01—Abstract
Summary
Summary of the 8-K filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.
WEC Energy Group, Inc. reported net income attributed to common shareholders of $622.3 milliona, or $1.97 per diluted share, for the first quarter of 2024, up from $507.5 million, or $1.61 per share, in the first quarter of 2023.
Consolidated operating revenues were $2.7 billionb, down $207.9 million from a year earlier. Chairman Gale Klappa's executive chairman statement attributed the results to financial discipline and operating efficiency during what he described as the warmest winter in Wisconsin history. The company reaffirmed its 2024 earnings guidance of $4.80 to $4.90 per share, assuming normal weather for the rest of the year.
Retail electricity deliveries excluding the iron ore mine in Michigan's Upper Peninsula fell 0.3 percent, and on a weather-normal basis decreased 0.2 percent. Natural gas deliveries in Wisconsin, excluding gas used for power generation, fell 5.8 percent. Residential electricity use declined 1.1 percent, while small commercial and industrial electricity consumption rose 0.7 percent and large commercial and industrial use, excluding the iron ore mine, declined 0.7 percent.
The quarterly results were furnished as Exhibit 99.1, a press release that also contains condensed income statements, balance sheets and cash flow statements. Operating cash flow was $863.6 millionc for the quarter, compared with $796.1 million a year earlier, and capital expenditures were $444.5 million.
Total assets were $43.9 billiond at March 31, 2024. Diluted shares outstanding were 315.9 million, and dividends per common share were $0.8350 versus $0.7800 a year earlier.
02—Key points
Key Highlights
- Net income attributed to common shareholders was $622.3 million, or $1.97 per diluted share, versus $507.5 million, or $1.61 per share, in Q1 2023.
- Consolidated operating revenues were $2.7 billion (reported as $2,680.2 million), down $207.9 million year over year, as cost of sales fell to $927.1 million from $1,309.7 million.
- The company reaffirmed 2024 earnings guidance of $4.80 to $4.90 per share, assuming normal weather for the remainder of the year.
- Weather-normal retail electricity deliveries excluding the iron ore mine decreased 0.2 percent, while Wisconsin natural gas deliveries (excluding power generation) fell 5.8 percent.
- Operating cash flow was $863.6 million, up from $796.1 million, and capital expenditures were $444.5 million in the quarter.
- Long-term debt was $15,375.8 million at March 31, 2024, down from $15,512.8 million at December 31, 2023, and short-term debt rose to $2,574.2 million from $2,020.9 million.
- Quarterly dividends per common share were $0.8350, compared with $0.7800 in the first quarter of 2023.
03—Questions
Frequently Asked Questions
How did WEC Energy Group perform in the first quarter of 2024?
The company reported net income attributed to common shareholders of $622.3 million, or $1.97 per diluted share, compared with $507.5 million, or $1.61 per share, in the first quarter of 2023. Operating revenues were $2.7 billion, down $207.9 million from a year earlier.
Did WEC Energy change its 2024 earnings outlook?
No. The company reaffirmed its 2024 earnings guidance of $4.80 to $4.90 per share. The guidance assumes normal weather for the remainder of the year.
How did customer demand trend in the quarter?
Retail electricity deliveries, excluding the iron ore mine, were down 0.3 percent, and down 0.2 percent on a weather-normal basis. Wisconsin natural gas deliveries, excluding gas used for power generation, fell 5.8 percent. By customer class, residential electricity use fell 1.1 percent, small commercial and industrial use rose 0.7 percent, and large commercial and industrial use, excluding the iron ore mine, declined 0.7 percent.
What drove the change in profitability?
Cost of sales fell to $927.1 million from $1,309.7 million, while operating income rose to $813.4 million from $669.3 million. Interest expense increased to $192.0 million from $172.2 million, and depreciation and amortization rose to $333.4 million from $305.5 million.
What is the filing itself, and where are the detailed results?
This Form 8-K, dated May 1, 2024, reports under Item 2.02 that the company issued a press release on its first-quarter 2024 results. The press release is furnished as Exhibit 99.1 and contains the condensed consolidated income statements, balance sheets and cash flow statements, as well as the reaffirmed guidance and conference call details.
04—Continue