WEC Energy Group, Inc. (WEC) Bundle
A Brief History of WEC Energy Group
Company Overview
WEC Energy Group, Inc. is a leading energy company based in the United States, primarily serving the Midwest. As of September 30, 2024, WEC Energy Group provides services to approximately 1.7 million electric customers and 3.0 million natural gas customers. The company is known for its significant investments in renewable energy infrastructure and its ownership of approximately 60% of American Transmission Company (ATC).
Financial Performance
For the third quarter ended September 30, 2024, WEC Energy Group reported a net income attributed to common shareholders of $240.1 million, compared to $316.0 million for the same period in 2023. The basic earnings per share for the third quarter of 2024 was $0.76.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $240.1 | $316.0 |
| Earnings Per Share (Basic) | $0.76 | $1.00 |
| Common Stock Dividends per Share | $0.835 | $0.780 |
Capital Expenditures
WEC Energy Group's capital expenditures for 2024 are projected to be approximately $4.145 billion, with significant investments planned in various states as follows:
| State | 2024 Capital Expenditures (in millions) |
|---|---|
| Wisconsin | $2,692.6 |
| Illinois | $353.4 |
| Other States | $119.5 |
| Non-Utility Energy Infrastructure | $953.7 |
| Corporate and Other | $26.2 |
Debt Management
As of September 30, 2024, WEC Energy Group reported long-term debt of $18.4 billion, reflecting an increase from $16.6 billion as of December 31, 2023. The company actively manages its debt portfolio, including refinancing efforts and capital market activities.
Recent Developments
In January 2024, WEC Energy Group purchased an additional 10% ownership interest in Samson I for $28.1 million, further expanding its renewable energy portfolio. In addition, the company declared a quarterly cash dividend of $0.835 per share on October 17, 2024, payable on December 1, 2024.
Market Position and Strategy
WEC Energy Group continues to focus on enhancing its renewable energy infrastructure while maintaining financial stability. The company’s strategic initiatives include increasing its investments in clean energy and optimizing its capital structure to support growth.
| Key Metrics | Value (as of September 30, 2024) |
|---|---|
| Total Assets (in millions) | $6,790.4 |
| Total Liabilities (in millions) | $4,033.1 |
| Total Equity (in millions) | $12,391.2 |
A Who Owns WEC Energy Group, Inc. (WEC)
Major Shareholders
As of 2024, WEC Energy Group, Inc. has a diverse ownership structure, with institutional investors holding a substantial portion of the company’s shares. The following table summarizes the largest shareholders:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | Institutional Investor |
| BlackRock, Inc. | 7.2% | Institutional Investor |
| State Street Corporation | 4.8% | Institutional Investor |
| WEC Energy Group, Inc. Employee Stock Ownership Plan | 2.5% | Employee Ownership |
| Other Institutional Investors | 25.0% | Institutional Investors |
| Retail Investors | 51.0% | Individual Investors |
Board of Directors
The board of directors plays a critical role in the governance of WEC Energy Group. The makeup of the board as of 2024 includes:
- President and CEO: Kevin Fletcher
- Chairman: William L. Brown
- Independent Directors: Jane G. Dutton, Robert S. McDonald, Margaret M. McCarthy
- Director with Significant Utility Experience: Michael A. Hennigan
Stock Performance
As of the end of Q3 2024, WEC Energy Group's stock performance reflects its stability and growth potential:
| Metric | Value |
|---|---|
| Current Stock Price | $93.45 |
| Market Capitalization | $29.5 billion |
| Dividend Yield | 3.6% |
| Annual Dividend per Share | $3.35 |
| 52-Week High | $95.50 |
| 52-Week Low | $80.25 |
Recent Financial Highlights
Financial performance metrics for the nine months ended September 30, 2024, are as follows:
| Metric | Value (in millions) |
|---|---|
| Total Revenues | $6,315.7 |
| Net Income | $1,073.7 |
| Operating Income | $1,586.5 |
| Total Assets | $6,790.4 |
| Total Liabilities | $4,033.1 |
| Shareholders' Equity | $2,757.3 |
Ownership Changes and Transactions
In January 2024, WEC Energy Group acquired an additional 10% ownership interest in the Samson I solar facility for $28.1 million. The company has been actively expanding its renewable energy portfolio, with significant investments in solar and wind projects across various states.
In October 2024, WEC Energy Group signed an agreement to acquire a 90% ownership interest in the Hardin III solar generating facility for $407.3 million, expected to commence operations in early 2025.
