Evergy Missouri West Inc.

Overview Key strengths Key risks Fully-regulated vertically-integrated electric utility. Fossil-based generation fleet exposes the company to operating risks. Effective management of regulatory risk in Missouri. Limited geographic and regulatory diversity. Stable customer base, mostly residential and commercial, supports cash flow stability. Cash flow deficit after capital spending and dividends. Reliance on Southwest Power Pool (SPP) and other group entities to bridge generation capacity deficit increases operational risk. In February 2024, EMW issued approximately $330 million of securitization bonds to recover costs associated with a February 2021 winter storm. The proceeds reduced leverage, thereby strengthening financial metrics. We expect EMW will account for about 25% of parent Evergy Inc.?s almost $16 billion consolidated capital spending in 2025-2029. While we believe the

...Securitization proceeds received by Evergy Missouri West Inc. (EMW) will bolster credit quality. In February 2024, EMW issued approximately $330 million of securitization bonds to recover costs associated with a February 2021 winter storm. The proceeds reduced leverage, thereby strengthening financial metrics. With elevated capital spending, EMW's credit quality depends on timely rate increases and funding access. We expect EMW will account for about 25% of parent Evergy Inc.'s almost $16 billion consolidated capital spending in 2025-2029. While we believe the company's regulatory construct in Missouri provides avenues for cost recovery, its credit quality will ultimately depend...

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