MILWAUKEE, Feb. 3, 2022 /PRNewswire/ -- WEC Energy Group
(NYSE: WEC) today reported net income of $1.3 billion, or $4.11 per share, for 2021. This compares to
earnings of $1.2 billion, or
$3.79 per share, for 2020 — a
year-over-year increase of 8.4 percent.
For the fourth quarter of 2021, WEC Energy Group recorded net
income of $224.2 million, or
71 cents per share. This compares to
earnings of $239.0 million, or
76 cents per share, for the fourth
quarter of 2020.
Consolidated revenues totaled $8.3
billion for 2021, up $1.1
billion compared to 2020 revenues.
"Across the board – from operational efficiency to customer care
to financial performance – the company continues to deliver
exceptional results," said Gale
Klappa, executive chairman. "And during 2021, our plan
to invest in the future of clean energy continued to gain
momentum," Klappa added. "We now expect our use of coal for
power generation to be immaterial by the end of 2030, with a
complete exit from coal by 2035."
WEC Energy Group was again recognized in 2021 as one of
America's Most Responsible Companies by Newsweek. WEC Energy also
ranked number one in the nation for customer satisfaction in an
independent survey of large commercial and industrial energy
users. The company's largest utility, We Energies, received
an Edison Electric Institute Emergency Response Award for restoring
power to more than 210,000 customers after a severe storm hit
Wisconsin in August.
For the full year, retail deliveries of electricity – excluding
the iron ore mine in Michigan's
Upper Peninsula – were up by 3.0 percent.
Electricity consumption by small commercial and industrial
customers was 4.4 percent higher during 2021. Electricity use by
large commercial and industrial customers – excluding the iron ore
mine — rose by 5.3 percent.
Residential electricity use was down by 0.6 percent.
On a weather-normal basis, retail deliveries of electricity
during 2021 — excluding the iron ore mine — increased by 2.6
percent.
Natural gas deliveries in Wisconsin, excluding natural gas used for
power generation, decreased by 1.3 percent during 2021. On a
weather-normal basis, natural gas deliveries were 0.3 percent lower
during the year.
The company reaffirmed its earnings guidance for 2022. Calendar
year 2022 earnings are expected to be in a range of $4.29 to $4.33 per
share. The midpoint of the range is $4.31 per share, which represents growth of 7.5
percent from the midpoint of the company's original guidance for
2021.
On Jan. 20, the board of directors
declared a quarterly cash dividend of 72.75
cents per share on the company's common stock, an increase
of 7.4 percent over the previous year's quarterly dividend.
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, Thursday, Feb.
3. The call will review 2021 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
833-968-2232 up to 15 minutes before it begins. The number for
international callers is 825-312-2063. The conference ID is
6976928.
Conference call access also is available at wecenergygroup.com.
Under 'Webcasts,' select 'Year-End Earnings'. In conjunction with
this earnings announcement, WEC Energy Group will post on its
website a package of detailed financial information on its 2021
performance. The materials will be available at 6:30 a.m.
Central time, Thursday, Feb. 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 Feb. 17, 2022.
Domestic callers should dial 800-585-8367. International
callers should dial 416-621-4642. The replay conference ID is
6976928.
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 39,000 stockholders of record, 7,000 employees and
$39 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; 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; federal and state legislative and
regulatory changes, including changes to environmental standards,
the enforcement of these laws and regulations and changes in the
interpretation of regulations by regulatory agencies; supply chain
disruptions; 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.
