Group 1 - The professional background includes experience in private banking, corporate finance, and strategic advisory across multiple continents [1] - A private banking department was developed and led in Dubai, focusing on tailored investment solutions for affluent clients in the Middle East [1] - Involvement in managing cross-border M&A transactions in Indonesia, with a successful track record in emerging markets [1] Group 2 - The aim is to provide timely insights into various industries and asset classes, including high-growth technology equities and undervalued blue-chip stocks [1] - The goal is to offer well-researched commentary based on real-world experience to help navigate complex global markets [1] - Emphasis on a risk-aware and fundamentally driven investment approach [1]

Company Performance - WEC Energy Group reported Q4 2024 earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.44 by 0.7%, but showing a 30% increase from $1.10 in the same quarter last year [2] - Operating revenues for the quarter were $2.28 billion, missing the Zacks Consensus Estimate of $2.6 billion by approximately 12.1%, but up 2.7% from $2.22 billion year-over-year [3] - Total operating expenses decreased to $1.69 billion, down 10% from $1.88 billion a year ago, leading to an operating income of $590.9 million, which is a 73.1% increase from $341.4 million in the previous year [5] Financial Position - As of December 31, 2024, WEC had cash and cash equivalents of $9.8 million, a decrease from $42.9 million as of December 31, 2023, and long-term debt increased to $17.2 billion from $15.4 billion [6] - Net cash provided by operating activities during 2024 was $3.21 billion, compared to $3.02 billion in the prior year [6] Guidance and Outlook - WEC reaffirmed its 2025 earnings projection in the range of $5.17-$5.27 per share, with the Zacks Consensus Estimate at $5.23 per share, indicating a positive outlook [7] - The company plans to invest $28 billion in the period from 2025 to 2029 [7] - Estimates for the stock have been trending upward, suggesting a promising outlook for the upcoming months [10] Industry Context - WEC Energy is part of the Zacks Utility - Electric Power industry, which has seen mixed performance; for instance, NextEra Energy reported a revenue decline of 21.7% year-over-year [11] - NextEra's earnings for the current quarter are expected to be $0.99 per share, reflecting an 8.8% increase from the previous year [12]

