MILWAUKEE, Feb. 1, 2024
/PRNewswire/ -- WEC Energy Group (NYSE: WEC) today reported net
income based on generally accepted accounting principles (GAAP) of
$1.3 billion, or $4.22 per share, for 2023. This compares to
earnings of $1.4 billion, or
$4.45 per share, for 2022.
Full-year 2023 earnings include a non-cash charge of
41 cents per share related to
previous capital investments that were disallowed by the Illinois
Commerce Commission. Excluding this charge, WEC Energy Group's
adjusted earnings for 2023 rose to $4.63 per share — an increase of 4 percent over
earnings in 2022.
For the fourth quarter of 2023, WEC Energy Group recorded net
income based on GAAP of $218.5
million, or 69 cents per
share. This compares to earnings of $252.7
million, or 80 cents per
share, for the fourth quarter of 2022.
Excluding the non-cash charge, WEC Energy Group's adjusted
earnings for the fourth quarter of 2023 totaled $1.10 per share.
Consolidated revenues for the full year were $8.9 billion, down $704.4
million from revenues in 2022.
"We delivered another year of strong results in 2023, despite an
historically warm start to the year and a disappointing regulatory
decision in Illinois," said
Gale Klappa, executive chairman. "We
have significant growth opportunities ahead. And we will
continue to compound value with our focus on the fundamentals —
reliability, customer satisfaction, financial discipline, and
environmental stewardship."
For the full year, retail deliveries of electricity — excluding
the iron ore mine in Michigan's
Upper Peninsula — were down by 2.6 percent.
Electricity consumption by small commercial and industrial
customers was 1.1 percent lower during 2023. Electricity use by
large commercial and industrial customers — excluding the iron ore
mine — declined by 3.2 percent.
Residential electricity use decreased by 3.6 percent.
On a weather-normal basis, retail deliveries of electricity
during 2023 — excluding the iron ore mine — were down by 1.0
percent.
Natural gas deliveries in Wisconsin, excluding natural gas used for
power generation, decreased by 9.1 percent during 2023. On a
weather-normal basis, natural gas deliveries were 2.4 percent lower
during the year.
On Jan. 18, the board of directors
declared a quarterly cash dividend of 83.5
cents per share on the company's common stock, an increase
of 7 percent over the previous dividend rate. This marks the
21st consecutive year that the company will reward its
shareholders with higher dividends.
Earnings per share listed in this news release are on a fully
diluted basis.
Non-GAAP Earnings Measures
A reconciliation of GAAP net income and earnings per share to
adjusted net income and earnings per share is included below for
the full year and quarter ended Dec. 31,
2023. There were no adjustments to GAAP net income or
earnings per share in 2022.
|
|
Net
Income
|
(in
millions)
|
|
2023 Full
Year
|
|
2023
Q4
|
WEC Energy Group
GAAP
|
|
$
1,331.7
|
|
$
218.5
|
Impairment related to
ICC disallowances pre-tax
|
|
178.9
|
|
178.9
|
Tax impact
|
|
(49.1)
|
|
(49.1)
|
WEC Energy Group
Adjusted net income
|
|
$
1,461.5
|
|
$
348.3
|
|
|
Earnings Per
Share
|
|
|
2023 Full
Year
|
|
2023
Q4
|
WEC Energy Group
GAAP
|
|
$
4.22
|
|
$
0.69
|
Impairment related to
ICC disallowances
|
|
0.41
|
|
0.41
|
WEC Energy Group
Adjusted earnings per share
|
|
$
4.63
|
|
$
1.10
|
|
|
|
|
|
Diluted averages shares
outstanding (millions)
|
|
315.9
|
|
315.8
|
We have provided adjusted earnings (non-GAAP earnings) in this
news release as a complement to, and not as an alternative to,
reported earnings presented in accordance with GAAP. The adjusted
earnings exclude a non-cash impairment charge related to certain
previously incurred capital costs that were disallowed by the ICC.
The ICC's disallowance of costs of this nature is highly unusual
and not indicative of WEC Energy Group's operating performance.
Therefore, we believe that the presentation of adjusted earnings is
relevant and useful to investors to understand WEC Energy Group's
operating performance. Management uses such measures internally to
evaluate the company's performance and manage its operations.
Conference call
A conference call is scheduled for 1 p.m.
Central time, Thursday, Feb.
1. The call will review 2023 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 'Q4 Earnings.' In conjunction with this
earnings announcement, WEC Energy Group will post on its website a
package of detailed financial information on its 2023 performance.
The materials will be available at 6:30 a.m.
Central time, Thursday, Feb.
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 Feb. 15, 2024.
