MILWAUKEE, Aug. 3, 2021 /PRNewswire/ -- WEC Energy
Group (NYSE: WEC) today reported net income of $276.0 million, or 87 cents per share, for
the second quarter of 2021 – up from $241.6
million, or 76 cents per
share, for the second quarter last year.
For the first six months of 2021, the company recorded net
income of $786.1 million, or
$2.49 per share – up from
$694.1 million, or $2.19 per share, in the corresponding period a
year ago.
Consolidated revenues totaled $4.4
billion for the first six months of 2021, up $710.3 million from revenues for the first half
of 2020.
"A recovering economy, continued gains in operating efficiency
and warmer than normal June temperatures were major factors in our
strong performance," said Gale
Klappa, executive chairman.
Retail deliveries of electricity – excluding the iron ore mine
in Michigan's Upper Peninsula –
were up by 7.1 percent in the second quarter of 2021, compared to
the second quarter last year.
Electricity consumption by small commercial and industrial
customers was 10.4 percent higher during the second quarter of
2021. Electricity use by large commercial and industrial customers
– excluding the iron ore mine – rose by 14.8 percent.
Residential electricity use declined by 3 percent.
On a weather-normal basis, retail deliveries of electricity
during the second quarter of this year – excluding the iron ore
mine – increased by 5.8 percent.
At the end of June, the company was serving approximately 4,000
more electric customers and 18,000 more natural gas customers than
at the same time a year ago.
The company is raising its earnings guidance for 2021 to a range
of $4.02 to $4.05 per share with an expectation of reaching
the top end 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, Aug. 3.
The call will review 2021 second-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
877-683-2228 up to 15 minutes before it begins. The number for
international callers is 647-689-5446. The conference ID is
1743328.
Conference call access also is available at
wecenergygroup.com. Under 'Webcasts,' select 'Q2 Earnings.' In
conjunction with this earnings announcement, WEC Energy Group will
post on its website a package of detailed financial information on
its second-quarter performance. The materials will be available at
6:30 a.m. Central time, Tuesday, Aug. 3.
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 Aug. 17, 2021.
Domestic callers should dial 800-585-8367. International
callers should dial 416-621-4642. The replay conference ID is
1743328.
WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier
energy companies, serving 4.6 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 the
Midwest.
WEC Energy Group (wecenergygroup.com) is a Fortune 500
company and a component of the S&P 500. The company has
approximately 41,000 stockholders of record, 7,200 employees and
more than $37 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, earnings growth
rates 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; the extent, duration and impact of the COVID-19
pandemic or any future health pandemics; 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; varying, adverse or
unusually 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; the
company's ability to successfully acquire and/or dispose of assets
and projects; cyber-security threats and data security breaches;
construction risks; 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; the impact of legislative and
regulatory changes, including changes to environmental standards
