MILWAUKEE, Aug. 1, 2023
/PRNewswire/ -- WEC Energy Group (NYSE: WEC) today reported net
income of $289.7 million, or
92 cents per share, for the second
quarter of 2023 — up from $287.5
million, or 91 cents per
share, in last year's second quarter.
For the first six months of 2023, the company recorded net
income of $797.2 million, or
$2.52 per share — down from
$853.4 million, or $2.70 per share, in the corresponding period a
year ago.
Consolidated revenues totaled $4.7
billion for the first six months of 2023, down $317.9 million from revenues in the first half of
2022.
"After a down first quarter marked by one of the warmest winters
on record, we delivered solid results in the second quarter. And
we're firmly on track for a strong 2023," said Gale Klappa, executive chairman. "We're focused
on the fundamentals of our business — financial discipline,
operating efficiency and customer satisfaction."
Retail deliveries of electricity — excluding the iron ore mine
in Michigan's Upper Peninsula —
were down by 3.0 percent in the second quarter of 2023, compared to
the second quarter last year.
Electricity consumption by small commercial and industrial
customers was 0.1 percent higher. Electricity use by large
commercial and industrial customers — excluding the iron ore mine —
declined by 3.2 percent.
Residential electricity use fell by 6.4
percent.
On a weather-normal basis, retail deliveries of electricity
during the second quarter of this year
— excluding the iron ore mine
— decreased by 0.6 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, Tuesday, Aug. 1. The call will review 2023
second-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 'Q2
Earnings.' In conjunction with this earnings
announcement, WEC Energy Group will post on its
website a package of detailed financial information on its
second-quarter performance. The materials will be available at
6:30 a.m. Central time,
Tuesday, Aug. 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 Aug. 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
$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 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; terrorist, physical or cyber-security threats or
attacks 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
June
30
|
Six Months Ended
June
30
|
|
|
|
|
|
(in millions, except
per share amounts)
|
2023
|
2022
|
2023
|
2022
|
Operating revenues
|
$
1,830.0
|
$
2,127.9
|
$
4,718.1
|
$
5,036.0
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
Cost of sales
|
533.0
|
935.0
|
1,842.7
|
2,318.4
|
Other operation and maintenance
|
496.0
|
449.0
|
1,030.0
|
903.4
|
Depreciation and amortization
|
313.9
|
279.6
|
619.4
|
557.7
|
Property and revenue taxes
|
61.8
|
56.1
|
131.4
|
116.9
|
Total operating expenses
|
1,404.7
|
1,719.7
|
3,623.5
|
3,896.4
|
Operating income
|
425.3
|
408.2
|
1,094.6
|
1,139.6
|
|
|
|
|
|
Equity in earnings of transmission affiliates
|
43.6
|
43.0
|
87.4
|
84.7
|
Other income, net
|
48.3
|
19.8
|
89.1
|
59.4
|
Interest expense
|
178.7
|
119.8
|
350.9
|
237.4
|
Other expense
|
(86.8)
|
(57.0)
|
(174.4)
|
(93.3)
|
Income before income taxes
|
338.5
|
351.2
|
920.2
|
1,046.3
|
Income tax expense
|
48.5
|
63.4
|
122.6
|
190.5
|
Net income
|
290.0
|
287.8
|
797.6
|
855.8
|
|
|
|
|
|
Preferred stock dividends of subsidiary
|
0.3
|
0.3
|
0.6
|
0.6
|
Net loss (income) attributed to noncontrolling interests
|
—
|
—
|
0.2
|
(1.8)
|
Net income attributed to common shareholders
|
$
289.7
|
$
287.5
|
$
797.2
|
$
853.4
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
$
0.92
|
$
0.91
|
$
2.53
|
$
2.71
|
Diluted
|
$
0.92
|
$
0.91
|
$
2.52
|
$
2.70
|
|
|
|
|
|
Weighted average
common shares outstanding
Basic
|
315.4
|
315.4
|
315.4
|
315.4
|
Diluted
|
315.9
|
316.2
|
315.9
|
316.2
|
|
|
|
|
|
Dividends per share
of common stock
|
$
0.7800
|
$
0.7275
|
$
1.5600
|
$
1.4550
|
WEC ENERGY GROUP,
INC.
