ALLETE, Inc. (NYSE: ALE) today reported second quarter 2024
earnings of 57 cents per share on net income of $33.0 million. Last
year’s second quarter results were 90 cents per share on net income
of $51.5 million. Net income for the second quarter this year
includes 25 cents per share of transaction expenses related to the
merger agreement entered into on May 5, 2024, with Canada Pension
Plan Investment Board and Global Infrastructure Partners, and a 4
cent per share negative impact due to mild weather. Net income for
the same quarter in 2023 included approximately 8 cents per share
for the favorable impact of an updated estimate for property taxes,
and ALLETE Clean Energy recorded a 7 cent per share gain on the Red
Barn wind generation facility.
“I am proud of our entire ALLETE team, working diligently on
many fronts to execute our Sustainability in Action strategy in
tandem with initiatives as part of the exciting announcement of the
merger agreement with Canada Pension Plan Investment Board and
Global Infrastructure Partners. We are pleased that key regulatory
filings with the Federal Energy Regulatory Commission, the
Minnesota Public Utilities Commission and the Public Service
Commission of Wisconsin were filed in support of the transaction
and the Definitive Proxy Statement has been filed with the SEC. The
merger is progressing as planned and we remain on track for a
mid-2025 closing, subject to all necessary approvals,” 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 second quarter 2024
net income of $33.7 million, compared to $37.8 million in the
second quarter a year ago. Net income at Minnesota Power was lower
reflecting milder weather, as well as higher operating and
maintenance and depreciation expenses in the second quarter of 2024
compared to 2023, partially offset by the implementation of interim
rates, net of reserves, and higher transmission margins.
ALLETE Clean Energy recorded second quarter 2024 net income of
$2.4 million compared to $3.1 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; both outages were resolved during the
second quarter of 2024. These decreases were partially offset by
lower operating and maintenance expense. Net income in 2023 also
included a gain on the Red Barn wind generation facility.
Corporate and Other businesses, which include New Energy, BNI
Energy, ALLETE Properties and our investments in renewable energy
facilities, recorded a net loss of $3.1 million in the second
quarter of 2024, compared to net income of $10.6 million in 2023.
Net income included increased transaction expenses of $14.3 million
after-tax, or 25 cents per share, related to the merger agreement
entered into in the second quarter of 2024. The net loss in 2024
also reflects lower earnings from Minnesota solar projects as
investment tax credits were recognized in 2023 for the
projects.
“Similar to this year’s first quarter, the second quarter
results reflect items not included in our original 2024
expectations, including merger related transaction expenses, milder
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 year to
date were on track with our internal expectations, New Energy's
financial results were as expected, and ALLETE Clean Energy’s
results were lower than our expectations primarily due to a
third-party network outage and a transformer outage at ALLETE Clean
Energy’s wind energy facilities in Oklahoma which have since been
resolved.”
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
Quarter Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Operating Revenue
Contracts with Customers – Utility
$
279.8
$
292.2
$
618.1
$
604.8
Contracts with Customers – Non-utility
