Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):

October 31, 2023

____________________

Commission
File Number

Registrant; State of Incorporation;
Address; and Telephone Number

IRS Employer
Identification No.

001-09057

WEC ENERGY GROUP, INC.

39-1391525

(A Wisconsin Corporation)

231 West Michigan Street

P.O. Box 1331

Milwaukee, WI 53201

(414) 221-2345

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 Par Value

WEC

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On Tuesday, October 31, 2023, WEC Energy Group, Inc. issued a press release announcing its financial results for the quarter and nine months ended September 30, 2023. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached hereto and incorporated herein by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1 Press Release dated October 31, 2023.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



			WEC ENERGY GROUP, INC.
			(Registrant)

			/s/ WILLIAM J. GUC
October 31, 2023			William J. Guc, Vice President and Controller

Exhibit 99.1

From: Brendan Conway (news media)

414-221-4444

brendan.conway@wecenergygroup.com

Beth Straka (investment community)

414-221-4639

beth.straka@wecenergygroup.com

October 31, 2023

WEC Energy Group reports third-quarter results

MILWAUKEE – WEC Energy Group (NYSE: WEC) today reported net income of $316.0 million, or $1.00 per share, for the third quarter of 2023 – up from $302.0 million, or 96 cents per share, in last year's third quarter.

For the first nine months of 2023, the company recorded net income of $1.11 billion, or $3.52 per share – down from $1.16 billion, or $3.65 per share, in the corresponding period a year ago.

Consolidated revenues totaled $6.7 billion for the first nine months of 2023, down $363.5 million from revenues for the first nine months of 2022.

“We delivered another solid quarter, and we're on track for a strong 2023,” said Gale Klappa, executive chairman. “Our focus remains on the fundamentals of our business – reliability, customer satisfaction, environmental progress and financial discipline – creating value for our customers and stockholders.”

Retail deliveries of electricity – excluding the iron ore mine in Michigan’s Upper Peninsula – were down by 1.3 percent in the third quarter of 2023, compared to the third quarter last year.

Electricity consumption by small commercial and industrial customers was flat. Electricity use by large commercial and industrial customers – excluding the iron ore mine – declined by 4.1 percent.

Residential electricity use rose by 0.1 percent.

On a weather-normal basis, retail deliveries of electricity during the third quarter of this year – excluding the iron ore mine – decreased by 0.8 percent.

Exhibit 99.1

The company is reaffirming its 2023 annual earnings guidance of $4.58 to $4.62 per share, with an expectation of completing the year in the upper half 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, Oct. 31. The call will review 2023 third-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 'Q3 Earnings.' In conjunction with this earnings announcement, WEC Energy Group will post on its website a package of detailed financial information on its third-quarter performance. The materials will be available at 6:30 a.m. Central time, Tuesday, Oct. 31.

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 Nov. 14, 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 36,000 stockholders of record, 7,000 employees and more than $43 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

Exhibit 99.1

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; 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; terrorist, physical or cyber-security threats or attacks and data security breaches; construction risks; labor disruptions; 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 in rate setting policies or procedures and to environmental standards, the enforcement of these laws and regulations or permit conditions, 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 ongoing global conflicts; 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

Exhibit 99.1

WEC ENERGY GROUP, INC.


CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)	Three Months Ended				Nine Months Ended
	September 30				September 30
(in millions, except per share amounts)	2023		2022		2023		2022
Operating revenues	$	1,957.4	$	2,003.0	$	6,675.5	$	7,039.0

Operating expenses
Cost of sales	587.4		805.1		2,430.1		3,123.5
Other operation and maintenance	516.6		454.3		1,546.6		1,357.7
Depreciation and amortization	320.3		280.3		939.7		838.0
Property and revenue taxes	61.1		59.1		192.5		176.0
Total operating expenses	1,485.4		1,598.8		5,108.9		5,495.2

Operating income	472.0		404.2		1,566.6		1,543.8

Equity in earnings of transmission affiliates	44.7		63.7		132.1		148.4
Other income, net	41.8		34.7		130.9		94.1
Interest expense	182.5		127.5		533.4		364.9
Other expense	(96.0)		(29.1)		(270.4)		(122.4)

Income before income taxes	376.0		375.1		1,296.2		1,421.4
Income tax expense	60.4		73.4		183.0		263.9
Net income	315.6		301.7		1,113.2		1,157.5

Preferred stock dividends of subsidiary	0.3		0.3		0.9		0.9
Net loss (income) attributed to noncontrolling interests	0.7		0.6		0.9		(1.2)
Net income attributed to common shareholders	$	316.0	$	302.0	$	1,113.2	$	1,155.4

Earnings per share
Basic	$	1.00	$	0.96	$	3.53	$	3.66
Diluted	$	1.00	$	0.96	$	3.52	$	3.65

Weighted average common shares outstanding
Basic	315.4		315.4		315.4		315.4
Diluted	315.8		316.2		315.9		316.2

Dividends per share of common stock	$	0.7800	$	0.7275	$	2.3400	$	2.1825

Exhibit 99.1

WEC ENERGY GROUP, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share and per share amounts)	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	45.9	$	28.9
Accounts receivable and unbilled revenues, net of reserves of $176.8 and $199.3, respectively	1,243.2		1,818.4
Materials, supplies, and inventories	749.9		807.1

