ALLETE, Inc. (ALE) Guides FY24 EPS of $3.60-$3.90

ALLETE, Inc. (NYSE: ALE) today initiated its 2024 earnings guidance range of $3.60 to $3.90 per share on net income of $210 million to $225 million. This guidance range is comprised of our Regulated Operations segment earnings within a range of $2.65 to $2.85 per share, and ALLETE Clean Energy and Corporate and Other operations earnings within a range of $0.95 to $1.05 per share.

The Company also updated its five-year capital expenditure plan to $4.3 billion, which is a $1 billion increase from its previous five-year plan. The plan includes increased capital investments in renewable and transmission projects, and the Company expects this capital expenditure plan to drive multi-year earnings growth beginning in 2025, in line with its stated financial objectives.
Key factors, expectations, considerations and assumptions impacting 2024 guidance are summarized below.

Regulated Operations

•Reflects interim rates for the Minnesota Power 2023 rate case of approximately $64 million; interim rates are subject to refund.
•Industrial sales of approximately 6.2 million megawatt-hours (MWh) in 2024 reflect anticipated production from our taconite customers of approximately 35 million tons in 2024.
•Higher operating and maintenance expense due to higher employee staffing and inflationary cost increases.
•Higher depreciation and property tax expenses due to additional plant in service.
•Additional investments in the American Transmission Company LLC of approximately $6 million.
•Guidance for 2024 assumes that we will achieve constructive outcomes in regulatory proceedings.
ALLETE Clean Energy
•Total wind generation of approximately 3.7 million MWh in 2024 with the expectation of normal wind resources (3.2 million MWh in 2023).
•Reflects continued substation network outage located near the Caddo wind energy facility in the first quarter of 2024.
•Reflects Production Tax Credits estimated to be approximately $18 million in 2024.
•Reflects the sale of Project Whitetail in 2024.
•Reflects higher operating and maintenance expense in 2024.
Corporate and Other
◦Reflects New Energy net income of approximately $19 million to $21 million.
◦Reflects similar results at BNI Energy Inc. and Nobles 2 Power Partners, LLC.
◦Reflects slightly lower earnings at ALLETE Properties, LLC.
◦Reflects decreased earnings from ALLETE’s investments in Minnesota solar projects, due to Investment Tax Credits recognized in 2023.
Guidance reflects earnings per share dilution of approximately $0.03 from higher average shares outstanding.
We expect a consolidated effective income tax expense of approximately 5 percent in 2024.

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