Core Viewpoint - Unitil Corporation reported a net income of $27.5 million, or $1.69 in EPS, for Q1 2025, reflecting a slight increase compared to the same period in 2024, driven by strong operational performance and strategic initiatives [1][2]. Financial Performance - The adjusted net income for Q1 2025 was $28.4 million, or $1.74 in EPS, an increase of $1.2 million, or $0.05 in EPS, compared to Q1 2024 [1][19]. - Electric GAAP gross margin decreased to $19.6 million, down $0.5 million from Q1 2024, primarily due to higher depreciation and amortization expenses [2]. - Electric adjusted gross margin increased to $27.5 million, reflecting a $0.4 million rise compared to Q1 2024, attributed to higher rates and customer growth [3][24]. - Gas GAAP gross margin rose to $57.1 million, an increase of $6.9 million from Q1 2024, driven by higher rates, customer growth, and favorable winter weather [5][24]. - Gas adjusted gross margin reached $70.9 million, up $9.9 million from the previous year, also influenced by higher rates and customer growth [6][24]. Operational Expenses - Operation and maintenance expenses increased by $4.4 million in Q1 2025, reflecting higher utility operating costs, labor costs, and professional fees [7]. - Depreciation and amortization expenses rose by $3.7 million, influenced by higher depreciation rates and additional utility plant in service [8]. - Interest expense increased by $1.8 million, primarily due to higher long-term debt levels and interest expenses on regulatory liabilities [11]. Sales and Revenue - Total electric kWh sales increased by 6.9% to 438.2 million kWh in Q1 2025, with residential sales up by 11.1% [27]. - Total gas therm sales increased by 26.1% to 113.1 million therms, with residential sales rising by 33.5% [27]. - Electric revenues decreased by $13.4 million to $60.2 million, while gas revenues increased by $5.5 million to $110.6 million [27]. Dividends - The Board of Directors declared quarterly dividends of $0.45 per share, maintaining an annualized dividend rate of $1.80 per share, continuing a record of consistent quarterly payments [13].

Core Viewpoint - WEC Energy Group is conducting a conference call to discuss its financial results for the first quarter of 2025, highlighting the importance of the information shared during the call and the potential for forward-looking statements [1][2][3]. Group 1: Company Overview - Scott Lauber, the President and CEO of WEC Energy Group, is leading the conference call, indicating a structured approach to presenting the company's financial performance [4][5]. Group 2: Financial Information - Detailed financial information related to the first quarter results is available on the company's website, emphasizing transparency and accessibility for analysts and investors [1].

