MILWAUKEE, Oct. 31,
2023 /PRNewswire/ --
WEC Energy Group (NYSE: WEC) today reported net
income of $316.0 million, or
$1.00 per share, for the third
quarter of 2023 — up from $302.0
million, or 96 cents per
share, in last year's third quarter.
For the first nine months of 2023, the company recorded net
income of $1.11 billion, or
$3.52 per share — down from
$1.16 billion, or $3.65 per share, in the corresponding period a
year ago.
Consolidated revenues totaled $6.7
billion for the first nine months of 2023, down $363.5 million from revenues for the first nine
months of 2022.
"We delivered another solid quarter, and we're on
track for a strong 2023," said Gale Klappa, executive chairman. "Our focus
remains on the fundamentals of our business — reliability, customer
satisfaction, environmental progress and financial discipline —
creating value for our customers and stockholders."
Retail deliveries of electricity — excluding the iron ore mine
in Michigan's Upper Peninsula —
were down by 1.3 percent in the third quarter of 2023, compared to
the third quarter last year.
Electricity consumption by small commercial and industrial
customers was flat. Electricity use by large commercial and
industrial customers — excluding the iron ore mine — declined by
4.1 percent.
Residential electricity use rose by 0.1 percent.
On a weather-normal basis, retail deliveries of electricity
during the third quarter of this year — excluding the iron ore mine
— decreased by 0.8 percent.
The company is reaffirming its 2023 annual earnings guidance of
$4.58 to $4.62 per share, with an expectation of
completing the year in the upper half of the range. This assumes
normal weather for the remainder of the year.
Earnings per share listed in this news release are on a fully diluted
basis.
Conference call
A conference call is scheduled
for 1 p.m. Central time, Tuesday,
Oct. 31. The call will review 2023 third-quarter earnings
and the company's outlook for the future.
All interested parties, including stockholders, news
media and the general public,
are invited to listen. Access the call at
888-330-2443 up to 15 minutes before it
begins. The number for international callers is
240-789-2728. The conference ID is 3088105.
Conference call access also is available at wecenergygroup.com.
Under 'Webcasts,' select 'Q3 Earnings.' In conjunction with this
earnings announcement, WEC Energy Group will post on its website a
package of detailed financial information on its third-quarter
performance. The materials will be available at 6:30 a.m. Central time, Tuesday, Oct. 31.
Replay
A replay will be available on the website and by phone. Access
to the webcast replay will be available on the website about two
hours after the call. Access to a phone replay also will be
available approximately two hours after the call and remain
accessible through Nov. 14, 2023.
Domestic callers should dial 800-770-2030. International callers
should dial 647-362-9199. The replay conference ID is 3088105.
WEC Energy Group
(NYSE: WEC), based in Milwaukee, is one
of the nation's premier energy companies, serving
nearly 4.7 million customers in Wisconsin, Illinois, Michigan and Minnesota.
The company's principal utilities are We Energies, Wisconsin
Public Service, Peoples Gas, North Shore Gas, Michigan Gas
Utilities, Minnesota Energy Resources and Upper Michigan Energy
Resources. Another major subsidiary, We Power, designs, builds and
owns electric generating plants. In addition, WEC Infrastructure
LLC owns a growing fleet of renewable generation facilities in
states ranging from South Dakota
to Texas.
WEC Energy Group (wecenergygroup.com) is a Fortune 500
company and a component of the S&P 500. The
company has approximately 36,000
stockholders of record, 7,000
employees and more than
$43 billion of assets.
Forward-looking statements
Certain statements contained in this press release are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements are based upon management's
current expectations and are subject to risks and uncertainties
that could cause our actual results to differ materially from those
contemplated in the statements. Readers are cautioned not to place
undue reliance on these statements. Forward-looking statements
include, among other things, statements concerning management's
expectations and projections regarding earnings and future results.
In some cases, forward-looking statements may be identified by
reference to a future period or periods or by the use of forward-
looking terminology such as "anticipates," "believes," "estimates,"
"expects," "forecasts," "guidance," "intends," "may," "objectives,"
"plans," "possible," "potential," "projects," "should," "targets,"
"will" or similar terms or variations of these terms.
