Financial Performance - Total operating revenues for Q1 2025 were $3,906 million, an increase of 7.0% compared to $3,649 million in Q1 2024[18] - Net income for Q1 2025 was $483 million, a decrease of 1.0% from $488 million in Q1 2024[21] - Earnings per share (EPS) for Q1 2025 were $0.84, down from $0.88 in Q1 2024, reflecting a decrease of 4.5%[18] - Total operating expenses increased to $3,229 million in Q1 2025, up 8.7% from $2,970 million in Q1 2024[18] - The company reported a total comprehensive income of $479 million for Q1 2025, down from $511 million in Q1 2024[21] - The total segment net income for Xcel Energy was $537 million for the three months ended March 31, 2025, compared to $516 million for the same period in 2024[161] - Xcel Energy's total segment revenues for the three months ended March 31, 2025, were $3,895 million, an increase from $3,628 million in the same period of 2024[161] Cash Flow and Liquidity - Cash provided by operating activities was $1,028 million in Q1 2025, slightly down from $1,050 million in Q1 2024[23] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $1,123 million, up from $501 million at the end of Q1 2024[23] - Cash and cash equivalents significantly increased to $1,123 million from $179 million, showing a growth of over 526%[25] - The average amount of short-term borrowings outstanding was $1,238 million for the three months ended March 31, 2025, compared to $508 million for the same period in 2024[36] - The weighted average interest rate on short-term borrowings decreased to 4.61% from 5.47% year-over-year[36] Capital Expenditures and Investments - Capital expenditures for Q1 2025 were $1,988 million, an increase of 29.4% compared to $1,537 million in Q1 2024[23] - The company anticipates long-term EPS growth and plans to continue investing in capital projects to support future growth[15] - The construction work in progress increased to $5,956 million as of March 31, 2025, compared to $4,720 million at December 31, 2024, indicating ongoing investment in infrastructure[35] Assets and Liabilities - Total assets increased to $72,749 million as of March 31, 2025, up from $70,035 million at December 31, 2024, representing a growth of approximately 3.9%[25] - Current assets rose to $5,368 million, compared to $4,325 million at the end of 2024, marking an increase of about 24.1%[25] - Total liabilities increased to $52,945 million as of March 31, 2025, from $50,513 million at December 31, 2024, reflecting a rise of approximately 4.8%[25] - Long-term debt rose to $29,396 million, up from $27,316 million at the end of 2024, indicating an increase of about 7.6%[25] - Total current liabilities increased to $6,741 million from $6,459 million, marking an increase of approximately 4.4%[25] - Total common stockholders' equity increased to $19,804 million as of March 31, 2025, up from $19,522 million at the end of 2024, reflecting a growth of approximately 1.4%[25] Dividends and Share Issuance - The company declared dividends of $0.57 per share, totaling $328 million for the period[28] - Xcel Energy Inc. issued $1.1 billion in net proceeds from the issuance of 18.3 million shares of common stock in 2024 under its ATM program[42][50] - As of March 31, 2025, Xcel Energy had approximately $1.08 billion remaining available for sale under the ATM program[50] Regulatory and Environmental Costs - The company incurred an estimated cost of at least $45 million for groundwater investigations related to coal ash impacts, with an additional $15 million expected through 2028 for required reporting[143] - Xcel Energy anticipates approximately $100 million in costs for the removal of coal ash from closed coal-generating facilities, with costs expected to be recoverable through regulatory mechanisms[144] - Estimated capital expenditures of approximately $50 million may be required to comply with the CCR Rule, which are also expected to be recoverable[145] Legal and Insurance Matters - The Marshall Fire in December 2021 caused over $2 billion in property losses, with PSCo facing 307 complaints from at least 4,087 plaintiffs alleging negligence and other claims[106][110] - The Boulder County District Court has consolidated lawsuits related to the Marshall Fire, with a trial date set for September 2025[111] - Xcel Energy's insurance coverage for potential damages related to the Marshall Fire is approximately $500 million, which may be exceeded if found liable[116] - Xcel Energy has recorded total estimated losses of $290 million related to the Smokehouse Creek Fire Complex, an increase from a previous estimate of $215 million[123] - Settlements related to the Smokehouse Creek Fire Complex have reached $113 million, with remaining estimated liabilities of $211 million as of March 31, 2025[124]

