Customer Service and Affordability - Xcel Energy serves approximately 3.9 million electric customers and 2.2 million natural gas customers across eight states[11] - The company has invested over $2 billion in renewable and conservation programs over the past decade, contributing to customer affordability[18] - Since 2020, Xcel Energy's lean operating program has generated nearly $500 million in sustainable savings for customers[20] - The average residential electric bill growth has been 1.7% per year since 2014, while natural gas bills have declined by 0.6% per year on a nominal basis[21] - Xcel Energy's electric and natural gas products were delivered at a price lower than ten years ago on an inflation-adjusted basis[21] - The company aims to keep long-term customer bill growth below the rate of inflation through various initiatives, including conservation programs and cost control[22] - Xcel Energy's Steel for Fuel strategy has saved customers nearly $5 billion since 2017 in avoided fuel costs and production tax credits[20] Infrastructure and Investments - Xcel Energy's total assets amount to $70 billion, with an electric generating capacity of 20,426 MW[13] - The company operates 111,000 miles of electric transmission lines and 221,000 miles of electric distribution lines[13] - In 2024, Xcel Energy initiated 24 economic development projects projected to create over $5.1 billion in capital investments and nearly 3,200 jobs[23] - The company plans to invest $45 billion over the next five years to improve reliability, resiliency, and sustainability, with approximately $28 billion allocated specifically for transmission and distribution systems[36] Renewable Energy and Emissions - Xcel Energy's wind capacity exceeded 11,000 MW, and the Sherco Solar project is expected to provide enough clean energy to power 150,000 homes once fully completed[40] - Carbon emissions from generation serving customers were reduced by an estimated 57% from 2005 levels, with a goal of achieving 80% reduction and exiting coal by the end of 2030[41] - The company aims for net-zero greenhouse gas emissions from natural gas service by 2050, with updated interim goals approved in 2024[42] - Xcel Energy's electric distribution lines totaled 87,000 miles, and the company operates a safe, reliable gas system with a goal of net-zero methane gas service by 2030[47] Workforce and Community Engagement - Xcel Energy's workforce demographics as of December 2024 included 23% female and 18% ethnically diverse employees, with 40% of new hires being female and 28% ethnically diverse[30] - The Xcel Energy Foundation contributed $5 million to 390 nonprofit organizations in 2024, with employees and retirees donating over $2 million, exceeding fundraising goals[25] Natural Gas Operations - Natural gas provided 33% of Xcel Energy's energy mix in 2024, with a total capacity of 8,000 MW[70] - The delivered cost of natural gas for the NSP System is $1.94 per MMBtu for 2024, down from $3.91 in 2023[72] - Xcel Energy had natural gas revenues of $2,230 million for 2024, serving 2.2 million customers[78] Financial Performance and Risks - The company reported a GAAP Return on Equity (ROE) of 9.07% and an ongoing ROE of 9.46%[49] - Xcel Energy anticipates average annual environmental costs of approximately $330 million from 2025 to 2029[105] - Capital expenditures for environmental improvements were approximately $290 million in 2024, down from $365 million in 2022[112] - The company is subject to significant environmental regulations that may result in substantial costs, but past compliance costs have largely been recoverable through rates[98] Operational Challenges and Market Conditions - The company faces competition from distributed generation resources, including solar, which may impact its electric service business[87] - Xcel Energy's management is actively monitoring risks related to economic conditions, interest rates, and inflation that could materially affect operating results[83] - The utility sector is undergoing significant changes, including shifts towards renewable generation, which could lead to excess resources and stranded costs if investments are not fully recoverable[132] - Climate change poses physical and financial risks, with extreme weather events potentially increasing service costs and impacting energy demand[136] Cybersecurity and Regulatory Compliance - Cybersecurity incidents could harm the company's operations and expose it to regulatory scrutiny and liability[200] - The company maintains security measures to protect its information technology and control systems, but these may still be vulnerable to breaches[204] - The market for cybersecurity insurance is evolving, and coverage may be insufficient to offset losses from cybersecurity events[206]

