PPL Corporation (NYSE:PPL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 11:00 am ET


PPL Corporation (NYSE:PPL) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the PPL Corporation Second Quarter Earnings Conference Call and Webcast. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Andy Ludwig, Vice President, Investor Relations. Please go ahead.

Andy Ludwig

Good morning, everyone, and thank you for joining the PPL conference call on second quarter 2020 financial results. We have provided slides for this presentation and our earnings release issued earlier today on the Investors section of our website. Our remarks this morning may contain forward-looking statements about future operating results or other future events, including today's announcement to launch a process to sell PPL's UK business. Actual results may differ materially from these forward-looking statements. Please refer to the Appendix of our presentation and PPL's SEC filings for a discussion of factors that could cause actual results to differ from forward-looking statements. During the call, we will also refer to earnings from ongoing operations, a non-GAAP measure. For reconciliations to the appropriate GAAP measure, please refer to the Appendix of this presentation and our earnings release.

I'll now turn the call over to Vince Sorgi, PPL President and CEO.

Vincent Sorgi

Thank you, Andy, and good morning, everyone. I'm excited to be leading my first earnings call as CEO because we certainly have a lot to talk about this morning. With me today are Joe Bergstein, our Chief Financial Officer; Greg Dudkin, the Head of our Pennsylvania Utility business; Paul Thompson, the Head of our Kentucky Utility business; and Phil Swift, who leads WPD, our Electric Distribution business in the UK. Moving to slide 3, I'll begin this morning's call with comments on today's announcement to initiate a process to sell our operations in the UK. Then, I'll discuss some quarterly highlights and operational updates, including our continued strong performance during COVID-19 pandemic and some thoughts around Ofgem's latest publications on the RIIO-2 process. Joe will then provide a more detailed review of the second-quarter financial update, and as always, we'll leave ample time to answer your questions.

So turning to slide 4; today, we announced after completing a comprehensive strategic review with our board of directors, that we are going to initiate a process to sell our UK business, WPD. We've engaged J.P. Morgan to lead that process for us. The sale would strategically reposition PPL as a purely U.S. utility holding company, sharpening our focus on rate-regulated assets in the U.S., and improving our ability to invest in sustainable energy solutions. We expect the proceeds from the sale would be used to strengthen our balance sheet and enhance our long-term earnings growth, which could include supporting U.S. asset acquisitions and returning capital to shareowners. We believe there are multiple ways in which this transaction will create shareowner value. First, we strongly believe the sale price net of any tax will be higher than the sum of the parts value currently embedded in PPL stock price.

Second, we believe we will have a much stronger balance sheet post