MGE Energy (MGEE) Q4 2024 earnings summary

Executive summary

• Serves approximately 167,000 electric and 178,000 gas customers, with a diversified and resilient revenue base focused on residential accounts.

• Full-year 2024 GAAP earnings reached $120.6 million ($3.33 per share), up from $117.7 million ($3.25 per share) year-over-year.

• Maintains a strong financial profile with stable earnings growth, robust liquidity, and conservative financial policies.

• Committed to sustainability, targeting net-zero carbon electricity by 2050 and net-zero methane emissions from natural gas distribution by 2035.

• Service territory in Madison and Dane County is economically resilient, with above-average growth and low unemployment.

Financial highlights

• Diluted EPS for 2024 was $3.33, up from $3.25 in 2023, with electric utility contributing $2.06 and gas utility $0.38.

• 2024 operating revenues were $676.9 million, down from $690.4 million in 2023.

• Operating income for 2024 was $146.3 million, nearly flat compared to $146.4 million in 2023.

• Five-year EPS CAGR stands at 5.8%; dividends per share CAGR at 5.0% since 2019.

• Maintains strong credit ratings: S&P AA- (Stable), Moody's Aa2 (Stable).

Outlook and guidance

• Forecasted capital investment of ~$1.4 billion from 2025 to 2029, with significant focus on clean energy projects.

• Plans to eliminate coal as an energy source by end of 2032 and achieve ≥80% carbon reduction from 2005 levels by 2030.

• Anticipates material transmission investment opportunities through ATC, with $5.4 billion projected for 2025-2029.

• Continued focus on cost-effective renewable generation investments to support asset and earnings growth.

• Rate increases approved for 2024 and 2025, with electric rates rising 1.54% and 4.17%, and gas rates 2.44% and 1.32%, respectively.