MILWAUKEE, May 2, 2022
/PRNewswire/ -- WEC Energy Group (NYSE: WEC) today reported net
income of $565.9 million, or
$1.79 per share, for the first
quarter of 2022 — up from $510.1
million, or $1.61 per share,
for last year's first quarter.
Consolidated revenues totaled $2.9 billion,
up $216.7 million
from the first quarter a year ago.
"A colder than normal winter, a strong economy and the
performance of our infrastructure segment were the major
factors driving our first-quarter results," said Gale Klappa, executive chairman. "The year
is off to a solid start as we continue to focus on the fundamentals
of our business."
For the quarter, natural gas deliveries in Wisconsin — excluding natural gas used for
power generation — rose by 9.3 percent compared to the first
quarter of 2021. On a weather-normal basis, natural
gas deliveries were 3.6 percent higher.
Retail deliveries of electricity — excluding the iron ore mine
in Michigan's Upper Peninsula
— increased by 2.2 percent
in the first quarter
of 2022 compared to the first quarter
last year.
Residential electricity use rose by 1.3 percent.
Electricity consumption by small commercial and industrial
customers was 3.8 percent higher. Electricity use by large
commercial and industrial customers — excluding the iron ore mine
— rose by 1.4 percent.
On a weather-normal basis, retail deliveries of electricity —
excluding the iron ore mine —
grew by 0.7 percent.
In light of its strong performance, the company is raising its
earnings guidance for 2022, to a range of $4.34 to $4.38 per
share, with an expectation of reaching the top end of the new
range. This assumes normal weather for the remainder of the
year. The company had previously announced earnings
guidance for 2022 in a range of
$4.29
to $4.33 per share.
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 2. The call will review 2022 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
833-968-2232 up to 15 minutes before it begins. The number
for international callers is 825-312-2063. The
conference ID is 9378353.
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 2.
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 16,
2022. Domestic callers
should dial 800-585-8367. International callers should
dial 416-621-4642. The replay conference
ID is 9378353.
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 38,000 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 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 and to execute on its capital plan;
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; inflation; 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,
2021, 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
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)
|
|
Three Months Ended
|
|
March 31
|
(in millions, except
per share amounts)
|
|
2022
|
|
2021
|
Operating revenues
|
|
$
2,908.1
|
|
$
2,691.4
|
Operating expenses
|
|
|
|
|
Cost of sales
|
|
1,383.4
|
|
1,265.6
|
Other operation and maintenance
|
|
454.4
|
|
479.9
|
Depreciation and amortization
|
|
278.1
|
|
261.4
|
Property and
revenue taxes
|
|
60.8
|
|
55.2
|
Total operating expenses
|
|
2,176.7
|
|
2,062.1
|
|
|
|
|
|
Operating income
|
|
731.4
|
|
629.3
|
|
|
|
|
|
Equity in earnings of transmission affiliates
|
|
41.7
|
|
42.6
|
Other income, net
|
|
39.6
|
|
32.8
|
Interest expense
|
|
117.6
|
|
119.5
|
Other expense
|
|
(36.3)
|
|
(44.1)
|
|
|
|
|
|
Income before income taxes
|
|
695.1
|
|
585.2
|
Income tax expense
|
|
127.1
|
|
74.9
|
Net income
|
|
568.0
|
|
510.3
|
|
|
|
|
|
Preferred stock dividends of subsidiary
|
|
0.3
|
|
0.3
|
Net (income) loss attributed to noncontrolling interests
|
|
(1.8)
|
|
0.1
|
Net income attributed to common shareholders
|
|
$
565.9
|
|
$
510.1
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
Basic
|
|
$
1.79
|
|
$
1.62
|
Diluted
|
|
$
1.79
|
|
$
1.61
|
|
|
|
|
|
Weighted average common
shares outstanding
|
|
|
|
|
Basic
|
|
315.4
|
|
315.4
|
Diluted
|
|
316.2
|
|
316.2
|
|
|
|
|
|
Dividends per share
of common stock
|
|
$
0.7275
|
|
$
0.6775
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except
share and per
share amounts)
|
|
March 31, 2022
|
|
December 31,
2021
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
33.8
|
|
$
16.3
|
Accounts receivable and
unbilled revenues, net
of reserves of $200.6 and $198.3, respectively
|
|
1,635.7
|
|
1,505.7
|
Materials, supplies, and inventories
|
|