WEC Energy Group, Inc. (WEC) Mission Statement
Corporate Mission Statement
The mission of WEC Energy Group, Inc. is to provide safe, reliable, and affordable energy while enhancing the quality of life in the communities we serve. We are committed to sustainable practices that protect the environment and foster economic development.
Core Values
- Safety: Prioritizing the safety of our employees, customers, and communities.
- Integrity: Conducting business with honesty and transparency.
- Customer Focus: Delivering exceptional customer service and value.
- Innovation: Embracing new technologies and practices for better service delivery.
- Community Engagement: Actively participating in and supporting local communities.
Financial Overview
| Metric | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) | Change |
|---|---|---|---|
| Operating Revenues | $6,315.7 million | $6,675.5 million | $(359.8) million |
| Net Income | $1,071.2 million | $1,113.2 million | $(42.0) million |
| Total Assets | $45,196.5 million | $43,939.7 million | $1,256.8 million |
| Total Liabilities | $33,114.5 million | $32,215.5 million | $899.0 million |
| Shareholder Equity | $12,082.0 million | $11,724.2 million | $357.8 million |
Operational Highlights
WEC Energy Group operates across various segments, including utility operations in Wisconsin, Illinois, and other states.
| Segment | Operating Revenues (2024) | Operating Revenues (2023) | Net Income (2024) | Net Income (2023) |
|---|---|---|---|---|
| Wisconsin | $4,737.0 million | $5,042.8 million | $637.2 million | $686.3 million |
| Illinois | $1,116.4 million | $1,116.5 million | $164.6 million | $167.9 million |
| Other States | $308.6 million | $379.5 million | $35.5 million | $36.7 million |
Energy Infrastructure Investments
WEC Energy Group is investing significantly in energy infrastructure, targeting sustainable and renewable energy sources. The projected capital expenditures for the next three years are as follows:
| Year | Wisconsin | Illinois | Other States | Total |
|---|---|---|---|---|
| 2024 | $2,692.6 million | $353.4 million | $119.5 million | $4,145.4 million |
| 2025 | $4,202.4 million | $373.7 million | $106.5 million | $5,138.1 million |
| 2026 | $4,410.7 million | $404.8 million | $121.4 million | $4,970.2 million |
Community Impact
WEC Energy Group is dedicated to community engagement, investing in local projects, and supporting various initiatives to enhance the quality of life for residents. This includes financial contributions and volunteer efforts from employees.
Environmental Commitment
The company is committed to sustainability, focusing on reducing carbon emissions and increasing energy efficiency across its operations. WEC Energy Group aims to transition towards renewable energy sources and promote environmentally responsible practices.
How WEC Energy Group, Inc. (WEC) Works
Overview of Operations
WEC Energy Group, Inc. operates as a diversified utility holding company, providing electricity and natural gas to residential, commercial, and industrial customers primarily in Wisconsin, Illinois, and Michigan. The company focuses on generating, distributing, and selling electric power and natural gas.
Financial Performance
As of September 30, 2024, WEC Energy Group reported the following financial metrics:
| Metrics | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Electric Revenues | $3,756.0 | $3,840.1 | $(84.1) |
| Natural Gas Revenues | $2,279.2 | $2,622.0 | $(342.8) |
| Total Operating Revenues | $6,315.7 | $6,462.1 | $(146.4) |
| Gross Margin (GAAP) | $1,515.6 | $1,497.6 | $18.0 |
| Utility Margin (non-GAAP) | $3,176.7 | $3,107.5 | $69.2 |
Operating Expenses
WEC Energy Group's operating expenses for the nine months ended September 30, 2024, included:
| Expense Type | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Fuel and Purchased Power | $(1,115.4) | $(1,258.0) | $142.6 |
| Cost of Natural Gas Sold | $(444.9) | $(677.3) | $232.4 |
| Other Operation and Maintenance | $(850.8) | $(842.3) | $(8.5) |
| Depreciation and Amortization | $(685.3) | $(632.9) | $(52.4) |
| Property and Revenue Taxes | $(125.0) | $(134.7) | $9.7 |
Net Income
For the nine months ended September 30, 2024:
| Item | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Net Income | $1,071.2 | $1,113.2 | $(42.0) |
| Net Income Attributed to Common Shareholders | $240.1 | $316.0 | $(75.9) |
Customer Sales Volumes
Electric and natural gas sales volumes for the nine months ended September 30, 2024, were as follows:
| Customer Class | Electric Sales (MWh in thousands) | Natural Gas Sales (Therms in millions) |
|---|---|---|
| Residential | 8,442.8 | 649.0 |
| Commercial and Industrial | 9,753.7 | 425.9 |
| Total Retail | 27,312.5 | 1,074.9 |
| Total Sales | 32,877.8 | 2,032.6 |
Capital Expenditures
Capital expenditures by segment for the nine months ended September 30, 2024, were as follows:
| Segment | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Wisconsin | $1,546.6 | $1,263.5 | $283.1 |
| Illinois | $256.2 | $343.4 | $(87.2) |
| Other States | $82.2 | $71.4 | $10.8 |
| Non-Utility Energy Infrastructure | $33.7 | $33.9 | $(0.2) |
Debt and Liquidity
WEC's liquidity position as of September 30, 2024:
| Debt Type | Amount (in millions) |
|---|---|
| Short-Term Debt | $597.0 |
| Long-Term Debt | $28,795.9 |
Future Capital Requirements
Projected capital expenditures for the next three years are as follows:
| Year | Projected Capital Expenditures (in millions) |
|---|---|
| 2024 | $4,145.4 |
| 2025 | $5,138.1 |
| 2026 | $4,970.2 |
How WEC Energy Group, Inc. (WEC) Makes Money
Revenue Streams
WEC Energy Group generates revenue primarily through regulated utility operations, which include electric and natural gas services. For the nine months ended September 30, 2024, the company reported total operating revenues of $6,315.7 million, a decrease from $6,675.5 million in the same period of 2023.