Prepaid taxes	157.8		201.8
Other prepayments	40.6		69.8
Collateral on deposit	118.4		122.4
Other	87.8		139.3
Current assets	2,443.6		3,187.7

Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $10,914.6 and $10,383.8, respectively	31,467.5		29,113.8
Regulatory assets (September 30, 2023 and December 31, 2022 include $87.5 and $92.4, respectively, related to WEPCo Environmental Trust Finance I, LLC)	3,197.1		3,264.6
Equity investment in transmission affiliates	1,983.8		1,909.2
Goodwill	3,052.8		3,052.8
Pension and OPEB assets	918.7		916.7
Other	378.2		427.3
Long-term assets	40,998.1		38,684.4
Total assets	$	43,441.7	$	41,872.1

Liabilities and Equity
Current liabilities
Short-term debt	$	1,549.3	$	1,647.1
Current portion of long-term debt (September 30, 2023 and December 31, 2022 include $9.0 and $8.9, respectively, related to WEPCo Environmental Trust Finance I, LLC)	712.9		881.2
Accounts payable	867.7		1,198.1

Other	943.8		884.6
Current liabilities	4,073.7		4,611.0

Long-term liabilities
Long-term debt (September 30, 2023 and December 31, 2022 include $89.8 and $94.1, respectively, related to WEPCo Environmental Trust Finance I, LLC)	15,956.5		14,766.2
Deferred income taxes	4,832.2		4,625.6
Deferred revenue, net	360.4		370.7
Regulatory liabilities	3,720.0		3,735.5
Intangible liabilities	608.2		335.4
Asset retirement obligations	505.5		479.3
Environmental remediation liabilities	456.6		499.6
Other	828.3		832.2
Long-term liabilities	27,267.7		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	4,116.4		4,115.2
Retained earnings	7,640.4		7,265.3
Accumulated other comprehensive loss	(7.0)		(6.8)
Common shareholders' equity	11,753.0		11,376.9

Preferred stock of subsidiary	30.4		30.4
Noncontrolling interests	316.9		209.3
Total liabilities and equity	$	43,441.7	$	41,872.1

Exhibit 99.1

WEC ENERGY GROUP, INC.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)	Nine Months Ended
	September 30
(in millions)	2023		2022
Operating activities
Net income	$	1,113.2	$	1,157.5
Reconciliation to cash provided by operating activities
Depreciation and amortization	939.7		838.0
Deferred income taxes and ITCs, net	155.9		187.8
Contributions and payments related to pension and OPEB plans	(13.0)		(11.6)
Equity income in transmission affiliates, net of distributions	(23.1)		(47.1)
Change in –
Accounts receivable and unbilled revenues, net	600.7		150.9
Materials, supplies, and inventories	67.2		(288.8)
Prepaid taxes	43.6		57.8
Other current assets	64.7		45.4
Accounts payable	(350.6)		82.2
Other current liabilities	52.3		68.5
Other, net	(112.2)		(181.1)
Net cash provided by operating activities	2,538.4		2,059.5

Investing activities
Capital expenditures	(1,729.5)		(1,700.7)
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)		—
Acquisition of Red Barn Wind Park	(143.8)		—
Acquisition of West Riverside Energy Center	(95.3)		—
Acquisition of Thunderhead Wind Energy LLC, net of cash acquired of $0.5	—		(362.9)
Capital contributions to transmission affiliates	(51.5)		(39.4)
Proceeds from the sale of assets	30.4		69.0
Proceeds from the sale of investments held in rabbi trust	10.4		15.4
Payments for American Transmission Company LLC's construction costs that will be reimbursed	(19.5)		(20.6)
Insurance proceeds received for property damage	0.5		41.6
Other, net	(5.4)		11.7
Net cash used in investing activities	(2,771.7)		(1,985.9)

Financing activities
Exercise of stock options	3.0		33.1
Purchase of common stock	(10.7)		(68.3)
Dividends paid on common stock	(738.1)		(688.5)
Issuance of long-term debt	2,050.0		1,400.0
Retirement of long-term debt	(996.0)		(64.9)
Change in commercial paper	(98.2)		(640.2)
Payments for debt issuance costs	(13.0)		(9.1)
Other, net	(4.5)		(7.2)
Net cash provided by (used in) financing activities	192.5		(45.1)

Net change in cash, cash equivalents, and restricted cash	(40.8)		28.5
Cash, cash equivalents, and restricted cash at beginning of period	182.2		87.5
Cash, cash equivalents, and restricted cash at end of period	$	141.4	$	116.0

Cover Page	Oct. 31, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 31, 2023
Entity File Number	001-09057
Entity Registrant Name	WEC ENERGY GROUP, INC.
Entity Tax Identification Number	39-1391525
Entity Incorporation, State or Country Code	WI
Entity Address, Address Line One	231 West Michigan Street
Entity Address, Address Line Two	P.O. Box 1331
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53201
City Area Code	414
Local Phone Number	221-2345
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $.01 Par Value
Trading Symbol	WEC
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000783325
Amendment Flag	false