EX-99 2 exhibit99wec03312017earnin.htm WEC ENERGY Q12017 EXHIBIT 99
Exhibit 99
From: Brian Manthey (news media)
414-221-4444
brian.manthey@we-energies.com
Beth Straka (investment community)
414-221-4639
beth.straka@wecenergygroup.com
May 2, 2017
WEC Energy Group posts first-quarter results
MILWAUKEE - WEC Energy Group Inc. (NYSE: WEC) recorded net income of $356.6 million, or $1.12 per share, for the first quarter of 2017 - up from $346.2 million, or $1.09 per share, for the first quarter of 2016.
Consolidated revenue for the first quarter of 2017 totaled $2.3 billion, compared to $2.2 billion for the first quarter of 2016.
“Our continued focus on financial discipline and operating efficiencies contributed to a solid first quarter," said Allen Leverett, chief executive officer.
At the end of March, WEC Energy Group's utilities were serving approximately 8,000 more electric and 23,000 more natural gas customers than they did the same time a year ago.
Retail deliveries of electricity for the Wisconsin and Michigan utilities - excluding the iron ore mines in Michigan’s Upper Peninsula - decreased 1.1 percent from last year's first quarter. Residential use of electricity was down 2.1 percent. Consumption of electricity by small commercial and industrial customers was flat quarter over quarter.
Electricity use by large commercial and industrial customers - excluding the iron ore mines - decreased 1.2 percent.
On a weather-normal basis, retail deliveries of electricity - excluding the iron ore mines - increased 0.6 percent, quarter over quarter.
Earnings per share listed in this news release are on a fully diluted basis.
1

Exhibit 99
Conference call
A conference call is scheduled for 1 p.m. Central time on Tuesday, May 2. The call will review 2017 first-quarter earnings and will discuss the company's outlook for the future.
All interested parties, including stockholders, news media and general public, are invited to listen. Access the call at 844-840-1623 up to 15 minutes before it begins. The number for international callers is 631-625-3204. The conference ID is 99414469.
Conference call access also is available at wecenergygroup.com. Select ‘First Quarter Earnings Release and Conference Call’ and then select ‘Webcast.’ In conjunction with this earnings announcement, WEC Energy Group will post on its website a package of detailed financial information on its first-quarter performance. The materials will be available at 6:30 a.m. Central time on Tuesday, May 2.
Replay
A replay will be available on the website and by phone after the call. Access to the webcast replay will be available on the website about two hours after the call. Access to a phone replay also will be available approximately two hours after the call and remain accessible through May 15, 2017. Domestic callers should dial 855-859-2056. International callers should dial 404-537-3406. The replay conference ID is 99414469.
WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation’s premier energy companies, serving 4.4 million customers in Wisconsin, Illinois, Michigan and Minnesota.
The company’s principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. The company's other major subsidiary, We Power, designs, builds and owns electric generating plants.
WEC Energy Group (wecenergygroup.com), a component of the S&P 500, has approximately $30 billion of assets, 8,000 employees and 55,000 stockholders of record.
Tables follow
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Exhibit 99
WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) |  | Three Months Ended
|  | March 31
(in millions, except per share amounts) |  | 2017 |  | 2016
Operating revenues |  | $ | 2,304.5 |  |  | $ | 2,194.8 |
Operating expenses |  |  |  |
Cost of sales |  | 941.1 |  |  | 838.9 |
Other operation and maintenance |  | 501.9 |  |  | 531.5 |
Depreciation and amortization |  | 194.6 |  |  | 187.9 |
Property and revenue taxes |  | 49.6 |  |  | 47.2 |
Total operating expenses |  | 1,687.2 |  |  | 1,605.5 |
Operating income |  | 617.3 |  |  | 589.3 |
Equity in earnings of transmission affiliate |  | 41.9 |  |  | 38.5 |
Other income, net |  | 15.7 |  |  | 32.7 |
Interest expense |  | 104.7 |  |  | 100.9 |
Other expense |  | (47.1 | ) |  | (29.7 | )
Income before income taxes |  | 570.2 |  |  | 559.6 |
Income tax expense |  | 213.3 |  |  | 213.1 |
Net income |  | 356.9 |  |  | 346.5 |
Preferred stock dividends of subsidiary |  | 0.3 |  |  | 0.3 |
Net income attributed to common shareholders |  | $ | 356.6 |  |  | $ | 346.2 |
Earnings per share |  |  |  |
Basic |  | $ | 1.13 |  |  | $ | 1.10 |
Diluted |  | $ | 1.12 |  |  | $ | 1.09 |
Weighted average common shares outstanding |  |  |  |
Basic |  | 315.6 |  |  | 315.7 |
Diluted |  | 317.2 |  |  | 317.1 |
Dividends per share of common stock |  | $ | 0.5200 |  |  | $ | 0.4950 |

