Alliant Energy Announces First Quarter 2024 Results
-
First quarter GAAP earnings per share was
$0.62 in 2024, compared to$0.65 in 2023
-
Reaffirming 2024 earnings guidance range of
$2.99 -$3.13 per share
|
GAAP EPS |
||||||
|
2024 |
|
2023 |
||||
Utilities and Corporate Services |
$ |
0.62 |
|
|
$ |
0.65 |
|
|
|
0.04 |
|
|
|
0.04 |
|
Non-utility and Parent |
|
(0.04 |
) |
|
|
(0.04 |
) |
Alliant Energy Consolidated |
$ |
0.62 |
|
|
$ |
0.65 |
|
“We had a solid start to the year in light of historically mild weather,” said
Utilities and Corporate Services - Alliant Energy’s Utilities and
Details regarding GAAP EPS variances between the first quarters of 2024 and 2023 for
|
Variance |
||
Revenue requirements from capital investments at WPL |
$ |
0.11 |
|
Estimated temperature impact on retail electric and gas sales |
|
(0.04 |
) |
Higher financing expense |
|
(0.04 |
) |
Higher depreciation expense |
|
(0.04 |
) |
Other |
|
(0.02 |
) |
Total |
($ |
0.03 |
) |
Revenue requirements from capital investments at WPL - In
Estimated temperature impact on retail electric and gas sales - Alliant Energy’s retail electric and gas sales decreased an estimated
2024 Earnings Guidance
-
Ability of
Interstate Power and Light Company (IPL) and WPL to earn their authorized rates of return - Normal temperatures in its utility service territories
- Constructive and timely regulatory outcomes from regulatory proceedings
- Stable economy and resulting implications on utility sales
- Execution of capital expenditure and financing plans
- Execution of cost controls
- Consolidated effective tax rate of (7%)
The 2024 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, future changes in laws, regulations or regulatory policies, adjustments made to deferred tax assets and liabilities from valuation allowances including further corporate tax rate changes in
Earnings Conference Call
A conference call to review the first quarter 2024 results is scheduled for
About
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified by words such as “forecast,” “expect,” “guidance,” or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Actual results could be materially affected by the following factors, among others:
-
the direct or indirect effects resulting from cybersecurity incidents or attacks on
Alliant Energy , IPL, WPL, or their suppliers, contractors and partners, or responses to such incidents; - the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity;
- economic conditions and the impact of business or facility closures in IPL’s and WPL’s service territories;
- the impact of energy efficiency, franchise retention and customer disconnects on sales volumes and operating income;
- the impact that price changes may have on IPL’s and WPL’s customers’ demand for electric, gas and steam services and their ability to pay their bills;
-
changes in the price of delivered natural gas, transmission, purchased electricity and delivered coal, particularly during elevated market prices, and any resulting changes to counterparty credit risk, due to shifts in supply and demand caused by market conditions, regulations and
Midcontinent Independent System Operator , Inc.’s (MISO’s) seasonal resource adequacy process; - IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of and/or the return on costs, including fuel costs, operating costs, transmission costs, capacity costs, deferred expenditures, deferred tax assets, tax expense, interest expense, capital expenditures, and remaining costs related to electric generating units (EGUs) that may be permanently closed and certain other retired assets, decreases in sales volumes, earning their authorized rates of return, payments to their parent of expected levels of dividends, and the impact of rate design on current and potential customers’ demand for energy in their service territories;
- weather effects on utility sales volumes and operations;
- the ability to obtain deferral treatment for the recovery of and a return on prudently incurred costs in between rate reviews;
- the ability to obtain regulatory approval for construction projects with acceptable conditions;
-
the ability to complete construction of renewable generation and storage projects by planned in-service dates and within the cost targets set by regulators due to cost increases of and access to materials, equipment and commodities, which could result from tariffs, duties or other assessments, such as any additional tariffs resulting from
U.S. Department of Commerce investigations into and any decisions made regarding the sourcing of solar project materials and equipment from certain countries, labor issues or supply shortages, the ability to successfully resolve warranty issues or contract disputes, the ability to achieve the expected level of tax benefits based on tax guidelines, project costs and the level of electricity output generated by qualifying generating facilities, and the ability to efficiently utilize the renewable generation and storage project tax benefits for the benefit of customers; - WPL’s ability to obtain rate relief to allow for the return on costs of solar generation projects that exceed initial cost estimates;
- the impacts of changes in the tax code, including tax rates, minimum tax rates, adjustments made to deferred tax assets and liabilities, and changes impacting the availability of and ability to transfer renewable tax credits;
- the ability to utilize tax credits generated to date, and those that may be generated in the future, before they expire, as well as the ability to transfer tax credits that may be generated in the future at adequate pricing;
