MGE Energy Reports Second-Quarter 2023 Earnings

Rhea-AI Summary

MGE Energy, Inc. (MGEE) reports GAAP earnings of $28.7 million, or $0.79 per share, for the second quarter of 2023, compared to $21.8 million, or $0.60 per share, for the same period in 2022. Operating revenues for the second quarter of 2023 were $147.998 million, slightly lower than the prior year. The company's investments in new renewable generation and electric infrastructure contributed to increased electric earnings, while gas net income remained relatively flat. For the six months ended June 30, 2023, MGE Energy reported a net income of $59.759 million, or $1.65 per share, compared to $56.181 million, or $1.55 per share, for the same period in 2022.

Positive

• MGE Energy's GAAP earnings for the second quarter of 2023 increased compared to the prior year, indicating positive growth.
• Investments in new renewable generation and electric infrastructure contributed to higher electric earnings, reflecting the company's commitment to sustainable energy.
• Net income for the six months ended June 30, 2023, also showed an increase compared to the same period in 2022, demonstrating steady financial performance.

Negative

• None.

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

MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the second quarter of 2023 were $28.7 million, or $0.79 per share, compared to $21.8 million, or $0.60 per share, for the same period in the prior year.

Our second-quarter results were primarily driven by an increase in investments included in rate base.

MGE continues to invest in new, cost-effective renewable generation, which is helping to fuel the company's asset growth. An increase in electric investments included in rate base contributed to increased electric earnings for the second quarter of 2023. The timing of 2023 depreciation expense and lower fuel costs also contributed to higher electric earnings in the second quarter of 2023. Depreciation costs are expected to increase after significant capital projects are completed, including the second phase of Badger Hollow and Paris solar projects.

Gas net income in the second quarter of 2023 remained relatively flat compared to the second quarter of 2022.

 

MGE Energy, Inc. (In thousands, except per-share amounts) (Unaudited)
Three Months Ended June 30,		2023				2022
Operating revenues		$	147,998			$	152,348
Operating income		$	38,390			$	25,458
Net income		$	28,681			$	21,761
Earnings per share - basic		$	0.79			$	0.60
Earnings per share - diluted		$	0.79			$	0.60
Weighted average shares outstanding - basic			36,163				36,163
Weighted average shares outstanding - diluted			36,186				36,174
Six Months Ended June 30,		2023				2022
Operating revenues		$	365,251			$	361,286
Operating income		$	78,424			$	67,321
Net income		$	59,759			$	56,181
Earnings per share - basic		$	1.65			$	1.55
Earnings per share - diluted		$	1.65			$	1.55
Weighted average shares outstanding - basic			36,163				36,163
Weighted average shares outstanding - diluted			36,183				36,173

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/20230803191029/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, Inc.'s GAAP earnings for the second quarter of 2023?

MGE Energy, Inc. reported GAAP earnings of $28.7 million, or $0.79 per share, for the second quarter of 2023.

How did MGE Energy's operating revenues for the second quarter of 2023 compare to the prior year?

Operating revenues for the second quarter of 2023 were $147.998 million, slightly lower than the prior year.

What contributed to the increase in electric earnings for MGE Energy in the second quarter of 2023?

Investments in new renewable generation and electric infrastructure contributed to increased electric earnings.

What was MGE Energy's net income for the six months ended June 30, 2023?

For the six months ended June 30, 2023, MGE Energy reported a net income of $59.759 million, or $1.65 per share.

What was the change in MGE Energy's net income for the six months ended June 30, 2023, compared to the same period in 2022?

Net income for the six months ended June 30, 2023, showed an increase compared to the same period in 2022.