Xcel Energy(US:XEL)2024-07-31 21:39Financial Performance - Second quarter GAAP and ongoing diluted earnings per share were $0.54 in 2024, up from $0.52 in 2023, reflecting a 3.85% increase[1] - Xcel Energy reported second quarter earnings of $302 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 $3.50 to $3.60 per share[1] - Operating income for the second quarter was $449 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, 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 $0.13 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 $0.01 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-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 $3,028 million, slightly up from $3,022 million in 2023[5] - Electric operating revenues increased to $2,659 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 $20 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 $385 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 $2,604 million in Q2 2023, a reduction of 0.96%[5] - Interest charges increased to $303 million in Q2 2024 from $256 million in Q2 2023, reflecting an 18.38% rise[5] - O&M expenses increased by $34 million for the second quarter but decreased by $11 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 $89 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 $93 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 $253 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 $59 million (9.6%) in November 2023, with an interim rate of $51 million approved[36] - NSP-Minnesota also requested an increase of $8.5 million (9.4%) in North Dakota, with interim rates of $8 million approved[37] - NSP-Minnesota proposed a refund of $126 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 $34 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 $3 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 $4.2 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]