MGE Energy Reports First-Quarter Earnings

Madison, Wis., May 5, 2016—MGE Energy, Inc. (Nasdaq: MGEE) today reported earnings for the three months ended March 31, 2016, of $17.0 million, or 49 cents per share, compared to $18.3 million, or 53 cents per share, for the same period in the prior year.

During the first quarter of 2016, gas net income decreased due to a 14.5% decrease in gas retail sales related to lower customer demand compared to the demand resulting from the colder weather experienced in 2015. The average temperature in February 2015 was 11.2 degrees compared to 27.1 degrees in the current year. Normal average temperature in February is 22.9 degrees.

MGE Energy, Inc. (In thousands, except per-share amounts) (Unaudited)
Three Months Ended March 31, 2016 2015
Operating revenue $147,527 $170,134
Operating income 29,531 31,851
Net income 17,028 18,278
Earnings per share (basic and diluted) $0.49 $0.53
Weighted average shares outstanding (basic and diluted) 34,668 34,668

Steven Schultz
Corporate Communications Manager