Financial Data and Key Metrics Changes - In 2024, the company delivered GAAP earnings per share of $3.44 and ongoing earnings per share of $3.50, marking the twentieth consecutive year of meeting or exceeding initial earnings guidance [19][20] - The company reaffirmed its 2025 earnings guidance range of $3.75 to $3.85 per share, with long-term earnings per share growth expectations of 6% to 8% and dividend growth of 4% to 6% [20] Business Line Data and Key Metrics Changes - The company invested over $7.5 billion in 2024 to modernize electric and natural gas systems, alongside updating its five-year capital plan [20] - The resource plans include proposals for 15,000 to 29,000 megawatts of new efficient, clean generation, with a focus on wind, solar, and battery storage [36][37] Market Data and Key Metrics Changes - The U.S. electricity demand growth rate through 2030 has tripled, with expectations to sell 30% more electricity in 2030 than in 2024 [14] - The company has received requests for nearly 9,000 megawatts of new daily demand from data center companies, equivalent to powering over 8 million homes each year [14] Company Strategy and Development Direction - The company is strategically positioned to capitalize on the growing demand for electricity driven by new technologies and the transition to cleaner energy sources [4][13] - A $45 billion investment plan over the next five years aims to modernize, strengthen, and expand the grid to support economic growth and the clean energy transition [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the unprecedented growth opportunities in the energy sector, emphasizing the importance of evolving and pushing to new heights [27][30] - The company is focused on enhancing customer experience, affordability, reliability, and advancing clean energy policy goals [19][21] Other Important Information - The company has been recognized as one of Ethisphere's world's most ethical companies for six consecutive years and has received accolades for its commitment to diversity and inclusion [29] - In 2024, the corporate economic development team closed on 24 projects resulting in over $5 billion in capital investment and the creation of more than 3,000 jobs [23] Q&A Session Summary Question: Can you provide an update on your recent resource plan? - The company plans to add between 15,000 and 29,000 megawatts of new generation resources, including 720 megawatts of firm dispatchable generation in the Upper Midwest [35][36] Question: What impact will data centers have on future load growth? - The company is experiencing significant interest from data centers, with nearly 9,000 megawatts of backlog and expects to serve about 25% of that demand [39][40] Question: What impact do recently announced tariffs have on your capital investment plans? - The company has been agile in managing its supply chain and expects tariffs to represent about 1% to 2% of its total capital bill over the next five years, which is considered manageable [42][45]

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Core Insights - Xcel Energy Inc. (NASDAQ: XEL) reported its Q1 2025 earnings, which fell short of EPS and revenue expectations while maintaining its EPS guidance for FY2025 at $3.75 to $3.85 [1] Financial Performance - The company missed both EPS and revenue expectations in its latest earnings report [1] - Despite the shortfall, Xcel Energy reaffirmed its EPS guidance for the full year of 2025, indicating a range of $3.75 to $3.85 [1]

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]

Core Viewpoint - Xcel Energy Inc. reported a decline in first-quarter 2025 operating earnings, missing consensus estimates due to increased operational costs and expenses [1][5]. Financial Performance - Operating earnings for Q1 2025 were 84 cents per share, down 4.5% from 88 cents in the same quarter last year [1][2]. - Total revenues reached $3.9 billion, slightly missing the consensus estimate of $3.92 billion but showing a 7.1% increase from $3.65 billion year-over-year [3]. - Operating income decreased by 2.9% year-over-year to $677 million [5]. Segment Performance - Electric segment revenues were $2.83 billion, up 5.6% from $2.68 billion in the prior year [4]. - Natural gas segment revenues increased by 12.1% to $1.05 billion from $0.94 billion year-over-year [4]. - Other revenues fell to $16 million from $23 million in the previous year [4]. Expense Analysis - Total operating expenses rose by 8.7% year-over-year to $3.23 billion, driven by higher electric fuel and purchased power costs, as well as increased operating and maintenance expenses [5]. - Interest charges and financing costs increased by 11.6% from $277 million to $309 million [6]. Customer Volume and Sales - Electric customer volume grew by 1.1%, while natural gas customer volume increased by 0.9% [6]. - Natural gas sales rose by 0.5%, and electric sales volume increased by 1.9% compared to the previous year [6]. Guidance and Future Outlook - Xcel Energy reaffirmed its 2025 earnings per share guidance in the range of $3.75-$3.85, with the consensus estimate at $3.81 [7]. - Retail electric sales are expected to increase by 3% in 2025, while natural gas sales volumes are anticipated to rise by 1% [7]. - The company plans to invest $45 billion from 2025 to 2029 to enhance its infrastructure [7]. Zacks Rank - Xcel Energy currently holds a Zacks Rank of 4 (Sell) [8].

Core Viewpoint - Xcel Energy reported a revenue of $3.91 billion for Q1 2025, reflecting a 7% year-over-year increase, but fell short of the Zacks Consensus Estimate by 0.43% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.84, down from $0.88 a year ago, representing a surprise of -9.68% against the consensus estimate of $0.93 [1] - Operating revenues from electric and natural gas totaled $3.89 billion, slightly below the average estimate of $3.91 billion, with a year-over-year increase of 7.3% [4] - Operating revenues from natural gas reached $1.06 billion, exceeding the estimated $921.31 million, marking a 12.1% increase year-over-year [4] - Operating revenues from electric were reported at $2.84 billion, lower than the average estimate of $2.99 billion, with a year-over-year change of 5.6% [4] - Other operating revenues were reported at $16 million, significantly better than the estimated -$60.80 million, but showed a year-over-year decline of 30.4% [4] Stock Performance - Xcel shares have returned +3.8% over the past month, contrasting with a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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].