01—Abstract
Summary
Summary of the 10-Q filed May 3, 2024. Cited figures are marked; the original filing is the authoritative source.
Alliant Energy Corporation's Form 10-Q for the quarter ended March 31, 2024 reports consolidated net income attributable to common shareowners of $158 milliona, or $0.62 per diluted share, compared with $163 million, or $0.65 per share, in the first quarter of 2023.
Total revenues were $1,031 millionb versus $1,077 million, with lower gas utility revenues and cost of gas sold driven by temperatures and lower natural gas prices. Management attributes the decline in Utilities and Corporate Services net income of $4 million mainly to warmer-than-normal temperatures reducing retail electric and gas sales, plus higher financing and depreciation expenses, partially offset by higher revenue requirements from WPL's capital investments. Interest expense rose to $107 million from $94 million.
On the balance sheet, total assets were $21.25 billionc at March 31, 2024, with long-term debt (net, excluding current portion) of $8.52 billion, up from $8.23 billion at year-end 2023. WPL issued $300 million of 5.375% green debentures due 2034 and retired a $300 million AEF term loan, and the company's cash flow from operating activities rose to $307 million from $188 million.
Key items for investors include WPL's expectation that its approximately 1,100 MW solar construction costs will exceed PSCW-approved estimates by about $180 milliond, with WPL filing for judicial review in March 2024, and the EPA's April 2024 final environmental rules, which management says it is still evaluating. The filing also covers the sale of partial interests in West Riverside to WEC Energy Group (100 MW) and Madison Gas and Electric (25 MW), expected in June 2024, and Standard & Poor's change of Alliant Energy's and IPL's outlooks from stable to negative in March 2024, which management does not expect to have a material impact on liquidity.
02—Key points
Key Highlights
- Net income attributable to Alliant Energy common shareowners was $158 million ($0.62 per diluted share) versus $163 million ($0.65 per share) in Q1 2023, with warmer temperatures reducing retail electric and gas sales.
- Total revenues fell to $1,031 million from $1,077 million, while cost of gas sold dropped to $114 million from $181 million on lower natural gas prices and lower retail gas volumes.
- Interest expense increased to $107 million from $94 million, driven primarily by financings completed in 2024 and 2023.
- WPL expects its approximately 1,100 MW of new solar generation construction costs to exceed PSCW-approved estimates by about $180 million; the PSCW approved deferral of the incremental costs, but not the return on them, and WPL filed for judicial review in March 2024.
- Long-term debt (net, excluding current portion) rose to $8,524 million from $8,225 million, including WPL's $300 million of 5.375% green debentures due 2034 issued in March 2024.
- Net cash flows from operating activities were $307 million versus $188 million in the prior-year quarter, with capital expenditures of $478 million for the utility business.
- WPL agreed to sell partial ownership interests in West Riverside (100 MW to WEC Energy Group and 25 MW to Madison Gas and Electric), with closing currently expected in June 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Alliant Energy kept $0.15.
- Revenue$1.03B100.0%
- Cost of revenue−$152.0M14.7%
- Gross profit$879.0M85.3%
- Operating costs−$657.0M63.7%
- Operating income$222.0M21.5%
- Interest, other & tax−$64.0M6.2%
- Net income$158.0M15.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 3, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $1.03B$1.08B | −4.3% |
| Cost of Revenue | $152.00M$146.00M | +4.1% |
| Gross Profit | $879.00M$931.00M | −5.6% |
| Operating Expenses | $809.00M$855.00M | −5.4% |
| Operating Income | $222.00M$222.00M | 0.0% |
| Interest Expense | $107.00M$94.00M | +13.8% |
| Net Income | $158.00M$163.00M | −3.1% |
| EPS (Basic) | $0.62$0.65 | −4.6% |
| EPS (Diluted) | $0.62$0.65 | −4.6% |
| Shares Outstanding (Basic) | 256.20M251.20M | +2.0% |
| Shares Outstanding (Diluted) | 256.50M251.40M | +2.0% |
05—Questions
Frequently Asked Questions
Why did Alliant Energy's earnings decline in the first quarter of 2024?
Net income attributable to common shareowners fell to $158 million from $163 million, or $0.62 per diluted share versus $0.65. Management attributed the Utilities and Corporate Services decrease of $4 million mainly to lower retail electric and gas sales from warmer-than-normal temperatures and to higher financing and depreciation expenses, partially offset by higher revenue requirements from WPL's capital investments.
What is the status of WPL's solar generation cost overruns?
WPL expects construction costs for its approximately 1,100 MW of new solar generation to exceed PSCW-approved estimates by about $180 million. In February 2024, the PSCW approved deferral of the incremental construction costs but did not authorize deferral of the return on those costs. WPL filed for judicial review in March 2024, and Alliant Energy and WPL concluded there was no probable disallowance of anticipated higher rate base amounts as of March 31, 2024.
How did Alliant Energy's debt and liquidity change during the quarter?
Long-term debt, net (excluding current portion), increased to $8,524 million from $8,225 million. WPL issued $300 million of 5.375% green debentures due 2034, and AEF entered into a $300 million variable rate term loan due March 2025 that replaced a $300 million term loan. Alliant Energy had $32 million of cash and $666 million of available credit facility capacity at March 31, 2024.
What regulatory and environmental developments did the company disclose?
In April 2024, the EPA issued a final Section 111(d) rule for certain fossil-fueled EGUs, final revised Section 111(b) standards for new combustion turbines, a final rule revising wastewater discharge limits for coal-fired EGUs, and revisions to the Coal Combustion Residuals Rule. The company stated it is evaluating these rules and is unable to predict their future impact with certainty. In May 2024, Iowa enacted the Major Economic Growth Attraction program and legislation on advance rate-making principles, both of which are described as subsequent events.
Did any credit rating changes affect Alliant Energy?
In March 2024, Standard & Poor's Ratings Services changed Alliant Energy's and IPL's outlooks from stable to negative. The company stated these outlook changes are not expected to have a material impact on Alliant Energy's and IPL's liquidity or collateral obligations.
06—Continue