Mge Energy Inc. · NASDAQ:MGEE
Mge Energy — FY2024 Earnings Presentation
30 slides from Mge Energy's earnings presentation, Feb 25, 2025
Slide 1: 2024 Year End Financial Update
Connected Together <=... 2024 Year End Financial Update ENERGY.
Slide 2: Disclaimer
Disclaimer This presentation contains summarized information concerning MGE Energy, Inc. (“MGE Energy”) and its subsidiaries (principally Madison Gas and Electric Company (“MGE")) and MGE Energy's consolidated business, operations, financial performance and trends. No representation is made that the
Slide 3: Cautionary Note — Forward Looking Information
Cautionary Note — Forward Looking Information All statements in this presentation, other than historical facts, are forward-looking statements (including but not limited to forecasted capital expenditures, expected in-service dates and carbon dioxide projections) that involve risks and uncertainties
Slide 4: Company Mission and Values
Company Mission and Values MGE Energy is the parent company of Madison Gas and Electric Company (MGE). MGE is your community energy company, committed to engaging with our customers in different ways to meet their needs and to providing safe, reliable, affordable and sustainable energy to power our
Slide 5: Company Highlights
Company Highlights DIVERSIFIED CUSTOMER BASE AND REVENUE PROFILE REGULATED, HIGHLY VISIBLE GROWTH Resilient Revenue Stream and Customer Base Historical 5-Year EPS CAGR of 5.8%, Regulated PPE CAGR of 6.8% Electric service to ~167,000 customers located in + Forecasted capital investment of ~$1.4B from
Slide 6: Earnings and Dividends Growth
Earnings and Dividends Growth Dividends Per Share Diluted Earnings Per Share $3.50 $2.80 $2.10 $1.40 $0.70 $- 2020 2021 2022 CAGR calculated from base year ended 12/31/2019 2023 2024 $2.00 $1.60 $1.20 $0.80 $0.40 2020 2021 2022 2023 2024
Slide 7: Focused on Sustainability and Reliability
Focused on Sustainability and Reliability Projected Capital Expenditures $350 $312 $300 $286 e228 $266 $250 $240 2 $200 $156 $174 $182 $202 $131 E $150 $100 $50 $109 $110 $112 $114 $110 $0 2025 2026 2027 2028 2029 @ Other Capital Expenditures, including Electric and Gas Distribution ™ Generation Dir
Slide 8: Expanding Renewables Portfolio
Expanding Renewables Portfolio q F biel? sis Nae P Estimated Solar Projects Nameplate Investment Ownership TneServicn Date Capacity (MW) ($M) Interest 4 Darien Solar 25 $48 10% 2025 a Koshkonong Solar‘ 30 $70 10% 2026 | Sunnyside Solar) 20 $42 100% 2026 High Noon Solar‘) 30 $64 10% 2027 Ursa Solar‘)
Slide 9: Expanding Renewables Portfolio
Expanding Renewables Portfolio MGE MGE MGE Estimated Wind Projects Nameplate Investment Ownership IncService Date Capacity (MW) ($M) Interest Badger Hollow Wind) 11.2 $36 10% 2027 Whitetail Wind 6.7 $23 10% 2027 Forward Wind Repower®)(0) 18 $14 13% 2027 Mice sites Ce Estimated Battery Projects Namep
Slide 10: MGE is on track to end the use of coal as a generation fuel
10 MGE is on track to end the use of coal as a generation fuel source and meet its 80% ca * Transition MGE to a more environmentally sustainable energy supply Provide customers with options they want today and in the future Help customers use energy efficiently and manage future costs Provide dynami
Slide 11: Transmission Investment Outlook
1 Transmission Investment Outlook MGE Energy anticipates material transmission investment opportunities later this decade through ATC. + | MGE Energy holds 3.6% equity ownership interest in ATC. ATC projects an acceleration of capital expenditures through the end of the decade, with 2025-2029 projec
Slide 12: Natural Gas Distribution — Emissions Reductions Beyond Carbon
12 Natural Gas Distribution — Emissions Reductions Beyond Carbon Building upon our long-standing commitment to providing affordable, sustainable energy, MGE has set a goal to achieve Net-Zero Methane Emissions from its natural gas distribution system by 2035. + MGE is working to reduce overall emiss
Slide 13: Constructive Regulatory Environment
13 Constructive Regulatory Environment Both S&P and Moody's view the Wisconsin regulatory environment as highly credit supportive with timely operating and capital cost recovery, and view MGE's relationship with the Public Service Commission as constructive. Supportive regulatory framework including
Slide 14: PSCW Regulators
14 PSCW Regulators WISCONSIN COMMISSIONERS PARTY TERM BEGAN TERM ENDS Summer Strand (Chair) D Mar 2023 Mar 2029 f Kristy Nieto* D Feb 2024 Mar 2025 Marcus Hawkins* D Apr 2024 Mar 2027 * Pending confirmation * Recent appointments of PSCW Commissioners and confirmation of Chair * Constructive rate out
