A strong foundation. A solid future.

Investment opportunity in a diverse mix of energy businesses and geography

PPL Corporation’s mostly regulated business mix provides stable earnings, credit ratings and dividends. Our regulated utility companies in the United States — PPL Electric Utilities, Louisville Gas & Electric and Kentucky Utilities — and our four Western Power Distribution subsidiaries in the U.K. deliver award-winning energy services to more than 10 million customers. In addition, PPL companies own or control 11,000 megawatts of competitive-market electricity generation in Pennsylvania and Montana, and 8,000 megawatts of regulated electricity generation in Kentucky. Our companies operate these plants responsibly, efficiently and reliably. Our diverse mix of businesses and geography represents an excellent opportunity for utility sector investors.

Solid total return, stability for shareowners

Dividends paid on PPL common stock are an important part of total shareowner return (common stock price appreciation plus reinvested dividends). PPL has increased its common stock dividend 11 times since 2000, and has paid a common stock dividend to shareowners every quarter since 1946. A 2.1 percent dividend increase in 2013 raised the annualized rate to $1.47 per share. Dividend increases reflect continued confidence in the strength of PPL’s business portfolio and prospects for future growth.

Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP) in the U.S. Earnings from ongoing operations is a non-GAAP financial measure that is adjusted for special items. Special items include acquisition-related costs and the impact of energy-related economic activity (principally changes in fair value of economic hedges and the ineffective portion of qualifying cash flow hedges), as well as other impacts. 

“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that “earnings from ongoing operations,” although a non-GAAP financial measure, is also useful and meaningful to investors because it provides management’s view of PPL’s fundamental earnings performance as another criterion in making investment decisions. PPL’s management also uses “earnings from ongoing operations” in measuring certain corporate performance goals. Other companies may use different measures to present financial performance. 

“Earnings from ongoing operations” is adjusted for the impact of special items. Special items include: 

  • Energy-related economic activity (as discussed below). 
  • Foreign currency-related economic hedges. 
  • Gains and losses on sales of assets not in the ordinary course of business. 
  • Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust funds). 
  • Workforce reduction and other restructuring impacts. 
  • Acquisition-related costs and charges. 
  • Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations. 

For more information, contact PPL Investor Services at 1-800-345-3085.