- disruptions to ongoing operations and the supply of materials, services, equipment and commodities needed to construct solar generation, battery storage and electric and gas distribution projects, which may result from geopolitical issues, supplier manufacturing constraints, regulatory requirements, labor issues or transportation issues, and thus affect the ability to meet capacity requirements and result in increased capacity expense;
- inflation and higher interest rates;
- the future development of technologies related to electrification, and the ability to reliably store and manage electricity;
- federal and state regulatory or governmental actions, including the impact of legislation, and regulatory agency orders and changes in public policy;
- employee workforce factors, including the ability to hire and retain employees with specialized skills, impacts from employee retirements, changes in key executives, ability to create desired corporate culture, collective bargaining agreements and negotiations, work stoppages or restructurings;
- disruptions in the supply and delivery of natural gas, purchased electricity and coal;
-
changes to the creditworthiness of, or performance of obligations by, counterparties with which
Alliant Energy , IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters; - the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns;
- impacts that terrorist attacks may have on Alliant Energy’s, IPL’s and WPL’s operations and recovery of costs associated with restoration activities, or on the operations of Alliant Energy’s investments;
- any material post-closing payments related to any past asset divestitures, including the transfer of renewable tax credits and the sale of Whiting Petroleum, which could result from, among other things, indemnification agreements, warranties, guarantees or litigation;
- continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;
- changes to MISO’s resource adequacy process establishing capacity planning reserve margin and capacity accreditation requirements that may impact how and when new and existing generating facilities, including IPL’s and WPL’s additional solar generation, may be accredited with energy capacity, and may require IPL and WPL to adjust their current resource plans, to add resources to meet the requirements of MISO’s process, or procure capacity in the market whereby such costs might not be recovered in rates;
- issues associated with environmental remediation and environmental compliance, including compliance with all environmental and emissions permits and future changes in environmental laws and regulations, including the Coal Combustion Residuals Rule, Cross-State Air Pollution Rule and federal, state or local regulations for greenhouse gases emissions reductions from new and existing fossil-fueled EGUs under the Clean Air Act, and litigation associated with environmental requirements;
- increased pressure from customers, investors and other stakeholders to more rapidly reduce greenhouse gases emissions;
-
the ability to defend against environmental claims brought by state and federal agencies, such as the
U.S. Environmental Protection Agency and state natural resources agencies, or third parties, such as theSierra Club , and the impact on operating expenses of defending and resolving such claims; -
the direct or indirect effects resulting from breakdown or failure of equipment in the operation of electric and gas distribution systems, such as mechanical problems and explosions or fires, and compliance with electric and gas transmission and distribution safety regulations, including regulations promulgated by the
Pipeline and Hazardous Materials Safety Administration ; - issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, availability of warranty coverage and successful resolution of warranty issues or contract disputes for equipment breakdowns or failures, performance below expected or contracted levels of output or efficiency, operator error, employee safety, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental operating, fuel-related and capital costs through rates;
- impacts that excessive heat, excessive cold, storms, wildfires, or natural disasters may have on Alliant Energy’s, IPL’s and WPL’s operations and construction activities, and recovery of costs associated with restoration activities, or on the operations of Alliant Energy’s investments;
- Alliant Energy’s ability to sustain its dividend payout ratio goal;
- changes to costs of providing benefits and related funding requirements of pension and other postretirement benefits plans due to the market value of the assets that fund the plans, economic conditions, financial market performance, interest rates, timing and form of benefits payments, life expectancies and demographics;
- material changes in employee-related benefit and compensation costs, including settlement losses related to pension plans;
- risks associated with operation and ownership of non-utility holdings;
- changes in technology that alter the channels through which customers buy or utilize Alliant Energy’s, IPL’s or WPL’s products and services;
- impacts on equity income from unconsolidated investments from changes in valuations of the assets held, as well as potential changes to ATC LLC’s authorized return on equity;
-
impacts of IPL’s future tax benefits from
Iowa rate-making practices, including deductions for repairs expenditures, allocation of mixed service costs and state depreciation, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods; - current or future litigation, regulatory investigations, proceedings or inquiries;
- reputational damage from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions;
- the direct or indirect effects resulting from pandemics;
- the effect of accounting standards issued periodically by standard-setting bodies;
- the ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and
- other factors listed in the “2024 Earnings Guidance” section of this press release.
