MGE Energy Inc. Files Q1 2024 10-Q Report

TL;DR

<b>MGE Energy Inc. has submitted its Q1 2024 10-Q filing, providing a comprehensive overview of its financial and operational status.</b>

AI Summary

MGE ENERGY INC (MGEE) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. MGE Energy Inc. filed its quarterly report on Form 10-Q for the period ending March 31, 2024. The filing covers the first quarter of 2024, detailing financial performance and operational updates. Key financial data and segment information for MGE Energy Inc. and its subsidiary Madison Gas & Electric Co. are presented. The report includes details on common stock, retained earnings, and additional paid-in capital as of various dates. Information regarding commodity contracts, financial transmission rights, and energy generation sources is also included.

Why It Matters

For investors and stakeholders tracking MGE ENERGY INC, this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial results and operational details for MGE Energy Inc. and its subsidiary, Madison Gas & Electric Co., for the first quarter of 2024. The report offers insights into the company's performance across different energy segments, including regulated electric and gas operations, as well as non-regulated energy activities, which are crucial for understanding its overall business health and future prospects.

Risk Assessment

Risk Level: — MGE ENERGY INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) for a publicly traded utility company, indicating routine financial disclosure rather than significant new risks or events.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to assess MGE Energy's revenue generation and cost management strategies for Q1 2024.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Form 10-Q filing)
• 2024-05-08 — Filing Date (Form 10-Q filing)

Key Players & Entities

• MGE ENERGY INC (company) — Filer name
• MADISON GAS & ELECTRIC CO (company) — Subsidiary filer name
• Public Service Commission Of Wisconsin (regulator) — Mentioned in context of Paris Units

FAQ

Industry Context

MGE Energy Inc. operates as a public utility company, providing electricity and natural gas services primarily in Wisconsin.

Regulatory Implications

The company is subject to regulation by the Public Service Commission of Wisconsin for its utility operations.

What Investors Should Do

1. Analyze the revenue and expense details for the regulated electric and gas segments.
2. Examine any disclosures related to non-regulated energy activities and their financial impact.
3. Review the balance sheet and equity sections for changes in financial position compared to prior periods.

Year-Over-Year Comparison

This is the initial Q1 2024 10-Q filing, so no prior period comparison is available within this specific document.

Key Financial Figures

• $1 — nge on which registered Common Stock, $1 Par Value Per Share MGEE The NASDAQ
• $1.00 — 2024 MGE Energy, Inc. Common stock, $1.00 par value, 36,175,888 shares outstandin

Filing Documents

• mgee-20240331.htm (10-Q) — 2801KB
• mgee-ex31_1.htm (EX-31.1) — 13KB
• mgee-ex31_2.htm (EX-31.2) — 13KB
• mgee-ex31_3.htm (EX-31.3) — 13KB
• mgee-ex31_4.htm (EX-31.4) — 13KB
• mgee-ex32_1.htm (EX-32.1) — 8KB
• mgee-ex32_2.htm (EX-32.2) — 8KB
• mgee-ex32_3.htm (EX-32.3) — 8KB
• mgee-ex32_4.htm (EX-32.4) — 8KB
• 0000950170-24-055186.txt (&nbsp;) — 11859KB
• mgee-20240331.xsd (EX-101.SCH) — 1616KB
• mgee-20240331_htm.xml (XML) — 2578KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 Filing Format 3

Forward-Looking Statements

Forward-Looking Statements 3 Where to Find More Information 3 Definitions, Abbreviations, and Acronyms Used in the Text and Notes of this Report 4

Financial Statements

Item 1. Financial Statements. 6 MGE Energy, Inc. 6 Consolidated Statements of Income (unaudited) 6 Consolidated Statements of Cash Flows (unaudited) 7 Consolidated Balance Sheets (unaudited) 8 Consolidated Statements of Common Equity (unaudited) 9 Madison Gas and Electric Company 10 Consolidated Statements of Income (unaudited) 10 Consolidated Statements of Cash Flows (unaudited) 11 Consolidated Balance Sheets (unaudited) 12 Consolidated Statements of Equity (unaudited) 13 MGE Energy, Inc., and Madison Gas and Electric Company - Notes to Consolidated Financial Statements (unaudited) 14 1. Summary of Significant Accounting Policies. 14 2. New Accounting Standards. 15 3. Investment in ATC and ATC Holdco. 15 4. Taxes. 16 5. Pension and Other Postretirement Plans. 16 6. Equity and Financing Arrangements. 17 7. Share-Based Compensation. 17 8. Commitments and Contingencies. 18 9. Rate Matters. 21 10. Derivative and Hedging Instruments. 22 11. Fair Value of Financial Instruments. 24 12. Joint Plant Construction Project Ownership. 26 13. Revenue. 27 14. Segment Information. 27

