Company Overview - Xcel Energy Inc. has a market capitalization of $43.4 billion and operates as a leading regulated utility holding company, providing electricity and natural gas across eight states including Colorado, Minnesota, Texas, and Wisconsin [1] - The company is classified as a "large-cap" stock, generating power from a diverse mix of sources such as wind, solar, hydro, nuclear, coal, and natural gas, while focusing on cleaner and more sustainable energy initiatives [2] Stock Performance - Xcel Energy's shares have decreased by 1.6% from their 52-week high of $74.57, but have increased by 6.2% over the past three months, outperforming the Utilities Select Sector SPDR Fund (XLU) which gained 5.2% during the same period [3] - Over the past 52 weeks, XEL stock has returned 14.8%, surpassing XLU's 9.1% increase, although it has gained only 8.6% year-to-date, lagging behind XLU's 13.2% rise [4] Financial Performance - In Q2 2025, Xcel Energy reported earnings per share (EPS) of $0.75, exceeding consensus estimates and reflecting a year-over-year improvement of 38.9%. Revenue increased by 8.6% to $3.3 billion, driven by higher electric segment revenues of $2.9 billion and natural gas revenues of $396 million [5] - The company reaffirmed its 2025 EPS guidance of $3.75 - $3.85 and announced a $45 billion investment plan for 2025-2029 aimed at enhancing infrastructure and growth [5] Competitive Position - Despite Xcel Energy's strong performance, it has underperformed compared to its rival WEC Energy Group, which has returned 16.3% over the past 52 weeks and 17.5% year-to-date [6] - Analysts maintain a moderately optimistic outlook for Xcel Energy, with a consensus rating of "Moderate Buy" from 15 analysts and a mean price target of $78.54, indicating a potential premium of 7.1% to current levels [6]

Core Viewpoint - Xcel Energy (XEL) is positioned to benefit from a robust capital investment plan aimed at infrastructure enhancement and clean power generation, alongside an expanding customer base and increasing demand [1][8] Group 1: Investment and Growth Strategy - Xcel Energy plans to invest $45 billion from 2025 to 2029 to strengthen and expand its transmission, distribution, electric generation, and renewable projects, which is expected to drive long-term earnings per share (EPS) growth of 6-8% [2][8] - The company is focused on enhancing situational awareness and powerline safety, which will improve reliability for customers and support the anticipated demand for data centers, with requests expected to reach nearly 8.9 gigawatts by 2029 [4][8] Group 2: Customer Base Expansion - The company has seen a 1% year-over-year increase in its electric customer base and a 0.9% improvement in its natural gas customer base in the second quarter of 2025, indicating successful customer acquisition strategies [3] Group 3: Challenges and Risks - Xcel Energy faces risks from commodity price fluctuations and operational challenges related to its natural gas and electric transmission and distribution systems, which could impact financial performance [5][6] Group 4: Stock Performance - Over the past three months, Xcel Energy's stock has increased by 5.6%, outperforming the industry, which experienced a 0.6% decline [7][8]

Core Insights - Xcel Energy Inc. (XEL) reported second-quarter 2025 operating earnings of 75 cents per share, exceeding the Zacks Consensus Estimate of 63 cents by 19.05% and improving 38.9% from the previous year's 54 cents [1][2][9] Revenue Performance - Total revenues for XEL were $3.28 billion, slightly missing the Zacks Consensus Estimate of $3.31 billion by 0.8%, but representing an 8.6% increase from $3.02 billion in the year-ago quarter [3] - Electric segment revenues reached $2.87 billion, up 8.3% from $2.65 billion year-over-year [4] - Natural gas segment revenues increased 11.5% to $396 million from $355 million in the prior-year quarter [4] - Other segment revenues amounted to $13 million, down from $14 million in the previous year [4] Expense and Income Analysis - Total operating expenses rose 5.1% year-over-year to $2.71 billion, driven by higher electric fuel and purchased power costs, as well as costs associated with natural gas sold and transported [5] - Operating income increased 28.5% year-over-year to $577 million [5] - Total interest charges and financing costs rose 6.3% from $303 million in the prior-year quarter to $322 million [5] Customer Volume and Sales Growth - In the first half of 2025, Xcel Energy experienced a 2.7% growth in electric customer volume, while natural gas customer volume declined by 0.4% [6] - In the second quarter, natural gas sales increased by 0.9% year-over-year, and electric sales volume grew by 1% [6] Future Guidance - Xcel Energy reaffirmed its 2025 earnings per share guidance in the range of $3.75 to $3.85, with the Zacks Consensus Estimate at $3.81 [7] - Retail electric sales are projected to increase by 3% in 2025, while natural gas sales volumes are expected to rise by 1% [7] - The company plans to invest $45 billion from 2025 to 2029 to enhance its infrastructure [7]

[Definitions of Abbreviations](index=4&type=section&id=Definitions%20of%20Abbreviations) [Xcel Energy Inc.'s Subsidiaries and Affiliates](index=4&type=section&id=Xcel%20Energy%20Inc.%27s%20Subsidiaries%20and%20Affiliates) This section defines abbreviations for Xcel Energy Inc.'s current and former subsidiaries and affiliates, including NSP, NSP-Wisconsin, PSCo, SPS, Utility subsidiaries, WYCO, and Xcel Energy itself - Key subsidiaries and affiliates include Northern States Power Company (NSP-Minnesota and NSP-Wisconsin), Public Service Company of Colorado (PSCo), and Southwestern Public Service Company (SPS)[9](index=9&type=chunk) [Federal and State Regulatory Agencies](index=4&type=section&id=Federal%20and%20State%20Regulatory%20Agencies) This section lists abbreviations for various federal and state regulatory agencies relevant to Xcel Energy's operations, such as CPUC, FERC, EPA, IRS, MPUC, and SEC - Regulatory bodies include the Colorado Public Utilities Commission (CPUC), Federal Energy Regulatory Commission (FERC), and Securities and Exchange Commission (SEC)[10](index=10&type=chunk) [Other Abbreviations](index=4&type=section&id=Other%20Abbreviations) This section provides definitions for other general and industry-specific abbreviations used throughout the report, covering financial, operational, and environmental terms like AFUDC, EPS, GAAP, O&M, and PFAS - Common financial and operational abbreviations include Allowance for funds used during construction (AFUDC), Earnings per share (EPS), and Operating and maintenance (O&M)[11](index=11&type=chunk)[12](index=12&type=chunk) [Measurements](index=4&type=section&id=Measurements) This section defines standard measurement units used in the report, specifically Gigawatts (GW) and Megawatts (MW) - Key measurement units are Gigawatts (GW) and Megawatts (MW)[13](index=13&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Nature of Forward-Looking Statements](index=5&type=section&id=Nature%20of%20Forward-Looking%20Statements) This section clarifies that the report contains forward-looking statements, identified by specific terminology, which are subject to risks, uncertainties, and assumptions, and actual results may differ materially, with the company disclaiming any obligation to update this information - Forward-looking statements are identified by words such as 'anticipate,' 'believe,' 'expect,' 'intend,' 'plan,' and 'project'[15](index=15&type=chunk) - The company disclaims any obligation to update forward-looking information, and actual results may vary materially due to various factors[15](index=15&type=chunk) [Factors Causing Material Variation](index=5&type=section&id=Factors%20Causing%20Material%20Variation) Numerous factors could cause actual results to differ materially from expectations, including operational safety, commodity risks, regulatory changes, economic conditions, cybersecurity threats, and climate change impacts - Key risk factors include operational safety, commodity price fluctuations, regulatory changes, general economic conditions (recession, inflation, supply chain), availability/cost of capital, and cybersecurity threats[15](index=15&type=chunk) - Other significant factors are seasonal weather patterns, changes in environmental laws, climate change, costs of potential regulatory penalties and wildfire damages, and challenges in attracting/retaining a qualified workforce[15](index=15&type=chunk) [PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1 — Financial Statements (unaudited)](index=6&type=section&id=Item%201%20%E2%80%94%20Financial%20Statements%20(unaudited)) This section presents Xcel Energy Inc.'s unaudited consolidated financial statements for the periods ended June 30, 2025, and 2024, including statements of income, comprehensive income, cash flows, balance sheets, and common stockholders' equity, along with detailed notes explaining significant accounting policies, financial data, and commitments [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income (Unaudited) - Key Data (Millions USD, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total operating revenues | $3,287 | $3,028 | $7,193 | $6,677 | | Total operating expenses | $2,710 | $2,579 | $5,939 | $5,549 | | Operating income | $577 | $449 | $1,254 | $1,128 | | Net income | $444 | $302 | $927 | $790 | | Diluted EPS | $0.75 | $0.54 | $1.59 | $1.42 | - Net income for the three months ended June 30, 2025, increased by **$142 million (47.0%) to $444 million** compared to $302 million in the prior year[18](index=18&type=chunk) - Diluted EPS