Evergy Missouri West, Inc. Annual Report - How They Did This Year

Thinking about investing in Evergy Missouri West, Inc.? Let's break down their year. We'll get a clear picture, just like chatting over coffee. I'll explain what's important and any financial jargon.

This report covers the year ending December 31, 2023.

First, an important note: Evergy Missouri West, Inc. is a fully owned company of Evergy, Inc. This means Evergy, Inc. owns 100% of it. Also, Evergy Missouri West Storm Funding I, LLC is a fully owned company of Evergy Missouri West, Inc. Because of this structure, this report (a 10-K filing) for Evergy Missouri West, Inc. is limited in detailed financial and business information. You would normally find this in a company's main annual report. The parent company, Evergy, Inc., provides all combined financial details in its own 10-K filing. This covers the financial performance and operations of all its companies, including Evergy Missouri West, Inc.

So, for the full picture, check Evergy, Inc.'s 10-K report.

Here's what we can learn from this filing:

• What does this company do and how did they perform this year?

  • Evergy Missouri West, Inc. is an electric utility company. It generates, transmits, and distributes electricity to customers in Missouri. The Missouri Public Service Commission regulates its operations. As a utility, its main work includes maintaining infrastructure, delivering power, and managing customer accounts.
  • Beyond its main utility work, Evergy Missouri West, Inc. acts as the "depositor, sponsor, and servicer" for its own company, Evergy Missouri West Storm Funding I, LLC. This smaller company handles "asset-backed securitization" linked to "Securitized Utility Tariff Property." In plain English, this means they use a financial arrangement. Future money from certain utility charges is packaged and sold to investors as bonds. Specifically, "Securitized Utility Tariff Property" means the right to collect special charges from customers. Regulators approve these charges. They help recover big costs, like storm damage or other regulatory assets. By selling these future charges, Evergy Missouri West, Inc. gets immediate cash for these costs. Customers repay this over time through a dedicated charge on their utility bills. Evergy Missouri West, Inc. manages these assets. It collects charges from customers and sends them to the securitization entity. This ensures bondholders get paid and follows securitization rules. For the full picture of Evergy Missouri West, Inc.'s main utility business, check the main Evergy, Inc. annual report.

• Key risks that could hurt the stock price

  • Legal issues involving The Bank of New York Mellon (BNY Mellon) are mentioned. BNY Mellon acts as the "Indenture Trustee" for Evergy Missouri West Storm Funding I, LLC. These lawsuits relate to BNY Mellon's role in residential mortgage-backed securitization (RMBS) transactions. They do not directly involve Evergy's business. BNY Mellon denies fault and will strongly defend itself. This is not a direct risk to Evergy Missouri West, Inc. or its operations. It is general information about a key partner. As Indenture Trustee, BNY Mellon represents the bondholders' interests in the securitization. Any issues with their role could indirectly affect the securitization structure. However, the filing states these lawsuits are not related to Evergy's specific securitization.

• Leadership or strategy changes

  • Leadership details for Evergy Missouri West Storm Funding I, LLC are available. This is a company owned by Evergy Missouri West, Inc.:
    • Geoffrey T. Ley is the Manager and President. He became Senior Vice President, Corporate Planning and Treasurer in October 2023. He holds these roles for both Evergy, Inc. and Evergy Missouri West, Inc. He joined Evergy, Inc. in June 2021. He has held various finance and planning roles.
    • Brett Lovell is the Manager, Treasurer, and Secretary. He became Manager, Corporate Treasury in August 2023. He holds this role for both Evergy, Inc. and Evergy Missouri West, Inc.
    • Michelle A. Dreyer serves as an Independent Manager. She works on capital markets transactions. She also acts as an independent director for various special purpose entities. Corporation Service Company employs her. They provide her services.
  • Evergy Missouri West Storm Funding I, LLC does not pay its managers or executive officers. They only pay a small annual fee of $3,700 to Corporation Service Company for Ms. Dreyer's services. This suggests Evergy, Inc. pays them. They hold roles in both companies within the larger Evergy organization.
  • Evergy Missouri West, Inc. acts as the "depositor, sponsor, and servicer" for Evergy Missouri West Storm Funding I, LLC. This company handles asset-backed securitization of "Securitized Utility Tariff Property." This means Evergy Missouri West, Inc. actively manages the assets backing these special bonds. Regular reports confirm they follow the rules for servicing these assets. This shows their ongoing operational responsibility in this financial structure.

A few other technical bits from the filing:

• The SEC considers this company a "Non-accelerated Filer." This applies to companies with a public float (value of shares held by non-affiliates) below $75 million. This classification gives them extended deadlines for filing reports. It may mean a smaller company with less liquidity or analyst coverage than larger filers. It is also not a "well-known seasoned issuer." This means it does not meet size and activity requirements. For example, it lacks $700 million in public float or $1 billion in non-convertible debt. These would allow easier access to capital markets.
• Deloitte & Touche LLP audits their financial statements. This major independent accounting firm assures any included financial information.

What this means for you:

This report for Evergy Missouri West, Inc. provides limited deep financial and operational details for investing. This is because it's a subsidiary. Its financial information is combined into its parent's report. We learned about the financial structure involving its subsidiary, Evergy Missouri West Storm Funding I, LLC. We also learned Evergy Missouri West, Inc.'s role as an electric utility. To truly understand Evergy Missouri West, Inc.'s performance and investment potential, review the annual report (10-K) of its parent company, Evergy, Inc. That report will contain combined financial statements. It will also have management's discussion and analysis, risk factors, and the overall business strategy. This includes Evergy Missouri West, Inc.'s contributions.