Xcel Energy(US:XEL)2023-07-27 20:01Financial Performance - Total operating revenues for Q2 2023 were $3,022 million, a decrease of 11.7% compared to $3,424 million in Q2 2022[17]. - Net income for Q2 2023 was $288 million, down 12.2% from $328 million in Q2 2022[19]. - Earnings per share (EPS) for Q2 2023 were $0.52, a decrease from $0.60 in Q2 2022[17]. - Comprehensive income for Q2 2023 was $303 million, down from $341 million in Q2 2022[19]. - Net income for the six months ended June 30, 2023, was $706 million, slightly down from $708 million in the same period of 2022[21]. - Xcel Energy's total retail revenue for the six months ended June 30, 2023, was $5,987 million, compared to $5,820 million for the same period in 2022, showing an increase of about 2.9%[46]. - The diluted earnings per share (EPS) for Q2 2023 was $0.52, down from $0.60 in Q2 2022, primarily due to unfavorable weather and increased operational costs[159]. - Year-to-date earnings for PSCo remained flat, while NSP-Minnesota saw an increase of $0.03 per share driven by electric infrastructure investments[160]. Revenue Breakdown - Electric operating revenues decreased to $2,601 million in Q2 2023 from $2,923 million in Q2 2022, a decline of 11%[17]. - Natural gas operating revenues also fell to $393 million in Q2 2023 from $476 million in Q2 2022, a decrease of 17.4%[17]. - Revenue from residential customers for the three months ended June 30, 2023, was $748 million, down from $797 million in the same period of 2022, indicating a decline of about 6.1%[43]. - Natural gas revenues for Q2 2023 were $393 million, a decrease of 17.4% from $476 million in Q2 2022; year-to-date revenues increased to $1,681 million from $1,566 million, a growth of 7.3%[183]. Operating Expenses - Total operating expenses for Q2 2023 were $2,604 million, down 11.9% from $2,955 million in Q2 2022[17]. - O&M expenses increased by $14 million in Q2 2023 and $62 million year-to-date, primarily due to planned generation outages and inflationary pressures[186]. - Depreciation and amortization decreased by $73 million in Q2 2023, largely due to previously deferred depreciation costs related to the Texas Electric Rate Case[187]. - Interest charges increased by $21 million in Q2 2023 and $60 million year-to-date, primarily due to higher interest rates and increased long-term debt levels[190]. Assets and Liabilities - Total assets as of June 30, 2023, were $61,658 million, a slight increase from $61,188 million at the end of 2022[23]. - Long-term debt increased to $24,015 million as of June 30, 2023, compared to $22,813 million at the end of 2022[23]. - The fair value of Xcel Energy's long-term debt was estimated at $21.855 billion, compared to a carrying amount of $25.066 billion[92]. - The total current derivative assets amounted to $348 million as of June 30, 2023, while total current derivative liabilities were $185 million[90]. Cash Flow - Net cash provided by operating activities increased to $2,455 million in 2023 from $1,988 million in 2022, representing a growth of approximately 23.5%[21]. - Cash and cash equivalents rose to $275 million at the end of June 2023, compared to $111 million at the beginning of the period[23]. - The company experienced a net change in cash of $164 million for the six months ended June 30, 2023, compared to a net change of $169 million in the same period of 2022[21]. Capital Expenditures - Capital expenditures for the six months ended June 30, 2023, were $2,599 million, up from $2,040 million in 2022, indicating a 27.5% increase[21]. - Estimated capital expenditures of approximately $50 million may be required to comply with federal Clean Water Act requirements, anticipated to be recoverable through regulatory mechanisms[127]. Regulatory and Legal Matters - Xcel Energy is involved in various litigation matters, including a case related to the Comanche Unit 3, where damages estimated by CORE are $270 million[99]. - The Minnesota Public Utilities Commission (MPUC) is expected to make a final decision regarding NSP-Minnesota's prudence in connection with the Sherco Unit 3 outage in mid-2024, with a potential refund of $58 million to $72 million being discussed[115]. - Xcel Energy disputes claims that its power lines caused the second ignition of the Marshall Fire, as no design or maintenance defects were identified[110]. Market Challenges - The company anticipates continued challenges in the energy market, impacting future revenue and operational performance[14]. - The financial impacts of the EPA's final regulations under the Clean Air Act are uncertain, but Xcel Energy anticipates significant annual costs that would be recoverable through regulatory mechanisms[131]. Miscellaneous - The company recognized net congestion costs, including the impact of financial transmission rights (FTR) settlements, as regulatory assets or liabilities[62]. - Xcel Energy's capacity under long-term power purchase agreements (PPAs) was approximately 4,053 MW as of June 30, 2023, up from 3,961 MW at the end of 2022[139].