For more information about potential factors that could affect Alliant Energy’s business and financial results, refer to Alliant Energy’s most recent Annual Report on
Form 10-K
filed with the
Without limitation, the expectations with respect to 2024 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding Alliant Energy’s financial results, this press release includes reference to certain non-GAAP financial measures.
Note: Unless otherwise noted, all “per share” references in this release refer to earnings per diluted share.
|
|||||||
EARNINGS SUMMARY (Unaudited) |
|||||||
The following tables provide a summary of Alliant Energy’s results for the three months ended |
|||||||
EPS: |
GAAP EPS |
||||||
|
2024 |
|
2023 |
||||
IPL |
$ |
0.25 |
|
|
$ |
0.29 |
|
WPL |
|
0.36 |
|
|
|
0.35 |
|
Corporate Services |
|
0.01 |
|
|
|
0.01 |
|
Subtotal for Utilities and Corporate Services |
|
0.62 |
|
|
|
0.65 |
|
|
|
0.04 |
|
|
|
0.04 |
|
Non-utility and Parent |
|
(0.04 |
) |
|
|
(0.04 |
) |
Alliant Energy Consolidated |
$ |
0.62 |
|
|
$ |
0.65 |
|
Earnings (in millions): |
GAAP Income (Loss) |
||||||
|
2024 |
|
2023 |
||||
IPL |
$ |
63 |
|
|
$ |
72 |
|
WPL |
|
92 |
|
|
|
88 |
|
Corporate Services |
|
4 |
|
|
|
3 |
|
Subtotal for Utilities and Corporate Services |
|
159 |
|
|
|
163 |
|
|
|
9 |
|
|
|
9 |
|
Non-utility and Parent |
|
(10 |
) |
|
|
(9 |
) |
Alliant Energy Consolidated |
$ |
158 |
|
|
$ |
163 |
|
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||
|
|
||||||
|
Three Months Ended |
||||||
|
2024 |
|
2023 |
||||
|
(in millions, except per share amounts) |
||||||
Revenues: |
|
|
|
||||
Electric utility |
$ |
791 |
|
|
$ |
768 |
|
Gas utility |
|
205 |
|
|
|
276 |
|
Other utility |
|
13 |
|
|
|
11 |
|
Non-utility |
|
22 |
|
|
|
22 |
|
|
|
1,031 |
|
|
|
1,077 |
|
Operating expenses: |
|
|
|
||||
Electric production fuel and purchased power |
|
163 |
|
|
|
157 |
|
Electric transmission service |
|
152 |
|
|
|
146 |
|
Cost of gas sold |
|
114 |
|
|
|
181 |
|
Other operation and maintenance: |
|
|
|
||||
Energy efficiency costs |
|
14 |
|
|
|
20 |
|
Non-utility |
|
17 |
|
|
|
16 |
|
Other |
|
129 |
|
|
|
138 |
|
Depreciation and amortization |
|
189 |
|
|
|
166 |
|
Taxes other than income taxes |
|
31 |
|
|
|
31 |
|
|
|
809 |
|
|
|
855 |
|
Operating income |
|
222 |
|
|
|
222 |
|
Other (income) and deductions: |
|
|
|
||||
Interest expense |
|
107 |
|
|
|
94 |
|
Equity income from unconsolidated investments, net |
|
(15 |
) |
|
|
(17 |
) |
Allowance for funds used during construction |
|
(19 |
) |
|
|
(19 |
) |
Other |
|
1 |
|
|
|
3 |
|
|
|
74 |
|
|
|
61 |
|
Income before income taxes |
|
148 |
|
|
|
161 |
|
Income tax benefit |
|
(10 |
) |
|
|
(2 |
) |
Net income attributable to |
$ |
158 |
|
|
$ |
163 |
|
Weighted average number of common shares outstanding: |
|
|
|
||||
Basic |
|
256.2 |
|
|
|
251.2 |
|
Diluted |
|
256.5 |
|
|
|
251.4 |
|
Earnings per weighted average common share attributable to |
$ |
0.62 |
|
|
$ |
0.65 |
|
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
|
|
|
|
||
|
|
|
|
||
|
(in millions) |
||||
ASSETS: |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
32 |
|
$ |
62 |
Other current assets |
|
1,076 |
|
|
1,210 |
Property, plant and equipment, net |
|
17,354 |
|
|
17,157 |
Investments |
|
611 |
|
|
602 |
Other assets |
|
2,175 |
|
|
2,206 |
Total assets |
$ |
21,248 |
|
$ |
21,237 |
LIABILITIES AND EQUITY: |
|
|
|
||
Current liabilities: |
|
|
|
||
Current maturities of long-term debt |
$ |
809 |
|
$ |
809 |
Commercial paper |
