Alliant Energy(LNT) - 2024 Q3 - Quarterly Report

Part I. Financial Information Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited Q3 2024 condensed consolidated financial statements for Alliant Energy and its subsidiaries Alliant Energy Corporation Financial Statements Alliant Energy Q3 & YTD 2024 Financial Performance (in millions, except EPS) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,081 | $1,077 | $3,005 | $3,066 | | Operating Income | $313 | $322 | $665 | $760 | | Net Income | $295 | $259 | $540 | $582 | | Diluted EPS | $1.15 | $1.02 | $2.10 | $2.31 | Alliant Energy Balance Sheet Summary (in millions) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $22,829 | $21,237 | | Property, Plant & Equipment, net | $17,936 | $17,157 | | Total Liabilities | $15,861 | $14,460 | | Long-term Debt, net | $9,245 | $8,225 | | Total Equity | $6,968 | $6,777 | Alliant Energy YTD 2024 Cash Flow Summary (in millions) | Cash Flow Category | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $913 | $622 | | Net Cash used for Investing Activities | ($940) | ($952) | | Net Cash from Financing Activities | $794 | $515 | | Net Increase in Cash | $767 | $185 | Interstate Power and Light Company (IPL) Financial Statements IPL Q3 & YTD 2024 Financial Performance (in millions) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $561 | $594 | $1,527 | $1,630 | | Operating Income | $149 | $173 | $250 | $379 | | Net Income | $190 | $170 | $272 | $331 | - IPL's YTD operating income decreased significantly, partly due to a $60 million asset valuation charge for the Lansing Generating Station[16] IPL YTD 2024 Cash Flow Summary (in millions) | Cash Flow Category | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $231 | $191 | | Net Cash used for Investing Activities | ($332) | ($177) | | Net Cash from Financing Activities | $804 | $159 | | Net Increase in Cash | $703 | $173 | Wisconsin Power and Light Company (WPL) Financial Statements WPL Q3 & YTD 2024 Financial Performance (in millions) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $499 | $461 | $1,410 | $1,370 | | Operating Income | $156 | $142 | $387 | $363 | | Net Income | $114 | $107 | $270 | $267 | WPL YTD 2024 Cash Flow Summary (in millions) | Cash Flow Category | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $651 | $437 | | Net Cash used for Investing Activities | ($464) | ($680) | | Net Cash from (used for) Financing Activities | ($125) | $254 | | Net Increase in Cash | $62 | $11 | Combined Notes to Condensed Consolidated Financial Statements - In September 2024, the IUC approved IPL's retail electric rate review, authorizing a $185 million annual base rate increase effective October 1, 2024[40] - A pre-tax non-cash charge of $60 million was recorded for IPL's Lansing Generating Station as a settlement agreement disallowed a return on the retired asset[37] - WPL expects construction costs for its 1,100 MW of new solar generation to exceed approved estimates by approximately $195 million[41] - Due to the enactment of the revised CCR Rule, the company recorded significant additional Asset Retirement Obligations, increasing the balance from $246 million to $608 million for Alliant Energy[68] Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management analyzes 2024 financial performance, operational highlights, liquidity, and capital resource allocation - Alliant Energy's consolidated EPS for Q3 2024 was $1.15, up from $1.02 in Q3 2023, driven by WPL's capital investments and favorable tax timing[112] - Key 2024 activities include completing solar facilities, planning a coal-to-gas plant conversion, and securing a $185 million rate increase for IPL[103][104] - The company is pursuing significant customer growth, having entered into electric service agreements with two new data center customers in Iowa[106] - In Q4 2024, Alliant Energy expects to record pre-tax restructuring charges of $25 million to $30 million related to a voluntary separation package[127] Results of Operations Change in Net Income (YTD 2024 vs YTD 2023, in millions) | Entity | Change in Net Income | | :--- | :--- | | Alliant Energy | ($42) | | IPL | ($59) | | WPL | $3 | - IPL's YTD net income decreased by $59 million, driven by a $60 million asset valuation charge for the Lansing Generating Station[116] - WPL's electric utility revenues increased by $69 million YTD, primarily due to higher revenue requirements from capital investments[116][121] - Future results will be impacted by a growing rate base, a lower effective tax rate from renewable tax credits, and cost savings from restructuring[127] Liquidity and Capital Resources - As of September 30, 2024, Alliant Energy had a strong liquidity position with $827 million in cash and $670 million of available credit[129] Projected Construction and Acquisition Expenditures (2024-2028, in millions) | Entity | 2024 | 2025 | 2026 | 2027 | 2028 | | :--- | :--- | :--- | :--- | :--- | :--- | | Alliant Energy | $2,025 | $2,205 | $2,680 | $3,020 | $2,960 | | IPL | $1,190 | $1,055 | $1,135 | $1,365 | $1,300 | | WPL | $690 | $955 | $1,370 | $1,530 | $1,490 | - Expenditures are focused on transitioning to cleaner energy, adding generation capacity, and strengthening grid resiliency[133] - In March 2024, Standard & Poor's changed Alliant Energy's and IPL's outlooks from stable to negative, though this is not expected to materially impact liquidity[137] Quantitative and Qualitative Disclosures About Market Risk The company reports no material changes to its market risk disclosures from the 2023 Form 10-K - The disclosures regarding market risk as reported in the 2023 Form 10-K have not materially changed[145] Controls and Procedures Management concluded that disclosure controls and internal controls over financial reporting were effective as of the quarter's end - Management concluded that the disclosure controls and procedures for Alliant Energy, IPL, and WPL were effective as of September 30, 2024[146] - There were no material changes in internal control over financial reporting during the quarter[147] Part II. Other Information Legal Proceedings The company reports no new material legal or environmental proceedings for the period - There are no legal proceedings to report for the period[148] Risk Factors There have been no material changes to the risk factors previously disclosed in the 2023 Form 10-K - The risk factors described in the 2023 Form 10-K have not changed materially[149] Unregistered Sales of Equity Securities and Use of Proceeds The company details the repurchase of its common stock during the third quarter of 2024 Alliant Energy Common Stock Repurchases (Q3 2024) | Metric | Value | | :--- | :--- | | Total Shares Purchased | 10,300 | | Average Price Paid Per Share | $54.81 | - All repurchased shares were acquired on the open market and are held in a rabbi trust for the company's Deferred Compensation Plan[150] Exhibits This section lists all exhibits filed with the Form 10-Q, including certifications and debt issuance documents - The exhibits include CEO and CFO certifications and documents related to IPL's September 2024 issuance of Senior Debentures due 2034 and 2054[153]