Core Insights - The article highlights the investment services provided by iREIT® and HOYA Capital, focusing on various income-oriented investment vehicles such as REITs, BDCs, MLPs, and Preferreds [2][3] Group 1: Company Overview - iREIT® offers in-depth research and data on over 250 tickers, including quality scores and buy/trim targets [1] - The investment group led by Brad Thomas and HOYA Capital has a combined experience of over 100 years in the financial industry [2] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in transactions exceeding $1 billion [3] Group 2: Analyst Expertise - The team includes professionals with diverse backgrounds, such as a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President [2] - Brad Thomas is a recognized author and has been featured in major financial media outlets [3]

2024 YEAR END EARNINGS REPORT PRESENTATION February 6, 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 base ...

Financial Data and Key Metrics Changes - Xcel Energy reported ongoing earnings of $3.50 per share for 2024, an increase from $3.35 per share in 2023, marking a growth of approximately 4.5% [28] - GAAP earnings for 2024 were $3.44 per share, with a non-recurring charge of $0.06 per share excluded from ongoing earnings [6][10] - The company navigated significant headwinds but met its guidance for the 20th consecutive year, showcasing a strong operational and financial track record [10][39] Business Line Data and Key Metrics Changes - Weather-adjusted electric sales increased by 3% in Q4 and 1% for the full year, driven by increased commercial and industrial load in SPS and residential sales in PSCo [29] - O&M expenses rose by $96 million in 2024 due to investments in wildfire mitigation and increased costs from generation maintenance and storm response [29] Market Data and Key Metrics Changes - The company anticipates a 3% increase in weather-adjusted electric sales for 2025, reflecting continued customer growth [29] - Xcel Energy's average residential electric and natural gas bills are 28% and 12% below the national average, respectively [22] Company Strategy and Development Direction - Xcel Energy plans to invest significantly in infrastructure over the next decade, with a five-year capital plan aimed at delivering rate base growth in excess of 9% [13] - The company is focused on clean energy leadership and aims to achieve an 80% carbon reduction by 2030, leveraging its geographic advantage for renewable resources [23][84] - The company is actively working on expanding its electrical grid to meet customer needs and has been a leading provider of new transmission line miles in the country for the past 15 years [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 earnings guidance of $3.75 to $3.85 per share, reflecting a 7% growth from the midpoint of the 2024 range [12][40] - The management acknowledged the challenges faced in 2024, including warmer-than-normal December weather, but emphasized the importance of operational improvements and investments made during the year [11][12] Other Important Information - The company has made significant progress in wildfire mitigation efforts, filing updated plans in multiple states and investing in risk reduction measures [20][22] - Xcel Energy has committed $73 million in settlement agreements related to wildfire claims, with $35 million already paid [37] Q&A Session Summary Question: Thoughts on renewable permitting and project impacts - Management indicated that they do not expect federal or private permitting halts to impact their projects, emphasizing the need for infrastructure to meet customer demand [45][50] Question: Wildfire policy changes and outlook - Management acknowledged the tragedy of recent wildfires and the need for federal and state-level solutions, expressing hope for constructive dialogues [68][71] Question: Data center growth and sales forecast - Management confirmed that they expect to sign contracts for the remaining data center capacity in their five-year sales forecast by fall 2025, with ongoing discussions with multiple counterparties [34][98] Question: Labor availability and industry constraints - Management highlighted ongoing efforts to secure critical talent for capital projects, noting competition for skilled labor across the industry [151]

