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ALLETE, Inc. reports first quarter 2024 earnings
"I am proud of our entire ALLETE team, working diligently on many fronts to execute our Sustainability in Action strategy. We are pleased that Minnesota Power worked collaboratively to reach a balanced resolution to settle the current rate case with all intervening parties, which is subject to approval by the Minnesota Public Utilities Commission," said ALLETE Chair, President, and Chief Executive Officer Bethany Owen. "In addition, Minnesota Power's requests for proposals for new solar and wind projects are progressing as planned, ALLETE Clean Energy has begun taking advantage of the Inflation Reduction Act with the sale of production tax credits in the second quarter, and New Energy Equity is executing on its strategy and robust pipeline of projects."
ALLETE's Regulated Operations segment, which includes Minnesota Power, Superior Water, Light and Power and the Company's investment in the American Transmission Company, recorded first quarter 2024 net income of $44.2 million, compared to $40.6 million in the first quarter a year ago. Net income at Minnesota Power was higher primarily due to the implementation of interim rates, net of reserves. Interim rates went into effect on January 1, 2024, and as a result of the rate case settlement, Minnesota Power recorded a reserve of $3.9 million after-tax for the interim rate refund.
ALLETE Clean Energy recorded first quarter 2024 net income of $3.8 million compared to $8.5 million in 2023. Earnings in 2024 reflect impacts from a forced network outage near its Caddo wind energy facility as well as a transformer outage at its Diamond Springs wind energy facility. These decreases were partially offset by lower operating and maintenance expense.
Corporate and Other businesses, which include New Energy, BNI Energy, ALLETE Properties and our investments in renewable energy facilities, recorded net income of $2.7 million in the first quarter of 2024, compared to net income of $9.1 million in 2023. Net income in 2024 reflects lower earnings from Minnesota solar projects as investment tax credits were recognized in 2023, as well as higher income tax and interest expense as compared to 2023. Net income in 2024 also included transaction expenses of $1.2 million after-tax, or 2 cents per share, related to the merger entered into on May 5, 2024, with Canada Pension Plan Investment Board and Global Infrastructure Partners.
"Results for the first quarter of 2024 reflect several items not in our original 2024 guidance, including warmer weather negatively impacting sales to residential and commercial customers and the implementation of interim rate reserves as a result of the rate case settlement," said ALLETE Senior Vice President and Chief Financial Officer Steve Morris. "Excluding these items, results for our Regulated Operations segment were well ahead of our internal expectations. New Energy's financial results were as expected in the first quarter of 2024. ALLETE Clean Energy's results were lower than our expectations due to lower wind resources and availability, as well as an extended third-party network outage and a transformer outage at ALLETE Clean Energy's wind energy facilities in Oklahoma."
Cancellation of Q1 Earnings Conference Call
In light of the announced merger agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners, ALLETE has cancelled its earnings conference call previously scheduled for May 9, 2024, at 10 a.m. Eastern time.
ALLETE is an energy company headquartered in Duluth, Minn. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, BNI Energy in Bismarck, N.D., New Energy Equity in Annapolis, MD, and has an eight percent equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
ALLETE's press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.
Non-GAAP financial measures utilized by the Company include presentations of earnings (loss) per share. ALLETE's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of changes in the fundamental earnings power of the Company's operations. Management believes that the presentation of the non-GAAP financial measures is appropriate and enables investors and analysts to more accurately compare the company's ongoing financial performance over the periods presented.
ALLETE, Inc.
