Core Insights - Xcel Energy reported $3.29 billion in revenue for the quarter ended June 2025, marking an 8.6% year-over-year increase, with an EPS of $0.75 compared to $0.54 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.31 billion by -0.84%, while the EPS exceeded the consensus estimate of $0.63 by +19.05% [1] Financial Performance Metrics - Operating revenues from Electric and Natural Gas totaled $3.27 billion, compared to the average estimate of $3.31 billion, reflecting an 8.6% year-over-year change [4] - Operating revenues from Other segments were reported at $13 million, significantly better than the average estimate of -$66.98 million, showing a year-over-year decline of -7.1% [4] - Operating revenues from Natural Gas reached $396 million, slightly below the average estimate of $413.79 million, with an 11.6% year-over-year increase [4] - Operating revenues from Electric amounted to $2.88 billion, compared to the average estimate of $2.9 billion, indicating an 8.2% year-over-year increase [4] Stock Performance - Xcel shares have returned +7.2% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

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]

Core Insights - Xcel Energy reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and showing an increase from $0.54 per share a year ago, resulting in an earnings surprise of +19.05% [1] - The company posted revenues of $3.29 billion for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.84%, but an increase from $3.03 billion year-over-year [2] - Xcel has surpassed consensus EPS estimates only once in the last four quarters and has not beaten consensus revenue estimates during the same period [2] Future Outlook - The sustainability of Xcel's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $1.38 on revenues of $3.95 billion, while for the current fiscal year, the estimate is $3.81 on revenues of $14.93 billion [7] - The Zacks Rank for Xcel is currently 3 (Hold), indicating that the shares are expected to perform 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 top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[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 |

Core Viewpoint - Xcel Energy (XEL) is expected to report its second-quarter 2025 results on July 31, following a previous quarter with a negative earnings surprise of 9.7% [1] Factors Impacting Q2 Performance - The residential electric and natural gas bills in Xcel Energy's operating regions are lower than the national average, attracting new customers and positively impacting top-line performance [2] - Increased demand from data centers, the rise of electric vehicles, and regional economic growth are also anticipated to contribute positively to earnings [3] - However, higher operation and maintenance expenses, along with increased depreciation and interest costs, may offset some of these positive factors [3] Q2 Expectations - The Zacks Consensus Estimate for earnings is set at 62 cents per share, reflecting a year-over-year increase of 14.8% [4] - Revenue is projected to reach $3.31 billion, indicating a year-over-year improvement of 9.3% [4] Earnings Prediction - The earnings model predicts a potential earnings beat for Xcel Energy, supported by a positive Earnings ESP of +1.76% and a Zacks Rank of 3 (Hold) [5][6] Other Industry Considerations - Eversource Energy (ES) and IDACORP (IDA) are also expected to report earnings beats, with respective Earnings ESPs of +0.26% and +2.34% [7][10] - Consolidated Edison (ED) is projected to have an Earnings ESP of +3.88% [10]

Core Viewpoint - The market anticipates Xcel Energy (XEL) to report a year-over-year increase in earnings driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Xcel is expected to report quarterly earnings of $0.62 per share, reflecting a year-over-year increase of +14.8% [3]. - Revenue projections stand at $3.31 billion, indicating a 9.3% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.54% higher in the last 30 days, showing a positive reassessment by analysts [4]. - A positive Earnings ESP of +1.76% suggests analysts have become more optimistic about Xcel's earnings prospects [12]. 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 [10]. - Xcel currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Xcel was expected to post earnings of $0.93 per share but only achieved $0.84, resulting in a surprise of -9.68% [13]. - The company has not surpassed consensus EPS estimates in any of the last four quarters [14]. Conclusion - While Xcel is positioned as a potential earnings-beat candidate, other factors may also influence stock performance beyond just earnings results [15][17].

Core Insights - Utility service providers are benefiting from increased electricity tariffs, accretive acquisitions, cost reductions, and energy-efficiency initiatives, alongside efforts to enhance electric infrastructure resilience and transition to renewable energy sources [1][3][19] - The shift to renewable energy is transforming electric utilities in the U.S., positioning leading companies for steady growth and providing investors with low-risk opportunities in the clean energy market [3][19] Company-Specific Insights PPL Corporation - PPL is focusing on infrastructure construction for generation, transmission, and distribution, resulting in fewer outages and increased load growth driven by data center demand, with active requests reaching 50 GW in Pennsylvania and nearly 6 GW in Kentucky for 2026-2034 [5][10] - The company aims to reduce carbon emissions by 70% by 2035 and 80% by 2040 from 2010 levels, with plans to achieve carbon neutrality by 2050 through new carbon capture technology and renewable energy integration [6][10] - PPL's current return on equity (ROE) is 9.14%, below the industry average of 10.41%, and it has a debt-to-capital ratio of 54.73% [13][17] Xcel Energy - Xcel Energy is enhancing its transmission, distribution, and renewable projects, leading to lower residential electric and natural gas bills, which are down 28% and 12% from the national average, respectively [7][10] - The company anticipates a total customer request for data centers of nearly 8.9 GW by 2029 and aims for 5% annual electric sales growth, with about 50% of this growth coming from data centers [7][10] - Xcel Energy's ROE is 10.2%, and it has a higher debt-to-capital ratio of 61.19% compared to the industry average [13][17] Financial Performance and Estimates - The Zacks Consensus Estimate for PPL's earnings per share (EPS) indicates growth of 7.69% for 2025 and 8.06% for 2026, while Xcel Energy's EPS is expected to grow by 8.86% and 8.1% for the same years [9][12] - PPL's dividend yield is 3.01%, while Xcel Energy's is slightly higher at 3.19%, both exceeding the S&P 500 average of 1.18% [16] Strategic Investment Plans - PPL plans a regulated capital investment of $20 billion from 2025 to 2028, with $4.3 billion and $5.2 billion allocated for 2025 and 2026, respectively [14] - Xcel Energy aims to invest $45 billion from 2025 to 2029, with significant allocations for electric distribution, transmission, and renewable energy projects [15] Conclusion - Both PPL and Xcel Energy are strategically investing in infrastructure and renewable energy to meet growing demand, particularly from data centers, with PPL currently viewed as the better investment option due to its favorable debt levels and growth prospects [19][20]

Investment Strategy - A well-diversified portfolio should be constructed with a core foundation of a high-quality low-cost S&P 500 fund [1] - For those who can tolerate short-term risks, an overweight position in the technology sector is recommended, as it is believed to be in the early stages of a long-term secular bull market [1] - Large oil and gas companies that provide strong dividend income and growth are suggested for dividend income, reflecting the author's background in the oil and gas industry [1] Portfolio Management - A top-down capital allocation approach is recommended, tailored to individual investor situations such as age, retirement status, risk tolerance, income, net worth, and goals [1] - Suggested investment categories include S&P 500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash [1]

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

Xcel Energy认为电力需求将使其成为一只成长型股票。（彭博） ...