Core Insights - Xcel Energy Inc. (XEL) reported fourth-quarter 2024 operating earnings of 81 cents per share, missing the Zacks Consensus Estimate of 87 cents by 6.9% and decreasing 2.4% from the previous year's figure of 83 cents [1] - Total revenues for the quarter were $3.12 billion, falling short of the Zacks Consensus Estimate of $3.72 billion by 16.1% and down 9.3% from $3.44 billion in the year-ago quarter [2] - Full-year 2024 revenues totaled $13.4 billion, a decline of 5.6% from $14.2 billion in the previous year [2] Segmental Results - Electric segment revenues were $2.4 billion, down 11.1% from $2.7 billion in the year-ago quarter [3] - Natural Gas segment revenues decreased 3.3% to $695 million from $719 million in the prior-year quarter [3] - Other segment revenues amounted to $15 million, compared to $28 million in the previous year [3] Operating Performance - Total operating expenses decreased 3.3% year over year to $2.77 billion, attributed to lower electric fuel and purchased power costs [4] - Operating income fell 39.6% year over year to $347 million [4] - Total interest charges and financing costs rose 18.8% from $250 million in the prior-year quarter to $297 million [4] Customer Volume and Sales - In 2024, Xcel Energy registered a 1.2% growth in electric customer volume and a 0.9% increase in natural gas customer volume [5] - Natural gas sales decreased 0.7% from the previous year, while electric sales volume increased by 1% [5] Future Guidance - Xcel Energy reaffirmed its 2025 earnings per share projection in the range of $3.75-$3.85, with the Zacks Consensus Estimate at $3.82 [6] - Retail electric sales are expected to increase by 3% in 2025, while natural gas sales volumes are anticipated to rise by 1% [6] - The company plans to invest $45 billion from 2025 to 2029 to strengthen its infrastructure [6]

Core Insights - Xcel Energy reported $3.12 billion in revenue for Q4 2024, a year-over-year decline of 9.4% and below the Zacks Consensus Estimate of $3.72 billion, resulting in a surprise of -16.07% [1] - The company's EPS for the quarter was $0.81, down from $0.83 a year ago, and also below the consensus estimate of $0.87, leading to an EPS surprise of -6.90% [1] Revenue Breakdown - Operating revenues from Electric and Natural Gas totaled $3.11 billion, a decline of 9.1% year-over-year, and below the average estimate of $3.72 billion [4] - Operating revenues from Other segments were reported at $15 million, significantly better than the average estimate of -$30.78 million, but still a year-over-year decline of 46.4% [4] - Operating revenues from Natural Gas were $695 million, compared to the average estimate of $763.09 million, reflecting a year-over-year decrease of 3.3% [4] - Operating revenues from Electric were $2.41 billion, which is a 10.6% decline compared to the same quarter last year and below the estimated $3 billion [4] Stock Performance - Xcel's shares have returned +2.4% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Xcel Energy (XEL) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.83 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.90%. A quarter ago, it was expected that this utility would post earnings of $1.29 per share when it actually produced earnings of $1.25, delivering a surprise of -3.10%.Over the last four quarters, the company has s ...