Slide 15: 2024/2025 Rate Case Outcomes
2024/2025 Rate Case Outcomes TERMS APPROVED APPROVED ($000’s where applicable) 2024 TY 2025 TY Average Electric Rate Base $1,185,550 $1,241,502 Average Gas Rate Base $335,533 $341,369 Average Common Stock Equity $917,952 $945,483 Regulatory Equity Layer 56.13% 56.06% Authorized ROE 9.70% 9.70% Incre
Slide 16: Customer bill affordability as percentage of wallet
2.25% 2.00% 1.75% 1.50% 1.25% 1.00% 2013 2014 42015 2016 2017 2018 2019 2020 2021 2022 —MGE_ --- Wisconsin Peer Average Sources: Median household income data sourced from Federal Reserve Economic Data (FRED). 2023 MGE works hard to keep cost at an affordable level for all customers. An MGE residenti
Slide 17: Strong Credit Ratings
Strong Credit Ratings MOODY'S (UTILITY RATINGS) Corporate credit AA- Secured Business risk Excellent Unsecured Al Commercial paper A-1+ Commercial paper P-1 Outlook Stable Outlook Stable + Effective management of regulatory risk + Supportive regulatory environment + Focus on regulated vertically int
Slide 18: ESG Highlights — Sustainability Snapshot
18 ESG Highlights — Sustainability Snapshot half of all customers, , In 2024, MGE expanded MGE expects to deliver cust its use of agrivoltaics by electricity with 80% fewer carbon adding sheep at emissions, compared to 2005, our MGE's Tyto Solar to baseline, as we work toward net-zero by 2050. MGE h
Slide 19: ESG Highlights
19 ESG Highlights MGE seeks to foster a proactive and forward-thinking approach to ESG-related matters, beginning with board oversight of and executive leadership on key topics and emerging issues. Our sustainability strategy is a part of our long-term business strategy to provide for long-term grow
Slide 20: ESG Highlights
20 ESG Highlights Our Board of Directors has a strong commitment to corporate responsibility and accountability. Community-focused and with a breadth and diversity of experience, board members bring strong effective oversight in their service to MGE Energy. 10 Board Members Board independence ma! re
Slide 21: Below are links to ESG information
21 Below are links to ESG information: Corporate Responsibility and Sustainability Report e CDP Climate Change Questionnaire e EEI Qualitative Template e EEI Quantitative Template e EEO-1 Data Report Statement on Human Rights Code of Ethics Occupational Health and Safety Policy Report on Giving Lobb
Slide 22: Appendix
Appendix
Slide 23: Corporate Structure
23 Corporate Structure Over 98% of MGE Energy assets are dedicated to regulated and quasi-regulated utility operations. MadisonGas and [J MGE Transco MGE Transco, Electric Company [J Investment LLC LLC Wiisis|fenicy ihe WESER IE tke MGE Power West MGE Power Elm Campus, LLC Road, LLC Holds a 3.6% int
Slide 24: Service Territory Highlights
24 Service Territory Highlights MGE's service territory is a growing and diverse community of urban, suburban and rural communities. The Madison area and Dane County lead the state of Wisconsin in population growth. + Seat of state government + Home to the flagship University of Wisconsin — Madison
Slide 25: Fourth Quarter EPS by Segment
25 Fourth Quarter EPS by Segment Three Months Ended December 31 2024 2023 $0.05 Ba == a ). “al ($0.03) y w & a $0.10 ao] Ts 3 3 4 fa) $0.27 Electric Utility Gas Utility NonReg Energy Transmission Other MGE Energy Electric Utility Gas Utility NonReg Energy Transmission Other
Slide 26: Full Year EPS by Segment
26 Full Year EPS by Segment Twelve Months Ended December 31 2024 $0.25 $0.66 7 ($0.02 ) $3.33 Diluted EPS Diluted EPS $2.06 Electric Utility Gas Utility NonReg Energy Transmission Other MGE Energy Electric Utility Gas Utility NonReg Energy Transmission Other
Slide 27: Strong Record of Regulated Asset Growth
27 Strong Record of Regulated Asset Growth $2,500 $2,000 $1,500 $1,000 Net PP&E + CWIP ($millions) $500 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 28: Electric Utility Mix
28 Electric Utility Mix Twelve Months Ended December 31, 2024 Electric Retail Revenues Electric Retail Volumes Electric Customers = Residential = Commercial © Industrial = Other
Slide 29: Gas Revenues
29 Gas Revenues Twelve Months Ended December 31, 2024 Gas Volumes 36% Gas Customers = Residential Commercial/Industrial = Other
Slide 30: For more information
For more information, visit mgeenergy.com Ken Frassetto Director Shareholder Services and Treasury Management kfrassetto@mge.com 608-252-4723 P.O. Box 1231 Madison WI 53701-1231