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

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

Company Performance - Xcel Energy reported quarterly earnings of $0.84 per share, missing the Zacks Consensus Estimate of $0.93 per share, and down from $0.88 per share a year ago, representing an earnings surprise of -9.68% [1] - The company posted revenues of $3.91 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.43%, compared to year-ago revenues of $3.65 billion [2] - Over the last four quarters, Xcel has not surpassed consensus EPS or revenue estimates [2] Stock Outlook - Xcel shares have increased about 6% since the beginning of the year, while the S&P 500 has declined by -8.6% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.61 on $3.3 billion in revenues for the coming quarter and $3.81 on $15.06 billion in revenues for the current fiscal year [7] Industry Context - The Utility - Electric Power industry, to which Xcel belongs, is currently in the top 14% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Xcel's stock performance [5]

Financial Performance - Xcel Energy reported Q1 2025 GAAP earnings of $483 million, or $0.84 per share, compared to $488 million, or $0.88 per share in Q1 2024[2]. - The company reaffirmed its 2025 ongoing EPS guidance of $3.75 to $3.85[5]. - Total operating revenues for Q1 2025 were $3.906 billion, up from $3.649 billion in Q1 2024, driven by higher electric and natural gas revenues[10]. - Operating expenses increased to $3.229 billion in Q1 2025 from $2.970 billion in Q1 2024, primarily due to higher O&M expenses, depreciation, and interest charges[10]. - The increase in ongoing earnings per share was partially offset by higher O&M expenses and depreciation, which impacted earnings negatively by $0.11 and $0.09 respectively[21]. - Net income for the three months ended March 31, 2025, was $483 million, slightly down from $488 million in the same period of 2024[95]. - Weather-normalized retail electric sales are projected to increase by approximately 3% in 2025, while natural gas sales are expected to rise by about 1%[92]. - Book value per share increased to $34.34 as of March 31, 2025, compared to $32.09 in the same period of 2024[95]. - Cash dividends declared per common share increased to $0.57 for the three months ended March 31, 2025, compared to $0.5475 in the same period of 2024[95]. Revenue and Sales - For the three months ended March 31, 2025, total electric revenues increased by $150 million compared to 2024, driven by higher costs of electric fuel and purchased power recovery, non-fuel riders, and regulatory rate outcomes[27]. - Natural gas revenues increased by $114 million for the same period, primarily due to regulatory rate outcomes and recovery of higher natural gas costs[30]. - Electric residential sales growth varied across regions, with NSP-Minnesota showing a 1.2% increase in customer growth and a 0.1% increase in use per customer[28]. - Capital rider revenue is anticipated to increase by $200 million to $210 million, driven by earnings neutral changes including PTC updates[92]. Expenses and Costs - O&M expenses rose by $81 million in Q1 2025, attributed to higher nuclear generation costs and distribution system maintenance[34]. - Depreciation and amortization expenses increased by $70 million in Q1 2025, largely due to system investments and regulatory updates[35]. Regulatory and Rate Cases - NSP-Minnesota filed for a $491 million (13.2%) revenue increase over two years in its 2024 electric rate case, with interim rates approved at $192 million effective January 1, 2025[41]. - NSP-Minnesota updated its total revenue request to $473 million for the 2024 North Dakota Electric Rate Case, seeking a 19.3% increase over current rates[42]. - NSP-Minnesota filed for a natural gas rate increase of approximately $59 million, or 9.6%, based on a rate base of approximately $1.27 billion[43]. - NSP-Wisconsin is seeking a total electric revenue increase of $94 million (11.8%) in 2026 and an incremental $57 million (7.1%) in 2027, totaling $151 million over two years[52]. - The natural gas revenue increase request from NSP-Wisconsin is $20 million (12.7%) in 2026 and an incremental $4 million (1.5%) in 2027, totaling $24 million (14.2%) over the same period[52]. - The MPUC approved interim rates of approximately $27 million for NSP-Minnesota, subject to refund, effective February 1, 2025[42]. Investments and Future Plans - Xcel Energy achieved a milestone with Minnesota regulators approving a resource plan for nearly 5,000 megawatts of new wind, solar, battery storage, and gas by 2030[3]. - The company is actively investing in system resilience and wildfire mitigation plans in Texas and Colorado[3]. - NSP-Minnesota's 2024 Minnesota Resource Plan includes a proposed 800 MW firm dispatchable resource acquisition[49]. - The estimated total cost for PSCo's Updated Wildfire Mitigation Plan is approximately $1.9 billion, covering the years 2025 to 2027[59]. - SPS expects a projected resource need ranging from approximately 5,300 MW to 10,200 MW by 2030, as outlined in its New Mexico Resource Plan[61]. Debt and Liquidity - Xcel Energy's total debt as of March 31, 2025, was $31.2 billion, representing 61% of total capitalization[37]. - The company plans to issue $1.1 billion in senior unsecured notes and $1 billion in first mortgage bonds in 2025 to support financing activities[39]. - As of April 21, 2025, Xcel Energy had $2.993 billion in available liquidity from committed credit facilities[37]. Insurance and Losses - Xcel Energy recorded total estimated losses of $290 million related to the Smokehouse Creek Fire Complex, with settlements totaling $113 million as of the filing date[75]. - The cumulative estimated probable losses related to the Smokehouse Creek Fire Complex are estimated at $290 million, which is at the lower end of the range of reasonably estimable losses[77]. - Xcel Energy's insurance coverage for potential liabilities related to the Smokehouse Creek Fire is approximately $500 million, which may be exceeded if found liable[78]. - Insurance receivables as of March 31, 2025, were recorded at $285 million, net of recoveries received, compared to $210 million as of December 31, 2024[80].

