Alliant Energy Corporation (NASDAQ: LNT) today announced U.S.
generally accepted accounting principles (GAAP) consolidated
unaudited earnings per share (EPS) for the three months ended March
31 as follows:
|
GAAP EPS |
|
2022 |
|
2021 |
Utilities and Corporate Services |
$0.73 |
|
$0.66 |
American Transmission Company (ATC) Holdings |
0.03 |
|
0.03 |
Non-utility and Parent |
0.01 |
|
(0.01) |
Alliant Energy Consolidated |
$0.77 |
|
$0.68 |
“We had a solid start to the year with more than
25% of our 2022 guidance midpoint coming in the first quarter, and
we are reaffirming our 2022 guidance range of $2.67 to $2.81,” said
John Larsen, Alliant Energy Chair, President and CEO. “We are also
excited to share yet another major milestone in our purpose-driven
clean energy transition, receiving verbal approval today for the
remaining 414 megawatts of our nearly 1,100 megawatt proposed solar
expansion in Wisconsin.”
Utilities and Corporate Services - Alliant Energy’s
Utilities and Alliant Energy Corporate Services, Inc. (Corporate
Services) operations generated $0.73 per share of GAAP EPS in the
first quarter of 2022, which was $0.07 per share higher than the
first quarter of 2021. The primary drivers of higher EPS were
higher allowance for funds used during construction (AFUDC), higher
earnings resulting from Wisconsin Power and Light Company’s (WPL’s)
increasing rate base, higher sales due to favorable temperature
impacts versus 2021, as well as higher temperature-normalized
sales.
Details regarding GAAP EPS variances between the
first quarters of 2022 and 2021 for Alliant Energy are as
follows:
|
Variance |
Higher allowance for funds used during construction |
$0.02 |
Higher revenue requirements primarily due to increasing rate base
at WPL |
0.02 |
Estimated temperature impact on retail electric and gas sales |
0.02 |
Other (includes higher temperature-normalized sales in 2022) |
0.03 |
Total |
$0.09 |
Higher revenue requirements primarily due to
increasing rate base at WPL - In December 2021, WPL received an
order from the Public Service Commission of Wisconsin approving
WPL’s proposed settlement for its retail electric and gas rate
review covering the 2022/2023 Test Period. WPL recognized a $0.02
per share increase in the first quarter of 2022 due to higher
revenue requirements from increasing rate base, including
investments in solar generation. The construction activity related
to these investments also resulted in higher AFUDC for the first
quarter of 2022.
Estimated temperature impact on retail electric and
gas sales - Alliant Energy’s retail electric and gas sales
increased an estimated $0.03 per share in the first quarter of 2022
due to impacts of colder than normal temperatures on customer
demand, compared to an estimated increase of $0.01 per share in the
first quarter of 2021.
2022 Earnings Guidance
Alliant Energy’s consolidated guidance of $2.67 to
$2.81 earnings per share for 2022 remains unchanged. Drivers for
Alliant Energy’s 2022 earnings guidance include, but are not
limited to:
- Ability of IPL and WPL to earn their
authorized rates of return
- Stable economy and resulting
implications on utility sales
- Normal temperatures in its utility
service territories
- Execution of cost controls
- Execution of capital expenditure and
financing plans
- Consolidated effective tax rate of
4%
The 2022 earnings guidance does not include the
impacts of any material non-cash valuation adjustments,
regulatory-related charges or credits, reorganizations or
restructurings, future changes in laws including corporate tax
reform in Iowa, regulations or regulatory policies, adjustments
made to deferred tax assets and liabilities from valuation
allowances, changes in credit loss liabilities related to
guarantees, pending lawsuits and disputes, federal and state income
tax audits and other Internal Revenue Service proceedings, or
changes in GAAP and tax methods of accounting that may impact the
reported results of Alliant Energy.
