Xcel Energy(XEL) - 2025 Q2 - Quarterly Report

Definitions of Abbreviations Xcel Energy Inc.'s Subsidiaries and Affiliates This section defines abbreviations for Xcel Energy Inc.'s current and former subsidiaries and affiliates, including NSP, NSP-Wisconsin, PSCo, SPS, Utility subsidiaries, WYCO, and Xcel Energy itself - Key subsidiaries and affiliates include Northern States Power Company (NSP-Minnesota and NSP-Wisconsin), Public Service Company of Colorado (PSCo), and Southwestern Public Service Company (SPS)[9] Federal and State Regulatory Agencies This section lists abbreviations for various federal and state regulatory agencies relevant to Xcel Energy's operations, such as CPUC, FERC, EPA, IRS, MPUC, and SEC - Regulatory bodies include the Colorado Public Utilities Commission (CPUC), Federal Energy Regulatory Commission (FERC), and Securities and Exchange Commission (SEC)[10] Other Abbreviations This section provides definitions for other general and industry-specific abbreviations used throughout the report, covering financial, operational, and environmental terms like AFUDC, EPS, GAAP, O&M, and PFAS - Common financial and operational abbreviations include Allowance for funds used during construction (AFUDC), Earnings per share (EPS), and Operating and maintenance (O&M)[11][12] Measurements This section defines standard measurement units used in the report, specifically Gigawatts (GW) and Megawatts (MW) - Key measurement units are Gigawatts (GW) and Megawatts (MW)[13] Forward-Looking Statements Nature of Forward-Looking Statements This section clarifies that the report contains forward-looking statements, identified by specific terminology, which are subject to risks, uncertainties, and assumptions, and actual results may differ materially, with the company disclaiming any obligation to update this information - Forward-looking statements are identified by words such as 'anticipate,' 'believe,' 'expect,' 'intend,' 'plan,' and 'project'[15] - The company disclaims any obligation to update forward-looking information, and actual results may vary materially due to various factors[15] Factors Causing Material Variation Numerous factors could cause actual results to differ materially from expectations, including operational safety, commodity risks, regulatory changes, economic conditions, cybersecurity threats, and climate change impacts - Key risk factors include operational safety, commodity price fluctuations, regulatory changes, general economic conditions (recession, inflation, supply chain), availability/cost of capital, and cybersecurity threats[15] - Other significant factors are seasonal weather patterns, changes in environmental laws, climate change, costs of potential regulatory penalties and wildfire damages, and challenges in attracting/retaining a qualified workforce[15] PART I — FINANCIAL INFORMATION Item 1 — Financial Statements (unaudited) This section presents Xcel Energy Inc.'s unaudited consolidated financial statements for the periods ended June 30, 2025, and 2024, including statements of income, comprehensive income, cash flows, balance sheets, and common stockholders' equity, along with detailed notes explaining significant accounting policies, financial data, and commitments Consolidated Statements of Income Consolidated Statements of Income (Unaudited) - Key Data (Millions USD, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total operating revenues | $3,287 | $3,028 | $7,193 | $6,677 | | Total operating expenses | $2,710 | $2,579 | $5,939 | $5,549 | | Operating income | $577 | $449 | $1,254 | $1,128 | | Net income | $444 | $302 | $927 | $790 | | Diluted EPS | $0.75 | $0.54 | $1.59 | $1.42 | - Net income for the three months ended June 30, 2025, increased by $142 million (47.0%) to $444 million compared to $302 million in the prior year[18] - Diluted EPS for the three months ended June 30, 2025, increased by $0.21 (38.9%) to $0.75 from $0.54 in the prior year[18] Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Unaudited) - Key Data (Millions USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $444 | $302 | $927 | $790 | | Total other comprehensive income | $6 | $4 | $2 | $27 | | Total comprehensive income | $450 | $306 | $929 | $817 | - Total comprehensive income for the three months ended June 30, 2025, increased by $144 million (47.1%) to $450 million, driven by higher net income and other comprehensive income[20] Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (Unaudited) - Key Data (Millions USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $2,109 | $2,240 | | Net cash used in investing activities | $(4,430) | $(3,403) | | Net cash provided by financing activities | $3,596 | $2,632 | | Net change in cash, cash equivalents and restricted cash | $1,275 | $1,469 | - Net cash provided by operating activities decreased by $131 million, from $2,240 million in 2024 to $2,109 million in 2025[22] - Net cash used in investing activities increased by $1,027 million, from $3,403 million in 2024 to $4,430 million in 2025, primarily due to increased capital expenditures[22] - Net cash provided by financing activities increased by $964 million, from $2,632 million in 2024 to $3,596 million in 2025, largely due to common stock issuances[22] Consolidated Balance Sheets Consolidated Balance Sheets (Unaudited) - Key Data (Millions USD) | Metric | June 30, 2025 | Dec. 31, 2024 | | :--------------------------------- | :-------------- | :-------------- | | Total current assets | $5,667 | $4,325 | | Property, plant and equipment, net | $60,751 | $57,198 | | Total assets | $75,337 | $70,035 | | Total current liabilities | $5,886 | $6,459 | | Long-term debt | $31,099 | $27,316 | | Total common stockholders' equity | $20,961 | $19,522 | | Total liabilities and equity | $75,337 | $70,035 | - Total assets increased by $5,302 million (7.6%) from $70,035 million at Dec 31, 2024, to $75,337 million at June 30, 2025, primarily due to growth in property, plant and equipment[24] - Total common stockholders' equity increased by $1,439 million (7.4%) to $20,961 million at June 30, 2025, from $19,522 million at Dec 31, 2024[24] Consolidated Statements of Common Stockholders' Equity Consolidated Statements of Common Stockholders' Equity (Unaudited) - Key Data (Millions USD, except shares) | Metric | June 30, 2025 | Dec. 31, 2024 | | :--------------------------------- | :-------------- | :-------------- | | Common Stock Shares Outstanding | 591,201,845 | 574,365,598 | | Total Common Stockholders' Equity | $20,961 | $19,522 | | Net income (Six Months) | $927 | $790 | | Dividends declared (Six Months) | $(665) | $(609) | | Issuances of common stock (Six Months) | $1,153 | $113 | - Common stock outstanding increased by 16,836,247 shares from Dec 31, 2024, to June 30, 2025, primarily due to issuances of common stock totaling $1,153 million[27] - Dividends declared on common stock for the six months ended June 30, 2025, were $1.14 per share, totaling $665 million[27] Notes to Consolidated Financial Statements 1. Summary of Significant Accounting Policies This note states that the significant accounting policies from the 2024 Annual Report on Form 10-K remain materially representative and are incorporated by reference, also highlighting that interim results are not necessarily indicative of annual results due to seasonality - Significant accounting policies from the 2024 Form 10-K are incorporated by reference[32] - Interim results are not an appropriate base to project annual results due to the seasonality of electric and natural gas sales[31] 2. Accounting Pronouncements This note discusses recently issued accounting pronouncements, including ASU 2023-09 on Income Taxes and ASU 2024-03 on Disaggregation of Income Statement Expenses, with the company expecting no material impact from the income tax ASU but evaluating the impact of the expense disaggregation ASU - ASU 2023-09 (Income Taxes) is effective for annual periods after Dec 15, 2024, and is not expected to have a material impact[33] - ASU 2024-03 (Disaggregation of Income Statement Expenses) is effective for annual periods after Dec 15, 2026, and its impact is currently being evaluated[37] 3. Selected Balance Sheet Data This note provides detailed breakdowns of selected balance sheet accounts, including accounts receivable, inventories, and property, plant and equipment, showing changes from December 31, 2024, to June 30, 2025 Selected Balance Sheet Data (Millions USD) | Account | June 30, 2025 | Dec. 31, 2024 | | :------------------------------- | :-------------- | :-------------- | | Accounts receivable, net | $1,133 | $1,249 | | Total inventories | $668 | $666 | | Property, plant and equipment, net | $60,751 | $57,198 | - Net property, plant and equipment increased by $3,553 million to $60,751 million at June 30, 2025, from $57,198 million at Dec 31, 2024, primarily due to an increase in construction work in progress[35] 4. Borrowings and Other Financing Instruments This note details Xcel Energy's short-term and long-term borrowing activities, including commercial paper, revolving credit facilities, ATM equity offerings, and forward equity agreements, highlighting the increase in credit facility limits and recent debt issuances Short-Term Borrowings (Millions USD, except interest rates) | Metric | Three Months Ended June 30, 2025 | Year Ended Dec. 31, 2024 | | :---------------------------------- | :------------------------------- | :----------------------- | | Borrowing limit | $4,750 | $3,550 | | Amount outstanding at period end | $820 | $695 | | Weighted average interest rate, daily | 4.65% | 5.47% | - In May 2025, Xcel Energy and its utility subsidiaries amended credit agreements, increasing the aggregate borrowing limit to $4.75 billion[39] - During the six months ended June 30, 2025, Xcel Energy issued $1.15 billion in net proceeds from common stock under its ATM program, with approximately $50 million remaining available[42] - Xcel Energy Inc purchased $128 million of NSP-Minnesota's First Mortgage Bonds for $81 million, resulting in a pre-tax gain of approximately $43 million[49] 5. Revenues This note provides a detailed breakdown of Xcel Energy's operating revenues by service type (electric, natural gas, other) and customer type (residential, C&I, wholesale, transmission) for the three and six months ended June 30, 2025 and 2024 Operating Revenues by Service Type (Millions USD) | Service Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Electric | $2,878 | $2,659 | $5,713 | $5,344 | | Natural gas | $396 | $355 | $1,451 | $1,296 | | All Other | $13 | $14 | $29 | $37 | | Total | $3,287 | $3,028 | $7,193 | $6,677 | - Total operating revenues increased by $259 million (8.6%) for the three months ended June 30, 2025, and by $516 million (7.7%) for the six months ended June 30, 2025, compared to the prior year[50][51] 6. Income Taxes This note provides a reconciliation between the federal statutory income tax rate and the effective income tax rate (ETR), highlighting the impact of production tax credits (PTCs) and plant regulatory differences Effective Income Tax Rate Reconciliation | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Federal statutory rate | 21.0% | 21.0% | 21.0% | 21.0% | | State income tax, net of federal tax effect | 4.8% | 5.1% | 4.7% | 4.9% | | PTCs | (33.8)% | (60.3)% | (33.5)% | (36.8)% | | Plant regulatory differences | (6.5)% | (7.0)% | (6.6)% | (6.0)% | | Effective income tax rate | (15.6)% | (41.1)% | (15.0)% | (17.0)% | - The effective income tax rate for the three months ended June 30, 2025, was (15.6)%, a significant increase from (41.1)% in the prior year, primarily due to changes in PTCs[52] - Wind and solar PTCs are generally credited to customers and do not materially impact earnings[52] 7. Earnings Per Share This note explains the computation of basic and diluted EPS, including the treatment of common stock equivalents like forward equity agreements and time-based equity compensation awards Common Shares Outstanding for EPS (Millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Basic | 586 | 557 | 580 | 556 | | Diluted | 588 | 557 | 582 | 556 | - Diluted common shares outstanding for the three months ended June 30, 2025, included 2.0 million common stock equivalents, up from 0.2 million in the prior year[55] 8. Fair Value of Financial Assets and Liabilities This note details the fair value measurements of financial assets and liabilities, categorizing them into Level 1, 2, or 3 based on input observability, covering investments in the nuclear decommissioning fund, rabbi trusts, and various derivative instruments, along with their impact on financial statements - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (significant unobservable inputs)[62] Nuclear Decommissioning Fund Fair Value (Millions USD) - June 30, 2025 | Asset Type | Cost | Level 1 | Level 2 | Level 3 | NAV | Total | | :------------------- | :----- | :------ | :------ | :------ | :---- | :------ | | Cash equivalents | $56 | $56 | $— | $— | $— | $56 | | Commingled funds | $703 | $— | $— | $— | $1,032 | $1,032 | | Debt securities | $879 | $— | $864 | $10 | $— | $874 | | Equity securities | $538 | $1,730 | $2 | $— | $— | $1,732 | | Total | $2,176 | $1,786 | $866 | $10 | $1,032 | $3,694 | - Unrealized gains for the nuclear decommissioning fund were $1.6 billion at June 30, 2025, up from $1.4 billion at Dec 31, 2024[67] Derivative Assets and Liabilities (Millions USD) - June 30, 2025 | Type | Level 1 | Level 2 | Level 3 | Fair Value Total | Netting | Total | | :-------------------------- | :------ | :------ | :------ | :--------------- | :------ | :---- | | Current derivative assets | $7 | $23 | $250 | $280 | $(25) | $255 | | Noncurrent derivative assets | $9 | $30 | $37 | $76 | $(16) | $60 | | Current derivative liabilities | $8 | $30 | $8 | $46 | $(25) | $21 | | Noncurrent derivative liabilities | $11 | $28 | $36 | $75 | $(21) | $54 | 9. Benefit Plans and Other Postretirement Benefits This note outlines the components of net periodic benefit cost for pension and postretirement health care benefits, including service cost, interest cost, expected return on plan assets, and amortization of net loss, also mentioning a pension settlement charge in 2024 and 2025 contributions Net Periodic Benefit Cost (Millions USD) - Three