for the three months ended June 30, 2025, increased by **$0.21 (38.9%) to $0.75** from $0.54 in the prior year[18](index=18&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income (Unaudited) - Key Data (Millions USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $444 | $302 | $927 | $790 | | Total other comprehensive income | $6 | $4 | $2 | $27 | | Total comprehensive income | $450 | $306 | $929 | $817 | - Total comprehensive income for the three months ended June 30, 2025, increased by **$144 million (47.1%) to $450 million**, driven by higher net income and other comprehensive income[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Unaudited) - Key Data (Millions USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $2,109 | $2,240 | | Net cash used in investing activities | $(4,430) | $(3,403) | | Net cash provided by financing activities | $3,596 | $2,632 | | Net change in cash, cash equivalents and restricted cash | $1,275 | $1,469 | - Net cash provided by operating activities decreased by **$131 million**, from $2,240 million in 2024 to $2,109 million in 2025[22](index=22&type=chunk) - Net cash used in investing activities increased by **$1,027 million**, from $3,403 million in 2024 to $4,430 million in 2025, primarily due to increased capital expenditures[22](index=22&type=chunk) - Net cash provided by financing activities increased by **$964 million**, from $2,632 million in 2024 to $3,596 million in 2025, largely due to common stock issuances[22](index=22&type=chunk) [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (Unaudited) - Key Data (Millions USD) | Metric | June 30, 2025 | Dec. 31, 2024 | | :--------------------------------- | :-------------- | :-------------- | | Total current assets | $5,667 | $4,325 | | Property, plant and equipment, net | $60,751 | $57,198 | | Total assets | $75,337 | $70,035 | | Total current liabilities | $5,886 | $6,459 | | Long-term debt | $31,099 | $27,316 | | Total common stockholders' equity | $20,961 | $19,522 | | Total liabilities and equity | $75,337 | $70,035 | - Total assets increased by **$5,302 million (7.6%)** from $70,035 million at Dec 31, 2024, to $75,337 million at June 30, 2025, primarily due to growth in property, plant and equipment[24](index=24&type=chunk) - Total common stockholders' equity increased by **$1,439 million (7.4%) to $20,961 million** at June 30, 2025, from $19,522 million at Dec 31, 2024[24](index=24&type=chunk) [Consolidated Statements of Common Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Common%20Stockholders%27%20Equity) Consolidated Statements of Common Stockholders' Equity (Unaudited) - Key Data (Millions USD, except shares) | Metric | June 30, 2025 | Dec. 31, 2024 | | :--------------------------------- | :-------------- | :-------------- | | Common Stock Shares Outstanding | 591,201,845 | 574,365,598 | | Total Common Stockholders' Equity | $20,961 | $19,522 | | Net income (Six Months) | $927 | $790 | | Dividends declared (Six Months) | $(665) | $(609) | | Issuances of common stock (Six Months) | $1,153 | $113 | - Common stock outstanding increased by **16,836,247 shares** from Dec 31, 2024, to June 30, 2025, primarily due to issuances of common stock totaling **$1,153 million**[27](index=27&type=chunk) - Dividends declared on common stock for the six months ended June 30, 2025, were **$1.14 per share**, totaling **$665 million**[27](index=27&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Summary of Significant Accounting Policies](index=11&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) This note states that the significant accounting policies from the 2024 Annual Report on Form 10-K remain materially representative and are incorporated by reference, also highlighting that interim results are not necessarily indicative of annual results due to seasonality - Significant accounting policies from the 2024 Form 10-K are incorporated by reference[32](index=32&type=chunk) - Interim results are not an appropriate base to project annual results due to the seasonality of electric and natural gas sales[31](index=31&type=chunk) [2. Accounting Pronouncements](index=11&type=section&id=2.%20Accounting%20Pronouncements) This note discusses recently issued accounting pronouncements, including ASU 2023-09 on Income Taxes and ASU 2024-03 on Disaggregation of Income Statement Expenses, with the company expecting no material impact from the income tax ASU but evaluating the impact of the expense disaggregation ASU - ASU 2023-09 (Income Taxes) is effective for annual periods after Dec 15, 2024, and is not expected to have a material impact[33](index=33&type=chunk) - ASU 2024-03 (Disaggregation of Income Statement Expenses) is effective for annual periods after Dec 15, 2026, and its impact is currently being evaluated[37](index=37&type=chunk) [3. Selected Balance Sheet Data](index=11&type=section&id=3.%20Selected%20Balance%20Sheet%20Data) This note provides detailed breakdowns of selected balance sheet accounts, including accounts receivable, inventories, and property, plant and equipment, showing changes from December 31, 2024, to June 30, 2025 Selected Balance Sheet Data (Millions USD) | Account | June 30, 2025 | Dec. 31, 2024 | | :------------------------------- | :-------------- | :-------------- | | Accounts receivable, net | $1,133 | $1,249 | | Total inventories | $668 | $666 | | Property, plant and equipment, net | $60,751 | $57,198 | - Net property, plant and equipment increased by **$3,553 million to $60,751 million** at June 30, 2025, from $57,198 million at Dec 31, 2024, primarily due to an increase in construction work in progress[35](index=35&type=chunk) [4. Borrowings and Other Financing Instruments](index=11&type=section&id=4.%20Borrowings%20and%20Other%20Financing%20Instruments) This note details Xcel Energy's short-term and long-term borrowing activities, including commercial paper, revolving credit facilities, ATM equity offerings, and forward equity agreements, highlighting the increase in credit facility limits and recent debt issuances Short-Term Borrowings (Millions USD, except interest rates) | Metric | Three Months Ended June 30, 2025 | Year Ended Dec. 31, 2024 | | :---------------------------------- | :------------------------------- | :----------------------- | | Borrowing limit | $4,750 | $3,550 | | Amount outstanding at period end | $820 | $695 | | Weighted average interest rate, daily | 4.65% | 5.47% | - In May 2025, Xcel Energy and its utility subsidiaries amended credit agreements, increasing the aggregate borrowing limit to **$4.75 billion**[39](index=39&type=chunk) - During the six months ended June 30, 2025, Xcel Energy issued **$1.15 billion** in net proceeds from common stock under its ATM program, with approximately **$50 million** remaining available[42](index=42&type=chunk) - Xcel Energy Inc purchased **$128 million** of NSP-Minnesota's First Mortgage Bonds for **$81 million**, resulting in a pre-tax gain of approximately **$43 million**[49](index=49&type=chunk) [5. Revenues](index=15&type=section&id=5.%20Revenues) This note provides a detailed breakdown of Xcel Energy's operating revenues by service type (electric, natural gas, other) and customer type (residential, C&I, wholesale, transmission) for the three and six months ended June 30, 2025 and 2024 Operating Revenues by Service Type (Millions USD) | Service Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Electric | $2,878 | $2,659 | $5,713 | $5,344 | | Natural gas | $396 | $355 | $1,451 | $1,296 | | All Other | $13 | $14 | $29 | $37 | | **Total** | **$3,287** | **$3,028** | **$7,193** | **$6,677** | - Total operating revenues increased by **$259 million (8.6%)** for the three months ended June 30, 2025, and by **$516 million (7.7%)** for the six months ended June 30, 2025, compared to the prior year[50](index=50&type=chunk)[51](index=51&type=chunk) [6. Income Taxes](index=15&type=section&id=6.%20Income%20Taxes) This note provides a reconciliation between the federal statutory income tax rate and the effective income tax rate (ETR), highlighting the impact of production tax credits (PTCs) and plant regulatory differences Effective Income Tax Rate Reconciliation | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Federal statutory rate | 21.0% | 21.0% | 21.0% | 21.0% | | State income tax, net of federal tax effect | 4.8% | 5.1% | 4.7% | 4.9% | | PTCs | (33.8)% | (60.3)% | (33.5)% | (36.8)% | | Plant regulatory differences | (6.5)% | (7.0)% | (6.6)% | (6.0)% | | Effective income tax rate | (15.6)% | (41.1)% | (15.0)% | (17.0)% | - The effective income tax rate for the three months ended June 30, 2025, was **(15.6)%**, a significant increase from (41.1)% in the prior year, primarily due to changes in PTCs[52](index=52&type=chunk) - Wind and solar PTCs are generally credited to customers and do not materially impact earnings[52](index=52&type=chunk) [7. Earnings Per Share](index=16&type=section&id=7.%20Earnings%20Per%20Share) This note explains the computation of basic and diluted EPS, including the treatment of common stock equivalents like forward equity agreements and time-based equity compensation awards Common Shares Outstanding for EPS (Millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Basic | 586 | 557 | 580 | 556 | | Diluted | 588 | 557 | 582 | 556 | - Diluted common shares outstanding for the three months ended June 30, 2025, included **2.0 million** common stock equivalents, up from 0.2 million in the prior year[55](index=55&type=chunk) [8. Fair Value of Financial Assets and Liabilities](index=16&type=section&id=8.