Consolidated Statement of Income
Millions Except Per Share Amounts - Unaudited
Three Months Ended
March 31,
2024 2023
------------------------------------------------------- -------------------- --------------------
Operating Revenue
$338.3 $312.6
Contracts with Customers - Utility
63.7 251.0
Contracts with Customers - Non-utility
1.3 1.3
Other - Non-utility
------------------------------------------------------- -------------------- --------------------
403.3 564.9
Total Operating Revenue
------------------------------------------------------- -------------------- --------------------
Operating Expenses
133.5 118.6
Fuel, Purchased Power and Gas - Utility
22.7 20.1
Transmission Services - Utility
24.4 210.5
Cost of Sales - Non-utility
91.7 85.7
Operating and Maintenance
65.0 62.3
Depreciation and Amortization
18.7 19.4
Taxes Other than Income Taxes
------------------------------------------------------- -------------------- --------------------
356.0 516.6
Total Operating Expenses
------------------------------------------------------- -------------------- --------------------
Operating Income 47.3 48.3
------------------------------------------------------- -------------------- --------------------
Other Income (Expense)
(20.4) (19.3)
Interest Expense
5.5 6.0
Equity Earnings
8.6 4.1
Other
------------------------------------------------------- -------------------- --------------------
(6.3) (9.2)
Total Other Expense
------------------------------------------------------- -------------------- --------------------
Income Before Income Taxes 41.0 39.1
Income Tax Expense 4.0 1.5
------------------------------------------------------- -------------------- --------------------
Net Income 37.0 37.6
------------------------------------------------------- -------------------- --------------------
(13.7) (20.6)
Net Loss Attributable to Non-Controlling Interest
------------------------------------------------------- -------------------- --------------------
Net Income Attributable to ALLETE $50.7 $58.2
------------------------------------------------------- -------------------- --------------------
Average Shares of Common Stock
57.6 57.3
Basic
57.7 57.3
Diluted
------------------------------------------------------- -------------------- --------------------
Basic Earnings Per Share of Common Stock $0.88 $1.02
Diluted Earnings Per Share of Common Stock $0.88 $1.02
Consolidated Balance Sheet
Millions - Unaudited
Mar. 31, Dec. 31, Mar. 31, Dec. 31,
2024 2023 2024 2023
------------------------------------------------ -------------------- -------------------- -------------------- -------------------------------------------------------------- -------------------- --------------------
Assets Liabilities and Equity
Cash and Cash Equivalents $32.0 $71.9 Current Liabilities $260.8 $377.6
Other Current Assets 401.2 396.2 Long-Term Debt 1,772.4 1,679.9
Property, Plant and Equipment - Net 5,009.1 5,013.4 Deferred Income Taxes 195.0 192.7
Regulatory Assets 409.0 425.4 Regulatory Liabilities 564.0 574.0
Equity Investments 333.1 331.2 Defined Benefit Pension and Other Postretirement Benefit Plans 135.4 160.8
Goodwill and Intangibles - Net 155.4 155.4 Other Non-Current Liabilities 268.0 264.3
Other Non-Current Assets 264.8 262.9 Redeemable Non-Controlling Interest 0.5 0.5
Equity 3,408.5 3,406.6
------------------------------------------------ -------------------- -------------------- -------------------- -------------------------------------------------------------- -------------------- --------------------
Three Months Ended
ALLETE, Inc. March 31,
Income (Loss) 2024 2023
------------------------------------ -------------------- --------------------
Millions
$44.2 $40.6
Regulated Operations
3.8 8.5
ALLETE Clean Energy
2.7 9.1
Corporate and Other
------------------------------------ -------------------- --------------------
$50.7 $58.2
Net Income Attributable to ALLETE
------------------------------------ -------------------- --------------------
Statistical Data
---------------- -------------------- --------------------
Corporate
Common Stock
$63.69 $66.64
High
$55.86 $57.88
Low
$59.64 $64.37
Close
Kilowatt-hours Sold
-------------------------------- -------------------- --------------------
Millions
Regulated Utility
Retail and Municipal
306 321
Residential
338 347
Commercial
1,798 1,658
Industrial
125 128
Municipal
-------------------------------- -------------------- --------------------
2,567 2,454
Total Retail and Municipal
757 696
Other Power Suppliers
-------------------------------- -------------------- --------------------
Regulated Utility Revenue
------------------------------------------------- -------------------- --------------------
Millions
Regulated Utility Revenue
Retail and Municipal Electric Revenue
$46.7 $42.4
Residential
47.4 44.0
Commercial
158.5 143.4
Industrial
9.0 8.9
Municipal
------------------------------------------------- -------------------- --------------------
261.6 238.7
Total Retail and Municipal Electric Revenue
40.0 35.9
Other Power Suppliers
36.7 38.0
Other (Includes Water and Gas Revenue)
------------------------------------------------- -------------------- --------------------
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509123792/en/
SOURCE: ALLETE, Inc.
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Vince Meyer 218-723-3952 vmeyer@allete.com
COMTEX_452110734/1006/2024-05-09T06:30:01