MGE Energy Reports Second-Quarter 2022 Earnings

Rhea-AI Summary

MGE Energy, Inc. (Nasdaq: MGEE) reported its financial results for the second quarter of 2022, showing net income of $21.8 million or $0.60 per share, down from $22.9 million or $0.63 per share in the same quarter last year. Electric net income decreased by $1.1 million, attributed to increased depreciation costs. Operating revenues increased to $152.3 million from $130.7 million a year ago. MGE aims for substantial carbon reductions by 2030 and net-zero by 2050.

Positive

• Operating revenues increased to $152.3 million in Q2 2022, up from $130.7 million in Q2 2021.
• MGE's ongoing investments in renewable generation support long-term carbon reduction goals.

Negative

• Net income decreased by $1.1 million compared to Q2 2021.
• Earnings per share declined from $0.63 to $0.60 year-over-year.

MADISON, Wis.--(BUSINESS WIRE)-- MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the second quarter of 2022.

MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the second quarter of 2022 were $21.8 million, or $0.60 cents per share, compared to $22.9 million, or $0.63 cents per share, for the same period in the prior year.

During the second quarter of 2022, electric net income decreased $1.1 million compared to the second quarter of 2021.

Timing of 2021 depreciation and other operations and maintenance costs contributed to higher electric earnings in the second quarter of 2021. Depreciation and operations and maintenance costs increased during the remainder of 2021 after significant capital projects were completed. The new customer information system went live in September 2021 and the first phase of Badger Hollow was completed in November 2021. The second phase of Badger Hollow Solar Farm is expected to be completed in the first half of 2023. Badger Hollow is one of several significant ongoing investments in renewable generation to advance the company's goal of deep decarbonization, targeting carbon reductions of at least 80% (from 2005 levels) by 2030 and net-zero carbon electricity by 2050.

Gas net income in the second quarter of 2022 remained relatively flat compared to the second quarter of 2021.

MGE Energy, Inc. (In thousands, except per share amounts) (Unaudited)
Three Months Ended June 30,		2022				2021
Operating Revenues		$	152,348			$	130,730
Operating Income		$	25,458			$	23,393
Net Income		$	21,761			$	22,851
Earnings Per Share - basic		$	0.60			$	0.63
Earnings Per Share - diluted		$	0.60			$	0.63
Weighted average shares outstanding - basic			36,163				36,163
Weighted average shares outstanding - diluted			36,174				36,168
Six Months Ended June 30,		2022				2021
Operating Revenues		$	361,286			$	298,645
Operating Income		$	67,321			$	62,447
Net Income		$	56,181			$	57,784
Earnings Per Share - basic		$	1.55			$	1.60
Earnings Per Share - diluted		$	1.55			$	1.60
Weighted average shares outstanding - basic			36,163				36,163
Weighted average shares outstanding - diluted			36,173				36,170

About MGE Energy

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 159,000 customers in Dane County, Wis., and purchases and distributes natural gas to 169,000 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, 2021, filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005761/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 is MGE Energy's earnings for the second quarter of 2022?

MGE Energy reported net income of $21.8 million or $0.60 per share for Q2 2022.

How did MGE Energy's operating revenues change in Q2 2022?

Operating revenues increased to $152.3 million in Q2 2022, up from $130.7 million in Q2 2021.

What are MGE Energy's long-term carbon reduction goals?

MGE Energy targets carbon reductions of at least 80% by 2030 and aims for net-zero carbon electricity by 2050.

What challenges did MGE Energy face in the second quarter of 2022?

MGE Energy faced a decrease in electric net income by $1.1 million compared to the prior year's quarter.