and greenhouse gas regulations; political developments; 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,
2020, 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
|
|
Six Months
Ended
|
|
June 30
|
|
June 30
|
(in millions,
except per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
revenues
|
|
$
|
1,676.2
|
|
|
$
|
1,548.7
|
|
|
$
|
4,367.6
|
|
|
$
|
3,657.3
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
525.9
|
|
|
444.5
|
|
|
1,791.5
|
|
|
1,179.2
|
|
Other operation and
maintenance
|
|
463.8
|
|
|
473.1
|
|
|
943.7
|
|
|
928.8
|
|
Depreciation and
amortization
|
|
266.2
|
|
|
242.5
|
|
|
527.6
|
|
|
481.6
|
|
Property and revenue
taxes
|
|
51.5
|
|
|
49.8
|
|
|
106.7
|
|
|
102.3
|
|
Total operating
expenses
|
|
1,307.4
|
|
|
1,209.9
|
|
|
3,369.5
|
|
|
2,691.9
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
368.8
|
|
|
338.8
|
|
|
998.1
|
|
|
965.4
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
transmission affiliates
|
|
41.3
|
|
|
52.9
|
|
|
83.9
|
|
|
92.7
|
|
Other income,
net
|
|
39.7
|
|
|
28.6
|
|
|
72.5
|
|
|
34.2
|
|
Interest
expense
|
|
120.0
|
|
|
124.4
|
|
|
239.5
|
|
|
253.8
|
|
Other
expense
|
|
(39.0)
|
|
|
(42.9)
|
|
|
(83.1)
|
|
|
(126.9)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
329.8
|
|
|
295.9
|
|
|
915.0
|
|
|
838.5
|
|
Income tax
expense
|
|
54.1
|
|
|
53.8
|
|
|
129.0
|
|
|
143.8
|
|
Net
income
|
|
275.7
|
|
|
242.1
|
|
|
786.0
|
|
|
694.7
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends of subsidiary
|
|
0.3
|
|
|
0.3
|
|
|
0.6
|
|
|
0.6
|
|
Net (income) loss
attributed to noncontrolling interests
|
|
0.6
|
|
|
(0.2)
|
|
|
0.7
|
|
|
—
|
|
Net income
attributed to common shareholders
|
|
$
|
276.0
|
|
|
$
|
241.6
|
|
|
$
|
786.1
|
|
|
$
|
694.1
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.88
|
|
|
$
|
0.77
|
|
|
$
|
2.49
|
|
|
$
|
2.20
|
|
Diluted
|
|
$
|
0.87
|
|
|
$
|
0.76
|
|
|
$
|
2.49
|
|
|
$
|
2.19
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
315.4
|
|
|
315.4
|
|
|
315.4
|
|
|
315.4
|
|
Diluted
|
|
316.3
|
|
|
316.5
|
|
|
316.3
|
|
|
316.6
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share of common stock
|
|
$
|
0.6775
|
|
|
$
|
0.6325
|
|
|
$
|
1.3550
|
|
|
$
|
1.2650
|
|
WEC ENERGY GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions,
except share and per share amounts)
|
|
June 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
35.0
|
|
|
$
|
24.8
|
|
Accounts receivable
and unbilled revenues, net of reserves of $231.7 and $220.1,
respectively
|
|
1,182.7
|
|
|
1,202.8
|
|
Materials, supplies,
and inventories
|
|
452.7
|
|
|
528.6
|
|
Prepayments
|
|
283.7
|
|
|
263.4
|
|
Amounts recoverable
from customers
|
|
213.6
|
|
|
20.0
|
|
Other
|
|
110.4
|
|
|
43.4
|
|
Current
assets
|
|
2,278.1
|
|
|
2,083.0
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$9,625.3 and $9,364.7, respectively
|
|
26,266.4
|
|
|
25,707.4
|
|
Regulatory assets
(June 30, 2021 includes $106.0 related to WEPCo Environmental Trust
Finance I, LLC)
|
|
3,409.9
|
|
|
3,524.1
|
|
Equity investment in
transmission affiliates
|
|
1,782.0
|
|
|
1,764.3
|
|
Goodwill
|
|
3,052.8
|
|
|
3,052.8
|
|
Other
|
|
1,005.7
|
|
|
896.5
|
|
Long-term
assets
|
|
35,516.8
|
|
|
34,945.1
|
|
Total
assets
|
|
$
|
37,794.9
|
|
|
$
|
37,028.1
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
|
1,424.5
|
|
|
$
|
1,776.9
|
|
Current portion of
long-term debt (June 30, 2021 includes $4.1 related to WEPCo
Environmental Trust Finance I, LLC)
|
|
493.6
|
|
|
785.8
|
|
Accounts
payable
|
|
744.6
|
|
|
880.7
|
|
Other
|
|
711.2
|
|
|
704.7
|
|
Current
liabilities
|
|
