ALE Allete Inc

ALLETE, Inc. (NYSE: ALE) today reported third quarter 2024 earnings of 78 cents per share on net income of $45.0 million. Last year’s third quarter results were $1.49 per share on net income of $85.9 million. Net income for the same quarter in 2023 included approximately 71 cents per share for the favorable arbitration ruling involving a subsidiary of ALLETE Clean Energy. Net income for the third quarter this year included approximately 7 cents per share of transaction expenses related to the merger agreement entered into on May 5, 2024, with Canada Pension Plan Investment Board and Global Infrastructure Partners.

“It has been a busy year thus far, and I couldn’t be prouder of our entire ALLETE team, working diligently on many fronts to execute our Sustainability in Action strategy in tandem with initiatives as part of the merger agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners,” said ALLETE Chair, President, and Chief Executive Officer Bethany Owen. “The merger is progressing as planned, and we remain on track for a mid-2025 closing, subject to all necessary approvals. One very significant milestone was met in the third quarter with ALLETE’s shareholders’ approval of the merger in August,” Owen continued. “At Minnesota Power, several key milestones have been met. Last week, we were pleased that the Minnesota Public Utilities Commission approved the 2023 rate case settlement agreement with final rates expected to be implemented in the first quarter of 2025. Also in October, the Minnesota Public Utilities Commission approved the Big Stone South Transmission project to boost reliability and increase access to renewable energy, and in September, Minnesota Power announced plans to build two large solar projects in northern Minnesota as part of our continued transition towards a cleaner energy future. These two projects will make up approximately two-thirds of the solar generation called for in our Integrated Resource Plan approved in 2023. In addition, Minnesota Power’s request for proposal for 400 megawatts of new wind projects continues to progress as planned. ALLETE Clean Energy closed on the sale of its 68-megawatt Whitetail project, and New Energy Equity had a very strong quarter as the team continues to execute on its strategy and robust pipeline of projects.”

ALLETE’s Regulated Operations segment, which includes Minnesota Power, Superior Water, Light and Power and the Company’s investment in the American Transmission Company, recorded third quarter 2024 net income of $34.0 million, equaling earnings in the third quarter a year ago. Net income at Minnesota Power reflects the implementation of interim rates, net of reserves, partially offset by higher operating and maintenance and depreciation expenses in the third quarter of 2024 compared to 2023.

ALLETE Clean Energy recorded third quarter 2024 net income of $3.9 million compared to $54.8 million in 2023. Earnings in 2023 included the gain recognized for the favorable arbitration award. Positively impacting the third quarter of 2024 was the sale of the Whitetail project.

Corporate and Other businesses, which include New Energy Equity, BNI Energy, ALLETE Properties and our investments in renewable energy facilities, recorded net income of $7.1 million in the third quarter of 2024, compared to a net loss of $2.9 million in 2023. Net income in the third quarter of 2024 included increased earnings at New Energy Equity on project sales. These increases were partially offset by transaction expenses of approximately 7 cents per share, related to the merger agreement entered into in May of 2024. The net loss in 2023 also reflected increased tax expense related to the arbitration award.

“Results for the third quarter of 2024 exceeded internal expectations,” said ALLETE Senior Vice President and Chief Financial Officer Steve Morris. “New Energy Equity's financial results exceeded expectations due to timing of project closings with attractive margins, and ALLETE Clean Energy’s results were higher than our expectations primarily due to the sale of the Whitetail project. These increases were partially offset by merger related expenses.”

ALLETE is an energy company headquartered in Duluth, Minn. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, BNI Energy in Bismarck, N.D., New Energy Equity in Annapolis, MD, and has an eight percent equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.

ALLETE's press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.

Non-GAAP financial measures utilized by the Company include presentations of earnings (loss) per share. ALLETE's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of changes in the fundamental earnings power of the Company's operations. Management believes that the presentation of the non-GAAP financial measures is appropriate and enables investors and analysts to more accurately compare the company's ongoing financial performance over the periods presented.

ALLETE, Inc.

Consolidated Statement of Income

Millions Except Per Share Amounts - Unaudited

 

 

Quarter Ended

Nine Months Ended

 

Sept. 30,

Sept. 30,

 

2024

2023

2024

2023

Operating Revenue

 

 

 

 

Contracts with Customers – Utility

$310.5

$314.3

$928.6

$919.1

Contracts with Customers – Non-utility

95.4

63.2

232.6

554.1

Other – Non-utility

1.3

1.3

3.8

3.9

Total Operating Revenue

407.2

378.8

1,165.0

1,477.1

Operating Expenses

 

 

 

 

Fuel, Purchased Power and Gas – Utility

116.5

124.9

357.3

350.8

Transmission Services – Utility

19.6

22.7

43.9

66.3

Cost of Sales – Non-utility

47.0

33.0

103.2

436.7

Operating and Maintenance

92.7

83.6

286.5

254.2

Depreciation and Amortization

70.8

63.1

201.8

188.2

Taxes Other than Income Taxes

15.3

15.5

50.3

43.1

Total Operating Expenses

361.9

342.8

1,043.0

1,339.3

Operating Income

45.3

36.0

122.0

137.8

Other Income (Expense)