Core Viewpoint - Xcel Energy (XEL) is expected to report its first-quarter 2025 results on April 24, with a prior negative earnings surprise of 6.9% in the last quarter [1] Factors Impacting Q1 Earnings - The company is adding new electric and natural gas customers, which is likely to positively impact performance in the upcoming quarter [2] - Demand from data centers, electric vehicle adoption, and economic growth in the service region are expected to benefit quarterly earnings [3] - Increased operation and maintenance expenses may offset some positive factors, with severe windstorms in Texas and New Mexico potentially negatively impacting earnings [3] Earnings Estimates - The Zacks Consensus Estimate for earnings is 96 cents per share, reflecting a year-over-year increase of 9.09% [4] - The consensus revenue estimate is $3.93 billion, indicating a year-over-year improvement of 7.82% [4] Earnings Prediction Model - The current model does not predict an earnings beat for Xcel Energy, with an Earnings ESP of -2.08% and a Zacks Rank of 4 (Sell) [5][6]

Core Insights - Xcel Energy (XEL) is expected to report quarterly earnings of $0.96 per share, a 9.1% increase year-over-year, with revenues projected at $3.93 billion, reflecting a 7.8% increase compared to the same period last year [1] Earnings Estimates - There has been a downward revision of 5.6% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - The consensus estimate for 'Operating revenues- Electric and natural gas' is $3.91 billion, representing a 7.9% increase from the previous year [5] - 'Operating revenues- Other' is expected to be -$60.80 million, indicating a significant decline of 364.3% year-over-year [5] - 'Operating revenues- Natural Gas' is forecasted to reach $921.31 million, suggesting a slight decrease of 2.1% year-over-year [5] - Analysts predict 'Operating revenues- Electric' will likely be $2.99 billion, reflecting an 11.4% increase year-over-year [6] Market Performance - Xcel shares have returned +1.5% over the past month, contrasting with the Zacks S&P 500 composite's -5.6% change [6] - Xcel holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [6]

Core Viewpoint - Xcel Energy is expected to report a year-over-year increase in earnings and revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Xcel is $0.96 per share, reflecting a +9.1% change year-over-year [3]. - Revenues are anticipated to be $3.93 billion, which is a 7.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.03% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.70% suggests analysts have recently become more optimistic about Xcel's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Xcel currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Xcel was expected to post earnings of $0.87 per share but delivered only $0.81, resulting in a -6.90% surprise [12]. - Over the past four quarters, Xcel has only beaten consensus EPS estimates once [13]. Conclusion - Xcel is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance [16].

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

Core Insights - The article highlights the investment services provided by iREIT® and HOYA Capital, focusing on various income-oriented investment vehicles such as REITs, BDCs, MLPs, and Preferreds [2][3] Group 1: Company Overview - iREIT® offers in-depth research and data on over 250 tickers, including quality scores and buy/trim targets [1] - The investment group led by Brad Thomas and HOYA Capital has a combined experience of over 100 years in the financial industry [2] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in transactions exceeding $1 billion [3] Group 2: Analyst Expertise - The team includes professionals with diverse backgrounds, such as a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President [2] - Brad Thomas is a recognized author and has been featured in major financial media outlets [3]