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 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 35,000 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, earnings growth
rates, dividend payments 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; 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 and shareholder
approval of related proposals; 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 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 the 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.
|
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31
|
|
December 31
|
(in millions, except per share
amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating revenues
|
|
$
2,217.5
|
|
$
2,558.4
|
|
$
8,893.0
|
|
$
9,597.4
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
761.1
|
|
1,235.4
|
|
3,191.2
|
|
4,358.9
|
Other operation and
maintenance
|
|
553.9
|
|
580.3
|
|
2,100.5
|
|
1,938.0
|
Impairment related to
Illinois Commerce Commission disallowances
|
|
178.9
|
|
—
|
|
178.9
|
|
—
|
Depreciation and
amortization
|
|
324.5
|
|
284.6
|
|
1,264.2
|
|
1,122.6
|
Property and revenue
taxes
|
|
57.7
|
|
77.7
|
|
250.2
|
|
253.7
|
Total operating expenses
|
|
1,876.1
|
|
2,178.0
|
|
6,985.0
|
|
7,673.2
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
341.4
|
|
380.4
|
|
1,908.0
|
|
1,924.2
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
transmission affiliates
|
|
45.4
|
|
46.3
|
|
177.5
|
|
194.7
|
Other income,
net
|
|
46.8
|
|
34.7
|
|
177.7
|
|
128.8
|
Interest
expense
|
|
193.5
|
|
150.2
|
|
726.9
|
|
515.1
|
Other expense
|
|
(101.3)
|
|
(69.2)
|
|
(371.7)
|
|
(191.6)
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
240.1
|
|
311.2
|
|
1,536.3
|
|
1,732.6
|
Income tax
expense
|
|
21.6
|
|
59.0
|
|
204.6
|
|
322.9
|
Net income
|
|
218.5
|
|
252.2
|
|
1,331.7
|
|
1,409.7
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends of subsidiary
|
|
0.3
|
|
0.3
|
|
1.2
|
|
1.2
|
Net (income) loss
attributed to noncontrolling interests
|
|
0.3
|
|
0.8
|
|
1.2
|
|
(0.4)
|
Net income attributed to common
shareholders
|
|
$
218.5
|
|
$
252.7
|
|
$
1,331.7
|
|
$
1,408.1
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.69
|
|
$
0.80
|
|
$
4.22
|
|
$
4.46
|
Diluted
|
|
$
0.69
|
|
$
0.80
|
|
$
4.22
|
|
$
4.45
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
315.4
|
|
315.4
|
|
315.4
|
|
315.4
|
Diluted
|
|
315.8
|
|
315.9
|
|
315.9
|
|
316.1
|
|
|
|
|
|
|
|
|
|
Dividends per share of common
stock
|
|
$
0.7800
|
|
$
0.7275
|
|
$
3.1200
|
|
$
2.9100
|
WEC ENERGY GROUP, INC.
|
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
December 31,
|
|
December 31,
|
(in millions, except share and per share
amounts)
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
42.9
|
|
$
28.9
|
Accounts receivable and
unbilled revenues, net of reserves of $193.5 and $199.3,
respectively
|
|
1,503.2
|
|
1,818.4
|
Materials, supplies,
and inventories
|
|
775.2
|
|
807.1
|
Prepaid
taxes
|
|
173.9
|
|
201.8
|
Other
prepayments
|
|
76.8
|
|
69.8
|
Other
|
|
223.7
|
|
261.7
|
Current assets
|
|
2,795.7
|
|
3,187.7
|
|
|
|
|
|
Long-term assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$11,073.1 and $10,383.8, respectively
|
|
31,581.5
|
|
29,113.8
|
Regulatory assets
(December 31, 2023 and December 31, 2022 include $85.9 and $92.4,
respectively, related to WEPCo Environmental Trust Finance I,
LLC)
|
|
3,249.8
|
|
3,264.6
|
Equity investment in
transmission affiliates
|
|
2,005.9
|
|
1,909.2
|
Goodwill
|
|
3,052.8
|
|
3,052.8
|
Pension and OPEB
assets
|
|
870.9
|
|
916.7
|
Other
|
|
383.1
|
|
427.3
|
Long-term assets
|
|
41,144.0
|
|
38,684.4
|
Total assets
|
|
$
43,939.7
|
|
$
41,872.1
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term
debt
|
|
$
2,020.9
|
|
$
1,647.1
|
Current portion of
long-term debt (December 31, 2023 and December 31, 2022 include
$9.0 and $8.9, respectively, related to WEPCo Environmental Trust
Finance I, LLC)
|
|
1,264.2
|
|
881.2
|
Accounts
payable
|
|
896.6
|
|
1,198.1
|
Other
|
|
933.1
