MGE ENERGY INC
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
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FY2023 · Filed Feb 21, 2024
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Liquidity and Capital Resources
MGE Energy and MGE expect to have adequate liquidity to support future operations and capital expenditures over the next twelve months. Available resources include cash and cash equivalents, operating cash flows, liquid assets, borrowing working capacity under revolving credit facilities, and access to equity and debt capital markets. MGE Energy expects to generate funds from operations and both long-term and short-term debt financing. See "Credit Facilities" below for information regarding MGE Energy's and MGE's credit facilities.
Cash Flows
The following summarizes cash flows for MGE Energy and MGE during 2023 and 2022:
| MGE Energy | MGE | |||
|---|---|---|---|---|
| (In thousands) | 2023 | 2022 | 2023 | 2022 |
| Cash provided by (used for): | ||||
| Operating activities | $237,561 | $153,735 | $231,822 | $151,067 |
| Investing activities | (230,020) | (180,145) | (224,027) | (176,095) |
| Financing activities | (10,483) | 25,543 | (11,590) | 27,730 |
Cash Provided by Operating Activities
Cash flows from operating activities for MGE Energy and MGE principally reflect the receipt of customer payments for electric and gas service and outflows related to fuel for electric generation, purchased power, gas, and operation and maintenance expenditures.
MGE Energy's consolidated net cash provided by operating activities is derived mainly from the electric and gas operations of its principal subsidiary, MGE.
Cash provided by operating activities during 2023 was $237.6 million, an increase of $83.8 million when compared to 2022, driven by:
A $71.7 million increase in cash from lower payments for fuel and purchased power at our generation plants, as well as lower natural gas costs to our customers during 2023, when compared to 2022, primarily driven by a decrease in the price of natural gas.
A $9.5 million increase in cash as a result of higher overall collections from customers during 2023, when compared to 2022. This increase was driven by the 2023 rates approved by the PSCW, effective January 1, 2023.
An increase of $11.5 million in cash from lower payments for other operation and maintenance expenses.
An increase of $1.4 million in cash from higher dividends received from ATC investment.
These increases in net cash provided by operating activities were partially offset by:
A decrease of $6.6 million in cash from higher payments for MGE Energy's federal and state taxes during 2023, when compared to 2022.
A decrease of $3.6 million in cash from higher payments for interest, driven by MGE's issuance of long-term debt during the fourth quarter of 2022 and during 2023.
MGE
Cash provided by operating activities for 2023 was $231.8 million, an increase of $80.8 million when compared to 2022, driven by:
A $71.7 million increase in cash from lower payments for fuel and purchased power at our generation plants, as well as lower natural gas costs to our customers during 2023, when compared to 2022, primarily driven by a decrease in the price of natural gas.
A $9.5 million increase in cash as a result of higher overall collections from customers during 2023, when compared to 2022. This increase was driven by the 2023 rates approved by the PSCW, effective January 1, 2023.
An increase of $11.4 million in cash from lower payments for other operation and maintenance expenses.
These increases in net cash provided by operating activities were partially offset by:
A decrease of $8.0 million in cash from higher payments for MGE's federal and state taxes during 2023, when compared to 2022.
A decrease of $3.6 million in cash from higher payments for interest, driven by MGE's issuance of long-term debt during the fourth quarter of 2022 and during 2023.
Capital Requirements and Investing Activities
Cash outflows for MGE Energy and MGE principally reflect capital expenditures. See "Capital Expenditures" below for more information.
MGE Energy's cash used for investing activities increased $49.9 million for 2023 when compared to 2022.
Capital expenditures for 2023 were $222.1 million. This amount represents an increase of $47.0 million from the expenditures made in 2022. This increase primarily reflects the purchase of 25 MW of West Riverside and purchase of Red Barn wind farm.
Capital contributions in ATC and other investments increased $1.8 million for 2023 when compared to 2022.
MGE
MGE's cash used for investing activities increased $47.9 million for 2023 when compared to 2022.
Capital expenditures for 2023 were $222.1 million. This amount represents an increase of $47.0 million from the expenditures made in 2022. This increase primarily reflects the purchase of 25 MW of West Riverside and purchase of Red Barn wind farm.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.