MILWAUKEE, May 3, 2021 /PRNewswire/ -- WEC Energy Group
(NYSE: WEC) today reported net income of $510.1 million, or $1.61 per share, for the first quarter of
2021 – up from $452.5 million, or
$1.43 per share, for last year's
first quarter.
Consolidated revenues totaled $2.7
billion, up $582.8 million
from last year's first quarter.
"Our positive first-quarter results were driven by colder
weather, economic recovery in our region and a strong focus on
operating excellence," said Gale
Klappa, executive chairman. "Our people and our
infrastructure were put to the test and performed remarkably during
a bitter cold stretch in February, when temperatures in the
northern portion of our service area dropped to minus 42 degrees
Fahrenheit. Ongoing investments in our energy grid and our diverse
fuel mix kept the economy moving and our 4.6 million customers warm
and safe."
For the quarter, natural gas deliveries in Wisconsin — excluding natural gas used for
power generation — rose by 3.2 percent compared to the first
quarter of 2020. On a weather-normal basis, natural gas deliveries
were 0.5 percent higher.
Retail deliveries of electricity — excluding the iron ore mine
in Michigan's Upper Peninsula —
increased by 1.1 percent in the first quarter of 2021 compared to
the first quarter last year. Residential electricity use rose by
4.8 percent.
Electricity consumption by small commercial and industrial
customers was 0.3 percent lower. Electricity use by large
commercial and industrial customers — excluding the iron ore mine —
fell by 1.0 percent.
On a weather-normal basis, retail deliveries of electricity —
excluding the iron ore mine — increased by 1.4 percent.
At the end of March, the company was serving approximately 7,000
more electric customers and 25,000 more natural gas customers than
at the same time a year ago.
"The company expects to reach the top end of its earnings
guidance for 2021 — which is in a range of $3.99 to $4.03 per
share," Klappa said. 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, Monday, May 3.
The call will review 2021 first-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
2688216.
Conference call access also is available at wecenergygroup.com.
Under 'Webcasts,' select 'Q1 Earnings.' In conjunction with this
earnings announcement, WEC Energy Group will post on its website a
package of detailed financial information on its first-quarter
performance. The materials will be available at 6:30 a.m. Central time, Monday, May 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 May 17, 2021.
Domestic callers should dial 800-585-8367. International
callers should dial 416-621-4642. The replay conference ID is
2688216.
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 42,000 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 and future results
and investments. 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 Dec. 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
|
|
|
March 31
|
(in millions,
except per share amounts)
|
|
2021
|
|
2020
|
Operating
revenues
|
|
$
|
2,691.4
|
|
|
$
|
2,108.6
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Cost of
sales
|
|
1,265.6
|
|
|
734.7
|
|
Other operation and
maintenance
|
|
479.9
|
|
|
455.7
|
|
Depreciation and
amortization
|
|
261.4
|
|
|
239.1
|
|
Property and revenue
taxes
|
|
55.2
|
|
|
52.5
|
|
Total operating
expenses
|
|
2,062.1
|
|
|
1,482.0
|
|
|
|
|
|
|
Operating
income
|
|
629.3
|
|
|
626.6
|
|
|
|
|
|
|
Equity in earnings of
transmission affiliates
|
|
42.6
|
|
|
39.8
|
|
Other income,
net
|
|
32.8
|
|
|
5.6
|
|
Interest
expense
|
|
119.5
|
|
|
129.4
|
|
Other
expense
|
|
(44.1)
|
|
|
(84.0)
|
|
|
|
|
|
|
Income before income
taxes
|
|
585.2
|
|
|
542.6
|
|
Income tax
expense
|
|
74.9
|
|
|
90.0
|
|
Net
income
|
|
510.3
|
|
|
452.6
|
|
|
|
|
|
|
Preferred stock
dividends of subsidiary
|
|
0.3
|
|
|
0.3
|
|
Net loss attributed
to noncontrolling interests
|
|
0.1
|
|
|
0.2
|
|
Net income
attributed to common shareholders
|
|
$
|
510.1
|
|
|
$
|
452.5
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
|
$
|
1.62
|
|
|
$
|
1.43
|
|
Diluted
|
|
$
|
1.61
|
|
|
$
|
1.43
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
Basic
|
|
315.4
|
|
|
315.4
|
|
Diluted
|
|
316.2
|
|
|
316.7
|
|
|
|
|
|
|
Dividends per
share of common stock
|
|
$
|
0.6775
|
|
|
$
|
0.6325
|
|
WEC ENERGY GROUP,
INC.