Earnings Conference Call
A conference call to review the first quarter 2022
results is scheduled for Friday, April 29, 2022 at 9 a.m. central
time. Alliant Energy Chair, President and Chief Executive Officer
John Larsen, and Executive Vice President and Chief Financial
Officer Robert Durian will host the call. The conference call is
open to the public and can be accessed in two ways. Interested
parties may listen to the call by dialing 888-394-8218 (United
States or Canada) or 323-794-2149 (International), passcode
4175543. Interested parties may also listen to a webcast at
www.alliantenergy.com/investors. In conjunction with the
information in this earnings announcement and the conference call,
Alliant Energy posted supplemental materials on its website. A
replay of the call will be available through May 6, 2022, at
888-203-1112 (United States or Canada) or 719-457-0820
(International), passcode 4175543. An archive of the webcast will
be available on the Company’s Web site at
www.alliantenergy.com/investors for 12 months.
About Alliant Energy
Corporation
Alliant Energy is the parent company of two public
utility companies - Interstate Power and Light Company and
Wisconsin Power and Light Company - and of Alliant Energy Finance,
LLC, the parent company of Alliant Energy’s non-utility operations.
Alliant Energy is an energy-services provider with utility
subsidiaries serving approximately 985,000 electric and 425,000
natural gas customers. Providing its customers in the Midwest with
regulated electricity and natural gas service is the Company’s
primary focus. Alliant Energy, headquartered in Madison, Wisconsin,
is a component of the S&P 500 and is traded on the Nasdaq
Global Select Market under the symbol LNT. For more information,
visit the Company’s Web site at www.alliantenergy.com.
Forward-Looking Statements
This press release includes forward-looking
statements. These forward-looking statements can be identified by
words such as “forecast,” “expect,” “guidance,” or other words of
similar import. Similarly, statements that describe future
financial performance or plans or strategies are forward-looking
statements. Such forward looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those expressed in, or implied by, such statements.
Actual results could be materially affected by the following
factors, among others:
- the impact of penalties or third-party
claims related to, or in connection with, a failure to maintain the
security of personally identifiable information, including
associated costs to notify affected persons and to mitigate their
information security concerns;
- the direct or indirect effects
resulting from terrorist incidents, including physical attacks and
cyber attacks, or responses to such incidents;
- the impact of customer- and third
party-owned generation, including alternative electric suppliers,
in IPL’s and WPL’s service territories on system reliability,
operating expenses and customers’ demand for electricity;
- the impact of energy efficiency,
franchise retention and customer disconnects on sales volumes and
margins;
- the impact that price changes may have
on IPL’s and WPL’s customers’ demand for electric, gas and steam
services and their ability to pay their bills;
- IPL’s and WPL’s ability to obtain
adequate and timely rate relief to allow for, among other things,
the recovery of and/or the return on costs, including fuel costs,
operating costs, transmission costs, deferred expenditures,
deferred tax assets, tax expense, capital expenditures, and
remaining costs related to electric generating units (EGUs) that
may be permanently closed and certain other retired assets,
decreases in sales volumes, earning their authorized rates of
return, and the payments to their parent of expected levels of
dividends;
- federal and state regulatory or
governmental actions, including the impact of legislation, and
regulatory agency orders;
- the ability to utilize tax credits and
net operating losses generated to date, and those that may be
generated in the future, before they expire;
- the impacts of changes in the tax
code, including tax rates, minimum tax rates, and adjustments made
to deferred tax assets and liabilities;
- the ability to complete construction
of renewable generation and storage projects by planned in-service
dates and within the cost targets set by regulators due to cost
increases of and access to materials, equipment and commodities
including due to tariffs, duties or other assessments, such as any
additional tariffs resulting from U.S. Department of Commerce
