Xcel Energy(XEL) - 2024 Q4 - Annual Results

Financial Performance - Xcel Energy reported 2024 GAAP earnings of $1.94 billion, or $3.44 per share, compared to $1.77 billion, or $3.21 per share in 2023, representing a 13.0% increase in earnings per share[2][6]. - Ongoing earnings for 2024 were $1.97 billion, or $3.50 per share, up from $1.85 billion, or $3.35 per share in 2023, reflecting a 4.5% increase in ongoing earnings per share[2][6]. - For the twelve months ended December 31, 2024, Xcel Energy reported GAAP net income of $1,936 million, an increase from $1,771 million in 2023[90]. - Net income for the twelve months ended December 31, 2024, was $1,936 million, compared to $1,771 million in 2023, reflecting a year-over-year increase of 9.3%[97]. - The ongoing diluted EPS for the twelve months ended December 31, 2024, was $3.50, up from $3.35 in 2023, indicating a growth of 4.5%[97]. Revenue and Expenses - Total operating revenues for 2024 were $13.441 billion, a decrease from $14.206 billion in 2023, reflecting a 5.4% decline[11]. - Operating income for 2024 was $2.386 billion, down from $2.481 billion in 2023, representing a 3.8% decrease[11]. - Xcel Energy's total operating expenses for 2024 were $11.055 billion, down from $11.725 billion in 2023, indicating a 5.7% reduction[11]. - Electric operating revenues for 2024 were $11.147 billion, compared to $11.446 billion in 2023, a decline of 2.6%[11]. - Natural gas operating revenues decreased to $2.230 billion in 2024 from $2.645 billion in 2023, a drop of 15.7%[11]. Future Guidance - Xcel Energy reaffirmed its 2025 EPS guidance of $3.75 to $3.85 per share, indicating a projected growth of 8.9% to 11.9% compared to 2024 ongoing earnings[6]. - Xcel Energy aims for long-term annual EPS growth of 6% to 8% based on a mid-point of $3.55 per share for 2024[95]. - Weather-normalized retail electric sales are expected to increase approximately 3% in 2025, while natural gas sales are projected to rise by about 1%[94]. - Capital rider revenue is projected to increase by $260 million to $270 million in 2025[94]. - O&M expenses are expected to rise by approximately 3% in 2025[94]. Capital Expenditures and Investments - Total base capital expenditures forecast for 2025 through 2029 is $45 billion, with significant investments in electric distribution and renewables[40]. - Xcel Energy plans to fund capital expenditures of $45 billion from 2025 to 2029, with $25.32 billion expected from cash operations and $15.18 billion from new debt[43]. - In 2024, Xcel Energy issued approximately $1.1 billion of equity through its at-the-market program and entered into forward sale agreements for up to 21.1 million shares, expecting cash proceeds of about $1.36 billion[43]. - Xcel Energy's total capital expenditure plan for 2025-2028 is projected at $538 million, with $521 million allocated for capital projects[69]. Rate Increases and Regulatory Matters - NSP-Minnesota filed for a $491 million (13.2%) electric rate increase over two years, based on a return on equity (ROE) of 10.3% and a rate base of $13.2 billion in 2025[45]. - NSP-Minnesota also requested a $45 million (19.3%) electric rate increase in North Dakota, based on a 2025 forecast test year and a rate base of approximately $817 million[46]. - A natural gas rate increase of approximately $59 million (9.6%) was requested by NSP-Minnesota in Minnesota, based on a ROE of 10.2% and a rate base of approximately $1.27 billion[47]. - PSCo filed a request for a $171 million (9.5%) increase in retail natural gas rates, based on a 10.25% ROE and a $4.2 billion year-end rate base[54]. Operational Challenges and Weather Impact - The estimated impact of weather on total EPS was a decrease of $0.036 for the three months ended Dec. 31, 2024, compared to 2023[26]. - Total retail electric sales growth for Xcel Energy was 3.4% for the three months ended Dec. 31, 2024, compared to 2023[26]. - Natural gas revenues were affected by a 1.7% decrease in residential use per customer and a 1.4% decrease in C&I use per customer[27]. - Electric fuel and purchased power expenses decreased by $490 million in 2024, primarily due to lower commodity prices and timing of fuel recovery mechanisms[30]. - Natural gas sold and transported expenses decreased by $505 million in 2024, attributed to lower commodity prices and volumes[31]. Debt and Financing - Xcel Energy's total debt increased to $29.1 billion in 2024, maintaining a 60% debt to total capitalization ratio[37]. - The company expects to fund additional capital investments with approximately 40% equity and 60% debt, with potential incremental expenditures exceeding $10 billion pending approval[41]. Miscellaneous - The company recorded workforce reduction expenses of $72 million in Q4 2023 due to a voluntary retirement program and involuntary severance[93]. - The effective income tax rate for 2024 was significantly impacted by new nuclear PTCs, resulting in benefits of 103.9% for the quarter[36]. - Other income rose by $121 million for the year, primarily from interest earned on cash balances and gains on debt repurchases[34]. - Depreciation and amortization increased by $296 million for the year, mainly due to system expansion[33].