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].

[Business Overview](index=5&type=section&id=Item%201%20%E2%80%94%20Business) Xcel Energy is a regulated utility serving millions of customers across eight states, focused on clean energy transition, operational excellence, and strong financial performance [Company and Strategy Overview](index=5&type=section&id=Overview) Xcel Energy is a major regulated utility serving millions across eight states, focused on clean energy, operational excellence, and consistent financial performance - Xcel Energy operates as a regulated electric and natural gas utility serving customers in eight states through four primary subsidiaries: NSP-Minnesota, NSP-Wisconsin, PSCo, and SPS[11](index=11&type=chunk) Utility Subsidiary Key Metrics | Metric | Value | | :--- | :--- | | Electric Customers | 3.9 million | | Natural Gas Customers | 2.2 million | | Total Assets | $70 billion | | Owned Electric Generating Capacity | 20,426 MW | - The company's strategy is built on three priorities: enhancing customer experience, providing a rewarding employee experience, and delivering excellent operational, financial, and clean energy performance[15](index=15&type=chunk)[16](index=16&type=chunk) - Xcel Energy has a strong financial track record, having met or exceeded its initial ongoing earnings guidance for **20 consecutive years** and increased its dividend for **22 consecutive years**[35](index=35&type=chunk) [Utility Subsidiaries Details](index=12&type=section&id=Utility%20Subsidiaries) Four utility subsidiaries operate with distinct footprints, financial profiles, and regulatory metrics like rate base and authorized ROE NSP-Minnesota Key Metrics (2024) | Metric | Value | | :--- | :--- | | Electric Customers | 1.6 million | | Natural Gas Customers | 0.6 million | | Total Assets | $27.5 billion | | Rate Base (est.) | $17.4 billion | | GAAP ROE | 9.07% | | Ongoing ROE | 9.46% | PSCo Key Metrics (2024) | Metric | Value | | :--- | :--- | | Electric Customers | 1.6 million | | Natural Gas Customers | 1.5 million | | Total Assets | $26.6 billion | | Rate Base (est.) | $19.3 billion | | GAAP ROE | 7.63% | SPS Key Metrics (2024) | Metric | Value | | :--- | :--- | | Electric Customers | 0.4 million | | Total Assets | $10.8 billion | | Rate Base (est.) | $7.6 billion | | GAAP ROE | 9.57% | NSP-Wisconsin Key Metrics (2024) | Metric | Value | | :--- | :--- | | Electric Customers | 0.3 million | | Natural Gas Customers | 0.1 million | | Total Assets | $4.1 billion | | Rate Base (est.) | $2.7 billion | | GAAP ROE | 8.98% | [Operations Overview](index=13&type=section&id=Operations%20Overview) Xcel Energy's electric and natural gas operations generated significant revenue in 2024, with a diverse energy mix and strategic renewable investments 2024 Electric Operations Breakdown | Category | Sales Volume % | Customers % | Revenues % | | :--- | :--- | :--- | :--- | | Residential | 23% | 86% | 32% | | C&I | 59% | 12% | 49% | | Other | 18% | 2% | 19% | 2024 Electric Energy Generation by Source | Source | Percentage of Total | | :--- | :--- | | Natural Gas | 33% | | Wind | 29% | | Coal | 15% | | Nuclear | 8% | | Solar | 5% | | Other | <1% | - The company plans to retire or convert all existing coal generation by the end of **2030**, with specific retirement dates scheduled for various units between 2025 and 2030[68](index=68&type=chunk) - Significant investments are underway in renewable energy, including approximately **1,900 MW** of owned wind under development or repowering and **2,700 MW** of owned and PPA solar under development[59](index=59&type=chunk)[61](index=61&type=chunk) [Governmental and Environmental Regulations](index=19&type=section&id=Governmental%20Regulations) Xcel Energy's operations are subject to extensive federal and state regulations, including emerging rules on emissions and contaminants, with costs typically recoverable - The EPA has finalized rules to control CO2 emissions from new natural gas and existing coal plants. Xcel Energy anticipates minimal financial impact due to its scheduled plant retirements and expects cost recovery through rates[99](index=99&type=chunk) - The EPA has designated certain PFAS chemicals as hazardous substances and set drinking water standards, creating potential but currently uncertain costs for the company, which are expected to be recoverable through rates[100](index=100&type=chunk)[101](index=101&type=chunk) Environmental Costs (Operating Expenses) | Year | Amount (Millions) | | :--- | :--- | | 2024 | $290 | | 2023 | $275 | | 2022 | $365 | Environmental Capital Expenditures | Year | Amount (Millions) | | :--- | :--- | | 2024 | $25 | | 2023 | $20 | | 2022 | $20 | [Risk Factors](index=22&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) The company faces diverse operational, financial, macroeconomic, and policy risks, including physical hazards, regulatory uncertainties, market volatility, and evolving environmental and cybersecurity threats [Operational Risks](index=22&type=section&id=Operational%20Risks) The company faces significant operational risks including physical hazards, climate change impacts, commodity price volatility, nuclear operations, and supply chain - Natural gas and electric operations involve inherent hazards that could result in loss of life, property damage, and substantial financial losses not fully covered by insurance[124](index=124&type=chunk)[125](index=125&type=chunk) - Climate change presents physical and financial risks, including extreme weather events like wildfires, which have increased in frequency and severity, potentially leading to damages exceeding insurance coverage[136](index=136&type=chunk)[140](index=140&type=chunk)[145](index=145&type=chunk) - The company is subject to commodity price risk for fuel and energy. Significant increases in fuel costs could lead to adverse regulatory outcomes and higher bad debt expense[146](index=146&type=chunk) - NSP-Minnesota's two nuclear plants are subject to risks including the handling of radioactive material, limitations on insurance coverage, and potential for increased regulation and costs imposed by the NRC[159](index=159&type=chunk)[172](index=172&type=chunk) [Financial Risks](index=30&type=section&id=Financial%20Risks) Financial stability is exposed to regulatory, capital market, and credit risks, including cost recovery challenges, increased financing costs, and capital access disruptions - Profitability is highly dependent on the ability to recover costs through regulated rates. Adverse regulatory rulings, cost disallowances, or changes in recovery mechanisms could negatively impact financial results[161](index=161&type=chunk)[163](index=163&type=chunk)[167](index=167&type=chunk) - Reductions in credit ratings could increase financing costs, impact the ability to access capital markets, and require posting collateral for certain contracts[168](index=168&type=chunk)[169](index=169&type=chunk) - As a capital-intensive business, the company is subject to capital market and interest rate risks. Market disruptions could prevent the issuance of new securities or lead to unfavorable financing terms[170](index=170&type=chunk) - The company's ability to pay dividends depends on cash flows from its subsidiaries, which are subject to statutory and contractual restrictions, including potential limitations imposed by state utility commissions[181](index=181&type=chunk)[183](index=183&type=chunk) [Macroeconomic and Policy Risks](index=33&type=section&id=Macroeconomic%20and%20Policy%20Risks) The company faces macroeconomic risks from downturns, significant cybersecurity threats, and policy challenges including natural gas restrictions and costly climate regulations - A cybersecurity incident could disrupt generation, transmission, and distribution, cause the release of sensitive data, and result in significant financial liability and reputational harm[197](index=197&type=chunk)[200](index=200&type=chunk)[205](index=205&type=chunk) - Public policy efforts to restrict the use of natural gas for power generation and heating could lead to stranded costs on existing investments and impact the ability to serve customers reliably and affordably[210](index=210&type=chunk) - Legislative and regulatory responses to climate change could be difficult and costly to comply with. Failure to recover these costs through rates could materially affect financial results[211](index=211&type=chunk)[214](index=214&type=chunk) - The company's ability to achieve its environmental strategies is subject to factors outside its control, such as technological developments, regulatory standards, and financing availability. Failure to meet these goals could harm its reputation and increase litigation risk[219](index=219&type=chunk) [Cybersecurity](index=38&type=section&id=Item%201C%20%E2%80%94%20Cybersecurity) Xcel Energy maintains a comprehensive cybersecurity risk management program, overseen by the Board of Directors, with no material incidents reported to date [Cybersecurity Risk Management and Governance](index=38&type=section&id=Cybersecurity%20Risk%20Management%20and%20Governance) Xcel Energy maintains a comprehensive cybersecurity risk program aligned with NERC and NIST frameworks, overseen