MGE Energy Inc. Files Q3 2024 10-Q

TL;DR

**MGE Energy Q3 10-Q filed. Financials look steady.**

AI Summary

MGE Energy Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operational updates. Key financial figures and business segments are presented, reflecting the company's status in the electric and gas utility sector.

Why It Matters

This filing provides investors and analysts with a detailed look at MGE Energy's financial health and operational performance for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — As a regulated utility, MGE Energy operates in a stable, predictable environment with established revenue streams.

Key Players & Entities

• MGE ENERGY INC (company) — Filer
• MADISON GAS & ELECTRIC CO (company) — Subsidiary
• 20240930 (date) — Reporting Period End Date
• 20241106 (date) — Filing Date

FAQ

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, 36,207,529 shares outstandin

Filing Documents

• mgee-20240930.htm (10-Q) — 4160KB
• mgee-ex31_1.htm (EX-31.1) — 14KB
• mgee-ex31_2.htm (EX-31.2) — 14KB
• mgee-ex31_3.htm (EX-31.3) — 14KB
• mgee-ex31_4.htm (EX-31.4) — 14KB
• 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
• 0000950170-24-121952.txt ( ) — 15876KB
• mgee-20240930.xsd (EX-101.SCH) — 1659KB
• mgee-20240930_htm.xml (XML) — 3887KB

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. 17 6. Equity and Financing Arrangements. 17 7. Share-Based Compensation. 18 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. 27 13. Revenue. 28 14. Segment Information. 28

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. 30

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 46

Controls and Procedures

Item 4. Controls and Procedures. 46

OTHER INFORMATION

PART II. OTHER INFORMATION. 47

Legal Proceedings

Item 1. Legal Proceedings. 47

Risk Factors

Item 1A. Risk Factors. 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 47

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 47

Other Information

Item 5. Other Information. 47

Exhibits

Item 6. Exhibits. 48 Signatures - MGE Energy, Inc. 49 Signatures - Madison Gas and Electric Company 50 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 Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Operating Revenues: Electric revenues $ 148,004 $ 139,104 $ 384,768 $ 378,102 Gas revenues 20,476 21,424 120,761 147,677 Total Operating Revenues 168,480 160,528 505,529 525,779 Operating Expenses: Fuel for electric generation 17,252 19,712 41,193 47,118 Purchased power 8,127 7,021 26,419 28,252 Cost of gas sold 4,628 5,160 52,798 80,296 Other operations and maintenance 57,129 53,997 167,833 156,004 Depreciation and amortization 27,104 25,241 80,636 74,971 Other general taxes 6,100 5,605 18,030 16,922 Total Operating Expenses 120,340 116,736 386,909 403,563 Operating Income 48,140 43,792 118,620 122,216 Other income, net 4,839 10,549 12,576 20,841 Interest expense, net ( 8,396 ) ( 7,654 ) ( 24,725 ) ( 22,901 ) Income before income taxes 44,583 46,687 106,471 120,156 Income tax provision ( 3,644 ) ( 8,830 ) ( 7,924 ) ( 22,540 ) Net Income $ 40,939 $ 37,857 $ 98,547 $ 97,616 Earnings Per Share of Common Stock Basic $ 1.13 $ 1.05 $ 2.72 $ 2.70 Diluted $ 1.13 $ 1.05 $ 2.72 $ 2.70 Dividends per share of common stock $ 0.450 $ 0.428 $ 1.305 $ 1.243 Weighted Average Shares Outstanding Basic 36,181 36,163 36,176 36,163 Diluted 36,211 36,189 36,202 36,185 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) Nine Months Ended September 30, 2024 2023 Operating Activities: Net income $ 98,547 $ 97,616 Items n

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