MGE Energy, Inc. (MGEE) Bundle
A Brief History of MGE Energy
Company Overview
Company Overview
MGE Energy, Inc. operates as a public utility company providing electric and natural gas services. As of 2024, it serves approximately 160,000 customers in Wisconsin.
Financial Performance
For the three months ended September 30, 2024, MGE Energy reported:
- Operating Revenues: $168.5 million
- Net Income: $40.9 million
- Earnings Per Share: $1.13
In comparison, for the same period in 2023:
- Operating Revenues: $160.5 million
- Net Income: $37.9 million
- Earnings Per Share: $1.05
Year-to-Date Financial Highlights
For the nine months ended September 30, 2024, MGE Energy reported:
- Operating Revenues: $505.5 million
- Net Income: $98.5 million
- Earnings Per Share: $2.72
In comparison, for the same period in 2023:
- Operating Revenues: $525.8 million
- Net Income: $97.6 million
- Earnings Per Share: $2.70
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, totaled:
- Electric Utility Expenditures: $164.1 million
- Gas Utility Expenditures: $38 million
This reflects a $13.8 million increase compared to the same period in 2023.
Debt and Financing
MGE Energy's long-term debt as of September 30, 2024, was:
- Total Long-term Debt: $1.5 billion
- Interest Expense: $108.3 million
Stock Performance
MGE Energy's stock performance in 2024 has shown resilience, with a stock price of:
- Current Stock Price: $30.45
- Market Capitalization: Approximately $1.3 billion
Rate Proceedings
In December 2023, the Public Service Commission of Wisconsin (PSCW) approved a 1.54% increase in electric rates and a 2.44% increase in gas rates for 2024. Further adjustments are expected for 2025, with a projected increase of 4.17% for electric rates and 1.32% for gas rates.
Environmental Commitments
MGE Energy is actively investing in renewable energy projects, with capital allocations including:
- Solar Projects: $50 million towards Badger Hollow and Paris solar generation sites
- Wind Energy Projects: $20 million for Red Barn Wind Farm
| Category | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Operating Revenues | $168.5 million | $160.5 million | +1.25% |
| Net Income | $40.9 million | $37.9 million | +7.91% |
| Earnings Per Share | $1.13 | $1.05 | +7.62% |
| Capital Expenditures | $164.1 million | $150.3 million | +9.50% |
Future Outlook
MGE Energy continues to focus on expanding its renewable energy portfolio and maintaining regulatory compliance while aiming for sustainable growth in the utility sector.
A Who Owns MGE Energy, Inc. (MGEE)
Major Shareholders
As of 2024, MGE Energy, Inc. (MGEE) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares (approx.) |
|---|---|---|
| Institutional Investors | 68.1% | 24,707,000 |
| Mutual Funds | 20.5% | 7,437,000 |
| Individual Shareholders | 11.4% | 4,152,000 |
Top Institutional Investors
The following table lists the top institutional investors of MGE Energy, along with their respective ownership stakes:
| Institution Name | Ownership Percentage | Number of Shares (approx.) |
|---|---|---|
| The Vanguard Group, Inc. | 14.5% | 5,250,000 |
| BlackRock, Inc. | 12.3% | 4,440,000 |
| State Street Corporation | 10.2% | 3,700,000 |
| Wellington Management Group LLP | 7.8% | 2,800,000 |
| Invesco Ltd. | 5.3% | 1,900,000 |
Recent Stock Performance
MGE Energy, Inc. has seen a steady increase in its stock price over the last year. The closing stock price as of December 2023 was approximately $36.50, reflecting a year-to-date increase of 12.5%.
Market Capitalization
The market capitalization of MGE Energy, Inc. as of January 2024 stands at approximately $1.3 billion, based on its current stock price and outstanding shares.
Dividend Payments
MGE Energy has a history of consistent dividend payments. The most recent quarterly dividend declared was $0.450 per share, resulting in an annualized dividend yield of approximately 5.0% based on the current stock price.
Ownership Trends
Over the past five years, institutional ownership has increased by 15%, indicating a growing confidence among institutional investors in MGE Energy's business model and financial health.
Conclusion on Ownership Structure
In summary, MGE Energy, Inc. is predominantly owned by institutional investors, with significant stakes held by major asset management firms. The company's strong financial performance and consistent dividend payments have attracted a stable base of shareholders.
MGE Energy, Inc. (MGEE) Mission Statement
MGE Energy, Inc. (MGEE) is committed to delivering reliable energy and utility services while fostering sustainable practices. The company operates with a focus on safety, environmental stewardship, and community engagement.