Factors that could cause actual results to differ materially
from those contemplated in any forward-looking statements include,
but are not limited to: general economic conditions, including
business and competitive conditions in the company's service
territories; timing, resolution and impact of rate cases and other
regulatory decisions; the company's ability to continue to
successfully integrate the operations of its subsidiaries;
availability of the company's generating facilities and/or
distribution systems; unanticipated changes in fuel and purchased
power costs; key personnel changes; unusual, varying or severe
weather conditions; continued industry restructuring and
consolidation; continued advances in, and adoption of, new
technologies that produce power or reduce power consumption; energy
and environmental conservation efforts; electrification
initiatives, mandates and other efforts to reduce the use of
natural gas; the company's ability to successfully acquire and/or
dispose of assets and projects and to execute on its capital plan;
terrorist, physical or cyber-security threats or attacks and data
security breaches; construction risks; labor disruptions; equity
and bond market fluctuations; changes in the company's and its
subsidiaries' ability to access the capital markets; changes in tax
legislation or our ability to use certain tax benefits
and carryforwards; federal, state, and local legislative and
regulatory changes, including changes in rate setting policies
or procedures and to environmental standards, the enforcement of
these laws and regulations or permit conditions and changes in the
interpretation of regulations by regulatory agencies; supply chain
disruptions; inflation; political or geopolitical developments,
including impacts on the global economy, supply chain and fuel
prices, generally, from ongoing global conflicts; the impact from
any health crises, including epidemics and pandemics; current
and future litigation and regulatory investigations,
proceedings or inquiries; changes in accounting standards; the
financial performance of American Transmission Company as
well as projects in which the company's energy infrastructure
business invests; the ability of the company to obtain additional
generating capacity at competitive prices; goodwill and
its possible impairment; and other factors described under the
heading "Factors Affecting Results, Liquidity and
Capital Resources" in Management's Discussion and Analysis
of Financial Condition and Results of Operations and under
the headings "Cautionary Statement Regarding Forward-Looking
Information" and "Risk Factors" contained in
the company's Form 10-K for the year ended
December 31, 2022, and in subsequent reports filed with
the Securities and Exchange Commission. Except as may be
required by law, the company expressly disclaims any
obligation to publicly update or revise any forward-looking
information.
Tables follow
WEC ENERGY GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
|
Three Months
Ended
September
30
|
Nine Months
Ended
September
30
|
|
|
|
|
|
(in millions, except per share
amounts)
|
2023
|
2022
|
2023
|
2022
|
Operating revenues
|
$
1,957.4
|
$
2,003.0
|
$
6,675.5
|
$
7,039.0
|
|
|
|
|
|
Operating expenses
Cost of sales
|
587.4
|
805.1
|
2,430.1
|
3,123.5
|
Other operation and maintenance
|
516.6
|
454.3
|
1,546.6
|
1,357.7
|
Depreciation and amortization
|
320.3
|
280.3
|
939.7
|
838.0
|
Property and revenue taxes
|
61.1
|
59.1
|
192.5
|
176.0
|
Total operating expenses
|
1,485.4
|
1,598.8
|
5,108.9
|
5,495.2
|
Operating income
|
472.0
|
404.2
|
1,566.6
|
1,543.8
|
|
|
|
|
|
Equity in earnings of transmission affiliates
|
44.7
|
63.7
|
