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Wec Energy Group 8-K Report, Financial Results (Feb 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 1, 2024
Period End
February 1, 2024
Security
WEC
In the record · 2016–202610-K1110-Q338-K260

WEC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 260 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’20Oct ’20
  2. Leadership change8-K · Oct ’22Oct ’22
  3. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed February 1, 2024. Cited figures are marked; the original filing is the authoritative source.

WEC Energy Group, Inc. filed this Item 2.02 Form 8-K on February 1, 2024 to furnish its press release (Exhibit 99.1) reporting results for the quarter and year ended December 31, 2023.

For full-year 2023, GAAP net income was $1.3 billiona, or $4.22 per diluted share, compared with $1.4 billion, or $4.45 per share, in 2022. The results include a non-cash impairment charge of 41 cents per share tied to previously incurred capital costs disallowed by the Illinois Commerce Commission. Excluding that charge, adjusted earnings were $4.63 per share, which the company says is an increase of 4 percent over 2022.

Fourth-quarter 2023 GAAP net income was $218.5 millionb, or 69 cents per share, versus 80 cents per share in the fourth quarter of 2022; adjusted fourth-quarter earnings were $1.10 per share. Full-year consolidated operating revenues were $8.9 billion, down $704.4 million from 2022. The company reported weather-driven and structural declines in electricity and gas volumes: retail electricity deliveries excluding the iron ore mine fell 2.6 percent, and Wisconsin natural gas deliveries excluding power generation fell 9.1 percent.

Management called 2023 a strong year despite a warm start and what it described as a disappointing Illinois regulatory decision. The board declared a quarterly dividend of 83.5 cents per share, a 7 percent increase, marking the 21st consecutive annual dividend increase. The cash flow statement shows net cash from operations of $3.02 billionc, capital expenditures of $2.49 billion, and acquisitions totaling several hundred million dollars, including Sapphire Sky Wind Energy LLC ($442.6 million net of cash acquired).

Long-term debt issuances were $2.17 billiond and retirements were $1.01 billion. Total assets at year-end 2023 were $43.94 billion.

02—Key points

Key Highlights

  1. Full-year 2023 GAAP net income of $1.33 billion, or $4.22 per diluted share, versus $4.45 per share in 2022.
  2. Adjusted full-year 2023 earnings of $4.63 per share, excluding a 41-cent non-cash charge for capital investments disallowed by the Illinois Commerce Commission.
  3. Q4 2023 GAAP earnings of $0.69 per share versus $0.80 in Q4 2022; adjusted Q4 2023 earnings of $1.10 per share.
  4. Full-year operating revenues of $8.9 billion, down $704.4 million from 2022.
  5. Retail electricity deliveries (excluding the iron ore mine) down 2.6 percent in 2023; Wisconsin natural gas deliveries (excluding power generation) down 9.1 percent.
  6. Quarterly dividend raised 7 percent to 83.5 cents per share, the 21st consecutive year of dividend increases.
  7. Operating cash flow of $3.02 billion against capital expenditures of $2.49 billion, with several acquisitions including Sapphire Sky Wind Energy LLC for $442.6 million net of cash acquired.

03—Questions

Frequently Asked Questions

  1. What caused the decline in 2023 GAAP earnings?

    The filing attributes the reduction in GAAP earnings largely to a non-cash impairment charge of $178.9 million pre-tax (41 cents per share) related to previously incurred capital costs that the Illinois Commerce Commission disallowed. Management describes such disallowances as highly unusual and not indicative of operating performance.

  2. How did adjusted earnings compare with the prior year?

    Excluding the impairment charge, adjusted earnings were $4.63 per share for 2023, which the company states is an increase of 4 percent over 2022 earnings. The filing reports no adjustments to 2022 GAAP results.

  3. Why did revenues decline in 2023?

    Operating revenues were $8.9 billion, down $704.4 million from 2022. The filing points to lower electricity and natural gas deliveries, including a 2.6 percent decline in retail electricity deliveries and a 9.1 percent decline in Wisconsin natural gas deliveries, and notes a historically warm start to the year.

  4. Is the dividend increasing?

    Yes. The board declared a quarterly cash dividend of 83.5 cents per share on January 18, 2024, a 7 percent increase over the previous rate, marking the 21st consecutive year of higher dividends.

  5. How is the company funding its investments?

    Operating cash flow was $3.02 billion in 2023. Capital expenditures were $2.49 billion, and acquisitions used several hundred million dollars more. Long-term debt issuances totaled $2.17 billion, offset by $1.01 billion of retirements, and commercial paper increased by $373.7 million.

04—Continue

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