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].

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 ...