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Exhibit 99
WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share and per share amounts) |  | March 31, 2017 |  | December 31, 2016
Assets |  |  |  |
Current assets |  |  |  |
Cash and cash equivalents |  | $ | 45.7 |  |  | $ | 37.5 |
Accounts receivable and unbilled revenues, net of reserves of $123.1 and $108.0, respectively |  | 1,191.4 |  |  | 1,241.7 |
Materials, supplies, and inventories |  | 417.1 |  |  | 587.6 |
Prepayments |  | 161.8 |  |  | 204.4 |
Other |  | 39.3 |  |  | 97.5 |
Current assets |  | 1,855.3 |  |  | 2,168.7 |
Long-term assets |  |  |  |
Property, plant, and equipment, net of accumulated depreciation of $8,312.8 and $8,214.6, respectively |  | 19,990.2 |  |  | 19,915.5 |
Regulatory assets |  | 3,084.1 |  |  | 3,087.9 |
Equity investment in transmission affiliate |  | 1,513.3 |  |  | 1,443.9 |
Goodwill |  | 3,046.2 |  |  | 3,046.2 |
Other |  | 527.5 |  |  | 461.0 |
Long-term assets |  | 28,161.3 |  |  | 27,954.5 |
Total assets |  | $ | 30,016.6 |  |  | $ | 30,123.2 |
Liabilities and Equity |  |  |  |
Current liabilities |  |  |  |
Short-term debt |  | $ | 670.4 |  |  | $ | 860.2 |
Current portion of long-term debt |  | 158.0 |  |  | 157.2 |
Accounts payable |  | 582.3 |  |  | 861.5 |
Accrued payroll and benefits |  | 107.5 |  |  | 163.8 |
Accrued interest |  | 115.1 |  |  | 67.0 |
Other |  | 421.3 |  |  | 321.9 |
Current liabilities |  | 2,054.6 |  |  | 2,431.6 |
Long-term liabilities |  |  |  |
Long-term debt |  | 9,143.6 |  |  | 9,158.2 |
Deferred income taxes |  | 5,287.4 |  |  | 5,146.6 |
Deferred revenue, net |  | 561.0 |  |  | 566.2 |
Regulatory liabilities |  | 1,563.4 |  |  | 1,563.8 |
Environmental remediation liabilities |  | 630.7 |  |  | 633.6 |
Pension and OPEB obligations |  | 458.9 |  |  | 498.6 |
Other |  | 1,161.0 |  |  | 1,164.4 |
Long-term liabilities |  | 18,806.0 |  |  | 18,731.4 |
Commitments and contingencies |  |  |  |
Common shareholders' equity |  |  |  |
Common stock – $.01 par value; 325,000,000 shares authorized; 315,579,222 and 315,614,941 shares outstanding, respectively |  | 3.2 |  |  | 3.2 |
Additional paid in capital |  | 4,297.7 |  |  | 4,309.8 |
Retained earnings |  | 4,822.0 |  |  | 4,613.9 |
Accumulated other comprehensive income |  | 2.7 |  |  | 2.9 |
Common shareholders' equity |  | 9,125.6 |  |  | 8,929.8 |
Preferred stock of subsidiary |  | 30.4 |  |  | 30.4 |
Total liabilities and equity |  | $ | 30,016.6 |  |  | $ | 30,123.2 |

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Exhibit 99
WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |  | Three Months Ended
|  | March 31
(in millions) |  | 2017 |  | 2016
Operating Activities |  |  |  |
Net income |  | $ | 356.9 |  |  | $ | 346.5 |
Reconciliation to cash provided by operating activities |  |  |  |
Depreciation and amortization |  | 194.6 |  |  | 191.9 |
Deferred income taxes and investment tax credits, net |  | 150.2 |  |  | 214.6 |
Contributions and payments related to pension and OPEB plans |  | (106.0 | ) |  | (15.1 | )
Equity income in transmission affiliate, net of distributions |  | (6.7 | ) |  | (23.4 | )
Change in – |  |  |  |
Accounts receivable and unbilled revenues |  | 55.0 |  |  | (48.6 | )
Materials, supplies, and inventories |  | 170.5 |  |  | 217.2 |
Other current assets |  | 41.2 |  |  | (63.7 | )
Accounts payable |  | (212.7 | ) |  | (123.7 | )
Other current liabilities |  | 90.8 |  |  | 56.7 |
Other, net |  | (19.2 | ) |  | (56.5 | )
Net cash provided by operating activities |  | 714.6 |  |  | 695.9 |
Investing Activities |  |  |  |
Capital expenditures |  | (329.7 | ) |  | (312.0 | )
Capital contributions to transmission affiliate |  | (27.6 | ) |  | (9.0 | )
Proceeds from the sale of assets and businesses |  | 13.1 |  |  | 106.5 |
Withdrawal of restricted cash from Rabbi trust for qualifying payments |  | 16.1 |  |  | 21.0 |
Other, net |  | 2.5 |  |  | 5.1 |
Net cash used in investing activities |  | (325.6 | ) |  | (188.4 | )
Financing Activities |  |  |  |
Exercise of stock options |  | 5.9 |  |  | 21.4 |
Purchase of common stock |  | (20.2 | ) |  | (59.6 | )
Dividends paid on common stock |  | (164.1 | ) |  | (156.2 | )
Retirement of long-term debt |  | (12.0 | ) |  | (139.4 | )
Change in short-term debt |  | (189.8 | ) |  | (198.6 | )
Other, net |  | (0.6 | ) |  | 9.8 |
Net cash used in financing activities |  | (380.8 | ) |  | (522.6 | )
Net change in cash and cash equivalents |  | 8.2 |  |  | (15.1 | )
Cash and cash equivalents at beginning of period |  | 37.5 |  |  | 49.8 |
Cash and cash equivalents at end of period |  | $ | 45.7 |  |  | $ | 34.7 |

5