FIRST QUARTER 2025 EARNINGS REPORT PRESENTATION April 24, 2025 © 2025 Xcel Energy 1 Safe Harbor Except for the historical statements contained in this presentation, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2025 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated b ...

Xcel Energy, Inc. (NASDAQ:XEL) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Roopesh Aggarwal - VP, IR Bob Frenzel - Chairman, President & CEO Brian Van Abel - EVP & CFO Conference Call Participants Nicholas Campanella - Barclays Julien Dumoulin-Smith - Jefferies Carly Davenport - Goldman Sachs Durgesh Chopra - Evercore ISI Jeremy Tonet - J.P. Morgan David Arcaro - Morgan Stanley Anthony Crowdell - Mizuho Ryan Levine - Citi Travis Miller - Morningstar Operator Hello, and w ...

Financial Performance - Total operating revenues for Q1 2025 were $3,906 million, an increase of 7.0% compared to $3,649 million in Q1 2024[18] - Net income for Q1 2025 was $483 million, a decrease of 1.0% from $488 million in Q1 2024[21] - Earnings per share (EPS) for Q1 2025 were $0.84, down from $0.88 in Q1 2024, reflecting a decrease of 4.5%[18] - Total operating expenses increased to $3,229 million in Q1 2025, up 8.7% from $2,970 million in Q1 2024[18] - The company reported a total comprehensive income of $479 million for Q1 2025, down from $511 million in Q1 2024[21] - The total segment net income for Xcel Energy was $537 million for the three months ended March 31, 2025, compared to $516 million for the same period in 2024[161] - Xcel Energy's total segment revenues for the three months ended March 31, 2025, were $3,895 million, an increase from $3,628 million in the same period of 2024[161] Cash Flow and Liquidity - Cash provided by operating activities was $1,028 million in Q1 2025, slightly down from $1,050 million in Q1 2024[23] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $1,123 million, up from $501 million at the end of Q1 2024[23] - Cash and cash equivalents significantly increased to $1,123 million from $179 million, showing a growth of over 526%[25] - The average amount of short-term borrowings outstanding was $1,238 million for the three months ended March 31, 2025, compared to $508 million for the same period in 2024[36] - The weighted average interest rate on short-term borrowings decreased to 4.61% from 5.47% year-over-year[36] Capital Expenditures and Investments - Capital expenditures for Q1 2025 were $1,988 million, an increase of 29.4% compared to $1,537 million in Q1 2024[23] - The company anticipates long-term EPS growth and plans to continue investing in capital projects to support future growth[15] - The construction work in progress increased to $5,956 million as of March 31, 2025, compared to $4,720 million at December 31, 2024, indicating ongoing investment in infrastructure[35] Assets and Liabilities - Total assets increased to $72,749 million as of March 31, 2025, up from $70,035 million at December 31, 2024, representing a growth of approximately 3.9%[25] - Current assets rose to $5,368 million, compared to $4,325 million at the end of 2024, marking an increase of about 24.1%[25] - Total liabilities increased to $52,945 million as of March 31, 2025, from $50,513 million at December 31, 2024, reflecting a rise of approximately 4.8%[25] - Long-term debt rose to $29,396 million, up from $27,316 million at the end of 2024, indicating an increase of about 7.6%[25] - Total current liabilities increased to $6,741 million from $6,459 million, marking an increase of approximately 4.4%[25] - Total common stockholders' equity increased to $19,804 million as of March 31, 2025, up from $19,522 million at the end of 2024, reflecting a growth of approximately 1.4%[25] Dividends and Share Issuance - The company declared dividends of $0.57 per share, totaling $328 million for the period[28] - Xcel Energy Inc. issued $1.1 billion in net proceeds from the issuance of 18.3 million shares of common stock in 2024 under its ATM program[42][50] - As of March 31, 2025, Xcel Energy had approximately $1.08 billion remaining available for sale under the ATM program[50] Regulatory and Environmental Costs - The company incurred an estimated cost of at least $45 million for groundwater investigations related to coal ash impacts, with an additional $15 million expected through 2028 for required reporting[143] - Xcel Energy anticipates approximately $100 million in costs for the removal of coal ash from closed coal-generating facilities, with costs expected to be recoverable through regulatory mechanisms[144] - Estimated capital expenditures of approximately $50 million may be required to comply with the CCR Rule, which are also expected to be recoverable[145] Legal and Insurance Matters - The Marshall Fire in December 2021 caused over $2 billion in property losses, with PSCo facing 307 complaints from at least 4,087 plaintiffs alleging negligence and other claims[106][110] - The Boulder County District Court has consolidated lawsuits related to the Marshall Fire, with a trial date set for September 2025[111] - Xcel Energy's insurance coverage for potential damages related to the Marshall Fire is approximately $500 million, which may be exceeded if found liable[116] - Xcel Energy has recorded total estimated losses of $290 million related to the Smokehouse Creek Fire Complex, an increase from a previous estimate of $215 million[123] - Settlements related to the Smokehouse Creek Fire Complex have reached $113 million, with remaining estimated liabilities of $211 million as of March 31, 2025[124]