3,373.9
|
|
|
4,148.1
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Long-term debt (June
30, 2021 includes $111.1 related to WEPCo Environmental Trust
Finance I, LLC)
|
|
12,695.7
|
|
|
11,728.1
|
|
Deferred income
taxes
|
|
4,269.6
|
|
|
4,059.8
|
|
Deferred revenue,
net
|
|
400.7
|
|
|
412.2
|
|
Regulatory
liabilities
|
|
3,935.5
|
|
|
3,928.1
|
|
Environmental
remediation liabilities
|
|
518.2
|
|
|
532.9
|
|
Pension and OPEB
obligations
|
|
314.2
|
|
|
327.0
|
|
Other
|
|
1,256.7
|
|
|
1,229.4
|
|
Long-term
liabilities
|
|
23,390.6
|
|
|
22,217.5
|
|
|
|
|
|
|
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
|
|
4,144.1
|
|
|
4,143.7
|
|
Retained
earnings
|
|
6,688.2
|
|
|
6,329.6
|
|
Accumulated other
comprehensive loss
|
|
(4.6)
|
|
|
(6.8)
|
|
Common
shareholders' equity
|
|
10,830.9
|
|
|
10,469.7
|
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
|
30.4
|
|
Noncontrolling
interests
|
|
169.1
|
|
|
162.4
|
|
Total liabilities
and equity
|
|
$
|
37,794.9
|
|
|
$
|
37,028.1
|
|
WEC ENERGY GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
Six Months
Ended
|
|
|
June 30
|
(in
millions)
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
786.0
|
|
|
$
|
694.7
|
|
Reconciliation to
cash provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
527.6
|
|
|
481.6
|
|
Deferred income taxes
and ITCs, net
|
|
164.4
|
|
|
143.5
|
|
Contributions and
payments related to pension and OPEB plans
|
|
(7.6)
|
|
|
(6.6)
|
|
Equity income in
transmission affiliates, net of distributions
|
|
(17.7)
|
|
|
(20.1)
|
|
Change in –
|
|
|
|
|
Accounts receivable
and unbilled revenues, net
|
|
70.0
|
|
|
215.4
|
|
Materials, supplies,
and inventories
|
|
75.9
|
|
|
82.1
|
|
Amounts recoverable
from customers
|
|
(193.6)
|
|
|
6.8
|
|
Other current
assets
|
|
(7.8)
|
|
|
55.7
|
|
Accounts
payable
|
|
(119.3)
|
|
|
(188.3)
|
|
Other current
liabilities
|
|
17.2
|
|
|
(67.2)
|
|
Other, net
|
|
(68.9)
|
|
|
(18.0)
|
|
Net cash provided
by operating activities
|
|
1,226.2
|
|
|
1,379.6
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
|
(1,010.1)
|
|
|
(1,037.2)
|
|
Acquisition of
Jayhawk Wind, LLC
|
|
(119.7)
|
|
|
—
|
|
Capital contributions
to transmission affiliates
|
|
—
|
|
|
(9.0)
|
|
Proceeds from the
sale of assets
|
|
20.8
|
|
|
2.1
|
|
Proceeds from the
sale of investments held in rabbi trust
|
|
12.7
|
|
|
17.1
|
|
Other, net
|
|
21.7
|
|
|
20.8
|
|
Net cash used in
investing activities
|
|
(1,074.6)
|
|
|
(1,006.2)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Exercise of stock
options
|
|
4.0
|
|
|
20.3
|
|
Purchase of common
stock
|
|
(11.3)
|
|
|
(50.3)
|
|
Dividends paid on
common stock
|
|
(427.5)
|
|
|
(399.0)
|
|
Issuance of long-term
debt
|
|
1,018.8
|
|
|
110.0
|
|
Retirement of
long-term debt
|
|
(341.2)
|
|
|
(418.2)
|
|
Issuance of
short-term loan
|
|
—
|
|
|
340.0
|
|
Repayment of
short-term loan
|
|
(340.0)
|
|
|
—
|
|
Change in other
short-term debt
|
|
(12.4)
|
|
|
40.7
|
|
Purchase of
additional ownership interest in Upstream Wind Energy LLC from
noncontrolling interest
|
|
—
|
|
|
(31.0)
|
|
Other, net
|
|
(14.9)
|
|
|
(5.8)
|
|
Net cash used in
financing activities
|
|
(124.5)
|
|
|
(393.3)
|
|
|
|
|
|
|
Net change in
cash, cash equivalents, and restricted cash
|
|
27.1
|
|
|
(19.9)
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
72.6
|
|
|
82.3
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
99.7
|
|
|
$
|
62.4
|
|
View original
content:https://www.prnewswire.com/news-releases/wec-energy-group-reports-second-quarter-results-301346366.html
SOURCE WEC Energy Group