Commission File Number |
Registrant; State of Incorporation; Address; and Telephone Number |
IRS Employer Identification No. |
||||||||||||
001-09057 | WEC ENERGY GROUP, INC. | 39-1391525 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $.01 Par Value | WEC | New York Stock Exchange |
SIGNATURES | |||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |||||
WEC ENERGY GROUP, INC. | |||||
(Registrant) | |||||
/s/ WILLIAM J. GUC | |||||
August 1, 2023 | William J. Guc, Vice President and Controller |
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | June 30 | |||||||||||||||||||||||||
(in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Operating revenues | $ | 1,830.0 | $ | 2,127.9 | $ | 4,718.1 | $ | 5,036.0 | ||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Cost of sales | 533.0 | 935.0 | 1,842.7 | 2,318.4 | ||||||||||||||||||||||
Other operation and maintenance | 496.0 | 449.0 | 1,030.0 | 903.4 | ||||||||||||||||||||||
Depreciation and amortization | 313.9 | 279.6 | 619.4 | 557.7 | ||||||||||||||||||||||
Property and revenue taxes | 61.8 | 56.1 | 131.4 | 116.9 | ||||||||||||||||||||||
Total operating expenses | 1,404.7 | 1,719.7 | 3,623.5 | 3,896.4 | ||||||||||||||||||||||
Operating income | 425.3 | 408.2 | 1,094.6 | 1,139.6 | ||||||||||||||||||||||
Equity in earnings of transmission affiliates | 43.6 | 43.0 | 87.4 | 84.7 | ||||||||||||||||||||||
Other income, net | 48.3 | 19.8 | 89.1 | 59.4 | ||||||||||||||||||||||
Interest expense | 178.7 | 119.8 | 350.9 | 237.4 | ||||||||||||||||||||||
Other expense | (86.8) | (57.0) | (174.4) | (93.3) | ||||||||||||||||||||||
Income before income taxes | 338.5 | 351.2 | 920.2 | 1,046.3 | ||||||||||||||||||||||
Income tax expense | 48.5 | 63.4 | 122.6 | 190.5 | ||||||||||||||||||||||
Net income | 290.0 | 287.8 | 797.6 | 855.8 | ||||||||||||||||||||||
Preferred stock dividends of subsidiary | 0.3 | 0.3 | 0.6 | 0.6 | ||||||||||||||||||||||
Net loss (income) attributed to noncontrolling interests | — | — | 0.2 | (1.8) | ||||||||||||||||||||||
Net income attributed to common shareholders | $ | 289.7 | $ | 287.5 | $ | 797.2 | $ | 853.4 | ||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||||
Basic | $ | 0.92 | $ | 0.91 | $ | 2.53 | $ | 2.71 | ||||||||||||||||||
Diluted | $ | 0.92 | $ | 0.91 | $ | 2.52 | $ | 2.70 | ||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||
Basic | 315.4 | 315.4 | 315.4 | 315.4 | ||||||||||||||||||||||
Diluted | 315.9 | 316.2 | 315.9 | 316.2 | ||||||||||||||||||||||
Dividends per share of common stock | $ | 0.7800 | $ | 0.7275 | $ | 1.5600 | $ | 1.4550 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except share and per share amounts)
|
June 30, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 54.7 | $ | 28.9 | ||||||||||
Accounts receivable and unbilled revenues, net of reserves of $178.7 and $199.3, respectively | 1,315.1 | 1,818.4 | ||||||||||||
Materials, supplies, and inventories | 603.7 | 807.1 | ||||||||||||
Prepaid taxes | 215.1 | 201.8 | ||||||||||||
Other prepayments | 42.8 | 69.8 | ||||||||||||
Collateral on deposit | 151.3 | 122.4 | ||||||||||||
Other | 74.9 | 139.3 | ||||||||||||
Current assets | 2,457.6 | 3,187.7 | ||||||||||||
Long-term assets | ||||||||||||||
Property, plant, and equipment, net of accumulated depreciation and amortization of $10,717.0 and $10,383.8, respectively | 31,010.4 | 29,113.8 | ||||||||||||
Regulatory assets (June 30, 2023 and December 31, 2022 include $89.5 and $92.4, respectively, related to WEPCo Environmental Trust Finance I, LLC) | 3,238.9 | 3,264.6 | ||||||||||||
Equity investment in transmission affiliates | 1,955.9 | 1,909.2 | ||||||||||||
Goodwill | 3,052.8 | 3,052.8 | ||||||||||||
Pension and OPEB assets | 951.0 | 916.7 | ||||||||||||
Other | 352.7 | 427.3 | ||||||||||||
Long-term assets | 40,561.7 | 38,684.4 | ||||||||||||
Total assets | $ | 43,019.3 | $ | 41,872.1 | ||||||||||
Liabilities and Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term debt | $ | 1,090.3 | $ | 1,647.1 | ||||||||||
Current portion of long-term debt (June 30, 2023 and December 31, 2022 include $9.0 and $8.9, respectively, related to WEPCo Environmental Trust Finance I, LLC) | 1,377.5 | 881.2 | ||||||||||||
