11/16
FERC Filing
7/14/16
SEC S-4 Filing
7/22/16
NRC Filing
8/19/16
SEC S-4 Declared
Effective
9/26/16
Shareholder Meetings
HSR Filing
10/21/16
Early Term HSR
KCC Review Process
2nd Quarter – 2017
Expected Close