Revenue and Customer Growth - In 2024, retail revenues accounted for 93.4% of total electric operating revenues, while wholesale revenues accounted for 2.1% and resale revenues accounted for 3.6%[42] - The total number of electric customers at the end of 2024 was 1,682.7 thousand, an increase from 1,669.3 thousand in 2023, representing a growth of 0.8%[48] - The total number of customers increased to 1,530.9 thousand in 2024, up from 1,520.0 thousand in 2023[77] - The Illinois segment serves 1,059.9 thousand customers at the end of 2024, with residential customers increasing to 929.0 thousand from 922.9 thousand in 2023[90] - The other states segment serves 440.3 thousand customers at the end of 2024, with residential customers increasing to 383.7 thousand from 379.3 thousand in 2023[104] Environmental Initiatives and Carbon Emissions - The company has achieved a 56% reduction in carbon emissions from its electric generation fleet from a 2005 baseline as of the end of 2024, aiming for a 60% reduction by the end of 2025[53] - The company aims to achieve a 60% reduction in carbon emissions from its electric generation fleet by the end of 2025 and an 80% reduction by the end of 2030, both from a 2005 baseline[197] - The company plans to eliminate coal as an energy source by the end of 2032, transitioning to natural gas as a backup fuel[55] - The company has implemented co-firing with natural gas at its coal-fired units as part of its carbon emission reduction goals[123] - The company aims to achieve net-zero methane emissions across its natural gas distribution operations by the end of 2030, supported by contracts for 2.1 Bcf of renewable natural gas (RNG)[117] Renewable Energy Projects - The company plans to retire approximately 1,200 MWs of additional coal-fired generation by the end of 2031, including the planned retirements of OCPP Units 7 and 8[56] - The construction of the solar portion of the Paris project, with a capacity of 180 MWs, was completed in December 2024, and battery storage of 99 MWs is expected to be completed in 2025[60] - The company filed a request to acquire and construct two wind-powered electric generating facilities, Badger Hollow Wind and Whitetail, which will collectively add 160 MWs of wind generation upon completion[59] - The company has filed requests to acquire and construct 868 MWs of additional renewable generation and 244 MWs of battery storage in Wisconsin[61] - If approved, the construction of the Good Oak and Gristmill solar facilities will collectively add 148 MWs of solar generation, expected to be completed in 2028[61] Financial Performance and Revenue - Total utility operating revenues for 2024 amounted to $8,382.7 million, a decrease from $8,702.8 million in 2023 and $9,469.9 million in 2022[140] - Electric operating revenues in Wisconsin for 2024 were $4,496.0 million, representing 91.3% of total electric revenues[140] - Natural gas operating revenues in Wisconsin for 2024 were $1,405.4 million, accounting for 40.6% of total natural gas revenues[140] - The company has power purchase commitments of 1,133 MWs per year for 2025 through 2029 to meet anticipated electric energy supply needs[72] Regulatory and Compliance Issues - The company is subject to various state regulatory commissions, which oversee retail utility rates and standards of service[141] - The Illinois Commerce Commission (ICC) disallowed certain previously incurred capital costs, resulting in impairment losses for the company in Q4 2023[182] - The expiration of the QIP rider has subjected the recovery of necessary infrastructure improvement costs to regulatory lag, impacting financial results[183] - Future recovery of regulatory assets is uncertain and subject to review and approval by regulators, which could adversely impact cash flows[181] Operational Challenges and Risks - The company’s operations are subject to risks from the reliability of its electric generation and distribution facilities, which could lead to substantial financial losses due to equipment failures or severe weather events[211] - Fluctuations in energy sales are influenced by customer growth, economic conditions, and weather, which could adversely affect the company’s results of operations and cash flows[215] - Supply chain disruptions and inflation could adversely affect the availability of critical materials and resources necessary for the company’s operations and corporate strategy[222] - Public health crises could adversely impact the company’s business functions, financial condition, and access to capital markets, potentially leading to decreased revenues and increased bad debt expenses[208] Employee and Safety Initiatives - As of December 31, 2024, the total number of employees across the company is 7,017, with 4,128 represented under union agreements[172] - The company has a commitment to zero incidents under its "Target Zero" safety program, focusing on employee safety and health[175] - The company emphasizes competitive wages and benefits to attract and retain talent, including a 401(k) savings plan and healthcare benefits[173] Future Investments and Capital Expenditures - Significant capital expenditures are required for investments in electric generating facilities, distribution infrastructure, and renewable energy projects, with a goal of being net carbon neutral by 2050[225] - Anticipated capital expenditures for environmental compliance over the next three years are included in the financial estimates[167] - The company has significantly reduced its consolidated federal and state income tax liabilities through tax credits, net operating losses, and charitable contribution deductions, which could be adversely affected by any reduction or disallowance of these tax benefits[201] Market and Economic Factors - New tariffs and changes in U.S. trade policy could exacerbate global supply chain disruptions and inflation, adversely affecting business operations and financial condition[224] - The company’s corporate strategy may be influenced by changing expectations from customers and regulators regarding sustainability and energy needs, which could impact its reputation and financial outcomes[220] - Equipment, materials, and resource prices have increased due to supply chain disruptions and inflation, potentially impacting financial condition and operations[223]

Group 1 - The article emphasizes the importance of uncovering and allocating capital to high-quality dividend growers as a core investment strategy [1] - The author has been involved in dividend investing since 2009 and has documented their journey towards financial independence through a blog focused on dividend growth investing [1] - The author expresses gratitude for the opportunities provided by their blog, which led to their involvement in the Seeking Alpha community as an analyst [1] Group 2 - The article does not provide any specific company or industry analysis, focusing instead on the author's personal investment philosophy and experiences [2]

