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Xcel Energy(XEL) - 2024 Q2 - Quarterly Results
XELXcel Energy(XEL)2024-07-31 21:39

Financial Performance - Second quarter GAAP and ongoing diluted earnings per share were 0.54in2024,upfrom0.54 in 2024, up from 0.52 in 2023, reflecting a 3.85% increase[1] - Xcel Energy reported second quarter earnings of 302million,comparedto302 million, compared to 288 million in the same period in 2023, representing a 4.86% year-over-year growth[1] - The company reaffirmed its 2024 EPS guidance of 3.50to3.50 to 3.60 per share[1] - Operating income for the second quarter was 449million,comparedto449 million, compared to 418 million in the same period last year, marking a 7.43% increase[5] - Xcel Energy's Q2 2024 GAAP and ongoing diluted earnings per share (EPS) increased to 0.54,upfrom0.54, up from 0.52 in Q2 2023, driven by higher recovery of infrastructure investments and warmer weather[13] - NSP-Minnesota's year-to-date earnings increased by 0.13pershare,primarilyduetoincreasedrecoveryofelectricandnaturalgasinfrastructureinvestments[14]−PSCo′syear−to−dateearningsroseby0.13 per share, primarily due to increased recovery of electric and natural gas infrastructure investments[14] - PSCo's year-to-date earnings rose by 0.05 per share, attributed to increased recovery of electric infrastructure investments[14] - SPS's Q2 earnings increased by 0.01pershare,supportedbyregulatoryrateoutcomesandincreasedsales,despitehigherdepreciation[14]−NSP−Wisconsin′sQ2earningsdecreasedby0.01 per share, supported by regulatory rate outcomes and increased sales, despite higher depreciation[14] - NSP-Wisconsin's Q2 earnings decreased by 0.01 per share, largely due to unfavorable weather and increased depreciation[14] - The estimated impact of temperature variations on EPS for Q2 2024 compared to normal weather conditions was an increase of 0.022[17]−Long−termannualEPSgrowthistargetedat50.022[17] - Long-term annual EPS growth is targeted at 5% to 7%, based on a 2023 actual ongoing earnings base of 3.35 per share[67] Revenue and Sales - Total operating revenues for the second quarter were 3,028million,slightlyupfrom3,028 million, slightly up from 3,022 million in 2023[5] - Electric operating revenues increased to 2,659millioninQ22024from2,659 million in Q2 2024 from 2,601 million in Q2 2023, a growth of 2.23%[5] - Total retail electric sales for Xcel Energy showed a decline of 0.2% year-to-date, with residential sales decreasing by 1.9%[20] - Firm natural gas sales decreased by 10.9% year-to-date across Xcel Energy's operations[20] - Weather-normalized electric residential sales for Xcel Energy declined by 0.9% year-to-date, with variations across different regions[22] - Electric revenues decreased by 20millionyear−to−date,impactedbylowercostsofelectricfuelandpurchasedpower,whichdecreasedby20 million year-to-date, impacted by lower costs of electric fuel and purchased power, which decreased by 344 million[25][24] - Natural gas revenues decreased by 385millionyear−to−date,primarilyduetolowercommoditypricesandvolumes[24]OperatingExpenses−Totaloperatingexpensesdecreasedto385 million year-to-date, primarily due to lower commodity prices and volumes[24] Operating Expenses - Total operating expenses decreased to 2,579 million in Q2 2024 from 2,604millioninQ22023,areductionof0.962,604 million in Q2 2023, a reduction of 0.96%[5] - Interest charges increased to 303 million in Q2 2024 from 256millioninQ22023,reflectingan18.38256 million in Q2 2023, reflecting an 18.38% rise[5] - O&M expenses increased by 34 million for the second quarter but decreased by 11millionyear−to−date,attributedtolowerlaborcostsandalandsalegain[26]−Depreciationandamortizationincreasedby11 million year-to-date, attributed to lower labor costs and a land sale gain[26] - Depreciation