Xcel Energy Inc. (XEL) reported first-quarter 2025 operating earnings of 84 cents per share, which lagged the Zacks Consensus Estimate of 93 cents by 9.7%. The bottom line also decreased 4.5% from the year-ago quarter’s figure of 88 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news)The year-over-year decline in earnings per share was due to higher operations and maintenance expenses, along with increased depreciation and interest charges, which were partially offset by improved rec ...

Xcel Energy (XEL) reported $3.91 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 7%. EPS of $0.84 for the same period compares to $0.88 a year ago.The reported revenue represents a surprise of -0.43% over the Zacks Consensus Estimate of $3.92 billion. With the consensus EPS estimate being $0.93, the EPS surprise was -9.68%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Company Performance - Xcel Energy reported quarterly earnings of $0.84 per share, missing the Zacks Consensus Estimate of $0.93 per share, and down from $0.88 per share a year ago, representing an earnings surprise of -9.68% [1] - The company posted revenues of $3.91 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.43%, compared to year-ago revenues of $3.65 billion [2] - Over the last four quarters, Xcel has not surpassed consensus EPS or revenue estimates [2] Stock Outlook - Xcel shares have increased about 6% since the beginning of the year, while the S&P 500 has declined by -8.6% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.61 on $3.3 billion in revenues for the coming quarter and $3.81 on $15.06 billion in revenues for the current fiscal year [7] Industry Context - The Utility - Electric Power industry, to which Xcel belongs, is currently in the top 14% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Xcel's stock performance [5]

Financial Performance - Xcel Energy reported Q1 2025 GAAP earnings of $483 million, or $0.84 per share, compared to $488 million, or $0.88 per share in Q1 2024[2]. - The company reaffirmed its 2025 ongoing EPS guidance of $3.75 to $3.85[5]. - Total operating revenues for Q1 2025 were $3.906 billion, up from $3.649 billion in Q1 2024, driven by higher electric and natural gas revenues[10]. - Operating expenses increased to $3.229 billion in Q1 2025 from $2.970 billion in Q1 2024, primarily due to higher O&M expenses, depreciation, and interest charges[10]. - The increase in ongoing earnings per share was partially offset by higher O&M expenses and depreciation, which impacted earnings negatively by $0.11 and $0.09 respectively[21]. - Net income for the three months ended March 31, 2025, was $483 million, slightly down from $488 million in the same period of 2024[95]. - Weather-normalized retail electric sales are projected to increase by approximately 3% in 2025, while natural gas sales are expected to rise by about 1%[92]. - Book value per share increased to $34.34 as of March 31, 2025, compared to $32.09 in the same period of 2024[95]. - Cash dividends declared per common share increased to $0.57 for the three months ended March 31, 2025, compared to $0.5475 in the same period of 2024[95]. Revenue and Sales - For the three months ended March 31, 2025, total electric revenues increased by $150 million compared to 2024, driven by higher costs of electric fuel and purchased power recovery, non-fuel riders, and regulatory rate outcomes[27]. - Natural gas revenues increased by $114 million for the same period, primarily due to regulatory rate outcomes and recovery of higher natural gas costs[30]. - Electric residential sales growth varied across regions, with NSP-Minnesota showing a 1.2% increase in customer growth and a 0.1% increase in use per customer[28]. - Capital rider revenue is anticipated to increase by $200 million to $210 million, driven by earnings neutral changes including PTC updates[92]. Expenses and Costs - O&M expenses rose by $81 million in Q1 2025, attributed to higher nuclear generation costs and distribution system maintenance[34]. - Depreciation and amortization expenses increased by $70 million in Q1 2025, largely due to system investments and regulatory updates[35]. Regulatory and Rate Cases - NSP-Minnesota filed for a $491 million (13.2%) revenue increase over two years in its 2024 electric rate case, with interim rates approved at $192 million effective January 1, 2025[41]. - NSP-Minnesota updated its total revenue request to $473 million for the 2024 North Dakota Electric Rate Case, seeking a 19.3% increase over current rates[42]. - NSP-Minnesota filed for a natural gas rate increase of approximately $59 million, or 9.6%, based on a rate base of approximately $1.27 billion[43]. - NSP-Wisconsin is seeking a total electric revenue increase of $94 million (11.8%) in 2026 and an incremental $57 million (7.1%) in 2027, totaling $151 million over two years[52]. - The natural gas revenue increase request from NSP-Wisconsin is $20 million (12.7%) in 2026 and an incremental $4 million (1.5%) in 2027, totaling $24 million (14.2%) over the same period[52]. - The MPUC approved interim rates of approximately $27 million for NSP-Minnesota, subject to refund, effective February 1, 2025[42]. Investments and Future Plans - Xcel Energy achieved a milestone with Minnesota regulators approving a resource plan for nearly 5,000 megawatts of new wind, solar, battery storage, and gas by 2030[3]. - The company is actively investing in system resilience and wildfire mitigation plans in Texas and Colorado[3]. - NSP-Minnesota's 2024 Minnesota Resource Plan includes a proposed 800 MW firm dispatchable resource acquisition[49]. - The estimated total cost for PSCo's Updated Wildfire Mitigation Plan is approximately $1.9 billion, covering the years 2025 to 2027[59]. - SPS expects a projected resource need ranging from approximately 5,300 MW to 10,200 MW by 2030, as outlined in its New Mexico Resource Plan[61]. Debt and Liquidity - Xcel Energy's total debt as of March 31, 2025, was $31.2 billion, representing 61% of total capitalization[37]. - The company plans to issue $1.1 billion in senior unsecured notes and $1 billion in first mortgage bonds in 2025 to support financing activities[39]. - As of April 21, 2025, Xcel Energy had $2.993 billion in available liquidity from committed credit facilities[37]. Insurance and Losses - Xcel Energy recorded total estimated losses of $290 million related to the Smokehouse Creek Fire Complex, with settlements totaling $113 million as of the filing date[75]. - The cumulative estimated probable losses related to the Smokehouse Creek Fire Complex are estimated at $290 million, which is at the lower end of the range of reasonably estimable losses[77]. - Xcel Energy's insurance coverage for potential liabilities related to the Smokehouse Creek Fire is approximately $500 million, which may be exceeded if found liable[78]. - Insurance receivables as of March 31, 2025, were recorded at $285 million, net of recoveries received, compared to $210 million as of December 31, 2024[80].

