MILWAUKEE - WEC Energy Group (NYSE: NYSE:WEC), a prominent energy company, announced the appointment of two new members to its board of directors, effective January 1, 2025. Warner Baxter (NYSE:BAX), the retired executive chairman and CEO of Ameren Corp (NYSE:AEE)., and John Lange, the retired global head of the Energy and Industrials Groups for Barclays PLC, will join the board, bringing with them a wealth of experience in the energy sector.
Baxter's career at Ameren Corp spanned over 28 years, where he held various leadership roles, including president and CEO from 2014 to 2021. His expertise extends to serving on the boards of U.S. Bancorp, Quanta Services (NYSE:PWR), Inc., and various non-profit organizations. Baxter is recognized for his past role as chair of the Edison Electric Institute and his ongoing involvement with the Edison Foundation Board and the Electric Power Research Institute.
Lange brings to the table over 28 years of experience in investment banking, with a focus on the energy and industrial sectors. Before retiring from Barclays PLC, his career also saw him leading the Global Power M&A Group at Lehman Brothers. Lange's academic credentials include an MBA from Duke University's Fuqua School of Business, and he has contributed to the industry through roles on the EPRI Advisory Council and as co-chair of the Wall Street Advisory Group for EEI.
WEC Energy Group, headquartered in Milwaukee, serves 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota through its principal utilities and subsidiaries. The company, a Fortune 500 entity and part of the S&P 500, boasts 7,000 employees, approximately 34,000 stockholders of record, and assets surpassing $45 billion.
The appointments of Baxter and Lange aim to enhance the board's depth and expertise, according to Gale Klappa, chairman of WEC Energy Group. This move is part of the company's strategy to strengthen its governance and leadership as it continues to provide energy services to its extensive customer base. This information is based on a press release statement from WEC Energy Group.
In other recent news, WEC Energy Group has announced a quarterly cash dividend of 83.50 cents per share, marking the company's 329th consecutive quarter of dividends. The company's second-quarter earnings report showed an earnings per share (EPS) of $0.67, surpassing both BMO Capital's and consensus estimates. However, the results showed a decline of $0.25 per share year-over-year, largely due to changes at Peoples Gas Light and variations in taxes, other expenses, and interest.
WEC Energy has also unveiled plans to potentially sell up to $1.5 billion of its common stock through an equity distribution agreement with financial institutions such as Barclays Capital Inc., BofA Securities, Inc., and J.P. Morgan Securities LLC. On the analyst front, BMO Capital Markets increased its price target for WEC Energy to $93.00, while Goldman Sachs maintained its target at $90.00.
In regulatory matters, the Public Service Commission of Wisconsin staff supported a total rate increase of around $596 million, representing roughly 72% of WEC Energy Group's combined rate increase request. On the operations side, WEC Energy is making significant strides in its capital plan, including large-scale renewable energy projects and expansion in natural gas generation. These are the recent developments at WEC Energy Group.
InvestingPro Insights
As WEC Energy Group prepares to welcome Warner Baxter and John Lange to its board of directors, investors might be interested in the company's current financial standing and market performance. According to InvestingPro data, WEC Energy Group boasts a substantial market capitalization of $31.3 billion, reflecting its significant presence in the energy sector.
The company's strong financial position is underscored by an InvestingPro Tip indicating that WEC has maintained dividend payments for an impressive 54 consecutive years. This long-standing commitment to shareholder returns aligns with the company's status as a Fortune 500 entity and S&P 500 component. Moreover, WEC's dividend yield stands at 3.38%, with a dividend growth of 7.05% over the last twelve months as of Q2 2024, demonstrating the company's ability to reward investors consistently.
Another InvestingPro Tip highlights that WEC Energy Group has been trading near its 52-week high, with a strong return of 21.03% over the last three months. This positive market performance suggests investor confidence in the company's strategic direction, which may be further bolstered by the addition of experienced board members like Baxter and Lange.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for WEC Energy Group, providing deeper insights into the company's financial health and market position.
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