%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) This note details the fair value measurements of financial assets and liabilities, categorizing them into Level 1, 2, or 3 based on input observability, covering investments in the nuclear decommissioning fund, rabbi trusts, and various derivative instruments, along with their impact on financial statements - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (significant unobservable inputs)[62](index=62&type=chunk) Nuclear Decommissioning Fund Fair Value (Millions USD) - June 30, 2025 | Asset Type | Cost | Level 1 | Level 2 | Level 3 | NAV | Total | | :------------------- | :----- | :------ | :------ | :------ | :---- | :------ | | Cash equivalents | $56 | $56 | $— | $— | $— | $56 | | Commingled funds | $703 | $— | $— | $— | $1,032 | $1,032 | | Debt securities | $879 | $— | $864 | $10 | $— | $874 | | Equity securities | $538 | $1,730 | $2 | $— | $— | $1,732 | | **Total** | **$2,176** | **$1,786** | **$866** | **$10** | **$1,032** | **$3,694** | - Unrealized gains for the nuclear decommissioning fund were **$1.6 billion** at June 30, 2025, up from $1.4 billion at Dec 31, 2024[67](index=67&type=chunk) Derivative Assets and Liabilities (Millions USD) - June 30, 2025 | Type | Level 1 | Level 2 | Level 3 | Fair Value Total | Netting | Total | | :-------------------------- | :------ | :------ | :------ | :--------------- | :------ | :---- | | Current derivative assets | $7 | $23 | $250 | $280 | $(25) | $255 | | Noncurrent derivative assets | $9 | $30 | $37 | $76 | $(16) | $60 | | Current derivative liabilities | $8 | $30 | $8 | $46 | $(25) | $21 | | Noncurrent derivative liabilities | $11 | $28 | $36 | $75 | $(21) | $54 | [9. Benefit Plans and Other Postretirement Benefits](index=24&type=section&id=9.%20Benefit%20Plans%20and%20Other%20Postretirement%20Benefits) This note outlines the components of net periodic benefit cost for pension and postretirement health care benefits, including service cost, interest cost, expected return on plan assets, and amortization of net loss, also mentioning a pension settlement charge in 2024 and 2025 contributions Net Periodic Benefit Cost (Millions USD) - Three Months Ended June 30 | Component | Pension Benefits 2025 | Pension Benefits 2024 | Postretirement Health Care Benefits 2025 | Postretirement Health Care Benefits 2024 | | :--------------------------------- | :-------------------- | :-------------------- | :--------------------------------------- | :--------------------------------------- | | Service cost | $19 | $19 | $— | $1 | | Interest cost | $39 | $38 | $6 | $5 | | Expected return on plan assets | $(52) | $(51) | $(5) | $(5) | | Amortization of net loss | $7 | $8 | $1 | $— | | Settlement charge | $— | $56 | $— | $— | | Net periodic benefit cost | $13 | $69 | $2 | $1 | - A pension settlement charge of **$56 million** was recorded in the second quarter of 2024 due to lump-sum distributions[94](index=94&type=chunk) - Contributions totaling **$125 million** were made to Xcel Energy's pension plans in January 2025, with no additional contributions expected for 2025[94](index=94&type=chunk) [10. Commitments and Contingencies](index=24&type=section&id=10.%20Commitments%20and%20Contingencies) This note details Xcel Energy's legal proceedings, rate matters, environmental liabilities, and lease commitments, covering significant litigation like the Marshall Wildfire and Smokehouse Creek Fire Complex, regulatory reviews, and environmental regulations related to coal ash and air quality - Xcel Energy is involved in various litigation matters, including the Marshall Wildfire and Smokehouse Creek Fire Complex, with potential liabilities that could exceed insurance coverage[95](index=95&type=chunk)[112](index=112&type=chunk)[120](index=120&type=chunk) - For the Smokehouse Creek Fire Complex, Xcel Energy believes it is probable to incur a loss and has recorded **$290 million** of estimated losses (before insurance), an increase from $215 million at Dec 31, 2024[117](index=117&type=chunk) - Environmental liabilities include **$20 million** for MGP, landfill, and disposal sites, and estimated costs of at least **$45 million** for groundwater investigations/corrective actions related to coal ash regulation, plus **$105 million** for coal ash removal[137](index=137&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk) Total Operating Lease Expense (Millions USD) | Period | PPA Capacity Payments | Other Operating Leases | Total Operating Lease Expense | | :------------------------------- | :-------------------- | :--------------------- | :---------------------------- | | Three Months Ended June 30, 2025 | $54 | $10 | $64 | | Three Months Ended June 30, 2024 | $57 | $11 | $68 | | Six Months Ended June 30, 2025 | $111 | $23 | $134 | | Six Months Ended June 30, 2024 | $115 | $22 | $137 | [11. Other Comprehensive Loss](index=35&type=section&id=11.%20Other%20Comprehensive%20Loss) This note details the changes in accumulated other comprehensive loss, net of tax, primarily related to gains and losses on cash flow hedges (interest rate derivatives) and defined benefit pension and postretirement items Changes in Accumulated Other Comprehensive Loss (Millions USD) - Three Months Ended June 30 | Item | 2025 | 2024 | | :------------------------------------------------- | :--- | :--- | | Accumulated other comprehensive loss at April 1 | $(72) | $(71) | | Other comprehensive gain before reclassifications | $5 | $— | | Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives | $1 | $— | | Net current period other comprehensive income | $6 | $4 | | Accumulated other comprehensive loss at June 30 | $(66) | $(67) | - Accumulated other comprehensive loss decreased from **$(72) million** at April 1, 2025, to **$(66) million** at June 30, 2025, due to a net current period other comprehensive income of **$6 million**[161](index=161&type=chunk) [12. Segment Information](index=36&type=section&id=12.%20Segment%20Information) This note provides segment information for Xcel Energy's regulated electric and natural gas utility operations, reconciling segment net income to consolidated net income, and clarifies that asset and capital expenditure information is not provided by segment due to integrated operations Segment Net Income (Millions USD) - Three Months Ended June 30 | Segment | 2025 | 2024 | | :-------------------- | :--- | :--- | | Regulated electric utility | $468 | $353 | | Regulated natural gas utility | $6 | $3 | | Total segment net income | $474 | $356 | | Non-segment net loss | $(30) | $(54) | | Consolidated net income | $444 | $302 | - Regulated electric utility segment net income increased by **$115 million (32.6%)** for the three months ended June 30, 2025, compared to the prior year[162](index=162&type=chunk) - Asset and capital expenditure information is not provided by segment due to the integrated nature of electric and natural gas utility operations, which would require arbitrary allocations[164](index=164&type=chunk) [Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Xcel Energy's financial condition, results of operations, and cash flows, including a discussion of non-GAAP financial measures, detailed analysis of income statement items, regulatory proceedings, environmental regulations, market risks, liquidity, and future earnings guidance [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) - Xcel Energy uses non-GAAP measures like 'ongoing earnings' and 'ongoing diluted EPS' to evaluate core earnings and underlying performance, adjusting GAAP earnings for non-recurring items[171](index=171&type=chunk)[173](index=173&type=chunk) - These non-GAAP measures are used for financial planning, reporting to the Board, performance-based compensation, and communicating earnings outlook to investors[171](index=171&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Summarized Diluted EPS for Xcel Energy (USD) | Subsidiary | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | PSCo | $0.26 | $0.21 | $0.71 | $0.61 | | NSP-Minnesota | $0.32 | $0.24 | $0.64 | $0.61 | | SPS | $0.17 | $0.16 | $0.27 | $0.26 | | NSP-Wisconsin | $0.05 | $0.04 | $0.12 | $0.12 | | Regulated utility total | $0.81 | $0.66 | $1.76 | $1.62 | | GAAP and ongoing diluted EPS | $0.75 | $0.54 | $1.59 | $1.42 | - Xcel Energy's second quarter GAAP and ongoing diluted EPS increased to **$0.75** from $0.54 in 2024, primarily due to increased recovery of infrastructure investments, partially offset by higher O&M, depreciation, and interest charges[176](index=176&type=chunk) Components Significantly Contributing to Changes in 2025 EPS vs. 2024 (USD) | Component of Change | Three Months Ended June 30 | Six Months Ended June 30 | | :------------------------------------ | :------------------------- | :----------------------- | | GAAP and ongoing EPS — 2024 | $0.54 | $1.42 | | Higher electric revenues | $0.29 | $0.49 | | Higher natural gas revenues | $0.05 | $0.21 | | Higher AFUDC equity & debt | $0.07 | $0.10 | | Higher electric fuel and purchased power | $(0.08) | $(0.18) | | Higher O&M expenses | $(0.02) | $(0.13) | | Higher depreciation | $(0.03) | $(0.12) | | Higher interest charges | $(0.04) | $(0.09) | | GAAP and ongoing EPS — 2025 | $0.75 | $1.59 | [Statement of Income Analysis](index=40&type=section&id=Statement%20of%20Income%20Analysis) Estimated Impact of Temperature Changes on EPS vs. Normal Weather (USD) | Metric | Three Months Ended June 30, 2025 vs. Normal | Six Months Ended June 30, 2025 vs. Normal | | :-------------------- | :---------------------------------------- | :-------------------------------------- | | Retail electric | $(0.013) | $(0.007) | | Firm natural gas | $(0.005) | $0.001 | | Total | $(0.017) | $(0.004) | Total Retail Electric Sales Growth (Actual) - Three