WEC Energy Q1 Earnings Beat Despite Lower Energy Consumption, 2023 Outlook Reaffirmed - WEC Energy Group (NYSE:WEC)

WEC Energy Group WEC reported Q1 2023 revenues of $2.89 billion, down from $2.91 billion, beating the consensus of $2.85 billion.
In Q1 2023, natural gas deliveries in Wisconsin (excluding natural gas used for power generation) declined by 10.5% Y/Y in Q1.
In Q1, electricity consumption by small commercial and industrial customers fell 3.4% Y/Y, and the electricity used by large commercial and industrial customers (excluding iron ore mines) declined 3.9% Y/Y.
Retail deliveries of electricity (excluding the iron ore mine in Michigan’s Upper Peninsula) fell 4.4% Y/Y in the quarter.
Operating income decreased to $669.3 million from $731.4 million a year ago.
EPS of $1.61 beat the consensus of $1.59.
As of March 31, 2023, WEC had cash and equivalents of $35.7 million.
Net cash provided by operating activities was $796.1 million, compared with $1.08 billion a year ago. The capital expenditure was $499.4 million, compared with $383.5 million in the prior year quarter.
Outlook: WEC Energy reiterated 2023 EPS guidance of $4.58-$4.62 (vs. consensus of $4.61).
“We experienced one of the mildest winters in history. For example, this was the second-warmest first quarter in Milwaukee since 1891. We continue to focus on the fundamentals of our business — financial discipline, operating efficiency, and customer satisfaction. And we’re confident that we can deliver another year of strong results, in line with our original guidance for 2023,” said Gale Klappa, executive chairman.
Price Action: WEC shares closed lower by 0.37% at $96.17 on Friday.

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