Wisconsin Energy Corp. (WEC, Financial) filed Quarterly Report for the period ended 2012-09-30.
Wisconsin Energy Corporation has a market cap of $8.73 billion; its shares were traded at around $38.36 with a P/E ratio of 16.5 and P/S ratio of 2. The dividend yield of Wisconsin Energy Corporation stocks is 3.2%. Wisconsin Energy Corporation had an annual average earning growth of 2.8% over the past 10 years.
Sales to the Large Commercial/Industrial customer class decreased by 8.3% in 2012 compared to 2011. Large Commercial/Industrial revenues decreased by approximately $8.9 million compared to 2011. We estimate that our revenues were reduced by approximately $15 million because of the planned outage at an iron ore mine of our largest customer, and the conversion to self-generation of two other large customers. If sales to the mines and the two customers that added self-generation are excluded, our MWh sales to Large Commercial/Industrial customers increased by 0.6%.
A comparison follows of gas utility operating revenues, gross margin and gas deliveries during the first nine months of 2012 with the first nine months of 2011. We believe gross margin is a better performance indicator than revenues because changes in the cost of gas sold flow through to revenue under gas cost recovery mechanisms. Between the comparative periods, total gas operating revenues decreased by $206.5 million, or 23.9%, and cost of gas sold decreased by $165.4 million, or 31.0%, due to the significantly warmer weather, which resulted in lower therm deliveries, and a decline in the commodity cost of natural gas.
Our gas margin decreased by $41.1 million, or approximately 12.5%, when compared to the first nine months of 2011. This decrease primarily relates to a decrease in sales volumes as a result of warmer weather during the first nine months of 2012 that decreased heating loads. As measured by heating degree days, the first nine months of 2012 were 24.2% warmer than the same period in 2011 and 19.9% warmer than normal. Transported gas volumes for the first nine months of 2012 increased by 31.4% as compared to the same period in 2011. Virtually all of the volume increase related to gas used in electric generation, which has a small impact on margin. This margin increase was more than offset by a reduction in transportation volumes delivered to higher margin classes that are more weather sensitive than our large transport customers.
Cash used in investing activities declined by $158.9 million during the first nine months of 2012 as compared to the same period in 2011. Our capital expenditures decreased by $134.7 million during the first nine months of 2012 as compared to the same period in 2011, primarily because of decreased spending on the Oak Creek AQCS project. During the first nine months of 2011, we received proceeds from asset sales totaling $38.5 million, which primarily relates to the sale of our interest in Edgewater Generating Unit 5, as compared to proceeds of $3.0 million during the first nine months of 2012. Finally, changes in restricted cash improved our cash from investing activities by $73.2 million. In 2011, we received $45.5 million in proceeds from the settlement with the DOE. The proceeds were treated as restricted cash, which was recorded as cash used in investing activities. In 2012, we released $36.0 million of the proceeds through bill credits and the reimbursement of costs.
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Wisconsin Energy Corporation has a market cap of $8.73 billion; its shares were traded at around $38.36 with a P/E ratio of 16.5 and P/S ratio of 2. The dividend yield of Wisconsin Energy Corporation stocks is 3.2%. Wisconsin Energy Corporation had an annual average earning growth of 2.8% over the past 10 years.
Highlight of Business Operations:
During the nine months ended September 30, 2012 and 2011, our equity in earnings from ATC was $48.9 million and $46.4 million, respectively. During the nine months ended September 30, 2012 and 2011, distributions received from ATC were $39.0 million and $37.0 million, respectively.Sales to the Large Commercial/Industrial customer class decreased by 8.3% in 2012 compared to 2011. Large Commercial/Industrial revenues decreased by approximately $8.9 million compared to 2011. We estimate that our revenues were reduced by approximately $15 million because of the planned outage at an iron ore mine of our largest customer, and the conversion to self-generation of two other large customers. If sales to the mines and the two customers that added self-generation are excluded, our MWh sales to Large Commercial/Industrial customers increased by 0.6%.
A comparison follows of gas utility operating revenues, gross margin and gas deliveries during the first nine months of 2012 with the first nine months of 2011. We believe gross margin is a better performance indicator than revenues because changes in the cost of gas sold flow through to revenue under gas cost recovery mechanisms. Between the comparative periods, total gas operating revenues decreased by $206.5 million, or 23.9%, and cost of gas sold decreased by $165.4 million, or 31.0%, due to the significantly warmer weather, which resulted in lower therm deliveries, and a decline in the commodity cost of natural gas.
Our gas margin decreased by $41.1 million, or approximately 12.5%, when compared to the first nine months of 2011. This decrease primarily relates to a decrease in sales volumes as a result of warmer weather during the first nine months of 2012 that decreased heating loads. As measured by heating degree days, the first nine months of 2012 were 24.2% warmer than the same period in 2011 and 19.9% warmer than normal. Transported gas volumes for the first nine months of 2012 increased by 31.4% as compared to the same period in 2011. Virtually all of the volume increase related to gas used in electric generation, which has a small impact on margin. This margin increase was more than offset by a reduction in transportation volumes delivered to higher margin classes that are more weather sensitive than our large transport customers.
Cash used in investing activities declined by $158.9 million during the first nine months of 2012 as compared to the same period in 2011. Our capital expenditures decreased by $134.7 million during the first nine months of 2012 as compared to the same period in 2011, primarily because of decreased spending on the Oak Creek AQCS project. During the first nine months of 2011, we received proceeds from asset sales totaling $38.5 million, which primarily relates to the sale of our interest in Edgewater Generating Unit 5, as compared to proceeds of $3.0 million during the first nine months of 2012. Finally, changes in restricted cash improved our cash from investing activities by $73.2 million. In 2011, we received $45.5 million in proceeds from the settlement with the DOE. The proceeds were treated as restricted cash, which was recorded as cash used in investing activities. In 2012, we released $36.0 million of the proceeds through bill credits and the reimbursement of costs.
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