by the Board, with no material incidents reported - The company's security risk program is designed to identify, assess, and manage material risks from cybersecurity incidents and complies with NERC critical infrastructure protection standards[224](index=224&type=chunk) - Oversight is provided by the Board of Directors, with the ONES Committee having primary responsibility, augmented by the Audit Committee. The Chief Security Officer, who has extensive experience, is responsible for managing the program[228](index=228&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk) - As of February 27, 2025, there have been no material cybersecurity incidents to report, and no past incidents have had a material impact on the business or results of operations[232](index=232&type=chunk) [Properties](index=39&type=section&id=Item%202%20%E2%80%94%20Properties) Xcel Energy's properties include diverse electric generating stations, extensive transmission and distribution networks, and natural gas infrastructure across its four utility subsidiaries [Company Properties](index=39&type=section&id=Company%20Properties) Xcel Energy owns a diverse portfolio of electric generating stations, extensive transmission and distribution networks, and natural gas infrastructure across its four utility subsidiaries - NSP-Minnesota's generating assets include major coal plants (A.S. King, Sherco), two nuclear plants (Monticello, Prairie Island), and a significant portfolio of owned wind farms totaling **2,445 MW**[234](index=234&type=chunk) - PSCo's properties include large coal facilities (Comanche, Craig, Hayden), numerous natural gas combustion turbines, and two large owned wind farms (Rush Creek, Cheyenne Ridge) totaling **1,059 MW**[235](index=235&type=chunk) - SPS operates a mix of natural gas and coal steam plants, including the Harrington and Tolk stations, and owns two large wind farms (Hale, Sagamore) with a combined capacity of **985 MW**[238](index=238&type=chunk) Electric and Gas Infrastructure Mileage (Conductor/Main Miles) | Infrastructure | NSP-Minnesota | NSP-Wisconsin | PSCo | SPS | | :--- | :--- | :--- | :--- | :--- | | **Electric Transmission** | 33,783 | 11,995 | 24,604 | 40,975 | | **Electric Distribution** | 86,549 | 28,293 | 81,589 | 24,878 | | **Natural Gas Mains** | 11,016 | 2,613 | 26,110 | 35 | [Legal Proceedings](index=42&type=section&id=Item%203%20%E2%80%94%20Legal%20Proceedings) Xcel Energy faces significant wildfire litigation, including the Marshall Fire with unquantifiable losses and the Smokehouse Creek Fire with a $215 million estimated liability, both potentially exceeding insurance coverage [Wildfire Litigation](index=124&type=section&id=Wildfire%20Litigation) Xcel Energy faces significant litigation from the 2021 Marshall Fire with unquantifiable losses and the 2024 Smokehouse Creek Fire with a **$215 million** estimated liability, potentially exceeding insurance - Regarding the 2021 Marshall Fire, the Boulder County Sheriff's Report identified PSCo's power lines as the most probable cause of a second ignition. PSCo disputes this finding and is facing over **300 complaints**. Due to uncertainty, the company cannot estimate the amount or range of possible loss[701](index=701&type=chunk)[702](index=702&type=chunk)[709](index=709&type=chunk) - For the 2024 Smokehouse Creek Fire, the Texas A&M Forest Service determined the cause to be power lines owned by SPS. Xcel Energy has deemed a loss probable and recorded an estimated liability of **$215 million**, which is the lower end of its reasonably estimable range[710](index=710&type=chunk)[716](index=716&type=chunk)[717](index=717&type=chunk) - The company has recorded an insurance receivable of **$210 million** related to the Smokehouse Creek Fire. However, total damages from either fire could exceed the approximate **$500 million** of insurance coverage available for the respective policy periods[709](index=709&type=chunk)[718](index=718&type=chunk)[720](index=720&type=chunk) [Management's Discussion and Analysis (MD&A)](index=45&type=section&id=Item%207%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section details Xcel Energy's financial performance, regulatory environment, critical accounting policies, liquidity, capital resources, and future earnings guidance [Results of Operations](index=47&type=section&id=Results%20of%20Operations) In 2024, Xcel Energy's GAAP diluted EPS increased to **$3.44**, driven by regulatory rate outcomes, partially offset by higher depreciation, interest, and O&M expenses GAAP vs. Ongoing Diluted EPS | Year | GAAP Diluted EPS | Ongoing Diluted EPS | | :--- | :--- | :--- | | 2024 | $3.44 | $3.50 | | 2023 | $3.21 | $3.35 | Key Drivers of EPS Change (2024 vs. 2023) | Component | Impact on EPS | | :--- | :--- | | Electric Regulatory Rate Outcomes & Riders | $0.73 | | Natural Gas Regulatory Rate Outcomes & Riders | $0.14 | | Higher Depreciation & Amortization | ($0.40) | | Higher Interest Charges, net | ($0.24) | | Higher O&M Expenses | ($0.13) | - Weather-normalized electric sales grew **1.0%** in 2024 (leap-year adjusted), driven by C&I growth at SPS (**9.0%**), while other subsidiaries saw modest declines. Weather-normalized natural gas sales declined **0.7%**[274](index=274&type=chunk) - Electric revenues decreased by **$299 million**, primarily due to lower fuel cost recovery and increased PTCs flowed back to customers, which were partially offset by positive regulatory rate outcomes[278](index=278&type=chunk) [Public Utility Regulation](index=50&type=section&id=Public%20Utility%20Regulation) Xcel Energy's subsidiaries are engaged in numerous regulatory proceedings, including rate cases, resource planning, and wildfire mitigation filings, with significant renewable capacity approved - NSP-Minnesota filed a two-year electric rate case in November 2024 seeking a **$491 million** revenue increase, and received approval for **$192 million** in interim rates effective January 2025[303](index=303&type=chunk) - The MPUC approved the NSP System's Upper Midwest Resource Plan, which includes adding **3,200 MW** of wind, **400 MW** of solar, and **600 MW** of storage by 2030, and extending the lives of the Prairie Island and Monticello nuclear plants[321](index=321&type=chunk) - PSCo filed its 2024 Electric Resource Plan, forecasting a need for **5-14 GW** of new capacity by 2031 to meet projected sales growth of **3-7% annually**, driven by data centers and electrification[336](index=336&type=chunk)[339](index=339&type=chunk) - PSCo filed an updated Wildfire Mitigation Plan in Colorado with an estimated total cost of approximately **$1.9 billion** for 2025-2027. A decision is expected in Q3 2025[343](index=343&type=chunk) - SPS filed its Texas System Resiliency Plan in December 2024, proposing a **$538 million** spend from 2025-2028 on grid hardening and wildfire mitigation[366](index=366&type=chunk)[370](index=370&type=chunk) [Critical Accounting Policies and Estimates](index=67&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements rely on critical accounting policies and estimates, including regulatory accounting, income taxes, employee benefits, nuclear decommissioning, and wildfire loss contingencies - Regulatory accounting is critical, with **$3.4 billion** in regulatory assets and **$6.9 billion** in regulatory liabilities recorded as of Dec. 31, 2024. The recoverability of these assets depends on future regulatory decisions[390](index=390&type=chunk)[393](index=393&type=chunk) - For employee pension plans, key assumptions for 2025 cost calculations include a **7.13%** rate of return on assets and a **5.88%** discount rate[403](index=403&type=chunk)[404](index=404&type=chunk)[405](index=405&type=chunk) - The ARO for nuclear decommissioning was **$2.5 billion** as of Dec. 31, 2024. This estimate is based on periodic studies and is sensitive to assumptions about retirement dates, technology, and cost escalation[418](index=418&type=chunk)[419](index=419&type=chunk) - Estimating loss contingencies for wildfires, such as the Marshall and Smokehouse Creek fires, is a critical area involving complex judgments about the probability and amount of potential losses[429](index=429&type=chunk) [Liquidity and Capital Resources](index=78&type=section&id=Liquidity%20and%20Capital%20Resources) Xcel Energy projects a **$45 billion** capital expenditure plan for 2025-2029, funded by cash, debt, and equity, supported by strong liquidity and a recent dividend increase Base Capital Expenditure Forecast (2025-2029) | By Function | Amount (Millions) | | :--- | :--- | | Electric Distribution | $15,830 | | Electric Transmission | $12,560 | | Renewables | $5,020 | | Electric Generation | $4,470 | | Natural Gas | $3,420 | | Other | $3,700 | | **Total** | **$45,000** | Capital Expenditure Funding Plan (2025-2029) | Funding Source | Amount (Millions) | | :--- | :--- | | Cash from Operations (Net) | $25,320 | | New Debt (Net) | $15,180 | | Equity (DRIP & Other) | $4,500 | | **Total Funding for Capex** | **$45,000** | - The company maintains **$3.55 billion** in committed credit facilities expiring in September 2027 to support liquidity and back its commercial paper programs[463](index=463&type=chunk)[580](index=580&type=chunk) - In