|
|
CONSOLIDATED
INCOME STATEMENTS (Unaudited)
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31
|
|
December 31
|
(in millions,
except per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
revenues
|
|
$
2,201.9
|
|
$
1,933.4
|
|
$
8,316.0
|
|
$
7,241.7
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
958.8
|
|
657.5
|
|
3,311.0
|
|
2,319.5
|
Other operation and
maintenance
|
|
588.1
|
|
604.7
|
|
2,005.5
|
|
2,032.2
|
Depreciation and
amortization
|
|
275.1
|
|
249.3
|
|
1,074.3
|
|
975.9
|
Property and revenue
taxes
|
|
53.1
|
|
51.4
|
|
210.3
|
|
208.0
|
Total operating
expenses
|
|
1,875.1
|
|
1,562.9
|
|
6,601.1
|
|
5,535.6
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
326.8
|
|
370.5
|
|
1,714.9
|
|
1,706.1
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
transmission affiliates
|
|
31.9
|
|
43.0
|
|
158.1
|
|
175.8
|
Other income,
net
|
|
35.5
|
|
19.6
|
|
133.2
|
|
79.5
|
Interest
expense
|
|
113.6
|
|
117.9
|
|
471.1
|
|
493.7
|
Loss on debt
extinguishment
|
|
36.3
|
|
38.4
|
|
36.3
|
|
38.4
|
Other
expense
|
|
(82.5)
|
|
(93.7)
|
|
(216.1)
|
|
(276.8)
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
244.3
|
|
276.8
|
|
1,498.8
|
|
1,429.3
|
Income tax
expense
|
|
20.5
|
|
37.2
|
|
200.3
|
|
227.9
|
Net
income
|
|
223.8
|
|
239.6
|
|
1,298.5
|
|
1,201.4
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends of subsidiary
|
|
0.3
|
|
0.3
|
|
1.2
|
|
1.2
|
Net (income) loss
attributed to noncontrolling interests
|
|
0.7
|
|
(0.3)
|
|
3.0
|
|
(0.3)
|
Net income
attributed to common shareholders
|
|
$
224.2
|
|
$
239.0
|
|
$
1,300.3
|
|
$
1,199.9
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.71
|
|
$
0.76
|
|
$
4.12
|
|
$
3.80
|
Diluted
|
|
$
0.71
|
|
$
0.76
|
|
$
4.11
|
|
$
3.79
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
315.4
|
|
315.4
|
|
315.4
|
|
315.4
|
Diluted
|
|
316.2
|
|
316.5
|
|
316.3
|
|
316.5
|
|
|
|
|
|
|
|
|
|
Dividends per
share of common stock
|
|
$
0.6775
|
|
$
0.6325
|
|
$
2.7100
|
|
$
2.5300
|
WEC ENERGY GROUP,
INC.
|
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
|
December
31,
|
|
December
31,
|
(in millions,
except share and per share amounts)
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
16.3
|
|
$
24.8
|
Accounts receivable
and unbilled revenues, net of reserves of $198.3 and $220.1,
respectively
|
|
1,505.7
|
|
1,202.8
|
Materials, supplies,
and inventories
|
|
635.8
|
|
528.6
|
Prepayments
|
|
245.5
|
|
263.4
|
Other
|
|
253.4
|
|
63.4
|
Current
assets
|
|
2,656.7
|
|
2,083.0
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$9,889.3 and
$9,364.7, respectively
|
|
26,982.4
|
|
25,707.4
|
Regulatory assets
(December 31, 2021 includes $100.7 related to WEPCo Environmental
Trust Finance I,
LLC)
|
|
3,264.8
|
|
3,524.1
|
Equity investment in
transmission affiliates
|
|
1,789.4
|
|
1,764.3
|
Goodwill
|
|
3,052.8
|
|
3,052.8
|
Pension and OPEB
assets
|
|
881.3
|
|
600.9
|
Other
|
|
361.1
|
|
295.6
|
Long-term
assets
|
|
36,331.8
|
|
34,945.1
|
Total
assets
|
|
$
38,988.5
|
|
$
37,028.1
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
1,897.0
|
|
$
1,776.9
|
Current portion of
long-term debt (December 31, 2021 includes $8.8 related to WEPCo
Environmental Trust
Finance I, LLC)
|
|
169.4
|
|
785.8
|
Accounts
payable
|
|
1,005.7
|
|
880.7
|
Other
|
|
680.9
|
|
704.7
|
Current
liabilities
|
|
3,753.0
|
|
4,148.1
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Long-term debt
(December 31, 2021 includes $102.7 related to WEPCo Environmental
Trust Finance I, LLC)
|
|
13,523.7
|
|
11,728.1
|
Deferred income