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (in millions) |
|---|---|---|---|
| Electric | 4,737.0 | 5,042.8 | (305.8) |
| Natural Gas | 2,277.5 | 2,620.7 | (343.2) |
| Total Utility Operations | 6,162.0 | 6,538.8 | (376.8) |
| Non-Utility Energy Infrastructure | 153.7 | 136.6 | 17.1 |
| Total Operating Revenues | 6,315.7 | 6,675.5 | (359.8) |
Utility Operations
The utility operations are further divided into segments based on geographic regions: Wisconsin, Illinois, and other states. The majority of revenues are generated from electric and natural gas services provided to residential, commercial, and industrial customers.
| Region | Electric Revenue (in millions) | Natural Gas Revenue (in millions) | Total Revenue (in millions) |
|---|---|---|---|
| Wisconsin | 3,756.0 | 964.8 | 4,720.8 |
| Illinois | — | 1,027.3 | 1,027.3 |
| Other States | — | 285.4 | 285.4 |
| Total | 3,756.0 | 2,277.5 | 6,033.5 |
Operating Expenses
For the nine months ended September 30, 2024, operating expenses totaled $5,148.5 million, compared to $5,194.9 million in 2023. Key components of operating expenses include fuel and purchased power costs, cost of natural gas sold, and other operating and maintenance expenses.
| Expense Category | 2024 Amount (in millions) | 2023 Amount (in millions) | Change (in millions) |
|---|---|---|---|
| Fuel and Purchased Power | 1,115.4 | 1,258.0 | 142.6 |
| Cost of Natural Gas Sold | 444.9 | 677.3 | 232.4 |
| Other Operation and Maintenance | 850.8 | 842.3 | (8.5) |
| Depreciation and Amortization | 685.3 | 632.9 | (52.4) |
| Property and Revenue Taxes | 125.0 | 134.7 | 9.7 |
| Total Operating Expenses | 5,148.5 | 5,194.9 | (46.4) |
Net Income
The net income attributed to common shareholders for the nine months ended September 30, 2024, was $1,073.7 million, down from $1,113.2 million in 2023. This decline was primarily driven by increased operating expenses and lower revenues from utility operations.
| Period | Net Income (in millions) | Change (in millions) |
|---|---|---|
| 2024 | 1,073.7 | (39.5) |
| 2023 | 1,113.2 | — |
Capital Expenditures
WEC Energy Group continues to invest in capital projects to enhance its utility infrastructure. For 2024, the expected capital expenditures are projected at $4,145.4 million across various segments.
| Segment | 2024 Capital Expenditures (in millions) |
|---|---|
| Wisconsin | 2,692.6 |
| Illinois | 353.4 |
| Other States | 119.5 |
| Non-Utility Energy Infrastructure | 953.7 |
| Corporate and Other | 26.2 |
| Total | 4,145.4 |
Conclusion
WEC Energy Group's revenue generation is heavily reliant on its utility operations, which account for a significant portion of its total income. The company continues to face challenges such as increased operational costs and regulatory changes, but ongoing investments in capital projects aim to sustain and grow its revenue base.
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Article updated on 8 Nov 2024
Resources:
- WEC Energy Group, Inc. (WEC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WEC Energy Group, Inc. (WEC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View WEC Energy Group, Inc. (WEC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.