Financial Data and Key Metrics Changes - The company reported first quarter 2025 earnings of $2.27 per share, reflecting a $0.30 increase compared to the first quarter of 2024 [3][15] - The earnings guidance for 2025 is reaffirmed at $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [4][20] - The long-term compound annual growth rate (CAGR) target is maintained at 6.5% to 7% [4][20] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.28 compared to the first quarter of 2024, driven by weather impacts and rate-based growth [15][16] - Earnings from the Energy Infrastructure segment increased by $0.05, largely due to higher production tax credits [18] - Earnings from the Corporate and Other segment decreased by $0.03, primarily due to higher interest expenses [19] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.2%, below the national average, indicating strong economic conditions [4] - Weather-normalized retail electric delivery saw a 0.7% growth, led by large commercial and industrial classes [17] Company Strategy and Development Direction - The company is focused on a $28 billion capital investment plan aimed at economic growth and reliability [7] - A new Very Large Customer (VLC) tariff proposal has been filed to accommodate economic growth and attract data center investments [11][12] - The company is actively working on transitioning its generation assets to gas and renewables to meet future capacity needs [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic development in Southeastern Wisconsin, particularly with significant projects like Microsoft's data center [5][39] - The company is monitoring the impacts of tariffs on its supply chain and capital plan, estimating a 2% to 3% exposure overall [7][8] - Management remains optimistic about continued growth in the region and the company's future prospects [22] Other Important Information - The company has no active rate cases currently and is preparing for future rate proceedings related to its capital investments [14] - The company is closely monitoring developments related to the Inflation Reduction Act and is actively seeking to safe harbor projects in its capital plan [9][49] Q&A Session Summary Question: Thoughts on recent MISO capacity auction results and CapEx for data centers - Management noted a tight auction and is working to ensure enough capacity to meet demand, with plans for additional gas generation [26][27] Question: Pipeline safety modernization program in Illinois and CapEx opportunities - Management indicated a ramp-up in spending expected in 2026 and 2027, with a projected annual spending of over $500 million [33][36] Question: Update on Microsoft and its data center development - Management confirmed ongoing positive discussions with Microsoft, with confidence in the demand forecast for Southeastern Wisconsin [39] Question: Impact of equity issuance on market uncertainty and cash needs - Management acknowledged that stock price, cash needs, and market conditions all play a role in equity issuance plans [40][41] Question: Potential impacts of the IRA and tax credit transferability - Management expressed that while the phase-out of IRA benefits could occur, the impact on existing projects would be limited [46][50] Question: Insights on the VLC tariff and its competitiveness - Management emphasized the fair and balanced nature of the VLC tariff, designed to attract large customers without subsidizing costs for others [56][57] Question: Drivers behind strong residential electric load growth - Management attributed the growth to normalization after an unusually warm previous year, with good customer connections contributing [63][65] Question: Cloverleaf project and generation needs - Management indicated that the Cloverleaf project could support up to 3.5 gigawatts of load, with a mix of gas and renewables expected [66][68]

Core Insights - Constellation Energy Corporation (NASDAQ: CEG) reported Q1 earnings that exceeded market expectations, resulting in a share price increase of over 11% due to significant revenue growth and a reaffirmed outlook for 2025 [1] Financial Performance - The company achieved a substantial beat on its top line, indicating strong revenue performance in the first quarter [1] Future Outlook - Constellation Energy reiterated its outlook for 2025, suggesting confidence in its long-term growth trajectory [1]

Financial Data and Key Metrics Changes - The company reported first quarter 2025 earnings of $2.27 per share, reflecting a $0.30 increase compared to the first quarter of 2024 [4][16] - The earnings guidance for 2025 is reaffirmed at $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [5][22] - The long-term compound annual growth rate (CAGR) target remains at 6.5% to 7% [5][22] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.28 compared to the first quarter of 2024, driven by weather impacts and rate-based growth [16][17] - Earnings from the Energy Infrastructure segment increased by $0.05, largely due to higher production tax credits [20] - Earnings from the Corporate and Other segment decreased by $0.03, primarily due to higher interest expenses [21] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.2%, below the national average, indicating strong economic conditions [5] - Weather-normalized retail electric delivery saw a 0.7% growth, led by large commercial and industrial classes [18][20] - The company anticipates a weather-normal annual electric sales growth of 4.5% to 5% starting in 2027 [20] Company Strategy and Development Direction - The company is focused on a $28 billion capital investment plan aimed at economic growth and reliability [8][10] - A new Very Large Customer (VLC) tariff proposal has been filed to accommodate economic growth and attract data center investments [12][13] - The company is actively working on transitioning its generation assets to gas and renewables to meet future capacity needs [29][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic development along the I-94 corridor and ongoing projects, including significant expansions by companies like Microsoft and Eli Lilly [6][7][92] - The management is cautiously optimistic about the future, noting that while there is caution among customers regarding tariffs, significant projects are still progressing [91][92] - The company is monitoring federal developments related to the Inflation Reduction Act and is actively seeking to safe harbor projects in its capital plan [10][51] Other Important Information - The company has no active rate cases currently and is preparing for future rate case filings [12][15] - The company plans to raise a total of $700 to $800 million in common equity in 2025 through various programs [21][43] - The company is managing tariff impacts on its capital plan, estimating a 2% to 3% overall exposure [8][80] Q&A Session Summary Question: Thoughts on recent MISO capacity auction results and CapEx for data centers - Management indicated a tight auction and is working to ensure enough capacity to meet demand, with plans for additional gas generation [27][28] Question: Pipeline safety modernization program in Illinois and CapEx opportunities - Management expects to ramp up the program in 2026 and 2027, with spending projected to exceed $500 million annually [35][37] Question: Update on Microsoft and data center developments - Management confirmed ongoing strong demand and development from Microsoft, with no concerns about the project's progress [39][41] Question: Impact of tariffs on capital plan - Management noted that tariffs could impact costs, particularly for solar and battery projects, and will notify regulators of any significant increases [78][81] Question: Future of gas in Illinois and potential impacts from workshops - Management remains optimistic about the gas needs and the approved pipe replacement program, with no expected negative changes [96] Question: Commentary on large load customers outside data centers - Management reported cautious optimism among large customers, with ongoing expansions in various sectors despite tariff concerns [91][92]

