Morningstar | WEC Energy Group's Strong Management Bench Well Positioned to Execute Growth Plan
We are reaffirming our $61 fair value estimate and narrow economic moat rating after WEC Energy Group reported third-quarter operating earnings per share of $0.74 compared with $0.68 per share in the same year-ago period. Management reaffirmed its earnings guidance of $3.26 to $3.32 per share.During the quarter, Allan Leverett, president of WEC Energy Group, resigned after being on medical leave since late 2017. During his short tenure as CEO, Leverett worked in shareholders' best interest by supporting an industry-leading regulatory environment, driving efficiencies out of the integrated WEC Energy Group, and identifying growth opportunities. Leverett will remain a member of the board of directors.
The board also announced Kevin Fletcher will take over as president of WEC Energy, reporting directly to Gale Klappa, chairman and CEO, who returned after Leverett's absence. Fletcher's promotion highlights the company's deep management bench. This is one reason WEC has been able to develop a leading growth platform while building best-in-class regulatory relationships. Fletcher joined WEC Energy from highly respected Southern Co in May 2016, and has held various leadership positions since.
Management also announced a $14.1 billion five-year capital expenditure plan from 2019-23, an increase of $700 million from its 2018-22 plan. Further detail will be given at the upcoming EEI utility conference. We also expect updates to earnings guidance, financing details, and management succession.
Similar to its peers, WEC benefited from particularly favorable summer weather, with retail electric deliveries up 6% compared with the same year-ago period. On a weather-normalized basis, WEC's retail deliveries were up 2.6%. WEC's growth projects, including proposed solar development and natural gas modernization, remain on track.
WEC Energy Group is a holding company. Through its subsidiaries, the company provides regulated natural gas and electricity, and nonregulated renewable energy. The company's segments include: Wisconsin, which generates and distributes electric energy and provides retail natural gas distribution service; Illinois, which includes the natural gas utility operations; Electric Transmission, which owns, maintains, monitors, and operates electric transmission systems in Wisconsin, Michigan, Illinois, and Minnesota; and Non-Utility Energy Infrastructure, which owns and leases generating facilities to its Wisconsin Electric Power Company subsidiary and owns underground natural gas storage facilities in Michigan.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.