Alliant Energy Corporation (LNT) 2024 Q2 Earnings Call Summary
August 2, 2024 
Alliant Energy Corporation (LNT)
| Market Cap | 0.21T |
|---|---|
| Beta | |
| P/E | 39.75452774136047 |
| EPS | 12.247158441111395 |
| Dividend | 0 |
| Dividend Yield | 0.00% |
Optimistic Highlights
- Reaffirming 2024 Guidance: Alliant Energy is confident in reaffirming its 2024 ongoing EPS guidance range of $2.99 to $3.13, indicating strong financial discipline and operational execution.
- Strategic Objectives on Track: The company is on track to achieve its strategic objectives, maintaining a solid operational and financial execution record.
- Iowa Rate Review Settlement: The partial settlement in Iowa rate review is seen as a positive development, providing base rate stability through the end of the decade and positioning the company to attract new commercial and industrial customers.
- Economic Development and Load Growth: Alliant Energy has executed multiple agreements with data centers in Iowa and Wisconsin, expected to drive significant load growth and support the company's earnings growth and affordability.
- Clean Energy Blueprint: The company's resource planning process is well-positioned to respond to load growth and changes in MISO’s capacity accreditation, with updates on load forecast, resource needs, and CapEx requirements to be provided in the third quarter.
Pessimistic Highlights
- Weather Headwinds: The company faced a $0.10 reduction in earnings through the first half of the year due to temperature impacts, although it is working on offsetting these costs.
- Non-Recurring Charges: Second quarter 2024 GAAP earnings were impacted by non-recurring charges from legacy assets, including a write-down of the Lansing Generating Station and charges related to the revised coal combustion residual rule.
Company Outlook
- Long-Term Growth: Alliant Energy is positioned for long-term growth with progress in regulatory and economic development, and updates on the Clean Energy Blueprint and economic development efforts are anticipated.
- Capital Expenditure Plans: The company plans to refresh its capital expenditure plans in November, with potential adjustments based on future capital needs and load growth projections.
Q & A Highlights
Q: Can you quantify the modest equity needs mentioned and provide more color on weather headwinds year-to-date? (Nathan Richardson, Barclays)
A: Equity needs are currently around $25 million a year through a shareowner direct plan, with no significant changes planned. The company faced a $0.10 reduction in earnings due to weather headwinds in the first half of the year but is working on offsetting these costs. (Robert Durian)
Q: Could you clarify the announcement regarding data center customers or contracts by the third quarter call? (Andrew Weisel, Scotiabank)
A: The company has executed multiple agreements with data centers and will provide details on load commitments, timing of energy demands, and associated CapEx in the third quarter call. (Lisa Barton)
Q: What are the upside and downside risks to the earned ROE relative to the allowed in the Iowa settlement? (Andrew Weisel, Scotiabank)
A: The Iowa rate review settlement includes provisions for Alliant Energy to return for a rate case if ROEs fall below a certain level, protecting against significant decreases. The company is optimistic about capturing new data center load growth and benefiting from innovative models. (Lisa Barton and Robert Durian)
Q: How should we think about the update to your load growth forecast, especially with the bullish updates in Iowa? (Alex Mortimer, Mizuho Securities)
A: The update to the load growth forecast will depend on the timing of securing new loads and will be provided as soon as the information is available. (Lisa Barton)