investigations into the sourcing of solar project materials and
equipment from certain countries, labor issues or supply shortages,
the ability to successfully resolve warranty issues or contract
disputes, the ability to achieve the expected level of tax benefits
based on tax guidelines and project costs, and the ability to
efficiently utilize the renewable generation and storage project
tax benefits for the benefit of customers;
- employee workforce factors, including
changes in key executives, ability to hire and retain employees
with specialized skills, ability to create desired corporate
culture, collective bargaining agreements and negotiations, work
stoppages or restructurings;
- any material post-closing payments
related to any past asset divestitures, including the sale of
Whiting Petroleum, which could result from, among other things,
indemnification agreements, warranties, guarantees or
litigation;
- weather effects on results of utility
operations;
- the direct or indirect effects
resulting from the ongoing COVID-19 pandemic and the spread of
variant strains, including any vaccine mandates and testing
requirements, on sales volumes, margins, operations, employees,
labor markets, contractors, vendors, the ability to complete
construction projects, supply chains, customers’ inability to pay
bills, suspension of disconnects, the market value of the assets
that fund pension plans and the potential for additional funding
requirements, the ability of counterparties to meet their
obligations, compliance with regulatory requirements, the ability
to implement regulatory plans, economic conditions and access to
capital markets;
- issues associated with environmental
remediation and environmental compliance, including compliance with
all environmental and emissions permits, the Coal Combustion
Residuals Rule, future changes in environmental laws and
regulations, including federal, state or local regulations for
carbon dioxide emissions reductions from new and existing
fossil-fueled EGUs, and litigation associated with environmental
requirements;
- increased pressure from customers,
investors and other stakeholders to more rapidly reduce carbon
dioxide emissions;
- the ability to defend against
environmental claims brought by state and federal agencies, such as
the U.S. Environmental Protection Agency, state natural resources
agencies or third parties, such as the Sierra Club, and the impact
on operating expenses of defending and resolving such claims;
- continued access to the capital
markets on competitive terms and rates, and the actions of credit
rating agencies;
- inflation and interest rates;
- disruptions to the supply of
materials, equipment and commodities needed to construct solar
generation and storage projects and maintain ongoing operations,
including due to geopolitical issues, shortages, labor issues or
transportation issues, which may, among other potential impacts,
affect the ability to meet capacity requirements and result in
increased capacity expense;
- possible changes to MISO’s methodology
establishing capacity planning reserve margin and capacity
accreditation requirements that may impact how and when new
generating facilities such as IPL’s and WPL’s additional solar
generation may be accredited with energy capacity and may require
IPL and WPL to adjust their current resource plans, the need to add
resources to comply with MISO’s proposal, or procure capacity in
the market whereby such costs might not be recovered in rates;
- changes in the price of delivered
natural gas, transmission, purchased electricity and coal, and any
resulting changes to counterparty credit risk, due to shifts in
supply and demand caused by market conditions, regulations and
MISO’s annual resource adequacy process;
- disruptions in the supply and delivery
of natural gas, purchased electricity and coal;
- the direct or indirect effects
resulting from breakdown or failure of equipment in the operation
of electric and gas distribution systems, such as mechanical
problems and explosions or fires, and compliance with electric and
gas transmission and distribution safety regulations, including
regulations promulgated by the Pipeline and Hazardous Materials
Safety Administration;
- issues related to the availability and
operations of EGUs, including start-up risks, breakdown or failure
of equipment, availability of warranty coverage for equipment
breakdowns or failures, performance below expected or contracted
levels of output or efficiency, operator error, employee safety,
transmission constraints, compliance with mandatory reliability
