PNW · 10-Q · 2026Q2 · Full report

Liquidity and Debt Position

PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 30 · Surprise 14 · In source text

Pinnacle West generated $629 million of operating cash flow in the first six months of 2026, down $34 million from $663 million in 2025, while investing cash use declined $53 million to $1.200 billion. APS had a 51% common-equity ratio at June 30, 2026, with approximately $9.0 billion of equity and $17.8 billion of total capitalization; an ACC order would restrict dividends if equity fell below approximately $7.1 billion. On July 31, 2026, APS requested that the ACC increase its long-term debt limit from $9.5 billion to $12 billion, and June 30 debt-to-capitalization ratios were approximately 62% for Pinnacle West and 51% for APS.

Key facts

• On July 31, 2026, APS submitted an application to the ACC requesting to increase the long-term debt limit from $9.5 billion to $12 billion. source
• APS's total shareholder equity was approximately $9.0 billion, and total capitalization, as calculated pursuant to the ACC order, was approximately $17.8 billion as of June 30, 2026. source
• Pinnacle West's consolidated net cash provided by operating activities was $629 million in 2026 compared to $663 million in 2025, a decrease of $34 million. source
• Expected minimum required cash contributions for the qualified pension plan are zero for the next three years, and Pinnacle West does not expect to make any voluntary cash contributions in 2026 but is evaluating voluntary contributions in 2027 and 2028. source
• Pinnacle West does not expect to make any contributions to its other postretirement benefit plan in 2026, 2027 or 2028. source
• Pinnacle West consolidated assets: approximately $33 billion. source
• Pinnacle West and APS believe they currently have ample borrowing capacity under their respective credit facilities and anticipate capital expenditures will be funded with internally generated cash and external financings including long-term debt and Pinnacle West common stock issuances. source
• As of June 30, 2026, APS's common equity ratio, as defined by the ACC order, was 51%. source

Impact estimates