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions,
except share and per share amounts)
|
|
March 31,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
26.1
|
|
|
$
|
24.8
|
|
Accounts receivable
and unbilled revenues, net of reserves of $259.1 and $220.1,
respectively
|
|
1,369.9
|
|
|
1,202.8
|
|
Materials, supplies,
and inventories
|
|
353.5
|
|
|
528.6
|
|
Prepayments
|
|
258.8
|
|
|
263.4
|
|
Amounts recoverable
from customers
|
|
306.7
|
|
|
20.0
|
|
Other
|
|
40.5
|
|
|
43.4
|
|
Current
assets
|
|
2,355.5
|
|
|
2,083.0
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$9,481.4 and $9,364.7, respectively
|
|
25,994.4
|
|
|
25,707.4
|
|
Regulatory
assets
|
|
3,487.1
|
|
|
3,524.1
|
|
Equity investment in
transmission affiliates
|
|
1,773.6
|
|
|
1,764.3
|
|
Goodwill
|
|
3,052.8
|
|
|
3,052.8
|
|
Other
|
|
937.2
|
|
|
896.5
|
|
Long-term
assets
|
|
35,245.1
|
|
|
34,945.1
|
|
Total
assets
|
|
$
|
37,600.6
|
|
|
$
|
37,028.1
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
|
1,580.4
|
|
|
$
|
1,776.9
|
|
Current portion of
long-term debt
|
|
787.0
|
|
|
785.8
|
|
Accounts
payable
|
|
656.0
|
|
|
880.7
|
|
Accrued payroll and
benefits
|
|
123.0
|
|
|
174.0
|
|
Other
|
|
568.5
|
|
|
530.7
|
|
Current
liabilities
|
|
3,714.9
|
|
|
4,148.1
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Long-term
debt
|
|
12,317.7
|
|
|
11,728.1
|
|
Deferred income
taxes
|
|
4,214.1
|
|
|
4,059.8
|
|
Deferred revenue,
net
|
|
406.4
|
|
|
412.2
|
|
Regulatory
liabilities
|
|
3,890.8
|
|
|
3,928.1
|
|
Environmental
remediation liabilities
|
|
532.9
|
|
|
532.9
|
|
Pension and OPEB
obligations
|
|
319.9
|
|
|
327.0
|
|
Other
|
|
1,236.3
|
|
|
1,229.4
|
|
Long-term
liabilities
|
|
22,918.1
|
|
|
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
|
|
4,143.6
|
|
|
4,143.7
|
|
Retained
earnings
|
|
6,626.0
|
|
|
6,329.6
|
|
Accumulated other
comprehensive loss
|
|
(5.7)
|
|
|
(6.8)
|
|
Common
shareholders' equity
|
|
10,767.1
|
|
|
10,469.7
|
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
|
30.4
|
|
Noncontrolling
interests
|
|
170.1
|
|
|
162.4
|
|
Total liabilities
and equity
|
|
$
|
37,600.6
|
|
|
$
|
37,028.1
|
|
WEC ENERGY GROUP,
INC.
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
Three Months
Ended
|
|
|
March 31
|
(in
millions)
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
510.3
|
|
|
$
|
452.6
|
|
Reconciliation to
cash provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
261.4
|
|
|
239.1
|
|
Deferred income taxes
and ITCs, net
|
|
129.6
|
|
|
92.1
|
|
Contributions and
payments related to pension and OPEB plans
|
|
(4.1)
|
|
|
(3.7)
|
|
Equity income in
transmission affiliates, net of distributions
|
|
(9.2)
|
|
|
0.8
|
|
Change in –
|
|
|
|
|
Accounts receivable
and unbilled revenues, net
|
|
(150.4)
|
|
|
(3.5)
|
|
Materials, supplies,
and inventories
|
|
175.1
|
|
|
158.7
|
|
Amounts recoverable
from customers
|
|
(286.7)
|
|
|
8.1
|
|
Other current
assets
|
|
20.2
|
|
|
57.3
|
|
Accounts
payable
|
|
(181.5)
|
|
|
(250.1)
|
|
Other current
liabilities
|
|
(2.3)
|
|
|
(27.7)
|
|
Other, net
|
|
(67.2)
|
|
|
(33.2)
|
|
Net cash provided
by operating activities
|
|
395.2
|
|
|
690.5
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
|
(470.6)
|
|
|
(496.1)
|
|
Acquisition of
Jayhawk Wind, LLC
|
|
(119.4)
|
|
|
—
|
|
Capital contributions
to transmission affiliates
|
|
—
|
|
|
(3.0)
|
|
Proceeds from the
sale of assets
|
|
11.3
|
|
|
1.3
|
|
Proceeds from the
sale of investments held in rabbi trust
|
|
12.7
|
|
|
17.0
|
|
Other, net
|
|
24.7
|
|
|
17.8
|
|
Net cash used in
investing activities
|
|
(541.3)
|
|
|
(463.0)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Exercise of stock
options
|
|
1.2
|
|
|
16.0
|
|
Purchase of common
stock
|
|
(6.6)
|
|
|
(40.4)
|
|
Dividends paid on
common stock
|
|
(213.7)
|
|
|
(199.5)
|
|
Issuance of long-term
debt
|
|
600.0
|
|
|
—
|
|
Retirement of
long-term debt
|
|
(14.7)
|
|
|
(14.0)
|
|
Issuance of
short-term loan
|
|
—
|
|
|
340.0
|
|
Repayment of
short-term loan
|
|
(340.0)
|
|
|
—
|
|
Change in other
short-term debt
|
|
143.5
|
|
|
(343.6)
|
|
Other, net
|
|
(6.6)
|
|
|
(2.6)
|
|
Net cash provided
by (used in) financing activities
|
|
163.1
|
|
|
(244.1)
|
|
|
|
|
|
|
Net change in
cash, cash equivalents, and restricted cash
|
|
17.0
|
|
|
(16.6)
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
72.6
|
|
|
82.3
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
89.6
|
|
|
$
|
65.7
|
|
View original
content:http://www.prnewswire.com/news-releases/wec-energy-group-reports-solid-first-quarter-results-301281424.html
SOURCE WEC Energy Group