MGE Energy (MGEE) Q2 2024 earnings summary

Executive summary

• MGE Energy reported Q2 2024 net income of $23.8M ($0.66/share), down from $28.7M ($0.79/share) in Q2 2023; six-month net income was $57.6M ($1.59/share), down from $59.8M ($1.65/share) year-over-year.

• Lower earnings were driven by higher fuel costs and reduced electric and gas sales due to unfavorable weather.

• Continued benefit from increased investments included in rate base and ongoing focus on renewables and grid modernization.

• PSCW approved 2024/2025 rate increases: 1.54% for electric and 2.44% for gas in 2024, with further increases in 2025.

Financial highlights

• Q2 2024 operating revenues were $145.7M, down from $148.0M in Q2 2023; six-month revenues were $337.0M, down from $365.3M year-over-year.

• Q2 2024 operating income was $29.7M, down from $38.4M in Q2 2023; six-month operating income was $70.5M, down from $78.4M.

• Q2 2024 EPS was $0.66 (basic and diluted), compared to $0.79 in Q2 2023; six-month EPS was $1.59, compared to $1.65.

• Dividends per share increased to $0.428 in Q2 2024 from $0.408 in Q2 2023.

Outlook and guidance

• MGE expects adequate liquidity for the next 12 months, supported by cash, operating flows, credit facilities, and planned equity and debt issuances.

• Capital expenditures for 2024-2028 will focus on renewables, grid modernization, and reliability, with no material changes to the forecasted plan.

• Forward-looking statements caution about uncertainties and risks affecting future results.