standards and risks related to recovery of resulting incremental
costs through rates;
- impacts that excessive heat, excessive
cold, storms or natural disasters may have on Alliant Energy’s,
IPL’s and WPL’s operations and recovery of costs associated with
restoration activities or on the operations of Alliant Energy’s
investments;
- Alliant Energy’s ability to sustain
its dividend payout ratio goal;
- changes to costs of providing benefits
and related funding requirements of pension and other
postretirement benefits plans due to the market value of the assets
that fund the plans, economic conditions, financial market
performance, interest rates, timing and form of benefits payments,
life expectancies and demographics;
- material changes in employee-related
benefit and compensation costs;
- risks associated with operation and
ownership of non-utility holdings;
- changes in technology that alter the
channels through which customers buy or utilize Alliant Energy’s,
IPL’s or WPL’s products and services;
- impacts on equity income from
unconsolidated investments from valuations and potential changes to
ATC LLC’s authorized return on equity;
- impacts of IPL’s future tax benefits
from Iowa rate-making practices, including deductions for repairs
expenditures, allocation of mixed service costs and state
depreciation, and recoverability of the associated regulatory
assets from customers, when the differences reverse in future
periods;
- changes to the creditworthiness of
counterparties with which Alliant Energy, IPL and WPL have
contractual arrangements, including participants in the energy
markets and fuel suppliers and transporters;
- current or future litigation,
regulatory investigations, proceedings or inquiries;
- reputational damage from negative
publicity, protests, fines, penalties and other negative
consequences resulting in regulatory and/or legal actions;
- the effect of accounting standards
issued periodically by standard-setting bodies;
- the ability to successfully complete
tax audits and changes in tax accounting methods with no material
impact on earnings and cash flows; and
- other factors listed in the “2022
Earnings Guidance” section of this press release.
For more information about potential
factors that could affect Alliant Energy’s business and financial
results, refer to Alliant Energy’s most recent Annual Report
on Form 10-K filed with the Securities and
Exchange Commission (“SEC”), including the section therein titled
“Risk Factors,” and its other filings with the SEC.
Without limitation, the expectations with respect
to 2022 earnings guidance in this press release are forward-looking
statements and are based in part on certain assumptions made by
Alliant Energy, some of which are referred to in the
forward-looking statements. Alliant Energy cannot provide any
assurance that the assumptions referred to in the forward-looking
statements or otherwise are accurate or will prove to be correct.
Any assumptions that are inaccurate or do not prove to be correct
could have a material adverse effect on Alliant Energy’s ability to
achieve the estimates or other targets included in the
forward-looking statements. The forward-looking statements included
herein are made as of the date hereof and, except as required by
law, Alliant Energy undertakes no obligation to update publicly
such statements to reflect subsequent events or circumstances.
Use of Non-GAAP Financial
Measures
To provide investors with additional information
regarding Alliant Energy’s financial results, this press release
includes reference to certain non-GAAP financial measures.
Alliant Energy included in this press release IPL;
WPL; Corporate Services; Utilities and Corporate Services; ATC
Holdings; and Non-utility and Parent EPS for the three months ended
March 31, 2022 and 2021. Alliant Energy believes these non-GAAP
financial measures are useful to investors because they facilitate
an understanding of segment performance and trends, and provide
additional information about Alliant Energy’s operations on a basis
consistent with the measures that management uses to manage its
operations and evaluate its performance.
This press release references year-over-year
variances in utility electric margins and utility gas margins.
Utility electric margins and utility gas margins are non-GAAP
financial measures that will be reported and reconciled to the most
directly comparable GAAP measure, operating income, in our first
quarter 2022 Form 10-Q.
Note: Unless otherwise noted, all
“per share” references in this release refer to earnings per
diluted share.