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(in millions,
except share and per share amounts)
|
June 30,
2023
|
December 31, 2022
|
Assets
|
|
|
Current assets
|
|
|
Cash and cash
equivalents
|
$
54.7
|
$
28.9
|
Accounts receivable and unbilled revenues, net of reserves of $178.7 and
$199.3, respectively
|
1,315.1
|
1,818.4
|
Materials, supplies, and
inventories
|
603.7
|
807.1
|
Prepaid taxes
|
215.1
|
201.8
|
Other prepayments
|
42.8
|
69.8
|
Collateral on deposit
|
151.3
|
122.4
|
Other
|
74.9
|
139.3
|
Current assets
|
2,457.6
|
3,187.7
|
|
|
|
Long-term assets
|
|
|
Property, plant, and equipment, net of accumulated depreciation and amortization of $10,717.0 and
$10,383.8,
respectively
|
31,010.4
|
29,113.8
|
Regulatory assets (June 30, 2023 and December 31, 2022 include
$89.5 and $92.4, respectively,
related to WEPCo
Environmental Trust Finance I, LLC)
|
3,238.9
|
3,264.6
|
Equity investment in transmission affiliates
|
1,955.9
|
1,909.2
|
Goodwill
|
3,052.8
|
3,052.8
|
Pension and OPEB assets
|
951.0
|
916.7
|
Other
|
352.7
|
427.3
|
Long-term
assets
|
40,561.7
|
38,684.4
|
Total assets
|
$
43,019.3
|
$
41,872.1
|
Liabilities and Equity
|
|
|
Current liabilities
|
|
|
Short-term
debt
|
$
1,090.3
|
$
1,647.1
|
Current portion of long-term debt (June 30, 2023 and December 31, 2022 include
$9.0 and $8.9, respectively,
related to WEPCo
Environmental Trust Finance I, LLC)
|
1,377.5
|
881.2
|
Accounts
payable
|
748.5
|
1,198.1
|
Other
|
880.6
|
884.6
|
Current liabilities
|
4,096.9
|
4,611.0
|
|
|
|
Long-term liabilities
|
|
|
Long-term debt (June 30, 2023 and December 31,
2022 include $89.7
and $94.1, respectively,
related to WEPCo
Environmental Trust Finance I, LLC)
|
15,608.3
|
14,766.2
|
Deferred income taxes
|
4,774.0
|
4,625.6
|
Deferred
revenue, net
|
363.5
|
370.7
|
Regulatory
liabilities
|
3,712.9
|
3,735.5
|
Intangible liabilities
|
621.6
|
335.4
|
Asset retirement obligations
|
502.9
|
479.3
|
Environmental
remediation liabilities
|
475.8
|
499.6
|
Other
|
832.0
|
832.2
|
Long-term
liabilities
|
26,891.0
|
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
|
4,114.7
|
4,115.2
|
Retained
earnings
|
7,570.4
|
7,265.3
|
Accumulated other
comprehensive loss
|
(6.9)
|
(6.8)
|
Common shareholders' equity
|
11,681.4
|
11,376.9
|
|
|
|
Preferred stock
of subsidiary
|
30.4
|
30.4
|
Noncontrolling interests
|
319.6
|
209.3
|
Total liabilities and equity
|
$
43,019.3
|
$
41,872.1
|
WEC ENERGY GROUP,
INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
Six Months
Ended
|
|
June
30
|
(in
millions)
|
2023
|
|
2022
|
Operating activities
|
|
|
|
Net income
|
|
$
797.6
|
|
$
855.8
|
Reconciliation to cash provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
619.4
|
|
557.7
|
Deferred income taxes
and ITCs, net
|
|
113.4
|
|
163.2
|
Contributions and payments related to pension and OPEB plans
|
|
(9.2)
|
|
(8.6)
|
Equity income in transmission affiliates, net of distributions
|
|
(13.4)
|
|
(17.5)
|
Change in –
|
|
|
|
|
Accounts receivable and unbilled revenues, net
|
|
529.5
|
|
36.3
|
Materials, supplies, and
inventories
|
|
213.3
|
|
63.6
|
Collateral on deposit
|
|
(28.9)
|
|
0.1
|
Amounts recoverable from
customers
|
|
33.7
|
|
(31.9)
|
Other current assets
|
|
16.2
|
|
23.4
|
Accounts payable
|
|
(388.4)
|
|
1.5
|
Temporary LIFO liquidation credit
|
|
2.1
|
|
107.6
|
Collateral received
|
|
—
|
|
85.0
|
Other current liabilities
|
|
(41.9)
|
|
43.4
|
Other, net
|
|
(89.1)
|
|
(117.0)
|
Net cash provided by operating activities
|
|
1,754.3
|
|
1,762.6
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Capital expenditures
|
|
(1,073.7)
|
|
(1,028.8)
|
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)
|
|
—
|
Capital contributions to transmission affiliates
|
|
(33.3)
|
|
(30.3)
|
Proceeds from the sale of
assets
|
|
30.4
|
|
65.0
|
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
|
|
(19.1)
|
|
(11.2)
|
Insurance proceeds received for property damage
|
|
—
|
|
41.3
|
Other, net
|
|
(9.0)
|
|
11.1
|
Net cash used in investing activities
|
|
(2,101.4)
|
|
(937.5)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Exercise of stock options
|
|
2.3
|
|
23.0
|
Purchase of common stock
|
|
(9.5)
|
|
(48.4)
|
Dividends paid on common stock
|
|
(492.1)
|
|
(459.0)
|
Issuance of long-term debt
|
|
1,450.0
|
|
—
|
Retirement of long-term debt
|
|
(76.8)
|
|
(49.1)
|
Change in commercial paper
|
|
(556.6)
|
|
(269.3)
|
Payments for debt issuance costs
|
|
(9.6)
|
|
(0.8)
|
Other, net
|
|
(2.7)
|
|
(4.1)
|
Net cash provided by (used in)
financing activities
|
|
305.0
|
|
(807.7)
|
Net change in cash, cash
equivalents, and restricted cash
|
|
(42.1)
|
|
17.4
|
Cash, cash equivalents, and restricted cash
at beginning of period
|
|
182.2
|
|
87.5
|
Cash, cash equivalents, and restricted cash
at end of period
|
|
$
140.1
|
|
$
104.9
|
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SOURCE WEC Energy Group