MGE Energy Reports First-Quarter 2023 Earnings

Rhea-AI Summary

MGE Energy, Inc. reports Q1 2023 GAAP earnings of $31.1 million, down from $34.4 million in Q1 2022. Warmer weather leads to a 14% decrease in gas retail sales and a 7% decrease in electric residential retail sales compared to the same period last year.

Positive

• MGE Energy's Q1 2023 GAAP earnings were $31.1 million, a decrease of 9.6% from Q1 2022.
• Gas retail sales decreased by approximately 14% in Q1 2023 compared to the same period last year.
• Electric residential retail sales decreased by approximately 7% in Q1 2023 compared to the same period last year.

Negative

• None.

MADISON, Wis.--(BUSINESS WIRE)-- MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the first quarter of 2023.

MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the first quarter of 2023 were $31.1 million, or $0.86 per share, compared to $34.4 million, or $0.95 per share, for the same period in the prior year.

During the first quarter of 2023, warmer-than-normal weather was a significant driver in lower gas and electric retail sales. Gas retail sales decreased approximately 14% and electric residential retail sales decreased approximately 7% compared to the same period in the prior year. Heating degree days is a measure of the extent to which the average daily temperature is below 65 degrees Fahrenheit and is considered an indicator of possible increased demand for energy to provide heating. As measured by heating degree days, the first quarter of 2023 was 14% warmer than the first quarter of 2022. The average temperature in January 2023 was approximately 27 degrees compared to approximately 15 degrees in January 2022. The normal average temperature for January is 20 degrees.

MGE Energy, Inc.
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended March 31,		2023				2022
Operating revenues		$	217,253			$	208,938
Operating income		$	40,034			$	41,863
Net income		$	31,078			$	34,420
Earnings per share - basic		$	0.86			$	0.95
Earnings per share - diluted		$	0.86			$	0.95
Weighted average shares outstanding - basic			36,163				36,163
Weighted average shares outstanding - diluted			36,180				36,171

About MGE Energy

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 161,000 customers in Dane County, Wis., and purchases and distributes natural gas to 173,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the "Risk Factors" sections in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005765/en/

Steve B. Schultz

Corporate Communications Manager

608-252-7219 | sbschultz@mge.com

Ken Frassetto

Investor Relations

608-252-4723 | kfrassetto@mge.com

Source: MGE Energy, Inc.

FAQ

What were MGE Energy's Q1 2023 GAAP earnings?

MGE Energy reported Q1 2023 GAAP earnings of $31.1 million.

How much did gas retail sales decrease in Q1 2023 compared to the same period last year?

Gas retail sales decreased by approximately 14% in Q1 2023 compared to the same period last year.

How much did electric residential retail sales decrease in Q1 2023 compared to the same period last year?

Electric residential retail sales decreased by approximately 7% in Q1 2023 compared to the same period last year.