Alliant Energy Corp. Q3 FY2024 earnings call

Key Strengths - Economic development focus: Drive growth in served communities, creating shared prosperity. - Dynamic resource planning model: Flexible approach to scale generation quickly. - Forward - looking regulatory alignment: Work proactively with regulators to shape frameworks for affordability and growth. - Strategic capacity positioning: Leverage existing resources and generation queue positions to adapt generation portfolio. ### Initiatives - Preparing to bring two data center companies to Big Cedar Industrial Center in Iowa, with Phase 1 expected to come online by end - 2028, potentially boosting peak demand by nearly 20% over five years. - Iowa's approved individual customer rates (ICR) enable alignment with customer needs and long - term growth. - Refreshing the Clean Energy Blueprint, a dynamic resource planning process with stakeholder engagement. - 2025 - 2028 capital expenditure plan includes investments in strengthening natural gas, adding energy storage, and highly efficient natural gas assets. - Received a $50 million grant from the U.S. Department of Energy for electric grid reliability in rural Wisconsin. - Initiated a Voluntary Employee Separation program to reduce workforce by approximately 5%. - Over 40% of 2025 - 2028 capital expenditure plan is for wind, solar, and energy storage.

In the third quarter of 2024, Alliant Energy reported non - GAAP earnings per share of $1.15 compared to $1.05 in the third quarter of 2023. For the full year 2024, the ongoing earnings guidance range has been narrowed to $2.99 per share to $3.06 per share. The 2025 earnings guidance midpoint represents a 6% increase from the 2024 forecasted ongoing earnings midpoint, and the 2025 annual common stock dividend target is $2.03 per share, a 6% increase from the current year's dividend. The company's updated capital expenditure plan through 2028 shows an increase of approximately $1.8 billion in the four - year capital expenditure plan, with a compounded annual growth rate of 10% for rate base plus construction work in progress.

2024 - The 2024 ongoing earnings guidance range is narrowed to $2.99 per share to $3.06 per share. ### 2025 - The 2025 earnings guidance midpoint represents a 6% increase from the 2024 forecasted ongoing earnings midpoint. - The 2025 annual common stock dividend target is $2.03 per share, a 6% increase from the current year's dividend. - Updated capital expenditure plan through 2028 with an increase of approximately $1.8 billion in the four - year plan, compounded annual growth rate of 10%. - Plan to file the Wisconsin Retail Electric and Gas Rate Review for test years 2026 and 2027 by early second quarter of 2025.

Forward - looking statements are subject to risks that could cause actual results to be materially different. Risks include matters discussed in Alliant Energy's news release issued last night and in its filings with the Securities and Exchange Commission.

Q: Should you shift into the high case for load growth? How could that affect where you end up in the 5% to 7% long - term EPS growth guidance?

A: Lisa Barton said the long - term growth is upside potential, and they anticipate Phase 2 growth would likely be in later years. Robert Durian added about the need for new common equity and the timing of it.

Q: On the last one about equity, you're guiding to roughly 10% funding of overall CapEx, but only $25 million of issuance of $25. How can we think about contributions in ‘26 and beyond? Would that be practical, and would that be covered under the ATM?

A: Robert Durian said they see a need for roughly about a $1 billion of new common equity through 2028 to maintain the balance sheet, with ‘26, ‘27, and ‘28 having higher levels of CapEx growth, and there could be opportunities to use ATMs in that time frame.

Q: On the last one about Phase 2, to what extent is there still kind of a tailwind here as you think about rolling forward into ‘29 and ‘30?

A: Lisa Barton said they are acutely focused on economic development and will provide updates when there is a clear line of sight on the timing and certainty of load growth.

Q: On the ICR and earned return scenarios, how would you interpret what we're seeing here today on the midpoint or the midrange case against where you're targeting in terms of earned return scenarios here?

A: Robert Durian said higher load growth would likely push into earning sharing mechanisms later in the plan, especially in the 2028 - 2029 time frame, but it depends on getting other data center contracts completed.

Q: On the ‘24 guidance reduction, was it just that you were unable to fully offset the weather headwinds from earlier this year, or are there other challenges since then?

A: Robert Durian said it was largely related to the temperature impact, with about $0.10 of negative temperature impacts through September, but they were able to offset a majority of it through various means.

Q: On the CapEx side, to what extent are there other economic development deals and potential for additional customers?

A: Robert Durian said future economic development activities, including data centers, would be upside to the plan, increasing both capital expenditure and sales.

Q: On the long - term EPS growth rate, could you clarify whether the base for that is now the revised ‘24 guidance midpoint or asked differently? Have you sort of rebased lower as it relates to your long - term earnings growth trajectory?

A: Robert Durian said they use the current year information, with the 2024 updated earnings guidance midpoint of roughly around $3.03 as the base going forward, and they are still committed to a solid 6% growth rate in the longer term.

Q: On your financing plan, could you just give us some insights into the level of tax credits that you're baking into your plan and then what credit metrics you're targeting?

A: Robert Durian said they expect about $1.6 to $1.7 billion of tax credit monetization over the next four years through 2028, with an average of about $300 million to almost $400 million per year, and they are confident in monetizing these tax credits.

Q: As you're speaking to additional customers about future load growth opportunities, should we expect another sort of revision before Q3 of next year? Is that something you'd consider or is it just going to be this consistent cadence of Q3 CapEx updates?

A: Lisa Barton said they would be looking to align with new data center loads and expect a revision possibly in the first half of next year.

Q: On the ‘25 guidance, should we assume that the weather reverts back to normal next year, right? So in terms of the growth year over year, you're going to get the weather back presumably or that's what you're assuming normal weather and the guide for 2025, right? So are there any other factors in terms of timing on costs or other things that are impacting the growth year - over - year we should think about?

A: Robert Durian said the offsets in 2024 are non - sustainable, so normal weather will return in 2025, and they will get back to a normal run rate of 6% growth off the 2024 midpoint of $3.03 in 2025. Lisa Barton added they will continue to focus on using technology to drive costs out and on economic development efforts.

Q: What is the more near - term load growth assumption say for ‘25 or ‘26?

A: Robert Durian said the data centers referred to, including the initial phase at Big Cedar, are expected to start ramping up on a larger scale in the 2027 time frame, so near - term load growth in the next one or two years is expected to be in the range of about 0.5% to 1%.