Financial Data and Key Metrics Changes - The company reported first quarter 2025 earnings of $2.27 per share, reflecting a $0.30 increase compared to the first quarter of 2024 [17] - The earnings guidance for 2025 is reaffirmed at $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [23][24] - The long-term compound annual growth rate (CAGR) target remains at 6.5% to 7% [5][23] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.28 compared to the first quarter of 2024, driven by weather impacts and rate-based growth [18][19] - Earnings from the American Transmission Company increased by $0.02, attributed to continued capital investment [21] - The Energy Infrastructure segment saw a $0.05 increase in earnings, primarily due to higher production tax credits [21][22] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.2%, below the national average, indicating strong economic conditions [5] - Weather-normalized retail electric delivery grew by 0.7% in the first quarter, led by large commercial and industrial classes [20] - Significant economic developments include Microsoft's data center complex and Eli Lilly's $3 billion expansion in Wisconsin [6][7][8] Company Strategy and Development Direction - The company is focused on a $28 billion capital investment plan aimed at economic growth and reliability [9] - A new Very Large Customer (VLC) tariff proposal has been filed to accommodate economic growth and attract data center investments [13][14] - The company is actively working on transitioning its coal units to gas and integrating renewable energy sources into its generation mix [31][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic development in Southeastern Wisconsin, particularly regarding data center demand [6][42] - The company is monitoring tariff impacts on its supply chain and capital plan, estimating a 2% to 3% overall exposure [9][10] - Management remains optimistic about continued growth in the region and the company's future prospects [25] Other Important Information - The company has no active rate cases currently and is preparing for future rate proceedings related to its capital investments [12][16] - The company is closely monitoring developments related to the Inflation Reduction Act and its potential impacts on renewable projects [11][53] Q&A Session Summary Question: Thoughts on recent MISO capacity auction results and CapEx for data centers - Management noted a tight auction and is working to ensure sufficient capacity to meet demand, with plans for additional gas generation [29][30] Question: Pipeline safety modernization program in Illinois and CapEx opportunities - Management indicated that the program will ramp up in 2026 and 2027, with expected spending of over $500 million annually [39] Question: Updates on Microsoft and data center developments - Management confirmed ongoing positive discussions with Microsoft, with strong demand forecasts for the region [42] Question: Impact of equity issuance on market uncertainty - Management acknowledged that stock price, cash needs, and market conditions all influence equity issuance plans [44] Question: Impacts of the Inflation Reduction Act and tax credit transferability - Management expressed confidence in managing potential impacts, noting that most projects are already integrated with IRA benefits [50][54] Question: Details on the VLC tariff and its competitiveness - Management emphasized the fair and balanced nature of the VLC tariff, designed to attract large customers without subsidizing costs for others [60][61] Question: Drivers of strong residential electric load growth - Management attributed growth to normalization of weather conditions compared to the previous year, which was unusually warm [67] Question: Generation needs for Cloverleaf data center project - Management indicated that the generation mix will likely include both gas and renewables, with further details expected in the third quarter [70][72]