132.1
|
148.4
|
Other income, net
|
41.8
|
34.7
|
130.9
|
94.1
|
Interest expense
|
182.5
|
127.5
|
533.4
|
364.9
|
Other expense
|
(96.0)
|
(29.1)
|
(270.4)
|
(122.4)
|
Income before income taxes
|
376.0
|
375.1
|
1,296.2
|
1,421.4
|
Income
tax expense
|
60.4
|
73.4
|
183.0
|
263.9
|
Net income
|
315.6
|
301.7
|
1,113.2
|
1,157.5
|
|
|
|
|
|
Preferred stock dividends of subsidiary
|
0.3
|
0.3
|
0.9
|
0.9
|
Net loss (income) attributed to noncontrolling interests
|
0.7
|
0.6
|
0.9
|
(1.2)
|
Net income
attributed to common shareholders
|
$
316.0
|
$
302.0
|
$
1,113.2
|
$
1,155.4
|
Earnings per share
Basic
|
$
1.00
|
$
0.96
|
$
3.53
|
$
3.66
|
Diluted
|
$
1.00
|
$
0.96
|
$
3.52
|
$
3.65
|
|
|
|
|
|
Weighted average common shares
outstanding
Basic
|
315.4
|
315.4
|
315.4
|
315.4
|
Diluted
|
315.8
|
316.2
|
315.9
|
316.2
|
|
|
|
|
|
Dividends per share of common stock
|
$
0.7800
|
$
0.7275
|
$
2.3400
|
$
2.1825
|
WEC ENERGY GROUP, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except share and per share
amounts)
|
|
September 30, 2023
|
|
December 31, 2022
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
45.9
|
|
$
28.9
|
Accounts receivable and
unbilled revenues, net of reserves of $176.8 and $199.3,
respectively
|
|
1,243.2
|
|
1,818.4
|
Materials, supplies,
and inventories
|
|
749.9
|
|
807.1
|
Prepaid
taxes
|
|
157.8
|
|
201.8
|
Other
prepayments
|
|
40.6
|
|
69.8
|
Collateral on
deposit
|
|
118.4
|
|
122.4
|
Other
|
|
87.8
|
|
139.3
|
Current assets
|
|
2,443.6
|
|
3,187.7
|
|
|
|
|
|
Long-term assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$10,914.6
and $10,383.8,
respectively
|
|
31,467.5
|
|
29,113.8
|
Regulatory assets
(September 30, 2023 and December 31, 2022 include $87.5 and
$92.4,
respectively, related
to WEPCo Environmental Trust Finance I, LLC)
|
|
3,197.1
|
|
3,264.6
|
Equity investment in
transmission affiliates
|
|
1,983.8
|
|
1,909.2
|
Goodwill
|
|
3,052.8
|
|
3,052.8
|
Pension and OPEB
assets
|
|
918.7
|
|
916.7
|
Other
|
|
378.2
|
|
427.3
|
Long-term assets
|
|
40,998.1
|
|
38,684.4
|
Total assets
|
|
$
43,441.7
|
|
$
41,872.1
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term
debt
|
|
$
1,549.3
|
|
$
1,647.1
|
Current portion of
long-term debt (September 30, 2023 and December 31, 2022 include
$9.0 and
$8.9, respectively,
related to WEPCo Environmental Trust Finance I,
LLC)
|
|
712.9
|
|
881.2
|
Accounts
payable
|
|
867.7
|
|
1,198.1
|
Other
|
|
943.8
|
|
884.6
|
Current liabilities
|
|
4,073.7
|
|
4,611.0
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
Long-term debt
(September 30, 2023 and December 31, 2022 include $89.8 and $94.1,
respectively,
related to WEPCo
Environmental Trust Finance I, LLC)
|
|
15,956.5
|
|
14,766.2
|
Deferred income
taxes
|
|
4,832.2
|
|
4,625.6
|
Deferred revenue,
net
|
|
360.4
|
|
370.7
|
Regulatory
liabilities
|
|
3,720.0
|
|
3,735.5
|
Intangible
liabilities
|
|
608.2
|
|
335.4
|
Asset retirement
obligations
|
|
505.5
|
|
479.3
|
Environmental
remediation liabilities
|
|
456.6
|
|
499.6
|
Other
|
|
828.3
|
|
832.2
|
Long-term liabilities
|
|
27,267.7
|
|
25,644.5
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Common shareholders' equity
|
|
|
|
|
Common stock – $0.01
par value; 325,000,000 shares authorized; 315,434,531 shares
outstanding
|
|
3.2
|
|
3.2
|
Additional paid in
capital
|
|
4,116.4
|
|
4,115.2
|
Retained
earnings
|
|
7,640.4
|
|
7,265.3
|
Accumulated other
comprehensive loss
|
|
(7.0)
|
|
(6.8)
|
Common shareholders' equity
|
|
11,753.0
|
|
11,376.9
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
30.4
|
Noncontrolling
interests
|
|
316.9
|
|
209.3
|
Total liabilities and equity
|
|
$
43,441.7
|
|
$
41,872.1
|
WEC ENERGY GROUP, INC.