Months Ended June 30 | Component | Pension Benefits 2025 | Pension Benefits 2024 | Postretirement Health Care Benefits 2025 | Postretirement Health Care Benefits 2024 | | :--------------------------------- | :-------------------- | :-------------------- | :--------------------------------------- | :--------------------------------------- | | Service cost | $19 | $19 | $— | $1 | | Interest cost | $39 | $38 | $6 | $5 | | Expected return on plan assets | $(52) | $(51) | $(5) | $(5) | | Amortization of net loss | $7 | $8 | $1 | $— | | Settlement charge | $— | $56 | $— | $— | | Net periodic benefit cost | $13 | $69 | $2 | $1 | - A pension settlement charge of $56 million was recorded in the second quarter of 2024 due to lump-sum distributions[94] - Contributions totaling $125 million were made to Xcel Energy's pension plans in January 2025, with no additional contributions expected for 2025[94] 10. Commitments and Contingencies This note details Xcel Energy's legal proceedings, rate matters, environmental liabilities, and lease commitments, covering significant litigation like the Marshall Wildfire and Smokehouse Creek Fire Complex, regulatory reviews, and environmental regulations related to coal ash and air quality - Xcel Energy is involved in various litigation matters, including the Marshall Wildfire and Smokehouse Creek Fire Complex, with potential liabilities that could exceed insurance coverage[95][112][120] - For the Smokehouse Creek Fire Complex, Xcel Energy believes it is probable to incur a loss and has recorded $290 million of estimated losses (before insurance), an increase from $215 million at Dec 31, 2024[117] - Environmental liabilities include $20 million for MGP, landfill, and disposal sites, and estimated costs of at least $45 million for groundwater investigations/corrective actions related to coal ash regulation, plus $105 million for coal ash removal[137][140][142] Total Operating Lease Expense (Millions USD) | Period | PPA Capacity Payments | Other Operating Leases | Total Operating Lease Expense | | :------------------------------- | :-------------------- | :--------------------- | :---------------------------- | | Three Months Ended June 30, 2025 | $54 | $10 | $64 | | Three Months Ended June 30, 2024 | $57 | $11 | $68 | | Six Months Ended June 30, 2025 | $111 | $23 | $134 | | Six Months Ended June 30, 2024 | $115 | $22 | $137 | 11. Other Comprehensive Loss This note details the changes in accumulated other comprehensive loss, net of tax, primarily related to gains and losses on cash flow hedges (interest rate derivatives) and defined benefit pension and postretirement items Changes in Accumulated Other Comprehensive Loss (Millions USD) - Three Months Ended June 30 | Item | 2025 | 2024 | | :------------------------------------------------- | :--- | :--- | | Accumulated other comprehensive loss at April 1 | $(72) | $(71) | | Other comprehensive gain before reclassifications | $5 | $— | | Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives | $1 | $— | | Net current period other comprehensive income | $6 | $4 | | Accumulated other comprehensive loss at June 30 | $(66) | $(67) | - Accumulated other comprehensive loss decreased from $(72) million at April 1, 2025, to $(66) million at June 30, 2025, due to a net current period other comprehensive income of $6 million[161] 12. Segment Information This note provides segment information for Xcel Energy's regulated electric and natural gas utility operations, reconciling segment net income to consolidated net income, and clarifies that asset and capital expenditure information is not provided by segment due to integrated operations Segment Net Income (Millions USD) - Three Months Ended June 30 | Segment | 2025 | 2024 | | :-------------------- | :--- | :--- | | Regulated electric utility | $468 | $353 | | Regulated natural gas utility | $6 | $3 | | Total segment net income | $474 | $356 | | Non-segment net loss | $(30) | $(54) | | Consolidated net income | $444 | $302 | - Regulated electric utility segment net income increased by $115 million (32.6%) for the three months ended June 30, 2025, compared to the prior year[162] - Asset and capital expenditure information is not provided by segment due to the integrated nature of electric and natural gas utility operations, which would require arbitrary allocations[164] Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on Xcel Energy's financial condition, results of operations, and cash flows, including a discussion of non-GAAP financial measures, detailed analysis of income statement items, regulatory proceedings, environmental regulations, market risks, liquidity, and future earnings guidance Non-GAAP Financial Measures - Xcel Energy uses non-GAAP measures like 'ongoing earnings' and 