Financial Performance - Xcel Energy reported 2024 GAAP earnings of $1.94 billion, or $3.44 per share, compared to $1.77 billion, or $3.21 per share in 2023, representing a 13.0% increase in earnings per share[2][6]. - Ongoing earnings for 2024 were $1.97 billion, or $3.50 per share, up from $1.85 billion, or $3.35 per share in 2023, reflecting a 4.5% increase in ongoing earnings per share[2][6]. - For the twelve months ended December 31, 2024, Xcel Energy reported GAAP net income of $1,936 million, an increase from $1,771 million in 2023[90]. - Net income for the twelve months ended December 31, 2024, was $1,936 million, compared to $1,771 million in 2023, reflecting a year-over-year increase of 9.3%[97]. - The ongoing diluted EPS for the twelve months ended December 31, 2024, was $3.50, up from $3.35 in 2023, indicating a growth of 4.5%[97]. Revenue and Expenses - Total operating revenues for 2024 were $13.441 billion, a decrease from $14.206 billion in 2023, reflecting a 5.4% decline[11]. - Operating income for 2024 was $2.386 billion, down from $2.481 billion in 2023, representing a 3.8% decrease[11]. - Xcel Energy's total operating expenses for 2024 were $11.055 billion, down from $11.725 billion in 2023, indicating a 5.7% reduction[11]. - Electric operating revenues for 2024 were $11.147 billion, compared to $11.446 billion in 2023, a decline of 2.6%[11]. - Natural gas operating revenues decreased to $2.230 billion in 2024 from $2.645 billion in 2023, a drop of 15.7%[11]. Future Guidance - Xcel Energy reaffirmed its 2025 EPS guidance of $3.75 to $3.85 per share, indicating a projected growth of 8.9% to 11.9% compared to 2024 ongoing earnings[6]. - Xcel Energy aims for long-term annual EPS growth of 6% to 8% based on a mid-point of $3.55 per share for 2024[95]. - Weather-normalized retail electric sales are expected to increase approximately 3% in 2025, while natural gas sales are projected to rise by about 1%[94]. - Capital rider revenue is projected to increase by $260 million to $270 million in 2025[94]. - O&M expenses are expected to rise by approximately 3% in 2025[94]. Capital Expenditures and Investments - Total base capital expenditures forecast for 2025 through 2029 is $45 billion, with significant investments in electric distribution and renewables[40]. - Xcel Energy plans to fund capital expenditures of $45 billion from 2025 to 2029, with $25.32 billion expected from cash operations and $15.18 billion from new debt[43]. - In 2024, Xcel Energy issued approximately $1.1 billion of equity through its at-the-market program and entered into forward sale agreements for up to 21.1 million shares, expecting cash proceeds of about $1.36 billion[43]. - Xcel Energy's total capital expenditure plan for 2025-2028 is projected at $538 million, with $521 million allocated for capital projects[69]. Rate Increases and Regulatory Matters - NSP-Minnesota filed for a $491 million (13.2%) electric rate increase over two years, based on a return on equity (ROE) of 10.3% and a rate base of $13.2 billion in 2025[45]. - NSP-Minnesota also requested a $45 million (19.3%) electric rate increase in North Dakota, based on a 2025 forecast test year and a rate base of approximately $817 million[46]. - A natural gas rate increase of approximately $59 million (9.6%) was requested by NSP-Minnesota in Minnesota, based on a ROE of 10.2% and a rate base of approximately $1.27 billion[47]. - PSCo filed a request for a $171 million (9.5%) increase in retail natural gas rates, based on a 10.25% ROE and a $4.2 billion year-end rate base[54]. Operational Challenges and Weather Impact - The estimated impact of weather on total EPS was a decrease of $0.036 for the three months ended Dec. 31, 2024, compared to 2023[26]. - Total retail electric sales growth for Xcel Energy was 3.4% for the three months ended Dec. 31, 2024, compared to 2023[26]. - Natural gas revenues were affected by a 1.7% decrease in residential use per customer and a 1.4% decrease in C&I use per customer[27]. - Electric fuel and purchased power expenses decreased by $490 million in 2024, primarily due to lower commodity prices and timing of fuel recovery mechanisms[30]. - Natural gas sold and transported expenses decreased by $505 million in 2024, attributed to lower commodity prices and volumes[31]. Debt and Financing - Xcel Energy's total debt increased to $29.1 billion in 2024, maintaining a 60% debt to total capitalization ratio[37]. - The company expects to fund additional capital investments with approximately 40% equity and 60% debt, with potential incremental expenditures exceeding $10 billion pending approval[41]. Miscellaneous - The company recorded workforce reduction expenses of $72 million in Q4 2023 due to a voluntary retirement program and involuntary severance[93]. - The effective income tax rate for 2024 was significantly impacted by new nuclear PTCs, resulting in benefits of 103.9% for the quarter[36]. - Other income rose by $121 million for the year, primarily from interest earned on cash balances and gains on debt repurchases[34]. - Depreciation and amortization increased by $296 million for the year, mainly due to system expansion[33].

Analysts on Wall Street project that Xcel Energy (XEL) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing an increase of 4.8% year over year. Revenues are projected to reach $3.72 billion, increasing 8% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company announces its ...

Xcel Energy (XEL) is scheduled to release fourth-quarter 2024 results on Feb. 6, before market open. The company delivered a negative earnings surprise of 3.1% in the last reported quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Key Factors That Might Have Impacted XEL Stocks' Q4 EarningsXcel Energy’s quarterly earnings are likely to have benefited from higher demand from data centers, ele ...