Core Viewpoint - Xcel Energy (XEL) is expected to report its first-quarter 2025 results on April 24, with a prior negative earnings surprise of 6.9% in the last quarter [1] Factors Impacting Q1 Earnings - The company is adding new electric and natural gas customers, which is likely to positively impact performance in the upcoming quarter [2] - Demand from data centers, electric vehicle adoption, and economic growth in the service region are expected to benefit quarterly earnings [3] - Increased operation and maintenance expenses may offset some positive factors, with severe windstorms in Texas and New Mexico potentially negatively impacting earnings [3] Earnings Estimates - The Zacks Consensus Estimate for earnings is 96 cents per share, reflecting a year-over-year increase of 9.09% [4] - The consensus revenue estimate is $3.93 billion, indicating a year-over-year improvement of 7.82% [4] Earnings Prediction Model - The current model does not predict an earnings beat for Xcel Energy, with an Earnings ESP of -2.08% and a Zacks Rank of 4 (Sell) [5][6]

Core Insights - Xcel Energy (XEL) is expected to report quarterly earnings of $0.96 per share, a 9.1% increase year-over-year, with revenues projected at $3.93 billion, reflecting a 7.8% increase compared to the same period last year [1] Earnings Estimates - There has been a downward revision of 5.6% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - The consensus estimate for 'Operating revenues- Electric and natural gas' is $3.91 billion, representing a 7.9% increase from the previous year [5] - 'Operating revenues- Other' is expected to be -$60.80 million, indicating a significant decline of 364.3% year-over-year [5] - 'Operating revenues- Natural Gas' is forecasted to reach $921.31 million, suggesting a slight decrease of 2.1% year-over-year [5] - Analysts predict 'Operating revenues- Electric' will likely be $2.99 billion, reflecting an 11.4% increase year-over-year [6] Market Performance - Xcel shares have returned +1.5% over the past month, contrasting with the Zacks S&P 500 composite's -5.6% change [6] - Xcel holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [6]

Core Viewpoint - Xcel Energy is expected to report a year-over-year increase in earnings and revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Xcel is $0.96 per share, reflecting a +9.1% change year-over-year [3]. - Revenues are anticipated to be $3.93 billion, which is a 7.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.03% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.70% suggests analysts have recently become more optimistic about Xcel's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Xcel currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Xcel was expected to post earnings of $0.87 per share but delivered only $0.81, resulting in a -6.90% surprise [12]. - Over the past four quarters, Xcel has only beaten consensus EPS estimates once [13]. Conclusion - Xcel is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance [16].