Financial Overview
As of September 30, 2024, MGE Energy reported earnings of $40.9 million or $1.13 per share, compared to $37.9 million or $1.05 per share during the same period in 2023. For the nine months ended September 30, 2024, net income was $98.5 million or $2.72 per share, compared to $97.6 million or $2.70 per share for the same period in 2023.
| Period | Earnings (in millions) | Earnings Per Share |
|---|---|---|
| Three Months Ended September 30, 2024 | $40.9 | $1.13 |
| Three Months Ended September 30, 2023 | $37.9 | $1.05 |
| Nine Months Ended September 30, 2024 | $98.5 | $2.72 |
| Nine Months Ended September 30, 2023 | $97.6 | $2.70 |
Operating Revenues
MGE Energy's total operating revenues for the nine months ended September 30, 2024, reached $505.5 million, a slight decrease from $525.8 million in the prior year. The operating revenues for the three months ended September 30, 2024, were $168.5 million, compared to $160.5 million in the same quarter of 2023.
| Period | Operating Revenues (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $168,480 |
| Three Months Ended September 30, 2023 | $160,528 |
| Nine Months Ended September 30, 2024 | $505,529 |
| Nine Months Ended September 30, 2023 | $525,779 |
Capital Expenditures
In 2024, MGE Energy's capital expenditures are projected to be $226 million, growing to $312 million by 2029. The expenditures primarily focus on renewable energy projects and utility infrastructure improvements.
| Year | Projected Capital Expenditures (in thousands) |
|---|---|
| 2024 | $226,000 |
| 2025 | $240,000 |
| 2026 | $266,000 |
| 2027 | $286,000 |
| 2028 | $296,000 |
| 2029 | $312,000 |
Environmental Commitment
MGE Energy aims for at least an 80% reduction in carbon emissions from electric generation by 2030 (from 2005 levels) and a goal of net-zero carbon electricity by 2050. The company prioritizes investments in solar, wind, and battery storage projects as part of its clean energy transition strategy.
Rate Proceedings
In December 2023, the Public Service Commission of Wisconsin (PSCW) approved a 1.54% increase to electric rates and a 2.44% increase to gas rates for 2024. Further adjustments are anticipated in 2025, with a 4.17% increase for electric rates and a 1.32% increase for gas rates.
| Year | Electric Rate Increase (%) | Gas Rate Increase (%) |
|---|---|---|
| 2024 | 1.54 | 2.44 |
| 2025 | 4.17 | 1.32 |
How MGE Energy, Inc. (MGEE) Works
Business Overview
MGE Energy, Inc. operates primarily through its subsidiary MGE, focusing on electric and natural gas utility services. The company serves approximately 163,000 electric customers and 176,000 gas customers in Wisconsin. MGE's business model is structured around regulated utility operations, nonregulated energy operations, and transmission investments.
Financial Performance (2024)
For the three months ended September 30, 2024, MGE Energy reported:
- Earnings of $40.9 million, or $1.13 per share
- Net income attributable to MGE of $33.3 million
- Total operating revenues of $168.48 million
In comparison, for the same period in 2023, earnings were $37.9 million, or $1.05 per share, with total operating revenues of $160.53 million.
For the nine months ended September 30, 2024, MGE Energy achieved:
- Total earnings of $98.5 million, or $2.72 per share
- Net income of $75.9 million
- Total operating revenues of $505.53 million
This was a slight increase from $97.6 million, or $2.70 per share, for the same period in 2023.
Revenue Breakdown
| Segment | Operating Revenues (2024) | Operating Revenues (2023) |
|---|---|---|
| Electric Utility | $384.30 million | $377.63 million |
| Gas Utility | $120.76 million | $147.68 million |
| Nonregulated Energy | $470,000 | $475,000 |
| Total | $505.53 million | $525.78 million |
Operating Expenses
For the three months ended September 30, 2024, MGE reported operating expenses of:
- $110.04 million for electric operations
- $34.08 million for gas operations
For the nine months ended September 30, 2024, total operating expenses reached $324.08 million, up from $303.41 million in the prior year.
Capital Expenditures
MGE Energy's capital expenditures for the nine months ended September 30, 2024, were:
- $164.1 million, an increase of $13.8 million from the previous year
The forecasted capital expenditures for 2024 through 2029 are as follows:
| Year | Electric | Gas | Total |
|---|---|---|---|
| 2024 | $181,000 | $38,000 | $226,000 |
| 2025 | $203,000 | $28,000 | $240,000 |
| 2026 | $229,000 | $28,000 | $266,000 |
| 2027 | $247,000 | $30,000 | $286,000 |
| 2028 | $256,000 | $29,000 | $296,000 |
| 2029 | $276,000 | $27,000 | $312,000 |
Rate Changes and Regulatory Framework
In December 2023, the Public Service Commission of Wisconsin (PSCW) approved a 1.54% increase in electric rates and a 2.44% increase in gas rates for 2024. Additionally, a 4.17% increase for electric rates and a 1.32% increase for gas rates were approved for 2025.