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
Nine Months
Ended
|
|
|
September 30
|
(in
millions)
|
|
2023
|
|
2022
|
Operating activities
|
|
|
|
|
Net income
|
|
$
1,113.2
|
|
$
1,157.5
|
Reconciliation to cash provided by operating activities
|
|
|
|
|
Depreciation and amortization
|
|
939.7
|
|
838.0
|
Deferred income taxes
and ITCs, net
|
|
155.9
|
|
187.8
|
Contributions and payments related to pension and OPEB plans
|
|
(13.0)
|
|
(11.6)
|
Equity income
in transmission affiliates, net of distributions
|
|
(23.1)
|
|
(47.1)
|
Change in –
|
|
|
|
|
Accounts receivable and unbilled revenues, net
|
|
600.7
|
|
150.9
|
Materials, supplies, and
inventories
|
|
67.2
|
|
(288.8)
|
Prepaid taxes
|
|
43.6
|
|
57.8
|
Other current assets
|
|
64.7
|
|
45.4
|
Accounts payable
|
|
(350.6)
|
|
82.2
|
Other current liabilities
|
|
52.3
|
|
68.5
|
Other, net
|
|
(112.2)
|
|
(181.1)
|
Net cash
provided by operating activities
|
|
2,538.4
|
|
2,059.5
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Capital expenditures
|
|
(1,729.5)
|
|
(1,700.7)
|
Acquisition of Whitewater Cogeneration Facility
|
|
(76.0)
|
|
—
|
Acquisition of Sapphire Sky Wind Energy
LLC, net of cash acquired of $0.3
|
|
(442.6)
|
|
—
|
Acquisition of Samson
I Solar Energy
Center LLC, net of cash
acquired of $5.2
|
|
(249.4)
|
|
—
|
Acquisition of Red Barn Wind
Park
|
|
(143.8)
|
|
—
|
Acquisition of West Riverside Energy
Center
|
|
(95.3)
|
|
—
|
Acquisition of Thunderhead Wind Energy LLC, net of cash acquired of $0.5
|
|
—
|
|
(362.9)
|
Capital contributions to transmission affiliates
|
|
(51.5)
|
|
(39.4)
|
Proceeds from the sale of
assets
|
|
30.4
|
|
69.0
|
Proceeds from the
sale of investments held in rabbi
trust
|
|
10.4
|
|
15.4
|
Payments for American Transmission Company LLC's
construction costs that will be reimbursed
|
|
(19.5)
|
|
(20.6)
|
Insurance proceeds received for property damage
|
|
0.5
|
|
41.6
|
Other, net
|
|
(5.4)
|
|
11.7
|
Net cash
used in investing activities
|
|
(2,771.7)
|
|
(1,985.9)
|
|
|
|
|
|
Financing activities
Exercise of stock options
|
|
3.0
|
|
33.1
|
Purchase of common stock
|
|
(10.7)
|
|
(68.3)
|
Dividends paid on common stock
|
|
(738.1)
|
|
(688.5)
|
Issuance of long-term debt
|
|
2,050.0
|
|
1,400.0
|
Retirement of long-term debt
|
|
(996.0)
|
|
(64.9)
|
Change in commercial paper
|
|
(98.2)
|
|
(640.2)
|
Payments for debt issuance costs
|
|
(13.0)
|
|
(9.1)
|
Other, net
|
|
(4.5)
|
|
(7.2)
|
Net cash provided by (used in)
financing activities
|
|
192.5
|
|
(45.1)
|
Net change in cash, cash
equivalents, and restricted cash
|
|
(40.8)
|
|
28.5
|
Cash,
cash equivalents, and
restricted cash at beginning of
period
|
|
182.2
|
|
87.5
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
141.4
|
|
$
116.0
|
View original
content:https://www.prnewswire.com/news-releases/wec-energy-group-reports-third-quarter-results-301971934.html
SOURCE WEC Energy Group