Months Ended June 30, 2025 vs. 2024 | Subsidiary | Residential | C&I | Total Retail Electric Sales | | :----------- | :---------- | :-- | :-------------------------- | | PSCo | (4.3)% | 1.8% | (0.3)% | | NSP-Minnesota | 6.1% | — | 1.8% | | SPS | (3.7)% | 9.6% | 7.5% | | NSP-Wisconsin | 5.3% | 0.4% | 1.6% | | Xcel Energy | 0.6% | 3.6% | 2.7% | - O&M expenses increased **$94 million** year-to-date, primarily due to increased insurance and benefit costs, higher nuclear generation costs, and the impact of a 2024 gain on land sale[203](index=203&type=chunk) - Interest charges increased **$71 million** year-to-date, largely due to higher debt levels and interest rates[205](index=205&type=chunk) [Public Utility Regulation and Other](index=44&type=section&id=Public%20Utility%20Regulation%20and%20Other) - NSP-Minnesota filed a 2024 electric rate case seeking a **$473 million** revenue increase over two years, with interim rates of **$192 million** approved effective January 1, 2025[211](index=211&type=chunk) - NSP-Wisconsin filed a multi-year electric and natural gas rate increase request for 2026 and 2027, seeking **$151 million** for electric and **$24 million** for natural gas[220](index=220&type=chunk) - PSCo's Colorado Natural Gas Rate Case resulted in an annual revenue increase of approximately **$125 million**, with new rates effective November 2024[225](index=225&type=chunk) - SPS' Texas System Resiliency Plan was approved by the PUCT in July 2025, authorizing approximately **$495 million** of spend over the plan period[251](index=251&type=chunk) [Critical Accounting Policies and Estimates](index=53&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - Preparation of financial statements requires significant judgments and estimates regarding future events, project success, legal/regulatory challenges, and cost recovery, which could materially impact financial results[265](index=265&type=chunk) - Items considered critical are detailed in the Xcel Energy Inc Annual Report on Form 10-K for the year ended Dec 31, 2024[265](index=265&type=chunk) [Environmental Regulation](index=53&type=section&id=Environmental%20Regulation) - The EPA announced various regulatory actions addressing environmental regulations, including power plant greenhouse gas regulations, Effluent Limitation Guidelines, CCR Rule amendments, and the Good Neighbor Plan[266](index=266&type=chunk) - Xcel Energy anticipates minimal financial or operational impact from the CO2 emission rules due to scheduled plant retirements, with costs expected to be recoverable through rates[267](index=267&type=chunk) - Potential costs related to PFAS regulations are uncertain but are expected to be recoverable through rates[272](index=272&type=chunk) [Derivatives, Risk Management and Market Risk](index=54&type=section&id=Derivatives%2C%20Risk%20Management%20and%20Market%20Risk) - Xcel Energy is exposed to commodity price risk, managed through physical purchase/sales contracts and financial derivative instruments within commission-approved hedge plans[278](index=278&type=chunk)[279](index=279&type=chunk) Fair Value of Net Commodity Trading Contracts (Millions USD) - June 30, 2025 | Subsidiary | Futures / Forwards | Options | Total Fair Value | | :----------- | :----------------- | :------ | :--------------- | | NSP Minnesota | $(33) | $16 | $(17) | | PSCo | $7 | $— | $7 | | **Total** | **$(24)** | **$16** | **$(8)** | - A 100-basis point change in the benchmark rate on variable rate debt would impact pretax interest expense annually by approximately **$8 million**[282](index=282&type=chunk) - Fluctuations in equity prices or interest rates affecting the nuclear decommissioning fund do not directly impact earnings due to regulatory accounting[284](index=284&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) Cash Flows (Millions USD) - Six Months Ended June 30 | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $2,109 | $2,240 | $(131) | | Net cash used in investing activities | $(4,430) | $(3,403) | $(1,027) | | Net cash provided by financing activities | $3,596 | $2,632 | $964 | - The decrease in operating cash flows was largely due to the timing of regulatory recovery, including deferred net natural gas, fuel, and purchased energy costs[294](index=294&type=chunk) - The increase in investing cash flows was primarily due to increased capital expenditures for renewable and transmission projects[295](index=295&type=chunk) Committed Credit Facilities Available (Millions USD) - July 28, 2025 | Entity | Credit Facility | Drawn | Available | Cash | Liquidity | | :--------------- | :-------------- | :---- | :-------- | :--- | :-------- | | Xcel Energy Inc. | $2,000 | $980 | $1,020 | $17 | $1,037 | | PSCo | $1,200 | $95 | $1,105 | $17 | $1,122 | | NSP Minnesota | $800 | $12 | $788 | $114 | $902 | | SPS | $600 | $— | $600 | $287 | $887 | | NSP- Wisconsin | $150 | $— | $150 | $152 | $302 | | **Total** | **$4,750** | **$1,087** | **$3,663** | **$587** | **$4,250** | [Off-Balance-Sheet Arrangements](index=59&type=section&id=Off-Balance-Sheet%20Arrangements) - Xcel Energy does not have any off-balance-sheet arrangements, other than those disclosed, that are reasonably likely to have a material effect on its financial condition, results of operations, or cash flows[306](index=306&type=chunk)[310](index=310&type=chunk) [Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives](index=59&type=section&id=Earnings%20Guidance%20and%20Long-Term%20EPS%20and%20Dividend%20Growth%20Rate%20Objectives) - Xcel Energy's 2025 ongoing earnings guidance is a range of **$3.75 to $3.85 per share**[306](index=306&type=chunk) - Long-term objectives include annual EPS growth of **6% to 8%** (based on 2024 mid-point of $3.55 per share) and annual dividend increases of **4% to 6%**, targeting a dividend payout ratio of **50% to 60%**[307](index=307&type=chunk)[309](index=309&type=chunk) - Key assumptions for 2025 guidance include constructive regulatory outcomes, normal weather, ~3% weather-normalized retail electric sales growth, and ~1% weather-normalized retail firm natural gas sales growth[309](index=309&type=chunk) [Item 3 — Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the market risk disclosures previously provided in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to market risk disclosures from the Annual Report on Form 10-K for the year ended Dec 31, 2024[311](index=311&type=chunk) [Item 4 — Controls and Procedures](index=61&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) This section confirms the effectiveness of Xcel Energy's disclosure controls and procedures as of June 30, 2025, based on an evaluation by management, including the CEO and CFO, and states that no material changes occurred in internal control over financial reporting during the quarter - Xcel Energy's disclosure controls and procedures were effective as of June 30, 2025[313](index=313&type=chunk) - No material changes occurred in internal control over financial reporting during the most recent fiscal quarter[314](index=314&type=chunk) [PART II — OTHER INFORMATION](index=61&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1 — Legal Proceedings](index=61&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) This section reiterates that Xcel Energy is involved in various litigation matters in the ordinary course of business, noting that management accrues for probable and estimable losses but may be unable to estimate losses in early stages or for novel legal theories, and no material effect on consolidated financial statements is anticipated for unspecifically reported proceedings - Xcel Energy is involved in various litigation matters, with accruals maintained for probable and estimable losses[315](index=315&type=chunk) - Management may be unable to estimate losses for proceedings in early stages or involving novel legal theories[316](index=316&type=chunk) - No material effect on consolidated financial statements is anticipated for current proceedings not specifically reported[317](index=317&type=chunk) [Item 1A — Risk Factors](index=61&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) This section states that Xcel Energy's risk factors are documented in its Annual Report on Form 10-K for the year ended December 31, 2024, and there have been no material changes to these risk factors - Risk factors are consistent with those disclosed in the Annual Report on Form 10-K for the year ended Dec 31, 2024, with no material changes[318](index=318&type=chunk) [Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that no equity securities registered by Xcel Energy Inc were purchased by or on behalf of the company or its affiliated purchasers during the quarter ended June 30, 2025 - No registered equity securities were purchased by the issuer or affiliated purchasers during the quarter ended June 30, 2025[319](index=319&type=chunk) [Item 5 — Other Information](index=61&type=section&id=Item%205%20%E2%80%94%20Other%20Information) This section confirms that none of the company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the quarter[320](index=320&type=chunk) [Item 6 — Exhibits](index=62&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, supplemental indentures, credit agreements, and certifications, with references to their original filing reports - Exhibits include Amended and Restated Articles of Incorporation and Bylaws, Supplemental Trust Indentures, and Fifth Amended and Restated Credit Agreements for Xcel Energy Inc and its subsidiaries[321](index=321&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer pursuant to the Sarbanes-Oxley Act of 2002 are also included[321](index=321&type=chunk) [SIGNATURES](index=63&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q, confirming its submission on behalf of Xcel Energy Inc by its Senior Vice President, Controller (Principal Accounting Officer) and Executive Vice President, Chief Financial Officer (Principal Financial Officer) - The report is signed by Melissa L Ostrom, Senior Vice President, Controller (Principal Accounting Officer), and Brian J Van Abel, Executive Vice President, Chief Financial Officer (Principal Financial Officer)[324](index=324&type=chunk) - The filing date of the report is July 31, 2025[324](index=324&type=chunk)