'ongoing diluted EPS' to evaluate core earnings and underlying performance, adjusting GAAP earnings for non-recurring items[171][173] - These non-GAAP measures are used for financial planning, reporting to the Board, performance-based compensation, and communicating earnings outlook to investors[171] Results of Operations Summarized Diluted EPS for Xcel Energy (USD) | Subsidiary | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | PSCo | $0.26 | $0.21 | $0.71 | $0.61 | | NSP-Minnesota | $0.32 | $0.24 | $0.64 | $0.61 | | SPS | $0.17 | $0.16 | $0.27 | $0.26 | | NSP-Wisconsin | $0.05 | $0.04 | $0.12 | $0.12 | | Regulated utility total | $0.81 | $0.66 | $1.76 | $1.62 | | GAAP and ongoing diluted EPS | $0.75 | $0.54 | $1.59 | $1.42 | - Xcel Energy's second quarter GAAP and ongoing diluted EPS increased to $0.75 from $0.54 in 2024, primarily due to increased recovery of infrastructure investments, partially offset by higher O&M, depreciation, and interest charges[176] Components Significantly Contributing to Changes in 2025 EPS vs. 2024 (USD) | Component of Change | Three Months Ended June 30 | Six Months Ended June 30 | | :------------------------------------ | :------------------------- | :----------------------- | | GAAP and ongoing EPS — 2024 | $0.54 | $1.42 | | Higher electric revenues | $0.29 | $0.49 | | Higher natural gas revenues | $0.05 | $0.21 | | Higher AFUDC equity & debt | $0.07 | $0.10 | | Higher electric fuel and purchased power | $(0.08) | $(0.18) | | Higher O&M expenses | $(0.02) | $(0.13) | | Higher depreciation | $(0.03) | $(0.12) | | Higher interest charges | $(0.04) | $(0.09) | | GAAP and ongoing EPS — 2025 | $0.75 | $1.59 | Statement of Income Analysis Estimated Impact of Temperature Changes on EPS vs. Normal Weather (USD) | Metric | Three Months Ended June 30, 2025 vs. Normal | Six Months Ended June 30, 2025 vs. Normal | | :-------------------- | :---------------------------------------- | :-------------------------------------- | | Retail electric | $(0.013) | $(0.007) | | Firm natural gas | $(0.005) | $0.001 | | Total | $(0.017) | $(0.004) | Total Retail Electric Sales Growth (Actual) - Three Months Ended June 30, 2025 vs. 2024 | Subsidiary | Residential | C&I | Total Retail Electric Sales | | :----------- | :---------- | :-- | :-------------------------- | | PSCo | (4.3)% | 1.8% | (0.3)% | | NSP-Minnesota | 6.1% | — | 1.8% | | SPS | (3.7)% | 9.6% | 7.5% | | NSP-Wisconsin | 5.3% | 0.4% | 1.6% | | Xcel Energy | 0.6% | 3.6% | 2.7% | - O&M expenses increased $94 million year-to-date, primarily due to increased insurance and benefit costs, higher nuclear generation costs, and the impact of a 2024 gain on land sale[203] - Interest charges increased $71 million year-to-date, largely due to higher debt levels and interest rates[205] Public Utility Regulation and Other - NSP-Minnesota filed a 2024 electric rate case seeking a $473 million revenue increase over two years, with interim rates of $192 million approved effective January 1, 2025[211] - NSP-Wisconsin filed a multi-year electric and natural gas rate increase request for 2026 and 2027, seeking $151 million for electric and $24 million for natural gas[220] - PSCo's Colorado Natural Gas Rate Case resulted in an annual revenue increase of approximately $125 million, with new rates effective November 2024[225] - SPS' Texas System Resiliency Plan was approved by the PUCT in July 2025, authorizing approximately $495 million of spend over the plan period[251] Critical Accounting Policies and Estimates - Preparation of financial statements requires significant judgments and estimates regarding future events, project success, legal/regulatory challenges, and cost recovery, which could materially impact financial results[265] - Items considered critical are detailed in the Xcel Energy Inc Annual Report on Form 10-K for the year ended Dec 31, 2024[265] Environmental Regulation - The EPA announced various regulatory actions addressing environmental regulations, including power plant greenhouse gas regulations, Effluent Limitation Guidelines, CCR Rule amendments, and the Good Neighbor Plan[266] - Xcel Energy anticipates minimal financial or operational impact from the CO2 emission rules due to scheduled plant retirements, with costs expected to be recoverable through rates[267] - Potential costs related to PFAS regulations are uncertain but are expected to be recoverable through rates[272] Derivatives, Risk Management and Market Risk - Xcel Energy is exposed to commodity price risk, managed through physical purchase/sales contracts and financial derivative instruments within commission-approved hedge plans[278][279] Fair Value of Net Commodity Trading Contracts (Millions USD) - June 30, 2025 | Subsidiary | Futures / Forwards | Options | Total