April 28th, 2026

The call emphasized multiple constructive items: strong regulatory outcomes (65% of electric ask approved, 9.9% ROE), solid first-quarter results (adjusted EPS $1.13; adjusted net income $346M), reaffirmed full-year guidance ($3.83–$3.90), an expanding customer pipeline (110 MW signed YTD, 2%–3% sales growth outlook), and meaningful long-term data-center-driven growth optionality (1 GW ≈ $2B–$5B CapEx and ~2% rate reduction per GW). Offsetting these positives were near-term operational and financing headwinds: a meaningful March ice storm (-$0.05/share), a weather-driven ~$0.23/share headwind for the balance of the year, Moody’s negative outlook on the utility due to capital/recovery timing, and incremental equity/financing pressure if large-load conversions accelerate capital needs. Overall, the company appears confident in execution, growth opportunities, and guidance, but faces tangible near-term weather, credit-outlook, and financing risks that management is actively addressing.

Company Guidance

Management reaffirmed its 2026 and longer‑term objectives: Q1 adjusted EPS was $1.13 (adjusted net income $346M) and full‑year adjusted EPS guidance remains $3.83–$3.90 (confident toward the high end), with long‑term adjusted EPS growth targeted at 6%–8% and an approximate 3% dividend yield; the company plans to invest over $24B in its five‑year capital plan, assumes 2%–3% annual sales growth, and estimates each 1 GW of new large load could add $2B–$5B of incremental CapEx while lowering average customer rates by ~2% annually over five years. For the quarter, weather was a $0.01 per‑share tailwind, rate relief net of investments contributed +$0.11, storm costs weighed -$0.05, and other items added +$0.04; for the remaining nine months management models normal weather at -$0.23 per share, regulatory benefits of +$0.24, O&M savings of +$0.04, and an incremental +$0.06–$0.13 per share from NorthStar/other offsets net of parent financing. On funding, the company executed ~ $495M of equity forward contracts (settled ~ $142M) and plans to issue ~ $700M of equity this year, with average annual equity needs of about $750M over the 2026–2030 plan; Moody’s and Fitch reaffirmed ratings, though Moody’s placed the utility on a negative outlook.