Accounts payable | 748.5 | 1,198.1 | ||||||||||||
Other | 880.6 | 884.6 | ||||||||||||
Current liabilities | 4,096.9 | 4,611.0 | ||||||||||||
Long-term liabilities | ||||||||||||||
Long-term debt (June 30, 2023 and December 31, 2022 include $89.7 and $94.1, respectively, related to WEPCo Environmental Trust Finance I, LLC) | 15,608.3 | 14,766.2 | ||||||||||||
Deferred income taxes | 4,774.0 | 4,625.6 | ||||||||||||
Deferred revenue, net | 363.5 | 370.7 | ||||||||||||
Regulatory liabilities | 3,712.9 | 3,735.5 | ||||||||||||
Intangible liabilities | 621.6 | 335.4 | ||||||||||||
Asset retirement obligations | 502.9 | 479.3 | ||||||||||||
Environmental remediation liabilities | 475.8 | 499.6 | ||||||||||||
Other | 832.0 | 832.2 | ||||||||||||
Long-term liabilities | 26,891.0 | 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 | 4,114.7 | 4,115.2 | ||||||||||||
Retained earnings | 7,570.4 | 7,265.3 | ||||||||||||
Accumulated other comprehensive loss | (6.9) | (6.8) | ||||||||||||
Common shareholders' equity | 11,681.4 | 11,376.9 | ||||||||||||
Preferred stock of subsidiary | 30.4 | 30.4 | ||||||||||||
Noncontrolling interests | 319.6 | 209.3 | ||||||||||||
Total liabilities and equity | $ | 43,019.3 | $ | 41,872.1 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | Six Months Ended | |||||||||||||
June 30 | ||||||||||||||
(in millions) | 2023 | 2022 | ||||||||||||
Operating activities | ||||||||||||||
Net income | $ | 797.6 | $ | 855.8 | ||||||||||
Reconciliation to cash provided by operating activities | ||||||||||||||
Depreciation and amortization | 619.4 | 557.7 | ||||||||||||
Deferred income taxes and ITCs, net | 113.4 | 163.2 | ||||||||||||
Contributions and payments related to pension and OPEB plans | (9.2) | (8.6) | ||||||||||||
Equity income in transmission affiliates, net of distributions | (13.4) | (17.5) | ||||||||||||
Change in – | ||||||||||||||
Accounts receivable and unbilled revenues, net | 529.5 | 36.3 | ||||||||||||
Materials, supplies, and inventories | 213.3 | 63.6 | ||||||||||||
Collateral on deposit | (28.9) | 0.1 | ||||||||||||
Amounts recoverable from customers | 33.7 | (31.9) | ||||||||||||
Other current assets | 16.2 | 23.4 | ||||||||||||
Accounts payable | (388.4) | 1.5 | ||||||||||||
Temporary LIFO liquidation credit | 2.1 | 107.6 | ||||||||||||
Collateral received | — | 85.0 | ||||||||||||
Other current liabilities | (41.9) | 43.4 | ||||||||||||
Other, net | (89.1) | (117.0) | ||||||||||||
Net cash provided by operating activities | 1,754.3 | 1,762.6 | ||||||||||||
Investing activities | ||||||||||||||
Capital expenditures | (1,073.7) | (1,028.8) | ||||||||||||
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 | (249.4) | — | ||||||||||||
Acquisition of Red Barn Wind Park | (143.8) | — | ||||||||||||
Acquisition of West Riverside Energy Center | (95.3) | — | ||||||||||||
Capital contributions to transmission affiliates | (33.3) | (30.3) | ||||||||||||
Proceeds from the sale of assets | 30.4 | 65.0 | ||||||||||||
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 | (19.1) | (11.2) | ||||||||||||
Insurance proceeds received for property damage | — | 41.3 | ||||||||||||
Other, net | (9.0) | 11.1 | ||||||||||||
Net cash used in investing activities | (2,101.4) | (937.5) | ||||||||||||
Financing activities | ||||||||||||||
Exercise of stock options | 2.3 | 23.0 | ||||||||||||
Purchase of common stock | (9.5) | (48.4) | ||||||||||||
Dividends paid on common stock | (492.1) | (459.0) | ||||||||||||
Issuance of long-term debt | 1,450.0 | — | ||||||||||||
Retirement of long-term debt | (76.8) | (49.1) | ||||||||||||
Change in commercial paper | (556.6) | (269.3) | ||||||||||||
Payments for debt issuance costs | (9.6) | (0.8) | ||||||||||||
Other, net | (2.7) | (4.1) | ||||||||||||
Net cash provided by (used in) financing activities | 305.0 | (807.7) | ||||||||||||
Net change in cash, cash equivalents, and restricted cash | (42.1) | 17.4 | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 182.2 | 87.5 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 140.1 | $ | 104.9 |