MGE Energy Reports First-Quarter 2024 Earnings

Rhea-AI Summary

MGE Energy, Inc. (Nasdaq: MGEE) reported GAAP earnings of $33.8 million, or $0.93 per share, for the first quarter of 2024, showing an increase from $31.1 million, or $0.86 per share, in the same period last year. Electric net income rose by $2.5 million due to investments in rate base. Gas net income remained stable despite warm weather. Operating revenues were $191.3 million in 2024 compared to $217.3 million in 2023.

Positive

• Increased GAAP earnings and earnings per share in the first quarter of 2024 compared to the previous year.

• Electric net income saw a $2.5 million increase driven by investments in rate base.

Negative

• Operating revenues decreased from $217.3 million in 2023 to $191.3 million in 2024.

• Gas net income remained flat despite warm weather conditions.

Insights

Financial Analyst

The recorded increase in GAAP earnings for MGE Energy points to a healthy margin improvement, especially noteworthy in a quarter that might have otherwise seen a negative impact due to milder weather conditions. The growth in electric net income, attributed to the uptick in investments included in the rate base, suggests that the company’s asset enhancement strategies are translating into tangible financial gains. On the flip side, the relatively flat gas net income indicates a degree of resilience in their business model, capable of weathering fluctuations in weather patterns, which can often pose risks to utilities' financial performance. With a steady increment in earnings per share from $0.86 to $0.93, shareholders could view this as a positive signal of the company's proficiency in generating shareholder value in a challenging environment. The slight increase in the number of shares outstanding should also be noted, since dilution can affect earnings per share, but here the impact seems negligible.

Energy Market Analyst

MGE Energy’s results in the context of one of the warmest February months on record underscore the importance of examining utility companies' adaptive strategies to changing climate patterns and their impact on consumption. The fact that MGE Energy managed to maintain gas net income levels is indicative of effective demand-side management and possibly a diversified customer base. The broader implications for investors is that MGE's business might have a built-in resilience against short-term climate variability, which is pivotal as we encounter more frequent and unpredictable weather events. This is an element that could be factored into the long-term valuation of the company as investors increasingly scrutinize sustainability and climate adaptability metrics.

MADISON, Wis.--(BUSINESS WIRE)-- MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the first quarter of 2024.

MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the first quarter of 2024 were $33.8 million, or $0.93 per share, compared to $31.1 million, or $0.86 per share, for the same period in the prior year.

In the first quarter of 2024, electric net income increased $2.5 million compared to the first quarter of 2023. The first-quarter results were primarily driven by an increase in investments included in rate base.

Despite having one of the warmest February months on record, gas net income in the first quarter of 2024 remained relatively flat compared to the first quarter of 2023.

MGE Energy, Inc. (In thousands, except per-share amounts) (Unaudited)
Three Months Ended March 31,		2024				2023
Operating revenues		$	191,336			$	217,253
Operating income		$	40,745			$	40,034
Net income		$	33,814			$	31,078
Earnings per share - basic		$	0.93			$	0.86
Earnings per share - diluted		$	0.93			$	0.86
Weighted average shares outstanding - basic			36,171				36,163
Weighted average shares outstanding - diluted			36,189				36,180

About MGE Energy

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 163,000 customers in Dane County, Wis., and purchases and distributes natural gas to 176,000 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, 2023, filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508222311/en/

Steve B. Schultz

Media Relations

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 GAAP earnings in the first quarter of 2024?

MGE Energy reported GAAP earnings of $33.8 million for the first quarter of 2024.

How did MGE Energy's electric net income perform in the first quarter of 2024?

Electric net income increased by $2.5 million in the first quarter of 2024.

What were MGE Energy's operating revenues in the first quarter of 2024?

MGE Energy's operating revenues were $191.3 million in the first quarter of 2024.