WEC Energy : First Quarter 2024 MGU

MICHIGAN GAS UTILITIES CORPORATION

(An Indirect Wholly Owned Subsidiary of WEC Energy Group, Inc.)

FINANCIAL STATEMENTS

For the Quarter Ended March 31, 2024

MICHIGAN GAS UTILITIES CORPORATION

CONDENSED INCOME STATEMENTS (Unaudited)		Three Months Ended
			March 31
(in millions)		2024			2023
Operating revenues		$	66.0		$	79.2
Operating expenses
Cost of natural gas sold		30.3			46.1
Other operation and maintenance		6.5			8.9
Depreciation and amortization		5.1			4.5
Property and revenue taxes		2.0			2.1
Total operating expenses			43.9			61.6
Operating income		22.1			17.6
Other income, net		0.1			0.2
Interest expense		2.1			1.9
Other expense			(2.0)			(1.7)
Income before income taxes		20.1			15.9
Income tax expense		4.4			3.5
Net income		$	15.7		$	12.4

MICHIGAN GAS UTILITIES CORPORATION

CONDENSED BALANCE SHEETS (Unaudited)			March 31			December 31
(in millions, except share amounts)			2024			2023
Assets
Current assets
Cash and cash equivalents	$	0.8	$	-
Accounts receivable and unbilled revenues, net of reserves of $1.1 and $2.8, respectively			33.2			31.7
Accounts receivable from related parties			0.8			2.2
Materials, supplies, and inventories:
Natural gas in storage			17.6			24.2
Materials and supplies			1.9			1.8
Deferred property taxes			6.6			8.9
Prepayments			0.5			1.8
Amounts recoverable from customers			5.8			3.2
Other			1.5			2.0
Current assets			68.7			75.8
Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $212.4 and
$210.4, respectively			457.3			447.2
Regulatory assets			37.4			39.3
Goodwill			34.5			34.5
Pension and OPEB assets			21.1			20.7
Other			6.7			6.5
Long-term assets			557.0			548.2
Total assets		$	625.7		$	624.0
Liabilities and Equity
Current liabilities
Short-term debt to parent	$	47.9	$	33.3
Accounts payable			13.9			22.6
Accounts payable to related parties			3.4			4.5
Accrued taxes			9.3			9.2
Customer credit balances			10.9			13.1
Other			4.4			5.8
Current liabilities			89.8			88.5
Long-term liabilities
Long-term debt			149.5			149.5
Deferred income taxes			73.9			69.9
Regulatory liabilities			76.5			79.8
Environmental remediation liabilities			14.2			14.2
Other			2.9			2.9
Long-term liabilities			317.0			316.3
Commitments and contingencies
Common shareholder's equity
Common stock - without par value, 100 shares authorized; 100 shares issued and outstanding			181.7			181.7
Retained earnings			37.2			37.5
Common shareholder's equity			218.9			219.2
Total liabilities and equity		$	625.7		$	624.0

MICHIGAN GAS UTILITIES CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)		Three Months Ended
			March 31
(in millions)		2024			2023
Operating activities
Net income	$	15.7	$	12.4
Reconciliation to cash provided by operating activities
Depreciation and amortization		5.1			4.5
Deferred income taxes and ITC's, net		3.0			(2.5)
Change in -
Accounts receivable and unbilled revenues, net		(0.1)			4.3
Materials, supplies, and inventories		6.5			10.1
Amounts recoverable from customers		(2.6)			9.5
Other current assets		3.7			1.4
Accounts payable		(9.9)			(21.5)
Accrued taxes		0.1			6.0
Customer credit balances		(2.2)			(1.0)
Other current liabilities		(1.0)			(0.8)
Other, net		(2.4)			0.1
Net cash provided by operating activities			15.9			22.5
Investing activities
Capital expenditures		(13.7)			(9.6)
Other, net		-			(0.1)
Net cash used in investing activities			(13.7)			(9.7)
Financing activities
Short-term debt to parent, net		14.6			(13.0)
Payment of dividends to parent		(16.0)			(14.0)
Equity contribution from parent		-			15.0
Net cash used in financing activities			(1.4)			(12.0)
Net change in cash and cash equivalents		0.8			0.8
Cash and cash equivalents at beginning of period		-			-
Cash and cash equivalents at end of period		$	0.8		$	0.8
Supplemental cash flow information
Cash paid for interest, net of amount capitalized		$	2.1		$	2.0