MADISON, Wis.--(BUSINESS WIRE)--
MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the third quarter of 2023.
MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the third quarter of 2023 were $37.9 million, or $1.05 per share, compared to $33.7 million, or $0.93 per share, for the same period in the prior year.
Our third-quarter results were primarily driven by an increase in investments included in rate base. Also, warmer-than-normal weather led to an increase in electric residential sales of approximately 5% compared to the third quarter of 2022.
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 third quarter of 2023. The timing of depreciation expense also contributed to higher electric earnings in the third 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.
In the third quarter of 2023, earnings from our investment in ATC increased $0.9 million, driven by an estimated possible loss recorded in 2022 from filed complaints regarding MISO transmission owners' authorized return on equity.
Gas net income in the third quarter of 2023 remained relatively flat compared to the third quarter of 2022.
MGE Energy, Inc. |
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(In thousands, except per-share amounts) |
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(Unaudited) |
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|
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Three Months Ended September 30, |
|
2023 |
|
|
2022 |
||
Operating revenues |
|
$ |
160,528 |
|
|
$ |
163,400 |
Operating income |
|
$ |
43,792 |
|
|
$ |
42,487 |
Net income |
|
$ |
37,857 |
|
|
$ |
33,720 |
Earnings per share - basic |
|
$ |
1.05 |
|
|
$ |
0.93 |
Earnings per share - diluted |
|
$ |
1.05 |
|
|
$ |
0.93 |
Weighted average shares outstanding - basic |
|
|
36,163 |
|
|
|
36,163 |
Weighted average shares outstanding - diluted |
|
|
36,189 |
|
|
|
36,176 |
|
|
|
|
|
|
||
Nine Months Ended September 30, |
|
2023 |
|
|
2022 |
||
Operating revenues |
|
$ |
525,779 |
|
|
$ |
524,686 |
Operating income |
|
$ |
122,216 |
|
|
$ |
109,808 |
Net income |
|
$ |
97,616 |
|
|
$ |
89,901 |
Earnings per share - basic |
|
$ |
2.70 |
|
|
$ |
2.49 |
Earnings per share - diluted |
|
$ |
2.70 |
|
|
$ |
2.49 |
Weighted average shares outstanding - basic |
|
|
36,163 |
|
|
|
36,163 |
Weighted average shares outstanding - diluted |
|
|
36,185 |
|
|
|
36,174 |
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.
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