Alliant Energy Announces Third Quarter 2019 Results And Increased Annual Common Stock Dividend Target For 2020 - 06.11.19 - News

MADISON, Wis., Nov. 6, 2019

Alliant Energy is the parent company of two public utility companies--Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL)--and of Alliant Energy Resources, Inc. (AER), the parent company of Alliant Energy's non-regulated operations. (PRNewsFoto/ALLIANT ENERGY CORPORATION)

GAAP EPS

Non-GAAP EPS

2019

2018

2019

ARIVA.DE Börsen-Geflüster

Kurse

Alliant Energy

49,59 $

-1,27%

2018

Utilities and Corporate Services

$0.92

$0.88

$0.92

$0.86

American Transmission Company (ATC) Holdings

0.03

0.03

0.03

0.03

Non-utility and Parent

(0.01)

(0.04)

(0.01)

(0.04)

Alliant Energy Consolidated

$0.94

$0.87

$0.94

$0.85

"As we advance our commitment to cleaner energy and affordable customer options, we are investing in renewable energy and distribution system enhancements," said John Larsen, Alliant Energy Chairman, President and CEO. "We raised our 2019 earnings guidance to a range of $2.27 to $2.33 per share, largely due to the benefits of weather during the first nine months of this year. I am also pleased to share that our Board of Directors has approved a 7% increase to our annual common stock dividend target, raising it to $1.52 per share for 2020."

Utilities and Corporate Services - Alliant Energy's Utilities and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.92 per share of GAAP EPS in the third quarter of 2019, which was $0.04 per share higher than the third quarter of 2018. The primary drivers of higher EPS were higher earnings due to Interstate Power and Light Company's (IPL's) and Wisconsin Power and Light Company's (WPL's) increasing rate base and timing of income tax expense. These items were partially offset by higher depreciation expense and tax adjustments.

Non-utility and Parent - Alliant Energy's Non-utility and Parent operations generated ($0.01) per share of GAAP EPS in the third quarter of 2019, which was a $0.03 per share earnings increase compared to the third quarter of 2018. The primary driver of higher EPS was tax adjustments and timing of income tax expense.

Earnings Adjustments - Non-GAAP EPS for the three and nine months ended September 30, 2018 excludes earnings of $0.02 per share related to tax return adjustments due to Federal Tax Reform. Non-GAAP adjustments, which relate to material charges or income that are not normally associated with ongoing operations, are provided as a supplement to results reported in accordance with GAAP.

Temperature Impacts to Non-GAAP EPS - The estimated year-to-date impact of temperatures on EPS compared to normal temperatures, is a $0.05 per share gain in 2019. The midpoint of the temperature normalized non-GAAP EPS guidance for the full year 2019 is $2.25.

Details regarding GAAP EPS variances between the third quarters of 2019 and 2018 for Alliant Energy are as follows:

	Q3 2019	Q3 2018	Variance
Higher revenue requirements primarily due to increasing rate base			$0.14
Higher depreciation expense			(0.05)
Timing of income tax expense			0.04
Tax return adjustments due to Federal Tax Reform	$—	$0.02	(0.02)
Equity dilution			(0.02)
Higher interest expense			(0.02)
Estimated temperature impact on retail electric and gas sales	0.02	0.02	—
Total			$0.07

Higher revenue requirements primarily due to increasing rate base - In March 2019, IPL filed a request with the Iowa Utilities Board (IUB) to increase annual rates for its Iowa retail electric customers by $204 million, based on a 2020 forward-looking test period. IPL concurrently filed for interim retail electric rates based on 2018 historical data adjusted for certain known and measurable changes occurring in the first quarter of 2019. An interim retail electric rate increase of $90 million, on an annual basis, was implemented effective April 2019. Implementing interim rates does not require regulatory approval; however, interim rates are subject to refund pending the IUB's final rate review decision. In October 2019, IPL filed a partial settlement agreement with the IUB to increase annual rates for its Iowa retail electric customers by $127 million. As part of this agreement, IPL would refund $8 million of 2019 interim rates in 2020. The settlement agreement is pending the IUB's final rate review decision. IPL recognized $0.09 per share of higher electric margins in the third quarter of 2019 due to the retail electric rate increase, including a reduction of $8 million as a result of the interim refund agreed to as part of the settlement.

In December 2018, 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 2019/2020 Test Period, effective January 1, 2019. Under the settlement, WPL's retail electric and gas base rates will not change from current levels through the end of 2020. The $61 million retail electric revenue requirement increase for 2019, resulting from increasing investments in rate base, was offset by lower fuel-related costs and federal tax reform refunds. WPL recognized $0.05 per share of higher electric margins from increasing investments in rate base in the third quarter of 2019.

Timing of income tax expense - Tax expenses are recorded based on an estimated annual effective tax rate, which causes fluctuations in the amount of tax expense quarter-over-quarter. The positive year-over-year variance in third quarter offsets the negative year-over-year variance in the second quarter of 2019.

2019 Earnings Guidance

Alliant Energy is updating its EPS guidance for 2019 as follows. The midpoint of the 2019 EPS guidance was increased by $0.06 per share primarily due to higher earnings from temperature impacts on retail electric and gas sales during the first nine months of 2019.

	Revised	Previous
Utilities and Corporate Services	$2.21 - $2.23	$2.14 - $2.24
ATC Holdings	0.11- 0.13	0.11 - 0.13
Non-utility and Parent	(0.05) - (0.03)	(0.08) - (0.06)
Alliant Energy Consolidated	$2.27 - $2.33	$2.17 - $2.31

Drivers for Alliant Energy's 2019 earnings guidance include, but are not limited to:

Appropriate regulatory outcomes to allow IPL the ability to earn its authorized rate of return
Ability of WPL to earn its authorized rate 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 10%

The 2019 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, regulations or regulatory policies, adjustments made to deferred tax assets and liabilities from valuation allowances, 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.

2020 Earnings Guidance

Alliant Energy is issuing EPS guidance for 2020 of $2.34 - $2.48.

Drivers for Alliant Energy's 2020 earnings guidance include, but are not limited to:

Appropriate regulatory outcomes to allow IPL the ability to earn its authorized rate of return
Ability of WPL to earn its 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 (11%)

The 2020 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, regulations or regulatory policies, adjustments made to deferred tax assets and liabilities from valuation allowances, 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.

"The customers and the communities we serve will continue to benefit from reliable, affordable, cleaner energy as a result of our strong pipeline of investments in renewable energy and electric and gas distribution. Our 2020 earnings guidance of $2.34 to $2.48 per share is consistent with our long-term growth objective of 5% to 7% annually," said Larsen.

2020 Annual Common Stock Dividend Target

Alliant Energy's Board of Directors approved a 7% increase, or $0.10 per share, to its 2020 expected annual common stock dividend target of $1.52 per share from the current annual common stock dividend target of $1.42 per share. Payment of the 2020 quarterly dividend is subject to the actual dividend declaration by the Board of Directors each quarter, which is expected in January 2020 for the first quarter dividend.

Projected Capital Expenditures

Alliant Energy has updated its projected capital expenditures for 2019 through 2023, which total $6.7 billion, as follows (in millions). The projected capital expenditures exclude AFUDC and capitalized interest, if applicable. Cost estimates represent Alliant Energy's estimated portion of total construction expenditures.

2019

2020

2021

2022

2023

Generation:

Renewable projects

$640

$260

$110

$275

Mehr Nachrichten zur Alliant Energy Aktie kostenlos abonnieren

E-Mail-Adresse

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.