WEC ENERGY GROUP, INC. Q4 FY2024 earnings call

Management stated 2024 had solid results across meaningful measures. For 2025, EPS guidance is reaffirmed at $5.17 - $5.27 per share with a long-term CAGR target of 6.5%-7%. Region has strong economic growth with developments like Eli Lilly's $3B expansion, Microsoft's data center progress, and Cloverleaf's plans. $28B five-year capital plan focuses on balanced generation mix, including $9.1B for renewables. WEC infrastructure projects like Delilah I, Maple Flats, and Hardin III have updates. Regulatory front has no planned or active rate cases in Wisconsin, and Illinois has ongoing proceedings.

Utility operations had adjusted earnings per share of $4.88 in 2024, an increase of $0.25 per share from 2023, offsetting weather impacts via various initiatives. Energy infrastructure segment earnings grew $0.13 in 2024 compared to 2023. Earnings from investment in American Transmission Company increased $0.07 in 2024. Corporate and other segments' earnings decreased to $0.01 in 2024.

2025 full-year EPS guidance reaffirmed at $5.17 - $5.27 per share. First quarter 2025 EPS projected in range of $2.13 - $2.23 per share. In 2025, expects to issue $700M - $800M of common equity via ATM program, etc. Total common equity financing over next five years expected between $2.7B - $3.2B. Incremental capital expected to be funded with 50% equity content.

Risks include potential impacts of tariffs on solar projects and gas costs, uncertainty in regulatory proceedings, and risks of project construction and operation delays.

Q: About Cloverleaf data center announcement and Microsoft project status.

A: Cloverleaf's Port Washington project is early stages, incremental to plan. Microsoft project has paused areas but moving forward.

Q: On incremental demand and system modernization.

A: 1,800 MW plan in SE Wisconsin, development takes 3 - 4 years. System modernization decision expected in Feb/March.

Q: On Point Beach and tariffs.

A: No updates on Point Beach, tariffs manageable but closely watched.

Q: On policy priorities and O&M.

A: Evaluating policy impacts, O&M 2025 expected to have higher growth due to new projects and restored run rate.

Q: On Illinois gas plan and data center ramp.

A: Delta in Illinois gas plan, Cloverleaf and Phase 3 projects have timelines.

Q: On long-term spending plans and regulatory.

A: Updates expected in Oct/Nov, busy regulatory schedule with projects at commission.

Q: On WEC Infrastructure and sales growth.

A: WEC Infrastructure completed planned spending, sales growth to ramp up.

Q: On ATC upside and RICE units.

A: Clarity on ATC upside in next year, RICE units part of generation mix.

Q: On OpenAI and CAGR.

A: Working with potential opportunities, CAGR update in third quarter.

Q: On Microsoft pause and NextEra partnership.

A: Microsoft pause Wisconsin specific, NextEra partnership impacts gas turbines availability.

Q: On Illinois gas case and debt extinguishment.

A: Impact of Ameren case on Illinois gas situation, opportunistic debt extinguishment based on market conditions.