Financial Data and Key Metrics Changes - Xcel Energy reported earnings of $0.75 per share for Q2 2025, an increase from $0.54 per share in Q2 2024, driven by higher revenue from electric and natural gas services and increased AFUDC [19][20] - Weather-normalized electric sales increased by 3.5% for the second quarter, with a full-year forecast of 3% growth [20] Business Line Data and Key Metrics Changes - The company invested $2.6 billion in resilient and reliable energy infrastructure during the quarter [6] - The capital plan was updated to include an additional $15 billion in capital investment to meet customer needs, primarily in Texas and New Mexico [10][12] Market Data and Key Metrics Changes - Strong energy demand is noted from the electrification of transportation, manufacturing, and home heating [9] - The company anticipates needing between 15 and 29 gigawatts of new generation capacity by 2031, with significant contributions expected from wind and solar [15] Company Strategy and Development Direction - Xcel Energy is focused on a $45 billion infrastructure investment forecast to meet increased energy demand and strengthen transmission and distribution systems [9] - The company is navigating a rapidly evolving energy policy landscape, with a focus on federal legislation impacting tax credits and permitting [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings guidance for the 21st consecutive year, highlighting a strong track record in the industry [7] - The company is actively working through resource planning processes in Colorado, which may require significant new generation to meet reliability and customer demands [12] Other Important Information - Xcel Energy is making progress in wildfire risk mitigation, with significant investments approved for wildfire mitigation plans in Colorado and Texas [16][17] - The company has a strong balance sheet and credit metrics, maintaining a balanced mix of debt and equity to fund growth [26] Q&A Session Summary Question: CapEx upside and base capital plan - Management discussed the potential conversion of CapEx upside into the base capital plan, emphasizing transparency in the upcoming Q3 update [28][30] Question: Turbine procurement for gas generation - Management confirmed they have 19 turbine reservation slots to support upcoming projects, ensuring readiness for gas generation needs [36][37] Question: Impact of treasury order on renewable projects - Management indicated that they do not foresee significant impacts from the treasury order on their renewable projects, as they have already commenced physical construction [41][42] Question: Growth opportunities and equity needs - Management reiterated their strong balance sheet and commitment to a balanced mix of debt and equity for funding growth, with no interest in minority interest sales [92][93] Question: Marshall trial and settlement opportunities - Management confirmed they are prepared for the trial but remain open to settlement discussions [51][85] Question: Competitive transmission opportunities - Management stated they do not include competitive transmission projects outside their service territory in their capital plan [57][58] Question: Data center contracting progress - Management reported progress in contracting for data centers, with a robust pipeline and plans to reach 2.5 gigawatts by 2030 [60][61]

Financial Data and Key Metrics Changes - Xcel Energy reported earnings of $0.75 per share for Q2 2025, an increase from $0.54 per share in Q2 2024, driven by higher revenue from electric and natural gas services and increased earnings from AFUDC [20][21][25] - Weather-normalized electric sales increased by 3.5% for the second quarter, with a full-year forecast of 3% growth [21] Business Line Data and Key Metrics Changes - The company invested $2.6 billion in energy infrastructure during the quarter, focusing on resilient and reliable energy systems [6][25] - Xcel Energy anticipates needing an additional $15 billion in capital investment to meet customer needs, primarily within the current five-year forecast [9][12] Market Data and Key Metrics Changes - Strong energy demand is noted from the electrification of transportation, manufacturing, and home heating, indicating a growing market for energy services [7][8] - The company is actively working on resource planning in Colorado, which may require between 5 and 14 gigawatts of new generation to meet reliability and customer demands through 2031 [12] Company Strategy and Development Direction - Xcel Energy is in the early stages of an infrastructure investment cycle in the U.S., with a five-year capital plan of $45 billion to address increased energy demand [8][15] - The company is navigating a rapidly evolving energy policy landscape, focusing on federal legislation that impacts tax credits and permitting [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings guidance for the 21st consecutive year, highlighting a strong track record in the industry [7] - The company is committed to reducing risks from wildfires and extreme weather through various mitigation strategies and investments [16][17] Other Important Information - Xcel Energy has made significant progress in wildfire risk reduction, with a $1.9 billion wildfire mitigation plan approved in Colorado [16] - The company is preparing for a trial related to the Marshall fire, maintaining that its equipment did not cause the second ignition [50][84] Q&A Session Summary Question: CapEx upside and base capital plan - Management discussed the potential conversion of CapEx upside into the base capital plan, indicating a conservative approach to regulatory perspectives and transparency in future updates [29][31][32] Question: Turbine procurement position - Management confirmed having 19 turbine reservation slots to support upcoming projects, with a significant portion allocated for the SPS portfolio [36][37] Question: Renewable build-out and treasury order impact - Management reassured that the appetite for renewable build-out remains unchanged despite potential changes in the safe harbor window [40][41] Question: Equity needs and asset sales - Management stated that they are not interested in minority interest sales and view their assets as core, focusing on a balanced mix of debt and equity for funding growth [92][94]

Xcel Energy (XEL) reported $3.29 billion in revenue for the quarter ended June 2025, representing a year-over- year increase of 8.6%. EPS of $0.75 for the same period compares to $0.54 a year ago. The reported revenue represents a surprise of -0.84% over the Zacks Consensus Estimate of $3.31 billion. With the consensus EPS estimate being $0.63, the EPS surprise was +19.05%. View all Key Company Metrics for Xcel here>>> Shares of Xcel have returned +7.2% over the past month versus the Zacks S&P 500 composite ...

Financial Performance - GAAP EPS for Q2 2025 was $0.75, compared to $0.54 in Q2 2024[4] - Year-to-date GAAP EPS for 2025 was $1.59, compared to $1.42 in 2024[4] - The company reaffirmed its 2025 EPS guidance of $3.75 to $3.85[4] - The company's base capital plan is $45 billion, reflecting 9.4% rate base growth[34] Capital Investments and Projects - The company invested $2.6 billion in resilient and reliable energy infrastructure in Q2 2025[4] - Segments 2 and 3 of the Colorado Power Pathway were in-serviced four months ahead of schedule[4] - The company sees a line of sight to over $15 billion of additional capital investment opportunities[4, 34] - A recommended portfolio was filed in SPS for approximately 5,200 MW of generation, with about 4,500 MW company-owned[4, 7] Regulatory and Sales Growth - The company anticipates constructive outcomes in all pending regulatory proceedings, including requests for deferral of incremental insurance costs associated with wildfire risk and recovery of O&M costs associated with wildfire mitigation plans[31] - The company projects an increase of approximately 3% in weighted average retail electric sales[31] - The company projects an increase of approximately 1% in weighted average retail firm natural gas sales[31] Wildfire Risk Mitigation - The Colorado commission approved a settlement for the Colorado Wildfire Mitigation Plan[4, 60] - The Texas commission approved a settlement for the SPS System Resiliency Plan[4, 60] - Constructive wildfire legislation was passed in Texas and North Dakota[4]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Xcel shares have added about 7.2% since the beginning of the year versus the S&P 500's gain of 8.2%. What's Next for Xcel? Xcel Energy (XEL) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.54 per share a year ago. These ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Xcel Energy reported strong second-quarter 2025 GAAP earnings, significantly increasing from the prior year, primarily driven by enhanced recovery of infrastructure investments, despite higher interest, depreciation, and O&M expenses GAAP Earnings Performance (Millions of Dollars) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :------------------- | :------ | :------ | :----------- | | GAAP Earnings | $444 million | $302 million | +$142 million | | GAAP EPS | $0.75 | $0.54 | +$0.21 | - Increased recovery of infrastructure investments was the primary driver for the improved earnings, partially offset by higher interest charges, depreciation, and O&M expenses[2](index=2&type=chunk) [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO Bob Frenzel highlighted the company's commitment to customers, communities, and investors, emphasizing significant progress in infrastructure investments to meet growing electric demand and improve system resiliency, particularly in Texas, New Mexico, and Colorado - Made considerable progress on investments to serve unprecedented growth in electric demand and improve system resiliency and reliability[3](index=3&type=chunk) - Filed recommended portfolio for nearly **5,200 MW** of new generation in Texas and New Mexico, with **4,500 MW** to be company-owned[3](index=3&type=chunk) - Colorado and Texas commissions approved settlements for Wildfire Mitigation and System Resiliency Plans, reducing risk from wildfires and extreme weather[3](index=3&type=chunk) [Conference Call Information](index=1&type=section&id=Conference%20Call%20Information) Xcel Energy hosted a conference call on July 31, 2025, at 9:00 a.m. CDT to discuss financial results, with dial-in and webcast details provided for participation and replay Conference Call Details | Detail | Information | | :----------------- | :---------------- | | US Dial-In | 1 (866) 580-3963 | | International Dial-In | (400) 120-0558 | | Conference ID | 5768023 | | Replay US Dial-In | 1 (866) 583-1035 | | Replay Access Code | 5768023 | - The conference call was broadcast and archived on Xcel Energy's website at www.xcelenergy.com[4](index=4&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The company reported significant increases in diluted GAAP and ongoing earnings per share for both the second quarter and year-to-date periods in 2025 compared to 2024, and reaffirmed its 2025 ongoing EPS guidance Diluted GAAP & Ongoing EPS | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Diluted GAAP & Ongoing EPS | $0.75 | $0.54 | $1.59 | $1.42 | - Xcel Energy reaffirms its **2025 ongoing earnings per share guidance of $3.75 to $3.85**[5](index=5&type=chunk) [Forward-Looking Statements & Contact Information](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Contact%20Information) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines the forward-looking nature of certain statements in the report, subject to various risks and uncertainties that could cause actual results to differ materially from expectations. It also disclaims any obligation to update such information - Forward-looking statements are subject to risks, uncertainties, and assumptions, including those related to **2025 EPS guidance**, long-term growth objectives, future sales, expenses, and regulatory proceedings[6](index=6&type=chunk) - Key factors that could cause actual results to vary materially include operational safety, commodity risks, regulatory changes, economic conditions, availability of capital, cybersecurity threats, and climate change[6](index=6&type=chunk) - The company expressly disclaims any obligation to update any forward-looking information[6](index=6&type=chunk) [Investor Relations Contact](index=2&type=section&id=Investor%20Relations%20Contact) Contact information for Xcel Energy's Vice President of Investor Relations is provided for inquiries Investor Relations Contact Information | Contact | Phone Number | | :---------------------------------- | :----------- | | Roopesh Aggarwal, VP - Investor Relations | (612) 215-4535 | | Xcel Energy General Inquiries | (612) 215-5300 | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income (Unaudited)](index=3&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) The consolidated statements of income show Xcel Energy's financial performance for the three and six months ended June 30, 2025, highlighting significant increases in total operating revenues and net income compared to the same periods in 2024 Consolidated Statements of Income (Millions of Dollars) | Metric (Millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------- | :------ | :------ | :------- | :------- | | Total Operating Revenues | $3,287 | $3,028 | $7,193 | $6,677 | | Total Operating Expenses | $2,710 | $2,579 | $5,939 | $5,549 | | Operating Income | $577 | $449 | $1,254 | $1,128 | | Net Income | $444 | $302 | $927 | $790 | | Diluted EPS | $0.75 | $0.54 | $1.59 | $1.42 | - Electric revenues increased by **$219 million** for Q2 2025 and **$369 million** year-to-date, driven by recovery of higher fuel costs, non-fuel riders, and sales/demand[10](index=10&type=chunk)[30](index=30&type=chunk) - Natural gas revenues increased by **$41 million** for Q2 2025 and **$155 million** year-to-date, primarily due to regulatory rate outcomes and recovery of higher natural gas costs[10](index=10&type=chunk)[31](index=31&type=chunk) [Notes to Investor Relations Earnings Release](index=4&type=section&id=Notes%20to%20Investor%20Relations%20Earnings%20Release) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Xcel Energy's non-GAAP financial measures, including Ongoing ROE, Ongoing Earnings, and Ongoing Diluted EPS, which are used for internal analysis and investor communication, noting that for the reported periods, GAAP earnings equal ongoing earnings - Non-GAAP measures are used for financial planning, reporting to the Board, performance-based compensation, and communicating earnings outlook[12](index=12&type=chunk) - Ongoing ROE is calculated by adjusting net income for certain nonrecurring items and dividing by average stockholder's equity[13](index=13&type=chunk) - Ongoing earnings and diluted EPS adjust GAAP figures for non-recurring items to reflect core earnings and underlying performance[14](index=14&type=chunk)[15](index=15&type=chunk) - For the three and six months ended June 30, 2025 and 2024, there were no adjustments, so **GAAP earnings equal ongoing earnings**[15](index=15&type=chunk) [Note 1. Earnings Per Share Summary](index=5&type=section&id=Note%201.%20Earnings%20Per%20Share%20Summary) Xcel Energy's diluted EPS significantly increased in Q2 and year-to-date 2025, primarily due to increased recovery of infrastructure investments, with detailed contributions from each regulated utility and the holding company - Second quarter GAAP and ongoing diluted earnings were **$0.75 per share in 2025**, up from **$0.54 in 2024**, driven by increased recovery of infrastructure investments[16](index=16&type=chunk) - Year-to-date GAAP and ongoing diluted EPS increased to **$1.59 in 2025** from **$1.42 in 2024**[17](index=17&type=chunk) [Overall EPS Performance](index=5&type=section&id=Overall%20EPS%20Performance) GAAP and Ongoing Diluted EPS | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------ | :------ | :------ | :------- | :------- | | GAAP and ongoing diluted EPS | $0.75 | $0.54 | $1.59 | $1.42 | - The change in EPS was primarily driven by increased recovery of infrastructure investments, partially offset by higher O&M expenses, depreciation, and interest charges[16](index=16&type=chunk) [EPS by Subsidiary](index=5&type=section&id=EPS%20by%20Subsidiary) EPS Contribution by Subsidiary | Subsidiary | Q2 2025 EPS | Q2 2024 EPS | YTD 2025 EPS | YTD 2024 EPS | | :-------------------------- | :---------- | :---------- | :----------- | :----------- | | PSCo | $0.26 | $0.21 | $0.71 | $0.61 | | NSP-Minnesota | $0.32 | $0.24 | $0.64 | $0.61 | | SPS | $0.17 | $0.16 | $0.27 | $0.26 | | NSP-Wisconsin | $0.05 | $0.04 | $0.12 | $0.12 | | Regulated utility total | $0.81 | $0.66 | $1.76 | $1.62 | | Xcel Energy Inc. and Other | $(0.06) | $(0.12) | $(0.17) | $(0.20) | - PSCo's year-to-date EPS increase was driven by higher recovery of electric and natural gas infrastructure investments, partially offset by increased depreciation and interest charges[17](index=17&type=chunk) - NSP-Minnesota's year-to-date EPS increase was due to higher recovery of electric infrastructure investments, partially offset by increased O&M expenses, depreciation, and interest charges[18](index=18&type=chunk) - Xcel Energy Inc. and Other saw an increase in earnings largely due to a gain on debt repurchases, partially offset by the performance of equity method investments and higher debt levels[21](index=21&type=chunk) [Components of EPS Change](index=6&type=section&id=Components%20of%20EPS%20Change) Components of EPS Change (2025 vs. 2024) | Component of Change (2025 vs. 2024) | Q2 Impact on EPS | YTD Impact on EPS | | :---------------------------------- | :--------------- | :---------------- | | Higher electric revenues | $0.29 | $0.49 | | Higher natural gas revenues | $0.05 | $0.21 | | Higher AFUDC equity & debt | $0.07 | $0.10 | | Higher electric fuel and purchased power | $(0.08) | $(0.18) | | Higher O&M expenses | $(0.02) | $(0.13) | | Higher depreciation | $(0.03) | $(0.12) | | Higher interest charges | $(0.04) | $(0.09) | - Cost of electric fuel and purchased power and natural gas sold and transported are generally recovered through regulatory mechanisms and offset in revenue, resulting in minimal earnings impact[23](index=23&type=chunk) [Note 2. Regulated Utility Results](index=6&type=section&id=Note%202.