taxes
|
|
4,308.5
|
|
4,059.8
|
Deferred revenue,
net
|
|
389.2
|
|
412.2
|
Regulatory
liabilities
|
|
3,946.0
|
|
3,928.1
|
Environmental
remediation liabilities
|
|
532.6
|
|
532.9
|
Pension and OPEB
obligations
|
|
219.0
|
|
327.0
|
Other
|
|
1,203.2
|
|
1,229.4
|
Long-term
liabilities
|
|
24,122.2
|
|
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
|
|
4,138.1
|
|
4,143.7
|
Retained
earnings
|
|
6,775.1
|
|
6,329.6
|
Accumulated other
comprehensive loss
|
|
(3.2)
|
|
(6.8)
|
Common
shareholders' equity
|
|
10,913.2
|
|
10,469.7
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
30.4
|
Noncontrolling
interests
|
|
169.7
|
|
162.4
|
Total liabilities
and equity
|
|
$
38,988.5
|
|
$
37,028.1
|
WEC ENERGY GROUP,
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
|
|
Year
Ended
|
|
|
December
31
|
(in
millions)
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
1,298.5
|
|
$
1,201.4
|
Reconciliation to
cash provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
1,074.3
|
|
975.9
|
Deferred income taxes
and ITCs, net
|
|
151.1
|
|
209.4
|
Contributions and
payments related to pension and OPEB plans
|
|
(66.3)
|
|
(113.2)
|
Equity income in
transmission affiliates, net of distributions
|
|
(25.1)
|
|
(29.1)
|
Change in –
|
|
|
|
|
Accounts receivable
and unbilled revenues, net
|
|
(249.2)
|
|
16.1
|
Materials, supplies,
and inventories
|
|
(107.2)
|
|
21.2
|
Amounts recoverable
from customers
|
|
(82.3)
|
|
0.9
|
Other current
assets
|
|
22.2
|
|
12.5
|
Accounts
payable
|
|
126.9
|
|
(61.3)
|
Other current
liabilities
|
|
(17.2)
|
|
(41.2)
|
Other, net
|
|
(93.0)
|
|
3.4
|
Net cash provided
by operating activities
|
|
2,032.7
|
|
2,196.0
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
|
(2,252.8)
|
|
(2,238.8)
|
Acquisition of
Jayhawk Wind, LLC
|
|
(119.9)
|
|
—
|
Acquisition of
Blooming Grove Wind Energy Center LLC, net of restricted cash
acquired of $24.1
|
|
—
|
|
(364.6)
|
Acquisition of
Tatanka Ridge Wind LLC
|
|
—
|
|
(239.9)
|
Capital contributions
to transmission affiliates
|
|
—
|
|
(21.2)
|
Proceeds from the
sale of assets and businesses
|
|
21.9
|
|
20.3
|
Proceeds from the
sale of investments held in rabbi trust
|
|
18.7
|
|
56.2
|
Purchase of
investments held in rabbi trust
|
|
—
|
|
(37.8)
|
Insurance proceeds
received for property damage
|
|
—
|
|
23.2
|
Other, net
|
|
20.3
|
|
(4.2)
|
Net cash used in
investing activities
|
|
(2,311.8)
|
|
(2,806.8)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Exercise of stock
options
|
|
15.7
|
|
43.8
|
Purchase of common
stock
|
|
(33.1)
|
|
(99.2)
|
Dividends paid on
common stock
|
|
(854.8)
|
|
(798.0)
|
Issuance of long-term
debt
|
|
2,383.8
|
|
2,373.6
|
Retirement of
long-term debt
|
|
(1,260.4)
|
|
(1,767.0)
|
Issuance of
short-term loan
|
|
0.9
|
|
340.0
|
Repayment of
short-term loan
|
|
(340.0)
|
|
—
|
Change in other
short-term debt
|
|
459.2
|
|
606.1
|
Payments for debt
extinguishment and issuance costs
|
|
(67.2)
|
|
(55.8)
|
Purchase of
additional ownership interest in Upstream Wind Energy LLC from
noncontrolling interest
|
|
—
|
|
(31.0)
|
Other, net
|
|
(10.1)
|
|
(11.4)
|
Net cash provided
by financing activities
|
|
294.0
|
|
601.1
|
|
|
|
|
|
Net change in
cash, cash equivalents, and restricted cash
|
|
14.9
|
|
(9.7)
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
|
72.6
|
|
82.3
|
Cash, cash
equivalents, and restricted cash at end of year
|
|
$
87.5
|
|
$
72.6
|
View original
content:https://www.prnewswire.com/news-releases/wec-energy-group-posts-2021-results-301474786.html
SOURCE WEC Energy Group