MILWAUKEE, May 1, 2023 /PRNewswire/ -- WEC
Energy Group (NYSE: WEC) today reported net income of $507.5 million, or $1.61 per share, for the first quarter of 2023 —
down from $565.9 million, or
$1.79 per share, in last year's first
quarter.
Consolidated revenues totaled $2.9 billion, down $20.0 million
from the first quarter a year ago.
"We experienced one of the mildest winters in history. For
example, this was the second- warmest first quarter in Milwaukee since 1891," said Gale Klappa, executive chairman. "We continue to
focus on the fundamentals of our business — financial discipline,
operating
efficiency, and customer satisfaction. And we're confident that we can deliver another
year of strong results, in line with our original guidance for
2023."
For the quarter, natural gas deliveries in Wisconsin — excluding natural gas used for
power generation — fell by 10.5 percent
compared to the first quarter of 2022. On a weather-normal
basis, natural gas deliveries were 1.0 percent lower.
Retail deliveries of electricity — excluding the iron ore mine
in Michigan's Upper Peninsula — were down by 4.4
percent in the first quarter of 2023, compared to the first quarter
last year.
Electricity consumption by small commercial and industrial
customers was 3.4 percent lower.
Electricity use by large commercial and industrial customers
— excluding the iron ore mine — declined
by 3.9 percent.
Residential electricity use fell by 5.8
percent.
On a weather-normal basis,
retail deliveries of electricity — excluding the iron ore mine
— decreased by 1.9 percent.
The
company is reaffirming its 2023 annual
earnings guidance of $4.58 to $4.62 per share,
assuming 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 1. The call will review 2023
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 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 '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 1.
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 15, 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 37,000 stockholders of
record, 7,000 employees and more than $42
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; natural gas reduction or
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; 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, state, and local
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
or geopolitical developments, including impacts on the global
economy, supply chain and fuel prices, generally, from the ongoing
conflict between Russia and
Ukraine; 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
|
|
March 31
|
(in millions, except per share
amounts)
|
|
2023
|
|
2022
|
Operating revenues
|
|
$
2,888.1
|
|
$
2,908.1
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
Cost of
sales
|
|
1,309.7
|
|
1,383.4
|
Other operation and
maintenance
|
|
534.0
|
|
454.4
|
Depreciation and
amortization
|
|
305.5
|
|
278.1
|
Property and revenue
taxes
|
|
69.6
|
|
60.8
|
Total operating expenses
|
|
2,218.8
|
|
2,176.7
|
|
|
|
|
|
Operating income
|
|
669.3
|
|
731.4
|
|
|
|
|
|
Equity in earnings of
transmission affiliates
|
|
43.8
|
|
41.7
|
Other income,
net
|
|
40.8
|
|
39.6
|
Interest
expense
|
|
172.2
|
|
117.6
|
Other expense
|
|
(87.6)
|
|
(36.3)
|
|
|
|
|
|
Income before income
taxes
|
|
581.7
|
|
695.1
|
Income tax
expense
|
|
74.1
|
|
127.1
|
Net income
|
|
507.6
|
|
568.0
|
|
|
|
|
|
Preferred stock
dividends of subsidiary
|
|
0.3
|
|
0.3
|
Net loss (income)
attributed to noncontrolling interests
|
|
0.2
|
|
(1.8)
|
Net income attributed to common
shareholders
|
|
$
507.5
|
|
$
565.9
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
Basic
|
|
$
1.61
|
|
$
1.79
|
Diluted
|
|
$
1.61
|
|
$
1.79
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
|
|
|
Basic
|
|
315.4
|
|
315.4
|
Diluted
|
|
315.9
|
|
316.2
|
|
|
|
|
|
Dividends per share of common
stock
|
|
$
0.7800
|
|
$
0.7275
|
WEC ENERGY GROUP, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except share and per share
amounts)
|
|
March 31, 2023
|
|
December 31, 2022
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
35.7
|
|
$
28.9
|
Accounts receivable and
unbilled revenues, net of reserves of $213.8 and $199.3,
respectively
|
|
1,780.6
|
|
1,818.4
|
Materials, supplies,
and inventories
|
|
523.5
|
|
807.1
|
Prepaid
taxes
|
|
153.0
|
|
201.8
|
Other
prepayments
|
|
64.9
|
|
69.8
|
Collateral on
deposit
|
|
214.2
|
|
122.4
|
Other