and amortization increased by 172 million year-to-date, mainly due to system expansion and recognition of previously deferred costs[26] - Interest charges rose by 89millionyear−to−date,largelyduetoincreaseddebtlevelsandhigherinterestrates[27]CapitalandInvestments−XcelEnergy′stotaldebtincreasedto89 million year-to-date, largely due to increased debt levels and higher interest rates[27] Capital and Investments - Xcel Energy's total debt increased to 29.372 billion, representing 62% of total capitalization as of June 30, 2024[30] - Xcel Energy issued approximately 93millionofequitythroughitsat−the−marketprogramthroughJune2024[34]−Totalcapitalinvestmentsforthewildfiremitigationplanareestimatedat93 million of equity through its at-the-market program through June 2024[34] - Total capital investments for the wildfire mitigation plan are estimated at 1.602 billion, with O&M expenses projected at 253million[46]−TheCPUCapprovedPSCo′sCleanHeatPlanwithabudgetof253 million[46] - The CPUC approved PSCo's Clean Heat Plan with a budget of 441 million through 2027, focusing on electrification and efficiency programs[47] - SPS's initial Integrated Resource Plan (IRP) projected resource needs of approximately 5,300 MW to 10,200 MW by 2030, accepted by the NMPRC in February 2024[48] Regulatory and Rate Changes - NSP-Minnesota filed for a natural gas rate increase of approximately 59million(9.659 million (9.6%) in November 2023, with an interim rate of 51 million approved[36] - NSP-Minnesota also requested an increase of 8.5million(9.48.5 million (9.4%) in North Dakota, with interim rates of 8 million approved[37] - NSP-Minnesota proposed a refund of 126millionforfuelover−recoveriesin2023,witharecommendationfromtheDepartmentofCommercefora126 million for fuel over-recoveries in 2023, with a recommendation from the Department of Commerce for a 20 million refund for replacement power costs[38] - A customer refund of 34millionrelatedtoShercoUnit3outagecostswasrecommendedbytheAdministrativeLawJudge,withafinaldecisionexpectedinlate2024[39]−NSP−Wisconsinfileda2025stay−outproposaltooffset34 million related to Sherco Unit 3 outage costs was recommended by the Administrative Law Judge, with a final decision expected in late 2024[39] - NSP-Wisconsin filed a 2025 stay-out proposal to offset 28 million in electric revenue deficiency and 3millioninnaturalgasrevenuedeficiency,expectingaCommissiondecisionbyyear−end2024[40]−PSCorequestedaretailnaturalgasrateincreaseof3 million in natural gas revenue deficiency, expecting a Commission decision by year-end 2024[40] - PSCo requested a retail natural gas rate increase of 171 million (9.5%) based on a 10.25% ROE and a 4.2billionretailratebase,withaproposedeffectivedateofNovember1,2024[41]WeatherImpact−Thecompanyanticipatescontinuedrecoveryofinfrastructureinvestmentstosupportfutureearningsgrowthdespitechallengesfromhigherdepreciationandinterestcharges[15]−Naturalgassalesgrowthwasdrivenbya1.14.2 billion retail rate base, with a proposed effective date of November 1, 2024[41] Weather Impact - The company anticipates continued recovery of infrastructure investments to support future earnings growth despite challenges from higher depreciation and interest charges[15] - Natural gas sales growth was driven by a 1.1% increase in residential customers and a 0.6% increase in C&I customers year-to-date[23] - Weather-normalized retail electric sales are expected to increase by 1%, while retail firm natural gas sales are projected to remain flat[65] - The Marshall Fire is estimated to have caused over 2 billion in property losses, with PSCo disputing its power lines' involvement in the fire's ignition[56] - SPS has accrued a $215 million estimated loss related to the Smokehouse Creek Fire Complex, reflecting potential liabilities from ongoing litigation[52]