Core Insights - WEC Energy Group reported fourth-quarter 2024 earnings of $1.43 per share, slightly missing the Zacks Consensus Estimate of $1.44, but showing a 30% increase from $1.10 in the same quarter last year [1] - Operating revenues for the quarter were $2.28 billion, falling short of the Zacks Consensus Estimate of $2.6 billion by approximately 12.1%, but reflecting a 2.7% increase from $2.22 billion in the previous year [2] - Full-year 2024 revenues totaled $8.6 billion, down 3.3% from $8.89 billion in 2023 [2] Revenue and Consumption - Electricity consumption by small commercial and industrial customers rose by 0.7% in 2024, while large commercial and industrial customers, excluding the iron ore mine, saw a 0.1% increase year over year [3] - Total electric sales volume for the quarter was 10,566.4 thousand megawatt-hours, up 0.4% year over year [3] Expenses and Income - Total operating expenses were $1.69 billion, a decrease of 10% from $1.88 billion in the previous year, attributed to lower cost of sales and reduced operation and maintenance expenses [4] - Operating income reached $590.9 million, marking a 73.1% increase from $341.4 million in the year-ago quarter [4] - Interest expense was $211.9 million, up 9.5% from $193.5 million in the prior year [4] Financial Position - As of December 31, 2024, WEC had cash and cash equivalents of $9.8 million, down from $42.9 million a year earlier [5] - Long-term debt increased to $17.2 billion from $15.4 billion as of December 31, 2023 [5] - Net cash provided by operating activities during 2024 was $3.21 billion, compared to $3.02 billion in the previous year [5] Guidance - WEC reaffirmed its 2025 earnings projection in the range of $5.17-$5.27 per share, with the Zacks Consensus Estimate at $5.23 per share, higher than the midpoint of the company's guidance [6] - The company plans to invest $28 billion in the period from 2025 to 2029 [6]

Energizing the Future Investor Update: January 2025 1 Much of the information contained in this presentation is forward-looking information based upon management's current expectations and projections that involve risks and uncertainties. Forward-looking information includes, among other things, information concerning earnings per share, rate case activity, earnings per share growth, cash flow, sources of revenue, dividend growth and dividend payout ratios, sales volumes, capital plans, credit ratings, cred ...

Core Viewpoint - WEC Energy Group reported quarterly earnings of $1.43 per share, slightly missing the consensus estimate of $1.44 per share, but showing an increase from $1.10 per share a year ago, indicating a year-over-year growth in earnings despite the miss [1][2] Financial Performance - The company posted revenues of $2.28 billion for the quarter ended December 2024, which was 12.07% below the Zacks Consensus Estimate, but slightly higher than the $2.22 billion reported a year ago [2] - Over the last four quarters, WEC Energy has surpassed consensus EPS estimates three times, but has not beaten revenue estimates during the same period [2] Stock Performance - WEC Energy shares have increased approximately 6.8% since the beginning of the year, outperforming the S&P 500, which gained 1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.26 on revenues of $2.83 billion, and for the current fiscal year, it is $5.23 on revenues of $9.47 billion [7] - The trend of estimate revisions for WEC Energy is mixed, which could change following the recent earnings report [6] Industry Context - The Utility - Electric Power industry, to which WEC Energy belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of WEC Energy's stock may be influenced by the overall outlook of the industry [8]