|
|
66.6
|
|
139.3
|
Current assets
|
|
2,838.5
|
|
3,187.7
|
|
|
|
|
|
Long-term assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$10,532.3
and $10,383.8, respectively
|
|
30,379.4
|
|
29,113.8
|
Regulatory assets
(March 31, 2023 and December 31, 2022 include $90.9 and $92.4,
respectively,
related to WEPCo Environmental Trust Finance I, LLC)
|
|
3,313.1
|
|
3,264.6
|
Equity investment in
transmission affiliates
|
|
1,921.7
|
|
1,909.2
|
Goodwill
|
|
3,052.8
|
|
3,052.8
|
Pension and OPEB
assets
|
|
933.4
|
|
916.7
|
Other
|
|
357.0
|
|
427.3
|
Long-term assets
|
|
39,957.4
|
|
38,684.4
|
Total assets
|
|
$
42,795.9
|
|
$
41,872.1
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term
debt
|
|
$
1,261.2
|
|
$
1,647.1
|
Current portion of
long-term debt (March 31, 2023 and December 31, 2022 each include
$8.9
related to WEPCo Environmental Trust Finance I, LLC)
|
|
808.2
|
|
881.2
|
Accounts
payable
|
|
680.0
|
|
1,198.1
|
Other
|
|
1,016.4
|
|
884.6
|
Current liabilities
|
|
3,765.8
|
|
4,611.0
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
Long-term debt (March
31, 2023 and December 31, 2022 each include $94.1 related to
WEPCo
Environmental Trust Finance I, LLC)
|
|
15,827.3
|
|
14,766.2
|
Deferred income
taxes
|
|
4,703.2
|
|
4,625.6
|
Deferred revenue,
net
|
|
367.0
|
|
370.7
|
Regulatory
liabilities
|
|
3,689.8
|
|
3,735.5
|
Environmental
remediation liabilities
|
|
491.7
|
|
499.6
|
Pension and OPEB
obligations
|
|
168.5
|
|
171.6
|
Other
|
|
1,794.9
|
|
1,475.3
|
Long-term liabilities
|
|
27,042.4
|
|
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
|
|
4,113.6
|
|
4,115.2
|
Retained
earnings
|
|
7,526.7
|
|
7,265.3
|
Accumulated other
comprehensive loss
|
|
(6.9)
|
|
(6.8)
|
Common shareholders' equity
|
|
11,636.6
|
|
11,376.9
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
30.4
|
Noncontrolling
interests
|
|
320.7
|
|
209.3
|
Total liabilities and equity
|
|
$
42,795.9
|
|
$
41,872.1
|
WEC ENERGY GROUP, INC.
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Three Months Ended
|
|
|
March 31
|
(in millions)
|
|
2023
|
|
2022
|
Operating activities
|
|
|
|
|
Net income
|
|
$
507.6
|
|
$
568.0
|
Reconciliation to cash
provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
305.5
|
|
278.1
|
Deferred income taxes
and ITCs, net
|
|
56.5
|
|
103.8
|
Contributions and
payments related to pension and OPEB plans
|
|
(5.5)
|
|
(3.6)
|
Equity income in
transmission affiliates, net of distributions
|
|
(6.4)
|
|
(7.7)
|
Change in –
|
|
|
|
|
Accounts receivable
and unbilled revenues, net
|
|
60.7
|
|
(174.3)
|
Materials, supplies,
and inventories
|
|
293.6
|
|
267.0
|
Prepaid
taxes
|
|
48.8
|
|
62.5
|
Collateral on
deposit
|
|
(91.8)
|
|
0.2
|
Other current
assets
|
|
40.6
|
|
21.3
|
Accounts
payable
|
|
(424.7)
|
|
(293.8)
|
Temporary LIFO
liquidation credit
|
|
43.8
|
|
130.7
|
Collateral
received
|
|
—
|
|
132.5
|
Other current
liabilities
|
|
19.9
|
|
26.3
|
Other, net
|
|
(52.5)
|
|
(34.2)
|
Net cash provided by operating
activities
|
|
796.1
|
|
1,076.8
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Capital
expenditures
|
|
(499.4)
|
|
(383.5)
|
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)
|
|
—
|
Capital contributions
to transmission affiliates
|
|
(6.1)
|
|
(21.1)
|
Proceeds from the sale
of assets
|
|
4.6
|
|
9.7
|
Proceeds from the sale
of investments held in rabbi trust
|
|
10.4
|
|
15.4
|
Insurance proceeds
received for property damage
|
|
—
|
|
41.0
|
Other, net
|
|
(9.4)
|
|
0.3
|
Net cash used in investing
activities
|
|
(1,267.9)
|
|
(338.2)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Exercise of stock
options
|
|
0.9
|
|
11.8
|
Purchase of common
stock
|
|
(6.9)
|
|
(23.4)
|
Dividends paid on
common stock
|
|
(246.1)
|
|
(229.6)
|
Issuance of long-term
debt
|
|
1,100.0
|
|
—
|
Retirement of long-term
debt
|
|
(35.2)
|
|
(15.4)
|
Change in commercial
paper
|
|
(385.4)
|
|
(447.9)
|
Payments for debt
issuance costs
|
|
(7.0)
|
|
(0.8)
|
Other, net
|
|
(2.7)
|
|
(1.2)
|
Net cash provided by (used in) financing
activities
|
|
417.6
|
|
(706.5)
|
|
|
|
|
|
Net change in cash, cash equivalents, and restricted
cash
|
|
(54.2)
|
|
32.1
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
|
182.2
|
|
87.5
|
Cash, cash equivalents, and restricted cash at end of
period
|
|
$
128.0
|
|
$
119.6
|
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SOURCE WEC Energy Group