Environmental and Renewable Initiatives
MGE Energy targets at least 80% carbon reduction from electric generation by 2030 and aims for net-zero carbon electricity by 2050. This includes investments in solar, wind, and battery storage projects.
Recent Developments in Projects
The following table outlines significant projects currently under construction:
| Project | Ownership Interest | Estimated Costs | Costs Incurred (as of September 30, 2024) | Estimated Date of Commercial Operation |
|---|---|---|---|---|
| Paris | 10% | $61 million | $48.6 million | 2024 Solar, 2025 Battery |
| Darien | 10% | $63 million | $41.9 million | 2025 Solar, 2026 Battery |
| Koshkonong | 10% | $104 million | $6.6 million | 2026 Solar, 2027 Battery |
Conclusion on Financial Health
MGE Energy maintains a robust financial profile characterized by steady revenue growth and strategic capital investments aimed at enhancing service delivery and transitioning to renewable energy sources. The company's commitment to environmental sustainability and regulatory compliance positions it favorably in the evolving energy landscape.
How MGE Energy, Inc. (MGEE) Makes Money
Revenue Sources
MGE Energy, Inc. generates revenue primarily through the following segments:
- Regulated Electric Utility Operations
- Regulated Gas Utility Operations
- Nonregulated Energy Operations
- Transmission Investments
- Other Corporate Operations
Financial Performance Overview
For the nine months ended September 30, 2024, MGE Energy reported the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Revenues | $505.5 million | $525.8 million |
| Net Income | $98.5 million | $97.6 million |
| Earnings Per Share | $2.72 | $2.70 |
| Total Assets | $2.75 billion | $2.68 billion |
Electric Utility Operations
The electric utility segment serves approximately 163,000 customers in Dane County, Wisconsin. Key revenue drivers include:
- Electric sales to residential, commercial, and industrial customers.
- Sales to the market when excess generation is available.
- Rate adjustments approved by the Public Service Commission of Wisconsin (PSCW).
Electric revenues for the nine months ended September 30, 2024, were $384.3 million, compared to $377.6 million in 2023.
| Electric Revenues by Customer Class (in thousands) | 2024 | 2023 |
|---|---|---|
| Residential | $134.3 million | $131.6 million |
| Commercial | $197.5 million | $193.8 million |
| Industrial | $10.3 million | $10.6 million |
| Other | $31.4 million | $30.9 million |
Gas Utility Operations
MGE Energy distributes natural gas to approximately 176,000 customers. The gas utility segment reported revenues of $120.8 million for the nine months ended September 30, 2024, down from $147.7 million in 2023.
Gas revenues are subject to fluctuations based on:
- Weather conditions affecting demand.
- Rate changes approved by the PSCW.
| Gas Revenues by Customer Class (in thousands) | 2024 | 2023 |
|---|---|---|
| Residential | $72.1 million | $86.1 million |
| Commercial/Industrial | $43.3 million | $55.7 million |
Nonregulated Energy Operations
This segment includes interests in electric generating capacity leased to MGE. Revenues for nonregulated energy operations were $470,000 for the nine months ended September 30, 2024, compared to $475,000 in 2023.
Transmission Investments
MGE holds equity investments in American Transmission Company (ATC), which owns and operates electric transmission facilities. The revenue from this segment primarily comes from returns on investment in transmission assets.
For the nine months ended September 30, 2024, net income from transmission investments was $6.1 million, compared to $5.8 million in 2023.
Operational Expenses and Financial Management
MGE Energy manages its operational expenses carefully to maintain profitability. Total operating expenses for the nine months ended September 30, 2024, were $386.9 million, down from $403.6 million in 2023.
| Operating Expenses Breakdown (in millions) | 2024 | 2023 |
|---|---|---|
| Fuel for Electric Generation | $41.2 | $47.1 |
| Purchased Power | $26.4 | $28.3 |
| Cost of Gas Sold | $52.8 | $80.3 |
| Other Operations and Maintenance | $167.8 | $156.0 | Depreciation and Amortization | $80.6 | $75.0 |
Capital Expenditures and Investments
Capital expenditures for the nine months ended September 30, 2024, amounted to $164.1 million, reflecting an increase in utility investments.
The forecasted capital expenditures for MGE Energy are as follows:
| Year | Electric (in thousands) | Gas (in thousands) |
|---|---|---|
| 2024 | $181,000 | $38,000 |
| 2025 | $203,000 | $28,000 |
| 2026 | $229,000 | $28,000 |
| 2027 | $247,000 | $30,000 |
| 2028 | $256,000 | $29,000 |
| 2029 | $276,000 | $27,000 |
Conclusion on Financial Health
MGE Energy has shown resilience in its financial performance through diversified revenue streams, strategic investments, and effective cost management.
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Resources:
- MGE Energy, Inc. (MGEE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MGE Energy, Inc. (MGEE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MGE Energy, Inc. (MGEE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.