%20Regulated%20Utility%20Results) This section details the impact of weather on regulated earnings, analyzes sales growth across different jurisdictions, and breaks down the drivers of changes in electric and natural gas revenues, operating expenses, and income taxes - Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces sales, affecting financial performance[24](index=24&type=chunk) - Gas decoupling mechanisms and electric sales true-up in Minnesota largely mitigate weather impacts in that jurisdiction[24](index=24&type=chunk) [Estimated Impact of Temperature Changes on Regulated Earnings](index=6&type=section&id=Estimated%20Impact%20of%20Temperature%20Changes%20on%20Regulated%20Earnings) Estimated EPS Impact of Temperature Changes | Metric (EPS Impact) | Q2 2025 vs. Normal | Q2 2024 vs. Normal | YTD 2025 vs. Normal | YTD 2024 vs. Normal | | :-------------------- | :----------------- | :----------------- | :------------------ | :------------------ | | Retail electric | $(0.013) | $0.006 | $(0.007) | $(0.023) | | Electric total | $(0.013) | $0.031 | $(0.007) | $0.018 | | Firm natural gas | $(0.005) | $(0.011) | $0.001 | $(0.038) | | Natural gas total | $(0.004) | $(0.009) | $0.003 | $(0.019) | | Total | $(0.017) | $0.022 | $(0.004) | $(0.001) | - The sales true-up mechanism in NSP-Minnesota expired in 2024 and is proposed to be reestablished in 2026[26](index=26&type=chunk) [Sales Growth (Decline)](index=7&type=section&id=Sales%20Growth%20(Decline)) Q2 Actual Sales Growth (Decline) by Category and Subsidiary | Sales Category (Q2 Actual) | PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | | :-------------------------- | :------ | :------------ | :------ | :------------ | :---------- | | Electric residential | (4.3)% | 6.1% | (3.7)% | 5.3% | 0.6% | | Electric C&I | 1.8% | — | 9.6% | 0.4% | 3.6% | | Total retail electric sales | (0.3)% | 1.8% | 7.5% | 1.6% | 2.7% | | Firm natural gas sales | (2.3)% | 12.4% | N/A | 8.3% | 2.7% | Q2 Weather-Normalized Sales Growth (Decline) by Category and Subsidiary | Sales Category (Q2 Weather-Normalized) | PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | | :------------------------------------- | :------ | :------------ | :------ | :------------ | :---------- | | Electric residential | 1.6% | 1.5% | 7.3% | 1.0% | 2.3% | | Electric C&I | 3.5% | (0.8)% | 10.5% | (0.3)% | 4.0% | | Total retail electric sales | 2.8% | (0.1)% | 9.8% | — | 3.5% | | Firm natural gas sales | (4.8)% | 0.1% | N/A | (1.8)% | (3.1)% | - Weather-normalized and leap-year adjusted year-to-date total retail electric sales growth for Xcel Energy was **2.7%**, and firm natural gas sales declined by **0.4%**[27](index=27&type=chunk) - PSCo residential sales increased due to customer growth (**1.3%**), while C&I sales increased due to higher use per customer and customer growth in information and energy sectors[28](index=28&type=chunk) [Revenue Drivers](index=8&type=section&id=Revenue%20Drivers) Electric Revenues Increase (Millions of Dollars) | Driver | Q2 2025 vs. 2024 | YTD 2025 vs. 2024 | | :------------------------------------------ | :--------------- | :---------------- | | Recovery of higher cost of electric fuel and purchased power | $71 million | $132 million | | Non-fuel riders | $58 million | $116 million | | Sales and demand | $62 million | $54 million | | Regulatory rate outcomes (MN and ND) | $23 million | $52 million | | Estimated impact of weather | $(32) million | $(18) million | | Total increase | $219 million | $369 million | Natural Gas Revenues Increase (Millions of Dollars) | Driver | Q2 2025 vs. 2024 | YTD 2025 vs. 2024 | | :------------------------------------------ | :--------------- | :---------------- | | Regulatory rate outcomes (CO) | $15 million | $72 million | | Recovery of higher cost of natural gas | $18 million | $48 million | | Estimated impact of weather (net of decoupling) | $3 million | $16 million | | Retail sales decline (net of decoupling) | $(6) million | $(10) million | | Total increase | $41 million | $155 million | [Expense Drivers](index=8&type=section&id=Expense%20Drivers) - Electric fuel and purchased power expenses increased by **$63 million** in Q2 2025 and **$135 million** year-to-date, primarily due to higher commodity prices, generally offset by regulatory recovery mechanisms[32](index=32&type=chunk) - Cost of natural gas sold and transported increased by **$16 million** in Q2 2025 and **$46 million** year-to-date, mainly due to higher commodity prices and volumes, also largely offset by regulatory recovery[33](index=33&type=chunk) - O&M expenses increased by **$13 million** in Q2 2025 and **$94 million** year-to-date, driven by increased insurance and benefit costs, higher nuclear generation costs, and the impact of a 2024 land sale gain[34](index=34&type=chunk) - Depreciation and amortization increased by **$19 million** in Q2 2025 and **$89 million** year-to-date, largely due to system investment[34](index=34&type=chunk) - Interest charges increased by **$30 million** in Q2 2025 and **$71 million** year-to-date, primarily due to higher debt levels and interest rates[35](index=35&type=chunk) - AFUDC (Allowance for Funds Used During Construction) increased by **$42 million** in Q2 2025 and **$62 million** year-to-date, largely a result of system investment[36](index=36&type=chunk) [Income Taxes](index=9&type=section&id=Income%20Taxes) Effective Income Tax Rates | Effective Income Tax Rate | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------ | :------ | :------ | :------- | :------- | | Federal statutory rate | 21.0% | 21.0% | 21.0% | 21.0% | | State income tax (net) | 4.8% | 5.1% | 4.7% | 4.9% | | PTCs | (33.8)% | (60.3)% | (33.5)% | (36.8)% | | Plant regulatory differences | (6.5)% | (7.0)% | (6.6)% | (6.0)% | | Effective income tax rate | (15.6)% | (41.1)% | (15.0)% | (17.0)% | - Wind and solar PTCs are generally credited to customers (reduction to revenue) and do not materially impact earnings[37](index=37&type=chunk) - Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers, with associated income tax benefits offset by revenue reductions[37](index=37&type=chunk) [Note 3. Capital Structure, Liquidity, Financing and Credit Ratings](index=9&type=section&id=Note%203.%20Capital%20Structure%2C%20Liquidity%2C%20Financing%20and%20Credit%20Ratings) This section provides an overview of Xcel Energy's capital structure, liquidity position, recent financing activities, and current credit ratings, indicating a stable financial foundation with ongoing capital market access - Access to capital markets at reasonable terms is partially dependent on credit ratings[38](index=38&type=chunk) - Financing plans are subject to change based on capital expenditures, regulatory outcomes, internal cash generation, market conditions, and tax policies[41](index=41&type=chunk) [Capital Structure](index=9&type=section&id=Capital%20Structure) Capital Structure (Millions of Dollars) | (Millions of Dollars) | June 30, 2025 | % of Total Capitalization | Dec. 31, 2024 | % of Total Capitalization | | :-------------------------- | :------------ | :------------------------ | :------------ | :------------------------ | | Current portion of long-term debt | $251 | —% | $1,103 | 2% | | Short-term debt | $820 | 2% | $695 | 2% | | Long-term debt | $31,099 | 59% | $27,316 | 56% | | Total debt | $32,170 | 61% | $29,114 | 60% | | Common equity | $20,961 | 39% | $19,522 | 40% | | Total capitalization | $53,131 | 100% | $48,636 | 100% | [Liquidity](index=9&type=section&id=Liquidity) Liquidity Position (Millions of Dollars) | (Millions of Dollars) | Credit Facility | Drawn | Available | Cash | Liquidity | | :-------------------- | :-------------- | :---- | :-------- | :--- | :-------- | | Xcel Energy Inc. | $2,000 | $980 | $1,020 | $17 | $1,037 | | PSCo | $1,200 | $95 | $1,105 | $17 | $1,122 | | NSP-Minnesota | $800 | $12 | $788 | $114 | $902 | | SPS | $600 | — | $600 | $287 | $887 | | NSP-Wisconsin | $150 | — | $150 | $152 | $302 | | Total | $4,750 | $1,087 | $3,663 | $587 | $4,250 | - As of July 28, 2025, Xcel Energy Inc. and its utility subsidiaries had **$4,250 million** in total liquidity, including **$3,663 million** available from committed credit facilities expiring December 2029[38](index=38&type=chunk) [Credit Ratings](index=9&type=section&id=Credit%20Ratings) Credit Ratings by Company and Type | Company | Credit Type | Moody's Rating (Outlook) | S&P Global Ratings (Outlook) | Fitch Rating (Outlook) | | :---------------- | :---------- | :----------------------- | :--------------------------- | :--------------------- | | Xcel Energy Inc. | Unsecured | Baa1 (Stable) | BBB (Negative) | BBB+ (Negative) | | NSP-Minnesota | Secured | Aa3 (Stable) | A (Negative) | A+ (Stable) | | NSP-Wisconsin | Secured | A1 (Stable) | A (Negative) | A+ (Stable) | | PSCo | Secured | A1 (Stable) | A (Negative) | A+ (Stable) | | SPS | Secured | A3 (Stable) | A- (Negative) | A- (Stable) | - Xcel Energy Inc. has a **P-2 commercial paper rating from Moody's**, **A-2 from S&P**, and **F2 from Fitch**[39](index=39&type=chunk) [2025 Financing Activity](index=10&type=section&id=2025%20Financing%20Activity) 2025 Financing Activity (Millions of Dollars) | Issuer | Security | Amount (Millions) | Status | Tenor | Coupon | | :---------------- | :-------------------- | :---------------- | :-------- | :-------------- | :----- | | Xcel Energy Inc. | Senior Unsecured Notes | $1,100 | Completed | 3 Year & 10 Year | 4.75% & 5.60% | | PSCo | First Mortgage Bonds | $1,000 | Completed | 9 Year & 30 Year | 5.35% & 5.85% | | SPS | First Mortgage Bonds | $500 | Completed | 10 Year | 5.30% | | NSP-Minnesota | First Mortgage Bonds | $1,100 | Completed | 10 Year & 30 Year | 5.05% & 5.65% | | NSP-Wisconsin | First Mortgage Bonds | $250 | Completed | 29 Year | 5.65% | | PSCo | First Mortgage Bonds | $1,000 | Third Quarter | 10 Year & 30 Year | N/A | - Xcel Energy issued approximately **$1.15 billion** of equity through its at-the-market program in the first six months of 2025[40](index=40&type=chunk) - In May 2025, the aggregate borrowing limit for committed credit facilities was increased to **$4.75 billion**[40](index=40&type=chunk) [Note 4. Rates, Regulation and Other](index=10&type=section&id=Note%204.