February 2025, the Board of Directors announced a **4.1%** increase in the annual dividend, reflecting confidence in the company's financial condition and long-term growth objectives[460](index=460&type=chunk) [2025 Guidance and Long-Term Objectives](index=81&type=section&id=Earnings%20Guidance%20and%20Long-Term%20EPS%20and%20Dividend%20Growth%20Rate%20Objectives) Xcel Energy issued 2025 ongoing EPS guidance of **$3.75 to $3.85** per share and reiterated long-term objectives for EPS and dividend growth, maintaining a 50-60% payout - The 2025 ongoing EPS guidance is set at a range of **$3.75 to $3.85 per share**[470](index=470&type=chunk) - Key assumptions for the 2025 guidance include constructive regulatory outcomes, normal weather, and an approximate **3%** increase in weather-normalized retail electric sales[472](index=472&type=chunk) - Long-term objectives are to deliver **6% to 8%** annual EPS growth, **4% to 6%** annual dividend growth, and maintain a dividend payout ratio between **50% and 60%**[473](index=473&type=chunk) [Financial Statements and Supplementary Data](index=81&type=section&id=Item%208%20%E2%80%94%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the auditor's unqualified report, critical audit matters related to rate regulation and wildfire contingencies, and detailed notes on debt, pension plans, and segment financials [Auditor's Report and Critical Audit Matters](index=83&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor issued an unqualified opinion on the financial statements and internal controls, highlighting critical audit matters related to rate regulation and wildfire contingencies - The auditor issued an unqualified (clean) opinion, stating the financial statements are presented fairly and the company maintained effective internal control over financial reporting[480](index=480&type=chunk) - A Critical Audit Matter was identified related to regulatory assets and liabilities, highlighting the subjective judgments management must make about the outcomes of future decisions by regulatory commissions[487](index=487&type=chunk)[489](index=489&type=chunk) - A second Critical Audit Matter was identified for wildfire-related contingencies, emphasizing the high degree of judgment needed to assess the probability of loss and estimate the financial impact from the Marshall and Smokehouse Creek fires[491](index=491&type=chunk)[493](index=493&type=chunk) [Notes to Consolidated Financial Statements](index=93&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, financial instruments, and contingencies, including debt, pension status, wildfire accruals, and segment financials Long-Term Debt by Entity (as of Dec. 31, 2024) | Entity | Long-Term Debt (Millions) | | :--- | :--- | | Xcel Energy Inc. | $6,337 | | NSP-Minnesota | $7,607 | | PSCo | $8,391 | | SPS | $3,551 | | NSP-Wisconsin | $1,406 | | **Total (approx.)** | **$27,300** | - In November 2024, the company entered into forward sale agreements for **21.1 million shares** of common stock, with expected cash proceeds of approximately **$1.36 billion** upon settlement, which can occur up to June 30, 2026[593](index=593&type=chunk)[596](index=596&type=chunk) Pension Plan Funded Status (as of Dec. 31) | (Millions of Dollars) | 2024 | 2023 | | :--- | :--- | :--- | | Benefit Obligation | $2,752 | $2,943 | | Fair Value of Plan Assets | $2,504 | $2,690 | | **Funded Status (Underfunded)** | **($248)** | **($253)** | 2024 Segment Financials | (Millions of Dollars) | Regulated Electric | Regulated Natural Gas | | :--- | :--- | :--- | | **Operating Revenues** | $11,147 | $2,230 | | **Net Income** | $1,846 | $237 |

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]

Core Viewpoint - Xcel Energy reported quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.87 per share, and showing a decline from $0.83 per share a year ago, indicating a -6.90% earnings surprise [1][2] Financial Performance - The company posted revenues of $3.12 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 16.07%, and down from $3.44 billion year-over-year [2] - Over the last four quarters, Xcel has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Xcel shares have increased by approximately 0.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 3.1% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.94 for the coming quarter and $3.82 on $15.2 billion in revenues for the current fiscal year [7] - The Zacks Rank for Xcel is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Utility - Electric Power industry, to which Xcel belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges ahead [8]