73.5
239.9
137.2
490.9
Other – Non-utility
1.2
1.3
2.5
2.6
Total Operating Revenue
354.5
533.4
757.8
1,098.3
Operating Expenses
Fuel, Purchased Power and Gas –
Utility
107.3
107.3
240.8
225.9
Transmission Services – Utility
1.6
23.5
24.3
43.6
Cost of Sales – Non-utility
31.8
193.2
56.2
403.7
Operating and Maintenance
102.1
84.9
193.8
170.6
Depreciation and Amortization
66.0
62.8
131.0
125.1
Taxes Other than Income Taxes
16.3
8.2
35.0
27.6
Total Operating Expenses
325.1
479.9
681.1
996.5
Operating Income
29.4
53.5
76.7
101.8
Other Income (Expense)
Interest Expense
(20.1
)
(21.1
)
(40.5
)
(40.4
)
Equity Earnings
5.9
5.4
11.4
11.4
Other
5.9
2.5
14.5
6.6
Total Other Expense
(8.3
)
(13.2
)
(14.6
)
(22.4
)
Income Before Income Taxes
21.1
40.3
62.1
79.4
Income Tax Expense (Benefit)
1.4
(0.4
)
5.4
1.1
Net Income
19.7
40.7
56.7
78.3
Net Loss Attributable to Non-Controlling
Interest
(13.3
)
(10.8
)
(27.0
)
(31.4
)
Net Income Attributable to
ALLETE
$
33.0
$
51.5
$
83.7
$
109.7
Average Shares of Common Stock
Basic
57.7
57.3
57.7
57.3
Diluted
57.8
57.4
57.7
57.4
Basic Earnings Per Share of Common
Stock
$
0.57
$
0.90
$
1.45
$
1.91
Diluted Earnings Per Share of Common
Stock
$
0.57
$
0.90
$
1.45
$
1.91
Dividends Per Share of Common
Stock
$
0.705
$
0.6775
$
1.41
$
1.355
Consolidated Balance
Sheet
Millions - Unaudited
Jun. 30,
Dec. 31,
Jun. 30,
Dec. 31,
2024
2023
2024
2023
Assets
Liabilities and Equity
Cash and Cash Equivalents
$
37.5
$
71.9
Current Liabilities
$
297.6
$
377.6
Other Current Assets
394.7
396.2
Long-Term Debt
1,746.0
1,679.9
Property, Plant and Equipment – Net
5,079.5
5,013.4
Deferred Income Taxes
215.6
192.7
Regulatory Assets
394.7
425.4
Regulatory Liabilities
561.0
574.0
Equity Investments
336.0
331.2
Defined Benefit Pension and Other
Postretirement Benefit Plans
135.0
160.8
Goodwill and Intangibles – Net
155.4
155.4
Other Non-Current Liabilities
310.5
264.3
Other Non-Current Assets
263.5
262.9
Redeemable Non-Controlling Interest
0.9
0.5
Equity
3,394.7
3,406.6
Total Assets
$
6,661.3
$
6,656.4
Total Liabilities, Redeemable
Non-Controlling Interest and Equity
$
6,661.3
$
6,656.4
Quarter Ended
Six Months Ended
ALLETE, Inc.
June 30,
June 30,
Income (Loss)
2024
2023
2024
2023
Millions
Regulated Operations
$
33.7
$
37.8
$
77.9
$
78.4
ALLETE Clean Energy
2.4
3.1
6.2
11.6
Corporate and Other
(3.1
)
10.6
(0.4
)
19.7
Net Income Attributable to ALLETE
$
33.0
$
51.5
$
83.7
$
109.7
Diluted Earnings Per Share
$
0.57
$
0.90
$
1.45
$
1.91
Statistical Data
Corporate
Common Stock
High
$
65.86
$
66.69
$
65.86
$
66.69
Low
$
56.66
$
56.68
$
55.86
$
56.68
Close
$
62.35
$
57.97
$
62.35
$
57.97
Book Value
$
48.86
$
47.63
$
48.86
$
47.63
Kilowatt-hours Sold
Millions
Regulated Utility
Retail and Municipal
Residential
225
241
531
562
Commercial
307
320
645
667
Industrial
1,729
1,778
3,527
3,436
Municipal
105
110
230
238
Total Retail and Municipal
2,366
2,449
4,933
4,903
Other Power Suppliers
579
786
1,336
1,482
Total Regulated Utility Kilowatt-hours
Sold
2,945
3,235
6,269
6,385
Regulated Utility Revenue
Millions
Regulated Utility Revenue
Retail and Municipal Electric Revenue
Residential
$
34.4
$
33.2
$
81.1
$
75.6
Commercial
42.9
42.9
90.3
86.9
Industrial
146.3
139.7
304.8
283.1
Municipal
7.4
7.6
16.4
16.5
Total Retail and Municipal Electric
Revenue
231.0
223.4
492.6
462.1
Other Power Suppliers
30.4
36.3
70.4
72.2
Other (Includes Water and Gas Revenue)
18.4
32.5
55.1
70.5
Total Regulated Utility Revenue
$
279.8
$
292.2
$
618.1
$
604.8
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801632392/en/
Investor: Vince Meyer 218-723-3952 vmeyer@allete.com
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