01—Abstract
Summary
Summary of the 10-K filed February 19, 2021. Cited figures are marked; the original filing is the authoritative source.
Alliant Energy Corporation (Nasdaq: LNT) is a regulated Midwest utility holding company whose primary focus is regulated electric and natural gas service to approximately 975,000 electric and approximately 420,000 natural gas customers through its public utility subsidiaries Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL).
For 2020, net income attributable to Alliant Energy common shareowners was $614 milliona, or $2.47 per diluted share, compared with $557 million, or $2.33 per share, in 2019. Utilities and Corporate Services income rose $57 million, driven mainly by higher earnings from IPL's and WPL's increasing rate base, partially offset by higher depreciation and lower AFUDC. Consolidated operating revenues were $3,416 million in 2020 versus $3,648 million in 2019, and retail electric and gas sales volumes fell 2% and 13%, respectively, largely due to COVID-19, the August 2020 derecho windstorm and temperatures.
The company's capital program is large and forward-looking. Alliant Energy's construction and acquisition expenditure plan totals $1,295 million for 2021 rising to $1,625 millionb in 2022, and the filing states it has forecasted capital expenditures of approximately $6 billion over the next four years. The strategy centers on cleaner energy, including roughly 1,000 MW of planned WPL solar generation and about 400 MW of IPL solar generation by the end of 2023, plus retirement of the coal-fired Lansing, Edgewater and Columbia units.
Management expects higher earnings in 2021 from rate base growth and a dividend increase to a targeted $1.61c per share for 2021. Balance sheet and liquidity remained adequate, with $54 million of cash at year-end and $611 million of available capacity under the single revolving credit facility.
Long-term debt, net, rose to $6,769 milliond from $5,533 million, and the filing reports credit ratings of A- (S&P) and Baa2 (Moody's) for the parent, with a stable outlook. Deloitte & Touche issued unqualified opinions on the financial statements and internal control over financial reporting.
02—Key points
Key Highlights
- 2020 net income attributable to common shareowners of $614 million ($2.47 per diluted share), up from $557 million ($2.33) in 2019.
- Utilities and Corporate Services income increased $57 million, primarily from IPL and WPL rate base growth, partially offset by higher depreciation and lower AFUDC.
- Total 2021 construction and acquisition expenditures are planned at $1,295 million, and the company forecasts about $6 billion of capital expenditures over the next four years.
- Clean energy plan includes roughly 1,000 MW of WPL solar and about 400 MW of IPL solar by the end of 2023, alongside coal unit retirements (Lansing, Edgewater, Columbia).
- Targeted 2021 annual common dividend increased to $1.61 per share ($0.4025 quarterly), with 2021 earnings expected to rise on increasing rate base.
- Long-term debt, net, increased to $6,769 million from $5,533 million, with credit ratings of A- (S&P) and Baa2 (Moody's) for Alliant Energy and a stable outlook.
- Operating revenues declined to $3,416 million from $3,648 million, with retail electric and gas sales volumes down 2% and 13%, reflecting COVID-19, the derecho windstorm and temperatures.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2020, Alliant Energy kept $0.18.
- Revenue$3.42B100.0%
- Cost of revenue−$449.0M13.1%
- Gross profit$2.97B86.9%
- Operating costs−$2.23B65.2%
- Operating income$740.0M21.7%
- Interest, other & tax−$116.0M3.4%
- Net income$624.0M18.3%
Where FY2020 revenue went
$3.42B- Operating costs: $2.23B, 65% of revenue
- Net income: $624.0M, 18% of revenue
- Cost of revenue: $449.0M, 13% of revenue
- Interest, other & tax: $116.0M, 3.4% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2020filed February 19, 2021Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $3.42B$3.65B | −6.4% |
| Cost of Revenue | $449.00M$481.00M | −6.7% |
| Gross Profit | $2.97B$3.17B | −6.3% |
| Operating Expenses | $2.68B$2.87B | −6.8% |
| Operating Income | $740.00M$778.00M | −4.9% |
| Interest Expense | $275.00M$273.00M | +0.7% |
| Net Income | $624.00M$567.00M | +10.1% |
| EPS (Basic) | $2.47$2.34 | +5.6% |
| EPS (Diluted) | $2.47$2.33 | +6.0% |
| Shares Outstanding (Basic) | 248.40M238.50M | +4.2% |
| Shares Outstanding (Diluted) | 248.70M239.00M | +4.1% |
05—Questions
Frequently Asked Questions
How did Alliant Energy perform financially in 2020?
Net income attributable to Alliant Energy common shareowners was $614 million, or $2.47 per diluted share, versus $557 million, or $2.33 per share, in 2019. Utilities and Corporate Services income increased $57 million, mainly from rate base growth at IPL and WPL, while ATC Holdings contributed $34 million and the Non-utility and Parent segment recorded a $6 million loss.
What is the company's major capital investment plan?
Planned construction and acquisition expenditures are $1,295 million in 2021, $1,625 million in 2022, $1,605 million in 2023 and $1,370 million in 2024. The filing also forecasts about $6 billion of capital expenditures over the next four years, including renewable projects, electric and gas distribution upgrades and plant retirements and fuel switching.
How is the company's dividend changing?
Alliant Energy announced a targeted 2021 annual common stock dividend of $1.61 per share, a 6% increase, equivalent to a quarterly rate of $0.4025 per share beginning with the February 2021 payment. The 2020 dividend was $1.52 per share. Future dividends remain subject to Board declaration.
What risks did the filing highlight for investors?
Key risks include the ongoing COVID-19 pandemic's effect on sales and customer payments, cyber attacks, weather and storm impacts, regulatory outcomes on rate recovery, access to capital markets and credit ratings, pension funding requirements, environmental and CO2 regulation, and the potential for post-closing liabilities tied to the past sale of Whiting Petroleum.
What does the filing say about 2021 expectations?
The company expects higher earnings in 2021 compared with 2020 from increasing revenue requirements tied to utility investments, and expects higher depreciation and lower AFUDC. It also expects higher electric production fuel and cost of gas sold expenses from the February 2021 extreme cold, which it plans to recover through cost recovery mechanisms, possibly over a longer period.
06—Continue