ALLIANT ENERGY CORPORATION |
EARNINGS SUMMARY (Unaudited) |
|
The following tables provide a summary of Alliant Energy’s results
for the three months ended March 31: |
EPS: |
GAAP EPS |
|
2022 |
|
2021 |
IPL |
$0.35 |
|
$0.31 |
|
WPL |
0.37 |
|
0.34 |
|
Corporate Services |
0.01 |
|
0.01 |
|
Subtotal for Utilities and Corporate Services |
0.73 |
|
0.66 |
|
ATC Holdings |
0.03 |
|
0.03 |
|
Non-utility and Parent |
0.01 |
|
(0.01 |
) |
Alliant Energy Consolidated |
$0.77 |
|
$0.68 |
|
Earnings (in millions): |
GAAP Income (Loss) |
|
2022 |
|
2021 |
|
IPL |
$87 |
|
$79 |
|
WPL |
92 |
|
84 |
|
Corporate Services |
4 |
|
3 |
|
Subtotal for Utilities and Corporate Services |
183 |
|
166 |
|
ATC Holdings |
8 |
|
8 |
|
Non-utility and Parent |
1 |
|
(3 |
) |
Alliant Energy Consolidated |
$192 |
|
$171 |
|
ALLIANT ENERGY CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) |
|
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
|
(in millions, except per share amounts) |
Revenues: |
|
|
|
Electric utility |
$773 |
|
|
$701 |
|
Gas utility |
262 |
|
|
170 |
|
Other utility |
11 |
|
|
13 |
|
Non-utility |
22 |
|
|
17 |
|
|
1,068 |
|
|
901 |
|
Operating expenses: |
|
|
|
Electric production fuel and purchased power |
168 |
|
|
133 |
|
Electric transmission service |
138 |
|
|
134 |
|
Cost of gas sold |
168 |
|
|
100 |
|
Other operation and maintenance: |
|
|
|
Energy efficiency costs |
11 |
|
|
5 |
|
Non-utility Travero |
16 |
|
|
13 |
|
Other |
126 |
|
|
128 |
|
Depreciation and amortization |
166 |
|
|
164 |
|
Taxes other than income taxes |
27 |
|
|
26 |
|
|
820 |
|
|
703 |
|
Operating income |
248 |
|
|
198 |
|
Other (income) and deductions: |
|
|
|
Interest expense |
74 |
|
|
69 |
|
Equity income from unconsolidated investments, net |
(15 |
) |
|
(15 |
) |
Allowance for funds used during construction |
(11 |
) |
|
(4 |
) |
Other |
— |
|
|
2 |
|
|
48 |
|
|
52 |
|
Income before income taxes |
200 |
|
|
146 |
|
Income tax expense (benefit) |
8 |
|
|
(28 |
) |
Net income |
192 |
|
|
174 |
|
Preferred dividend requirements of IPL |
— |
|
|
3 |
|
Net income attributable to Alliant Energy common
shareowners |
$192 |
|
|
$171 |
|
Weighted average number of common shares
outstanding: |
|
|
|
Basic |
250.6 |
|
|
250.0 |
|
Diluted |
250.9 |
|
|
250.4 |
|
Earnings per weighted average common share attributable to
Alliant Energy common shareowners (basic and diluted) |
$0.77 |
|
|
$0.68 |
|
ALLIANT ENERGY CORPORATION |
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) |
|
|
|
|
|
March 31,2022 |
|
December 31,2021 |
|
(in millions) |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$67 |
|
$39 |
Other current assets |
1,025 |
|
1,030 |
Property, plant and equipment, net |
15,192 |
|
14,987 |
Investments |
533 |
|
517 |
Other assets |
2,022 |
|
1,980 |
Total assets |
$18,839 |
|
$18,553 |
LIABILITIES AND EQUITY: |
|
|
|
Current liabilities: |
|
|
|
Current maturities of long-term debt |
$333 |
|
$633 |
Commercial paper |
276 |
|
515 |
Other current liabilities |
912 |
|
906 |
Long-term debt, net (excluding current portion) |
7,383 |
|
6,735 |
Other liabilities |
3,858 |
|
3,774 |
Alliant Energy Corporation common equity |
6,077 |
|
5,990 |
Total liabilities and equity |
$18,839 |
|
$18,553 |
ALLIANT ENERGY CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
|
(in millions) |