368.8
|
|
635.8
|
Prepayments
|
|
172.9
|
|
245.5
|
Derivative assets
|
|
204.3
|
|
107.0
|
Other
|
|
147.1
|
|
146.4
|
Current assets
|
|
2,562.6
|
|
2,656.7
|
|
|
|
|
|
Long-term assets
|
|
|
|
|
Property, plant, and equipment, net of accumulated depreciation and amortization of $10,041.4 and
$9,889.3, respectively
|
|
27,110.2
|
|
26,982.4
|
Regulatory assets (March 31, 2022 and December 31, 2021 include
$98.2 and $100.7, respectively,
related to WEPCo Environmental Trust Finance I,
LLC)
|
|
3,163.6
|
|
3,264.8
|
Equity investment in transmission affiliates
|
|
1,818.2
|
|
1,789.4
|
Goodwill
|
|
3,052.8
|
|
3,052.8
|
Pension and OPEB assets
|
|
910.2
|
|
881.3
|
Other
|
|
356.9
|
|
361.1
|
Long-term assets
|
|
36,411.9
|
|
36,331.8
|
Total assets
|
|
$
38,974.5
|
|
$
38,988.5
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term debt
|
|
$
1,450.0
|
|
$
1,897.0
|
Current portion of long-term debt (March 31, 2022 and
December 31, 2021
include $8.8, related to WEPCo Environmental Trust
Finance I, LLC)
|
|
163.4
|
|
169.4
|
Accounts
payable
|
|
693.7
|
|
1,005.7
|
Other
|
|
957.3
|
|
680.9
|
Current liabilities
|
|
3,264.4
|
|
3,753.0
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
Long-term debt (March 31, 2022 and December 31, 2021 include
$102.8 and $102.7,
respectively, related to WEPCo
Environmental Trust Finance I, LLC)
|
|
13,514.3
|
|
13,523.7
|
Deferred income taxes
|
|
4,426.2
|
|
4,308.5
|
Deferred revenue, net
|
|
383.8
|
|
389.2
|
Regulatory liabilities
|
|
4,032.6
|
|
3,946.0
|
Environmental remediation liabilities
|
|
517.2
|
|
532.6
|
Pension and OPEB obligations
|
|
218.5
|
|
219.0
|
Other
|
|
1,173.0
|
|
1,203.2
|
Long-term liabilities
|
|
24,265.6
|
|
24,122.2
|
|
|
|
|
|
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
|
|
4,131.8
|
|
4,138.1
|
Retained earnings
|
|
7,111.4
|
|
6,775.1
|
Accumulated other
comprehensive loss
|
|
(3.2)
|
|
(3.2)
|
Common shareholders' equity
|
|
11,243.2
|
|
10,913.2
|
|
|
|
|
|
Preferred stock of subsidiary
|
|
30.4
|
|
30.4
|
Noncontrolling interests
|
|
170.9
|
|
169.7
|
Total liabilities and equity
|
|
$
38,974.5
|
|
$
38,988.5
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
Three Months Ended
|
|
March 31
|
(in millions)
|
2022
|
2021
|
Operating activities
|
|
|
Net income
|
$
568.0
|
$
510.3
|
Reconciliation to cash
provided by operating activities
|
|
|
Depreciation and amortization
|
278.1
|
261.4
|
Deferred income taxes
and ITCs, net
|
103.8
|
129.6
|
Contributions and payments related to pension and OPEB plans
|
(3.6)
|
(4.1)
|
Equity income in transmission affiliates, net of distributions
|
(7.7)
|
(9.2)
|
Change in –
|
|
|
Accounts receivable and
unbilled revenues, net
|
(174.3)
|
(150.4)
|
Materials, supplies, and inventories
|
267.0
|
175.1
|
Prepayments
|
72.6
|
4.6
|
Amounts recoverable from
customers
|
10.3
|
(286.7)
|
Other current assets
|
1.1
|
15.6
|
Accounts payable
|
(293.8)
|
(181.5)
|
Other current liabilities
|
289.5
|
(2.3)
|
Other, net
|
(34.2)
|
(67.2)
|
Net cash provided by operating activities
|
1,076.8
|
395.2
|
|
|
|
Investing activities
|
|
|
Capital expenditures
|
(383.5)
|
(470.6)
|
Acquisition of Jayhawk Wind, LLC
|
—
|
(119.4)
|
Capital contributions to transmission affiliates
|
(21.1)
|
—
|
Proceeds from the sale of assets
|
9.7
|
11.3
|
Proceeds from the sale of investments held
in rabbi trust
|
15.4
|
12.7
|
Insurance proceeds received for property damage
|
41.0
|
—
|
Other, net
|
0.3
|
24.7
|
Net cash used in investing activities
|
(338.2)
|
(541.3)
|
|
|
|
Financing activities
|
|
|
Exercise of stock options
|
11.8
|
1.2
|
Purchase of common stock
|
(23.4)
|
(6.6)
|
Dividends paid on common stock
|
(229.6)
|
(213.7)
|
Issuance of long-term debt
|
—
|
600.0
|
Retirement of long-term debt
|
(15.4)
|
(14.7)
|
Issuance of short-term loan
|
0.9
|
—
|
Repayment of short-term loan
|
—
|
(340.0)
|
Change in other
short-term debt
|
(447.9)
|
143.5
|
Other, net
|
(2.9)
|
(6.6)
|
Net cash provided by (used in)
financing activities
|
(706.5)
|
163.1
|
|
|
|
Net change in cash, cash
equivalents, and restricted cash
|
32.1
|
17.0
|
Cash, cash equivalents, and restricted cash
at beginning of period
|
87.5
|
72.6
|
Cash, cash equivalents, and restricted cash
at end of period
|
$
119.6
|
$
89.6
|
View original
content:https://www.prnewswire.com/news-releases/wec-energy-group-reports-first-quarter-results-301536687.html
SOURCE WEC Energy Group