through our rates and adjustor recovery mechanisms, including returns on 
      and of debt and equity capital investment; 
 
   -- the ability of APS to meet renewable energy and energy efficiency 
      mandates and recover related costs; 
 
   -- the ability of APS to achieve its clean energy goals (including a goal by 
      2050 of 100% clean, carbon-free electricity) and, if these goals are 
      achieved, the impact of such achievement on APS, its customers, and its 
      business, financial condition, and results of operations; 
 
   -- risks inherent in the operation of nuclear facilities, including spent 
      fuel disposal uncertainty; 
 
   -- current and future economic conditions in Arizona; 
 
   -- the direct or indirect effect on our facilities or business from 
      cybersecurity threats or intrusions, data security breaches, terrorist 
      attack, physical attack, severe storms, or other catastrophic events, 
      such as fires, explosions, pandemic health events or similar occurrences; 
 
   -- the development of new technologies which may affect electric sales or 
      delivery, including as a result of delays in the development and 
      application of new technologies; 
 
   -- the cost of debt, including increased cost as a result of rising interest 
      rates, and equity capital and our ability to access capital markets when 
      required; 
 
   -- environmental, economic, and other concerns surrounding coal-fired 
      generation, including regulation of greenhouse gas emissions; 
 
   -- volatile fuel and purchased power costs; 
 
   -- the investment performance of the assets of our nuclear decommissioning 
      trust, pension, and other postretirement benefit plans and the resulting 
      impact on future funding requirements; 
 
   -- the liquidity of wholesale power markets and the use of derivative 
      contracts in our business; 
 
   -- potential shortfalls in insurance coverage; 
 
   -- new accounting requirements or new interpretations of existing 
      requirements; 
 
   -- generation, transmission and distribution facilities and system 
      conditions and operating costs; 
 
   -- our ability to meet the anticipated future need for additional generation 
      and associated transmission facilities in our region; 
 
   -- the willingness or ability of our counterparties, power plant 
      participants and power plant landowners to meet contractual or other 
      obligations or extend the rights for continued power plant operations; 
      and 
 
   -- restrictions on dividends or other provisions in our credit agreements 
      and Arizona Corporation Commission orders. 

These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.

 
                     PINNACLE WEST CAPITAL CORPORATION 
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
                                (unaudited) 
        (dollars and shares in thousands, except per share amounts) 
 
 
                          THREE MONTHS ENDED         NINE MONTHS ENDED 
                            SEPTEMBER 30,              SEPTEMBER 30, 
                       ------------------------  -------------------------- 
                          2024         2023         2024         2023 
                        ---------    ---------    ---------    --------- 
 
Operating Revenues     $1,768,801   $1,637,759   $4,029,507   $3,704,417 
 
Operating Expenses 
   Fuel and purchased 
    power                 631,382      614,520    1,426,418    1,416,778 
   Operations and 
    maintenance           308,061      250,019      837,905      777,337 
   Depreciation and 
    amortization          229,450      203,438      664,761      590,445 
   Taxes other than 
    income taxes           52,777       53,169      170,592      167,949 
   Other expenses             145          350        2,306        1,648 
                        ---------    ---------    ---------    --------- 
      Total             1,221,815    1,121,496    3,101,982    2,954,157 
                        ---------    ---------    ---------    --------- 
 
Operating Income          546,986      516,263      927,525      750,260 
                        ---------    ---------    ---------    --------- 
 
Other Income 
 (Deductions) 
   Allowance for 
    equity funds used 
    during 
    construction            9,588       11,976       28,790       40,071 
   Pension and other 
    postretirement 
    non-service 
    credits - net          12,188       10,174       36,633       30,513 
   Other income             6,774       15,941       43,234       28,424 
   Other expense           (4,013)      (6,972)     (14,580)     (15,916) 
                        ---------    ---------    ---------    --------- 
      Total                24,537       31,119       94,077       83,092 
                        ---------    ---------    ---------    --------- 
 
Interest Expense 
   Interest charges       109,925       96,909      318,590      278,860 
   Allowance for 
    borrowed funds 
    used during 
    construction          (11,901)      (9,092)     (36,078)     (34,131) 
                        ---------    ---------    ---------    --------- 
      Total                98,024       87,817      282,512      244,729 
                        ---------    ---------    ---------    --------- 
 
Income Before Income 
 Taxes                    473,499      459,565      739,090      588,623 
 
Income Taxes               74,227       57,045      110,539       74,125 
                        ---------    ---------    ---------    --------- 
 
Net Income                399,272      402,520      628,551      514,498 
 
      Less: Net 
       income 
       attributable 
       to 
       noncontrolling 
       interests            4,306        4,306       12,918       12,918 
 
Net Income 
 Attributable To 
 Common Shareholders   $  394,966   $  398,214   $  615,633   $  501,580 
                        =========    =========    =========    ========= 
 
 
Weighted-Average 
 Common Shares 
 Outstanding - Basic      113,729      113,464      113,682      113,411 
 
Weighted-Average 
 Common Shares 
 Outstanding - 
 Diluted                  117,119      113,838      115,717      113,718 
 
Earnings Per 
 Weighted-Average 
 Common Share 
 Outstanding 
   Net income 
    attributable to 
    common 
    shareholders - 
    basic              $     3.47   $     3.51   $     5.42   $     4.42 
   Net income 
    attributable to 
    common 
    shareholders - 
    diluted            $     3.37   $     3.50   $     5.32   $     4.41 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106868645/en/

 
    CONTACT:    Media Contact: Alan Bunnell (602) 250-3376 

Analyst Contact: Amanda Ho (602) 250-3334

Website: pinnaclewest.com

(END) Dow Jones Newswires

November 06, 2024 08:40 ET (13:40 GMT)