 

 

 

 

Interest Expense

(20.3)

(20.5)

(60.8)

(60.9)

Equity Earnings

5.1

4.7

16.5

16.1

Other

5.5

68.7

20.0

75.3

Total Other Income (Expense)

(9.7)

52.9

(24.3)

30.5

Income Before Income Taxes

35.6

88.9

97.7

168.3

Income Tax Expense

2.9

19.3

8.3

20.4

Net Income

32.7

69.6

89.4

147.9

Net Loss Attributable to Non-Controlling Interest

(12.3)

(16.3)

(39.3)

(47.7)

Net Income Attributable to ALLETE

$45.0

$85.9

$128.7

$195.6

Average Shares of Common Stock

 

 

 

 

Basic

57.8

57.4

57.7

57.3

Diluted

57.9

57.5

57.8

57.4

Basic Earnings Per Share of Common Stock

$0.78

$1.50

$2.23

$3.41

Diluted Earnings Per Share of Common Stock

$0.78

$1.49

$2.23

$3.41

Dividends Per Share of Common Stock

$0.705

$0.6775

$2.115

$2.0325

Consolidated Balance Sheet

Millions - Unaudited

 

 

Sept. 30,

Dec. 31,

 

 

Sept. 30,

Dec. 31,

 

2024

2023

 

 

2024

2023

Assets

 

 

 

Liabilities and Equity

 

 

Cash and Cash Equivalents

$101.9

$71.9

 

Current Liabilities

$334.4

$377.6

Other Current Assets

381.5

396.2

 

Long-Term Debt

1,743.7

1,679.9

Property, Plant and Equipment – Net

5,112.8

5,013.4

 

Deferred Income Taxes

255.5

192.7

Regulatory Assets

386.1

425.4

 

Regulatory Liabilities

562.1

574.0

Equity Investments

337.9

331.2

 

Defined Benefit Pension and Other Postretirement Benefit Plans

134.5

160.8

Goodwill and Intangibles – Net

155.3

155.4

 

Other Non-Current Liabilities

314.4

264.3

Other Non-Current Assets

261.7

262.9

 

Redeemable Non-Controlling Interest

0.7

0.5

 

 

 

 

Equity

3,391.9

3,406.6

Total Assets

$6,737.2

$6,656.4

 

Total Liabilities, Redeemable Non-Controlling Interest and Equity

$6,737.2

$6,656.4

 

Quarter Ended

Nine Months Ended

ALLETE, Inc.

Sept. 30,

Sept. 30,

Income (Loss)

2024

2023

2024

2023

Millions

 

 

 

 

Regulated Operations

$34.0

$34.0

$111.9

$112.4

ALLETE Clean Energy

3.9

54.8

10.1

66.4

Corporate and Other

7.1

(2.9)

6.7

16.8

Net Income Attributable to ALLETE

$45.0

$85.9

$128.7

$195.6

Diluted Earnings Per Share

$0.78

$1.49

$2.23

$3.41

Statistical Data

 

 

 

 

Corporate

 

 

 

 

Common Stock

 

 

 

 

High

$64.90

$59.22

$65.86

$66.69

Low

$61.51

$52.30

$55.86

$52.30

Close

$64.19

$52.80

$64.19

$52.80

Book Value

$48.97

$48.48

$48.97

$48.48

Kilowatt-hours Sold

 

 

 

 

Millions

 

 

 

 

Regulated Utility

 

 

 

 

Retail and Municipal

 

 

 

 

Residential

262

250

793

812

Commercial

354

355

999

1,022

Industrial

1,715

1,742

5,242

5,178

Municipal

120

112

350

350

Total Retail and Municipal

2,451

2,459

7,384

7,362

Other Power Suppliers

616

526

1,952

2,008

Total Regulated Utility Kilowatt-hours Sold

3,067

2,985

9,336

9,370

Regulated Utility Revenue

 

 

 

 

Millions

 

 

 

 

Regulated Utility Revenue

 

 

 

 

Retail and Municipal Electric Revenue

 

 

 

 

Residential

$40.0

$36.0

$121.1

$111.6

Commercial

48.8

48.6

139.1

135.5

Industrial

149.2

153.8

454.0

436.9

Municipal

9.2

8.7

25.6

25.2

Total Retail and Municipal Electric Revenue

247.2

247.1

739.8

709.2

Other Power Suppliers

32.0

31.0

102.4

103.2

Other (Includes Water and Gas Revenue)

31.3

36.2

86.4

106.7

Total Regulated Utility Revenue

$310.5

$314.3

$928.6

$919.1

 

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Investor Contact: 218-723-3952 shareholder@allete.com