Cash flows from operating activities: |
|
|
|
Cash flows from operating activities excluding accounts receivable
sold to a third party |
$379 |
|
|
$272 |
|
Accounts receivable sold to a third party |
(128 |
) |
|
(127 |
) |
Net cash flows from operating activities |
251 |
|
|
145 |
|
Cash flows used for investing activities: |
|
|
|
Construction and acquisition expenditures: |
|
|
|
Utility business |
(307 |
) |
|
(214 |
) |
Other |
(23 |
) |
|
(17 |
) |
Cash receipts on sold receivables |
115 |
|
|
209 |
|
Other |
(8 |
) |
|
(16 |
) |
Net cash flows used for investing activities |
(223 |
) |
|
(38 |
) |
Cash flows from (used for) financing
activities: |
|
|
|
Common stock dividends |
(107 |
) |
|
(102 |
) |
Proceeds from issuance of long-term debt |
650 |
|
|
— |
|
Payments to retire long-term debt |
(300 |
) |
|
— |
|
Net change in commercial paper |
(239 |
) |
|
(53 |
) |
Other |
(1 |
) |
|
10 |
|
Net cash flows from (used for) financing activities |
3 |
|
|
(145 |
) |
Net increase (decrease) in cash, cash equivalents and
restricted cash |
31 |
|
|
(38 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
40 |
|
|
56 |
|
Cash, cash equivalents and restricted cash at end of
period |
$71 |
|
|
$18 |
|
KEY FINANCIAL AND OPERATING STATISTICS |
|
|
March 31, 2022 |
|
March 31, 2021 |
Common shares outstanding (000s) |
250,814 |
|
250,135 |
Book value per share |
$24.23 |
|
$23.05 |
Quarterly common dividend rate per share |
$0.4275 |
|
$0.4025 |
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
Utility electric sales (000s of
megawatt-hours) |
|
|
|
Residential |
1,945 |
|
1,878 |
Commercial |
1,612 |
|
1,560 |
Industrial |
2,596 |
|
2,618 |
Industrial - co-generation customers |
235 |
|
216 |
Retail subtotal |
6,388 |
|
6,272 |
Sales for resale: |
|
|
|
Wholesale |
721 |
|
686 |
Bulk power and other |
1,224 |
|
385 |
Other |
17 |
|
19 |
Total |
8,350 |
|
7,362 |
Utility retail electric customers (at March
31) |
|
|
|
Residential |
836,907 |
|
830,540 |
Commercial |
144,752 |
|
143,872 |
Industrial |
2,441 |
|
2,471 |
Total |
984,100 |
|
976,883 |
Utility gas sold and transported (000s of
dekatherms) |
|
|
|
Residential |
15,360 |
|
13,731 |
Commercial |
9,589 |
|
8,611 |
Industrial |
1,146 |
|
1,089 |
Retail subtotal |
26,095 |
|
23,431 |
Transportation / other |
29,877 |
|
24,690 |
Total |
55,972 |
|
48,121 |
Utility retail gas customers (at March 31) |
|
|
|
Residential |
378,990 |
|
376,341 |
Commercial |
44,749 |
|
44,564 |
Industrial |
341 |
|
346 |
Total |
424,080 |
|
421,251 |
|
|
|
|
Estimated margin increases from impacts of temperatures (in
millions) - |
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
Electric margins |
$7 |
|
$3 |
Gas margins |
4 |
|
2 |
Total temperature impact on margins |
$11 |
|
$5 |
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
|
Normal |
Heating degree days
(HDDs)(a) |
|
|
|
|
|
Cedar Rapids, Iowa (IPL) |
3,749 |
|
3,606 |
|
3,440 |
Madison, Wisconsin (WPL) |
3,719 |
|
3,599 |
|
3,528 |
(a) HDDs are calculated using a
simple average of the high and low temperatures each day compared
to a 65 degree base. Normal degree days are calculated using a
rolling 20-year average of historical HDDs.
Media Hotline: |
|
(608) 458-4040 |
Investor Relations: |
|
Zac Fields (319) 786-8146 |
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