%20Rates%2C%20Regulation%20and%20Other) This section details various regulatory proceedings and rate cases across Xcel Energy's subsidiaries, including electric and natural gas rate increase requests, resource plan approvals, and wildfire mitigation plan settlements, outlining key proposals, schedules, and expected outcomes - NSP-Minnesota filed an electric rate case in Minnesota seeking a total revenue increase of **$473 million** over two years, with interim rates of **$192 million** approved effective January 1, 2025[42](index=42&type=chunk)[43](index=43&type=chunk) - NSP-Wisconsin filed a multi-year electric and natural gas rate increase request in Wisconsin, seeking a total electric revenue increase of **$151 million** and natural gas revenue increase of **$24 million** over 2026-2027[55](index=55&type=chunk)[56](index=56&type=chunk) - PSCo's Wildfire Mitigation Plan, with an estimated cost of **$1.9 billion**, received verbal CPUC approval for a comprehensive settlement, including cost recovery through riders and a plan to securitize **$1.2 billion** of investments[59](index=59&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk) - SPS's Resource Plan (IRP) was accepted by NMPRC, and a portfolio selection report was filed with **3,121 MW** of accredited capacity resources, including company-owned wind, solar, storage, and natural gas[63](index=63&type=chunk)[64](index=64&type=chunk) [NSP-Minnesota Regulatory Updates](index=10&type=section&id=NSP-Minnesota%20Regulatory%20Updates) - NSP-Minnesota's 2024 Electric Rate Case in Minnesota seeks a total revenue increase of **$473 million** (updated from **$491 million**) over two years, with interim rates of **$192 million** approved[42](index=42&type=chunk)[43](index=43&type=chunk) - In South Dakota, NSP-Minnesota requested a net annual electric rate increase of **$44 million (15%)**, based on a **10.3% ROE** and **52.87% equity ratio**, with rates requested to begin Jan. 1, 2026[43](index=43&type=chunk) - For the 2024 North Dakota Electric Rate Case, NSP-Minnesota requested a **$45 million (19.3%)** annual electric rate increase, with interim rates of **$27 million** approved[45](index=45&type=chunk) - Regarding the Prairie Island Outage Prudency Review, NSP-Minnesota estimates no more than **$6 million** in customer refunds are warranted, while intervenors suggest approximately **$34 million**[49](index=49&type=chunk)[50](index=50&type=chunk) - The MPUC approved the 2024 Minnesota Resource Plan Settlement, including the selection of a **420 MW** Lyon County combustion turbine and a **300 MW** Sherco battery energy storage system, along with life extensions for nuclear plants[52](index=52&type=chunk)[54](index=54&type=chunk) [NSP-Wisconsin Regulatory Updates](index=12&type=section&id=NSP-Wisconsin%20Regulatory%20Updates) - NSP-Wisconsin filed a request for a multi-year electric and natural gas rate increase with the PSCW, seeking **$151 million** total electric revenue increase and **$24 million** total natural gas revenue increase over 2026-2027[55](index=55&type=chunk)[56](index=56&type=chunk) - The rate requests are based on forward-looking test years, with a **10.0% ROE** and an equity ratio of **53.5%**[56](index=56&type=chunk) [PSCo Regulatory Updates](index=12&type=section&id=PSCo%20Regulatory%20Updates) - PSCo's 2024 Colorado Electric Resource Plan forecasts a need for **5-14 GW** of new generation capacity through 2031, including renewables and firm dispatchable resources, based on base and low sales growth scenarios[57](index=57&type=chunk)[58](index=58&type=chunk)[61](index=61&type=chunk) - The CPUC verbally approved a comprehensive settlement for PSCo's Updated Wildfire Mitigation Plan, including cost recovery through riders and a plan to pursue securitization of an estimated **$1.2 billion** of investments[60](index=60&type=chunk)[62](index=62&type=chunk) [SPS Regulatory Updates](index=14&type=section&id=SPS%20Regulatory%20Updates) - SPS's Integrated Resource Plan (IRP) was accepted by NMPRC, projecting resource needs of **5,300 MW to 10,200 MW by 2030**[63](index=63&type=chunk) SPS Portfolio Selection Report (Generation Resource Nameplate Capacity in Megawatts) | Resource Type | Company Owned | Power Purchase Agreements | Total | | :------------ | :------------ | :------------------------ | :---- | | Wind Resources | 1,273 | — | 1,273 | | Solar | 695 | — | 695 | | Storage | 472 | 640 | 1,112 | | Natural Gas | 2,088 | — | 2,088 | | Total | 4,528 | 640 | 5,168 | - The PUCT approved SPS's System Resiliency Plan, authorizing approximately **$495 million** of spend over the plan period, including distribution hardening projects[68](index=68&type=chunk) - SPS filed requests with PUCT and NMPRC for deferred accounting treatment for approximately **$30 million** in incremental excess liability insurance expense[69](index=69&type=chunk) [Note 5. Wildfire Litigation](index=14&type=section&id=Note%205.%20Wildfire%20Litigation) This section addresses ongoing wildfire litigation, including the 2024 Smokehouse Creek Fire Complex in Texas and the 2021 Marshall Wildfire in Colorado, detailing the alleged causes, estimated liabilities, and insurance coverage - Potential liabilities related to wildfires depend on factors like equipment failure cause, extent of damages (property, personal injury, livestock), and potential penalties[73](index=73&type=chunk) - Xcel Energy's insurance coverage for wildfire-related damages is approximately **$500 million** for the annual policy period[77](index=77&type=chunk)[90](index=90&type=chunk) [2024 Smokehouse Creek Fire Complex (Texas)](index=14&type=section&id=2024%20Smokehouse%20Creek%20Fire%20Complex%20(Texas)) - The Smokehouse Creek Fire Complex, which burned over **1 million acres**, was determined by the Texas A&M Forest Service to be caused by SPS power lines after wooden poles failed[70](index=70&type=chunk) - Xcel Energy believes it is probable to incur a loss and has recorded **$290 million** in total estimated losses (before available insurance), an increase from **$215 million** as of Dec. 31, 2024[74](index=74&type=chunk) - Settlements reached total **$176 million** of expected loss payments, with **$123 million** paid through June 30, 2025[75](index=75&type=chunk) - Insurance receivables of **$221 million** (net of recoveries) are presented as of June 30, 2025[79](index=79&type=chunk) [Marshall Wildfire Litigation (Colorado)](index=16&type=section&id=Marshall%20Wildfire%20Litigation%20(Colorado)) - The Marshall Fire, which caused over **$2 billion** in property losses, had a second ignition that the Sheriff's Report states was most probably caused by hot particles from PSCo's power lines, though PSCo disputes this[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - **307 complaints** representing at least **4,087 plaintiffs** have been filed, alleging PSCo's equipment ignited the fire and seeking various damages, including exemplary damages[83](index=83&type=chunk) - The Boulder County District Court consolidated lawsuits for pretrial purposes, with a trial date set for **September 2025**, focusing on liability first[84](index=84&type=chunk)[85](index=85&type=chunk) - PSCo and Xcel Energy Services Inc. are unable to estimate the amount or range of possible losses due to uncertainty regarding the fire's cause and potential damages[90](index=90&type=chunk) [Note 6. Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives](index=18&type=section&id=Note%206.%20Earnings%20Guidance%20and%20Long-Term%20EPS%20and%20Dividend%20Growth%20Rate%20Objectives) Xcel Energy reaffirms its 2025 ongoing EPS guidance and outlines long-term objectives for EPS growth, dividend increases, and maintaining credit ratings, based on key assumptions including constructive regulatory outcomes and sales growth - Xcel Energy reaffirms its **2025 ongoing earnings guidance of $3.75 to $3.85 per share**[91](index=91&type=chunk) - Key assumptions for 2025 guidance include constructive outcomes in regulatory proceedings, normal weather patterns, and projected weather-normalized retail electric sales growth of **~3%** and natural gas sales growth of **~1%**[92](index=92&type=chunk) - Long-term objectives include annual EPS growth of **6% to 8%** (based on 2024 mid-point of **$3.55 EPS**), annual dividend increases of **4% to 6%**, and maintaining senior secured debt credit ratings in the **A range**[92](index=92&type=chunk) [Earnings Release Summary](index=19&type=section&id=Earnings%20Release%20Summary) [Consolidated Summary (Unaudited)](index=19&type=section&id=Consolidated%20Summary%20(Unaudited)) This section provides a condensed, unaudited summary of Xcel Energy's key financial results for the three and six months ended June 30, 2025, including operating revenues, net income, diluted EPS, book value per share, and cash dividends Consolidated Financial Summary (Unaudited) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Total operating revenues | $3,287 million | $3,028 million | $7,193 million | $6,677 million | | Net income | $444 million | $302 million | $927 million | $790 million | | Weighted average diluted common shares outstanding | 588 million | 557 million | 582 million | 556 million | | GAAP and ongoing diluted EPS | $0.75 | $0.54 | $1.59 | $1.42 | | Book value per share | $35.67 | $32.24 | $36.00 | $32.27 | | Cash dividends declared per common share | $0.57 | $0.5475 | $1.14 | $1.095 |