Core Viewpoint - Vistra Corp. (VST) is anticipated to show significant growth in both revenue and earnings per share for the first quarter of 2025, with a revenue estimate of $4.4 billion, reflecting a 44.14% increase year-over-year, and earnings per share expected to reach 54 cents, indicating a 134.8% increase from the previous year [1][2]. Earnings Estimates - The Zacks Consensus Estimate for VST's first-quarter earnings is 54 cents per share, with a year-over-year growth estimate of 134.78% [2][3]. - For the current quarter (March 2025), the estimates range from a low of 15 cents to a high of $1.04, with an average estimate of 54 cents [3]. - The earnings estimates for the next quarter (June 2025) are pegged at $1.37, showing a 52.22% increase year-over-year [3]. Factors Influencing Earnings - Increased demand for clean electricity, driven by the expansion of large U.S. data centers and electrification in the Permian Basin, is likely to positively impact VST's first-quarter earnings [7]. - The commercial startup of solar and battery facilities at Coffeen and Bladwin has added over 100 megawatts (MW) to the company's capacity, contributing to earnings growth [8]. - Share repurchases totaling $4.6 billion from November 2021 to November 2024 have reduced outstanding shares, thereby boosting earnings per share, with plans for an additional $2 billion in buybacks between 2025 and 2026 [9]. Operational Insights - VST has implemented a hedging program that secures 100% of its 2025 generation volume, mitigating the impact of market fluctuations [10]. - However, operating costs and selling, general, and administrative expenses have risen faster in 2024 compared to 2023, which may negatively affect earnings [11]. Stock Performance - VST's shares have increased by 70.9% over the past year, outperforming the industry average of 14.2% [14]. - The stock is currently trading at a premium compared to its industry on a forward 12-month P/E basis [15]. Strategic Positioning - Vistra is expanding its generation capacity through both organic growth and strategic acquisitions, enhancing its competitive edge [17]. - The company is positioned in a region with rising demand for clean electricity, which supports its growth strategy [19].

Core Insights - Duke Energy Corporation (DUK) reported first-quarter 2025 earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.59 by 10.7% and improving 22.2% from $1.44 per share in the same quarter last year, driven by higher retail sales volumes and new rates [1][3] - Total operating revenues reached $8.25 billion, a 7.5% increase from $7.67 billion in the previous year, also surpassing the Zacks Consensus Estimate of $8.06 billion by 2.3% [1][2] Revenue Breakdown - The Regulated electric unit generated operating revenues of $7.06 billion, up 4.9% year over year, contributing 85.6% to total revenues [2] - Revenues from the Regulated natural gas business totaled $1.11 billion, reflecting a significant increase of 27.6% year over year [2] - The Non-regulated Electric and Other segment produced revenues of $80 million, which is a 9.6% year-over-year increase [2] Expense and Income Analysis - Total operating expenses for the quarter were $5.91 billion, up 3.4% year over year, primarily due to increased costs in natural gas, operation, maintenance, depreciation, and property taxes [3] - Operating income rose 19.4% to $2.34 billion from $1.96 billion in the same quarter last year [3] Customer and Sales Metrics - Interest expenses increased to $889 million from $817 million in the first quarter of 2024 [4] - The average number of customers in Electric Utilities grew by 1.7% year over year [4] - Total electric sales volumes increased by 7.6% year over year, reaching 65,242 gigawatt-hours [4] Segment Performance - Electric Utilities & Infrastructure segment earnings totaled $1,276 million, up from $1,021 million in the first quarter of 2024 [5] - Gas Utilities & Infrastructure segment earnings were $349 million, compared to $284 million in the previous year [5] - The Other segment incurred a loss of $260 million, worsening from a loss of $203 million in the first quarter of 2024 [6] Financial Position - As of March 31, 2025, cash and cash equivalents stood at $475 million, up from $314 million on December 31, 2024 [7] - Long-term debt increased to $79.70 billion from $76.34 billion as of December 31, 2024 [7] - Net cash from operating activities for the first three months of 2025 was $2.18 billion, down from $2.47 billion in the same period last year [7] Future Guidance - Duke Energy reaffirmed its 2025 adjusted EPS guidance, expecting a range of $6.17-$6.42, with the Zacks Consensus Estimate at $6.32 per share [9] - The company projects long-term EPS growth of 5-7% through 2029 [9]