|
334 |
|
|
475 |
Other current liabilities |
|
841 |
|
|
1,020 |
Long-term debt, net (excluding current portion) |
|
8,524 |
|
|
8,225 |
Other liabilities |
|
3,923 |
|
|
3,931 |
|
|
6,817 |
|
|
6,777 |
Total liabilities and equity |
$ |
21,248 |
|
$ |
21,237 |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
|
|
|
|
||||
|
Three Months Ended |
||||||
|
2024 |
|
2023 |
||||
|
(in millions) |
||||||
Cash flows from operating activities: |
|
|
|
||||
Cash flows from operating activities excluding accounts receivable sold to a third party |
$ |
430 |
|
|
$ |
329 |
|
Accounts receivable sold to a third party |
|
(123 |
) |
|
|
(141 |
) |
Net cash flows from operating activities |
|
307 |
|
|
|
188 |
|
Cash flows used for investing activities: |
|
|
|
||||
Construction and acquisition expenditures: |
|
|
|
||||
Utility business |
|
(478 |
) |
|
|
(417 |
) |
Other |
|
(32 |
) |
|
|
(34 |
) |
Cash receipts on sold receivables |
|
155 |
|
|
|
173 |
|
Proceeds from sale of partial ownership interest in West Riverside |
|
— |
|
|
|
25 |
|
Other |
|
2 |
|
|
|
(10 |
) |
Net cash flows used for investing activities |
|
(353 |
) |
|
|
(263 |
) |
Cash flows from financing activities: |
|
|
|
||||
Common stock dividends |
|
(123 |
) |
|
|
(113 |
) |
Proceeds from issuance of long-term debt |
|
597 |
|
|
|
862 |
|
Payments to retire long-term debt |
|
(300 |
) |
|
|
— |
|
Net change in commercial paper and other short-term borrowings |
|
(141 |
) |
|
|
(532 |
) |
Other |
|
(15 |
) |
|
|
(5 |
) |
Net cash flows from financing activities |
|
18 |
|
|
|
212 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(28 |
) |
|
|
137 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
63 |
|
|
|
24 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
35 |
|
|
$ |
161 |
|
KEY FINANCIAL AND OPERATING STATISTICS |
|||
|
|
|
|
Common shares outstanding (000s) |
256,379 |
|
251,388 |
Book value per share |
|
|
|
Quarterly common dividend rate per share |
|
|
|
|
Three Months Ended |
||
|
2024 |
|
2023 |
Utility electric sales (000s of megawatt-hours) |
|
|
|
Residential |
1,755 |
|
1,806 |
Commercial |
1,523 |
|
1,554 |
Industrial |
2,532 |
|
2,564 |
Industrial - co-generation customers |
179 |
|
277 |
Retail subtotal |
5,989 |
|
6,201 |
Sales for resale: |
|
|
|
Wholesale |
679 |
|
698 |
Bulk power and other |
1,670 |
|
1,243 |
Other |
15 |
|
15 |
Total |
8,353 |
|
8,157 |
Utility retail electric customers (at |
|
|
|
Residential |
849,255 |
|
843,367 |
Commercial |
145,826 |
|
144,932 |
Industrial |
2,407 |
|
2,416 |
Total |
997,488 |
|
990,715 |
Utility gas sold and transported (000s of dekatherms) |
|
|
|
Residential |
11,823 |
|
13,044 |
Commercial |
7,529 |
|
8,500 |
Industrial |
765 |
|
766 |
Retail subtotal |
20,117 |
|
22,310 |
Transportation / other |
33,908 |
|
32,614 |
Total |
54,025 |
|
54,924 |
Utility retail gas customers (at |
|
|
|
Residential |
383,769 |
|
381,714 |
Commercial |
45,125 |
|
45,050 |
Industrial |
322 |
|
324 |
Total |
429,216 |
|
427,088 |
|
|
|
|
Estimated operating income decreases from impacts of temperatures (in millions) - |
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
Electric |
( |
|
( |
Gas |
(11) |
|
(6) |
Total temperature impact |
( |
|
( |
|
Three Months Ended |
||||
|
2024 |
|
2023 |
|
Normal |
Heating degree days (HDDs) (a) |
|
|
|
|
|
|
2,850 |
|
3,155 |
|
3,471 |
|
2,979 |
|
3,184 |
|
3,554 |
(a) |
HDDs are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDDs. |
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