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 39

Controls and Procedures

Item 4. Controls and Procedures. 39

OTHER INFORMATION

PART II. OTHER INFORMATION. 40

Legal Proceedings

Item 1. Legal Proceedings. 40

Risk Factors

Item 1A. Risk Factors. 40

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 40

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 40

Other Information

Item 5. Other Information. 40

Exhibits

Item 6. Exhibits. 41 Signatures - MGE Energy, Inc. 42 Signatures - Madison Gas and Electric Company 43 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION . Filing Format This combined Form 10-Q is being filed separately by MGE Energy, Inc. (MGE Energy) and Madison Gas and Electric Company (MGE). MGE is a wholly owned subsidiary of MGE Energy and represents a majority of its assets, liabilities, revenues, expenses, and operations. Thus, all information contained in this report relates to, and is filed by, MGE Energy. Information that is specifically identified in this report as relating solely to MGE Energy, such as its financial statements and information relating to its nonregulated business, does not relate to, and is not filed by, MGE. MGE makes no representation as to that information. The terms "we" and "our," as used in this report, refer to MGE Energy and its consolidated subsidiaries, unless otherwise indicated.

Forward-Looking Statements

Forward-Looking Statements This report, and other documents filed by MGE Energy and MGE with the Securities and Exchange Commission (SEC) from time to time, contain forward-looking statements that reflect management's current assumptions and estimates regarding future performance and economic conditions—especially as they relate to economic conditions, future load growth, revenues, expenses, capital expenditures and rate recovery, financial resources, regulatory matters, and the scope and expense associated with future environmental regulation. These forward-looking statements are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "expect," "anticipate," "estimate," "could," "should," "intend," "will," "commit," "target," and other similar words, and words relating to goals, targets and projections, generally identify forward-looking statements. Both MGE Energy and MGE caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed, or implied. The factors that could cause actual results to differ materially from the forward-looking statements made by a registrant include: (a) those factors discussed in the registrants' 2023 Annual Report on Form 10-K : Item 1A. Risk Factors, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, as updated by Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in this report, and Item 8. Financial Statements and Supplementary Data – Note 16, as updated by Part I, Item 1. Financial Statements – Note 8 in this report, and (b) other factors discussed herein and in other filings made by that registrant with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this report. M

Financi al Statements

Item 1. Financi al Statements. MGE E nergy, Inc. Consolidated Statements of Income (unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Operating Revenues: Electric revenues $ 116,167 $ 117,291 Gas revenues 75,169 99,962 Total Operating Revenues 191,336 217,253 Operating Expenses: Fuel for electric generation 12,704 13,807 Purchased power 9,442 15,386 Cost of gas sold 41,877 67,847 Other operations and maintenance 53,974 49,958 Depreciation and amortization 26,600 24,611 Other general taxes 5,994 5,610 Total Operating Expenses 150,591 177,219 Operating Income 40,745 40,034 Other income, net 3,881 5,355 Interest expense, net ( 8,004 ) ( 7,487 ) Income before income taxes 36,622 37,902 Income tax provision ( 2,808 ) ( 6,824 ) Net Income $ 33,814 $ 31,078 Earnings Per Share of Common Stock Basic $ 0.93 $ 0.86 Diluted $ 0.93 $ 0.86 Dividends per share of common stock $ 0.428 $ 0.408 Weighted Average Shares Outstanding Basic 36,171 36,163 Diluted 36,189 36,180 The accompanying notes are an integral part of the above unaudited consolidated financial statements. 6 MGE Energy, Inc. Consolidated Statements of Cash Flows (unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Operating Activities: Net income $ 33,814 $ 31,078 Items not affecting cash: Depreciation and amortization 26,600 24,611 Deferred income taxes ( 521 ) 6,056 Provision for doubtful receivables 2,200 441 Employee benefit plan cost (credit) 77 ( 648 ) Equity earnings in investments ( 2,746 ) ( 2,611 ) Other items 939 ( 1,366 ) Changes in working capital items: Decrease in current assets 18,417 28,211 Decrease in accounts payable ( 13,072 ) ( 18,509 ) Decrease in other current liabilities

View Full Filing

View this 10-Q filing on SEC EDGAR