Core Viewpoint - OGE Energy Corp. reported strong first-quarter 2025 results, with significant increases in earnings and revenues compared to the previous year, indicating robust operational performance and growth potential [1][4]. Financial Performance - First-quarter 2025 earnings per share were 31 cents, exceeding the Zacks Consensus Estimate of 22 cents by 40.9% and improving 244.4% from 9 cents in the prior-year quarter [1]. - Operating revenues reached $747.7 million, a 25.3% increase from $596.8 million in the prior-year quarter, and surpassed the Zacks Consensus Estimate of $693 million by 8% [1]. - Net income for the first quarter was $62.7 million, up 237.1% from $18.6 million in the prior-year quarter [4]. Operational Highlights - Total sales in the reported quarter were 8.2 million megawatt-hours (MWh), an increase from 7.4 MWh in the prior-year quarter [2]. - The customer count rose by 1% to 908,851 [2]. - The cost of fuel, purchased power, and direct transmission increased by 39.6% to $324 million from $232.2 million in the prior-year quarter [2]. Expense Management - Total operating expenses for the first quarter slipped 0.1% to $290.4 million, mainly due to lower operation and maintenance expenses [3]. - Operating income totaled $133.3 million, an increase of 80.1% from $74 million in the year-ago quarter [3]. - Interest expenses rose to $67.3 million, up 11.8% from $60.2 million recorded a year ago [3]. Segment Performance - The OG&E segment's net income was $71 million, up 181.7% from $25.2 million in the prior-year period, driven by higher operating revenues and lower expenses [4]. - The Other Operations unit reported a net loss of $8.3 million, wider than the previous year's loss of $6.6 million, attributed to higher interest expenses [5]. Financial Position - As of March 31, 2025, cash and cash equivalents were $26.9 million, compared to $0.6 million as of December 31, 2024 [6]. - Long-term debt increased to $5.12 billion from $5.02 billion as of December 31, 2024 [6]. - Cash generated from operating activities was $15.9 million, down from $83 million in the prior-year period [6]. Guidance - OGE Energy reiterated its 2025 earnings per share guidance, expecting a range of $2.21 to $2.33, with the Zacks Consensus Estimate at $2.27 [7].

Core Points - American Electric Power Company, Inc. (AEP) reported first-quarter 2025 operating earnings per share (EPS) of $1.54, exceeding the Zacks Consensus Estimate of $1.39 by 10.8% and increasing 21.3% from $1.27 in the same quarter last year [1] - AEP's total revenues for the quarter were $5.46 billion, an 8.7% increase from $5.03 billion in the previous year, and also surpassed the Zacks Consensus Estimate of $5.34 billion by 2.4% [2] Segment Performance - Vertically Integrated Utility Operations reported operating earnings of $349.9 million, up from $300.3 million year-over-year [3] - Transmission & Distribution Utilities generated operating earnings of $192.3 million, an increase from $150.3 million in the prior year [3] - AEP Transmission Holdco's operating earnings rose to $234.6 million from $208.7 million year-over-year [3] - Generation and Marketing segment reported operating earnings of $76.3 million, up from $65.4 million in the same quarter last year [4] - The All Other segment reported an operating loss of $29.8 million, which was an improvement from a loss of $54.3 million in the previous year [4] 2025 Guidance - AEP reaffirmed its 2025 operating earnings guidance, expecting EPS in the range of $5.75-$5.95, with the Zacks Consensus Estimate at $5.86, slightly above the midpoint of the projected range [5] - The company anticipates a long-term EPS growth rate of 6-8% [5] Zacks Rank - AEP currently holds a Zacks Rank 3 (Hold) [6]