Financial Performance - WEC Energy Group reported net income of $1.5 billion, or $4.83 per share, for 2024, compared to $1.3 billion, or $4.22 per share, in 2023, reflecting a year-over-year increase of 15.4% in net income[1][2]. - Adjusted earnings for 2024 rose to $4.88 per share, a 5.4% increase from 2023's adjusted earnings of $4.63 per share[2][10]. - For Q4 2024, net income was $453.5 million, or $1.43 per share, compared to $218.5 million, or $0.69 per share, in Q4 2023, marking a significant increase of 107%[3][11]. - Net income for the year ended December 31, 2024, was $1,524.3 million, up 14.5% from $1,331.7 million in 2023[27]. - Earnings per share for 2024 were $4.83, an increase from $4.22 in 2023, marking a 14.5% growth[23]. Revenue and Deliveries - Consolidated revenues for 2024 were $8.6 billion, down $293.1 million from 2023[4]. - Retail electricity deliveries increased by 0.5% in 2024, excluding the iron ore mine in Michigan's Upper Peninsula[4][5]. - Natural gas deliveries in Wisconsin decreased by 2.9% during 2024, with a weather-normal basis showing a decline of 0.1%[6]. - Operating revenues for Q4 2024 were $2,284.2 million, a 3.0% increase from $2,217.5 million in Q4 2023[23]. Dividends and Shareholder Returns - A quarterly cash dividend of $0.8925 per share was declared, an increase of 6.9% over the previous rate, marking the 22nd consecutive year of dividend increases[8]. - Dividends paid on common stock increased to $1,056.2 million in 2024 from $984.2 million in 2023[27]. Guidance and Future Expectations - The company reaffirmed its earnings guidance for 2025, expecting earnings to be in the range of $5.17 to $5.27 per share, representing a growth of 7.6% from the midpoint of 2024's adjusted guidance[7]. Assets and Capital Expenditures - WEC Energy Group has approximately $47 billion in assets and is a component of the S&P 500[18]. - Total assets as of December 31, 2024, reached $47,363.2 million, a 7.3% increase from $43,939.7 million in 2023[25]. - Capital expenditures for the year were $2,781.1 million, compared to $2,492.9 million in 2023, reflecting a 11.6% increase[27]. - The company issued long-term debt amounting to $4,460.9 million in 2024, compared to $2,170.0 million in 2023[27]. Customer Base and Shares - The company serves approximately 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota[16]. - The weighted average diluted shares outstanding remained stable at 316.5 million in 2024, compared to 315.9 million in 2023[23]. - Cash and cash equivalents decreased to $9.8 million in 2024 from $42.9 million in 2023[25].

Core Viewpoint - WEC Energy Group reported strong financial performance for 2024, with net income increasing to $1.5 billion, or $4.83 per share, compared to $1.3 billion, or $4.22 per share, in 2023 [1][2]. Financial Performance - Full-year 2024 earnings included a charge of 6 cents per share related to capital expenditures disallowed by the Illinois Commerce Commission (ICC), while 2023 included a non-cash charge of 41 cents per share [2]. - Adjusted earnings for 2024 rose to $4.88 per share, a 5.4% increase from 2023's adjusted earnings of $4.63 per share [2]. - For Q4 2024, net income was $453.5 million, or $1.43 per share, compared to $218.5 million, or 69 cents per share, in Q4 2023 [3]. - Consolidated revenues for the full year were $8.6 billion, down $293.1 million from 2023 [3]. Operational Highlights - Retail electricity deliveries, excluding the iron ore mine, increased by 0.5% in 2024 [4]. - Electricity consumption by small commercial and industrial customers rose by 0.7%, while large commercial and industrial customers saw a 0.1% increase [5]. - Residential electricity use also increased by 0.5% [6]. - Natural gas deliveries in Wisconsin decreased by 2.9%, with a weather-normal basis showing a 0.1% decline [7]. Future Outlook - The company reaffirmed its earnings guidance for 2025, expecting earnings in the range of $5.17 to $5.27 per share, representing a growth of 7.6% from the midpoint of 2024's adjusted guidance [8]. - A quarterly cash dividend of 89.25 cents per share was declared, marking a 6.9% increase over the previous rate, continuing a 22-year trend of increasing dividends [9]. Company Overview - WEC Energy Group serves approximately 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota [18]. - The company operates several principal utilities and has a growing fleet of renewable generation facilities [19][20].

Company Overview - WEC Energy Group Inc. is a leading energy company based in Milwaukee, serving approximately 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota [2][3] - The company operates several principal utilities, including We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources, and Upper Michigan Energy Resources [3] - WEC Energy Group is a Fortune 500 company and a component of the S&P 500, with around 34,000 stockholders of record and 7,000 employees, managing over $47 billion in assets [4] Upcoming Financial Events - The company will release its 2024 fourth-quarter and full-year earnings news before the stock market opens on February 4, 2025 [1] - A conference call for investors and security analysts is scheduled for the same day at 1 p.m. Central time, with detailed financial information available on the company's website by 6:30 a.m. Central time [1] Subsidiaries and Operations - WEC Energy Group's major subsidiary, We Power, is involved in the design, construction, and ownership of electric generating plants [3] - WEC Infrastructure LLC owns a growing fleet of renewable generation facilities located in various states, including South Dakota and Texas [3]