|
|
884.6
|
Current liabilities
|
|
5,114.8
|
|
4,611.0
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
Long-term debt
(December 31, 2023 and December 31, 2022 include $85.3 and $94.1,
respectively, related to WEPCo Environmental Trust Finance I,
LLC)
|
|
15,512.8
|
|
14,766.2
|
Deferred income
taxes
|
|
4,918.5
|
|
4,625.6
|
Deferred revenue,
net
|
|
356.4
|
|
370.7
|
Regulatory
liabilities
|
|
3,697.7
|
|
3,735.5
|
Intangible
liabilities
|
|
594.8
|
|
335.4
|
Environmental
remediation liabilities
|
|
463.7
|
|
499.6
|
Asset retirement
obligations
|
|
374.2
|
|
479.3
|
Pension and OPEB
obligations
|
|
176.0
|
|
171.6
|
Other
|
|
659.3
|
|
660.6
|
Long-term liabilities
|
|
26,753.4
|
|
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
|
|
4,115.9
|
|
4,115.2
|
Retained
earnings
|
|
7,612.8
|
|
7,265.3
|
Accumulated other
comprehensive loss
|
|
(7.7)
|
|
(6.8)
|
Common shareholders' equity
|
|
11,724.2
|
|
11,376.9
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
30.4
|
Noncontrolling
interests
|
|
316.9
|
|
209.3
|
Total liabilities and equity
|
|
$
43,939.7
|
|
$
41,872.1
|
WEC ENERGY GROUP, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Year Ended
|
|
|
December 31
|
(in millions)
|
|
2023
|
|
2022
|
Operating activities
|
|
|
|
|
Net income
|
|
$
1,331.7
|
|
$
1,409.7
|
Reconciliation to cash
provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
1,264.2
|
|
1,122.6
|
Deferred income taxes
and ITCs, net
|
|
219.4
|
|
280.1
|
Impairment related to
Illinois Commerce Commission disallowances
|
|
178.9
|
|
—
|
Contributions and
payments related to pension and OPEB plans
|
|
(16.7)
|
|
(15.1)
|
Equity income in
transmission affiliates, net of distributions
|
|
(33.0)
|
|
(74.3)
|
Net change in
transmission regulatory assets and liabilities
|
|
19.8
|
|
(85.8)
|
Net gain on
disposition of assets
|
|
(23.8)
|
|
(66.2)
|
Change in –
|
|
|
|
|
Accounts receivable
and unbilled revenues, net
|
|
340.6
|
|
(342.1)
|
Materials, supplies,
and inventories
|
|
41.9
|
|
(171.3)
|
Amounts recoverable
from customers
|
|
17.4
|
|
60.0
|
Collateral on
deposit
|
|
22.1
|
|
(108.1)
|
Other current
assets
|
|
18.9
|
|
(27.7)
|
Accounts
payable
|
|
(254.0)
|
|
121.5
|
Other current
liabilities
|
|
47.5
|
|
126.9
|
Other, net
|
|
(156.5)
|
|
(169.5)
|
Net cash provided by operating
activities
|
|
3,018.4
|
|
2,060.7
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Capital
expenditures
|
|
(2,492.9)
|
|
(2,314.9)
|
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
|
|
(257.3)
|
|
—
|
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
|
|
—
|
|
(382.0)
|
Capital contributions
to transmission affiliates
|
|
(63.7)
|
|
(45.5)
|
Proceeds from the sale
of assets
|
|
32.8
|
|
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
|
|
(19.8)
|
|
(24.8)
|
Reimbursement for
American Transmission Company LLC's construction costs
|
|
0.1
|
|
10.2
|
Insurance proceeds
received for property damage
|
|
2.5
|
|
41.6
|
Other, net
|
|
(12.6)
|
|
(11.4)
|
Net cash used in investing
activities
|
|
(3,558.2)
|
|
(2,642.4)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Exercise of stock
options
|
|
6.3
|
|
33.6
|
Purchase of common
stock
|
|
(16.6)
|
|
(69.2)
|
Dividends paid on
common stock
|
|
(984.2)
|
|
(917.9)
|
Issuance of long-term
debt
|
|
2,170.0
|
|
1,999.3
|
Retirement of long-term
debt
|
|
(1,005.4)
|
|
(92.1)
|
Repayment of short-term
loan
|
|
(0.8)
|
|
—
|
Change in commercial
paper
|
|
373.7
|
|
(252.6)
|
Payments for debt
extinguishment and issuance costs
|
|
(14.2)
|
|
(15.6)
|
Other, net
|
|
(6.0)
|
|
(9.1)
|
Net cash provided by financing
activities
|
|
522.8
|
|
676.4
|
|
|
|
|
|
Net change in cash, cash equivalents, and restricted
cash
|
|
(17.0)
|
|
94.7
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
182.2
|
|
87.5
|
Cash, cash equivalents, and restricted cash at end of
year
|
|
$
165.2
|
|
$
182.2
|
View original
content:https://www.prnewswire.com/news-releases/wec-energy-group-posts-2023-results-302049747.html
SOURCE WEC Energy Group