Fair Value | | :----------- | :----------------- | :------ | :--------------- | | NSP Minnesota | $(33) | $16 | $(17) | | PSCo | $7 | $— | $7 | | Total | $(24) | $16 | $(8) | - A 100-basis point change in the benchmark rate on variable rate debt would impact pretax interest expense annually by approximately $8 million[282] - Fluctuations in equity prices or interest rates affecting the nuclear decommissioning fund do not directly impact earnings due to regulatory accounting[284] Liquidity and Capital Resources Cash Flows (Millions USD) - Six Months Ended June 30 | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $2,109 | $2,240 | $(131) | | Net cash used in investing activities | $(4,430) | $(3,403) | $(1,027) | | Net cash provided by financing activities | $3,596 | $2,632 | $964 | - The decrease in operating cash flows was largely due to the timing of regulatory recovery, including deferred net natural gas, fuel, and purchased energy costs[294] - The increase in investing cash flows was primarily due to increased capital expenditures for renewable and transmission projects[295] Committed Credit Facilities Available (Millions USD) - July 28, 2025 | Entity | Credit Facility | Drawn | Available | Cash | Liquidity | | :--------------- | :-------------- | :---- | :-------- | :--- | :-------- | | Xcel Energy Inc. | $2,000 | $980 | $1,020 | $17 | $1,037 | | PSCo | $1,200 | $95 | $1,105 | $17 | $1,122 | | NSP Minnesota | $800 | $12 | $788 | $114 | $902 | | SPS | $600 | $— | $600 | $287 | $887 | | NSP- Wisconsin | $150 | $— | $150 | $152 | $302 | | Total | $4,750 | $1,087 | $3,663 | $587 | $4,250 | Off-Balance-Sheet Arrangements - Xcel Energy does not have any off-balance-sheet arrangements, other than those disclosed, that are reasonably likely to have a material effect on its financial condition, results of operations, or cash flows[306][310] Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives - Xcel Energy's 2025 ongoing earnings guidance is a range of $3.75 to $3.85 per share[306] - Long-term objectives include annual EPS growth of 6% to 8% (based on 2024 mid-point of $3.55 per share) and annual dividend increases of 4% to 6%, targeting a dividend payout ratio of 50% to 60%[307][309] - Key assumptions for 2025 guidance include constructive regulatory outcomes, normal weather, ~3% weather-normalized retail electric sales growth, and ~1% weather-normalized retail firm natural gas sales growth[309] Item 3 — Quantitative and Qualitative Disclosures About Market Risk This section states that there have been no material changes to the market risk disclosures previously provided in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to market risk disclosures from the Annual Report on Form 10-K for the year ended Dec 31, 2024[311] Item 4 — Controls and Procedures This section confirms the effectiveness of Xcel Energy's disclosure controls and procedures as of June 30, 2025, based on an evaluation by management, including the CEO and CFO, and states that no material changes occurred in internal control over financial reporting during the quarter - Xcel Energy's disclosure controls and procedures were effective as of June 30, 2025[313] - No material changes occurred in internal control over financial reporting during the most recent fiscal quarter[314] PART II — OTHER INFORMATION Item 1 — Legal Proceedings This section reiterates that Xcel Energy is involved in various litigation matters in the ordinary course of business, noting that management accrues for probable and estimable losses but may be unable to estimate losses in early stages or for novel legal theories, and no material effect on consolidated financial statements is anticipated for unspecifically reported proceedings - Xcel Energy is involved in various litigation matters, with accruals maintained for probable and estimable losses[315] - Management may be unable to estimate losses for proceedings in early stages or involving novel legal theories[316] - No material effect on consolidated financial statements is anticipated for current proceedings not specifically reported[317] Item 1A — Risk Factors This section states that Xcel Energy's risk factors are documented in its Annual Report on Form 10-K for the year ended December 31, 2024, and there have been no material changes to these risk factors - Risk factors are consistent with those disclosed in the Annual Report on Form 10-K for the year ended Dec 31, 2024, with no material changes[318] Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds This section reports that no equity securities registered by Xcel Energy Inc were purchased by or on behalf of the company or its affiliated purchasers during the quarter ended June 30, 2025 - No registered equity securities were purchased by the issuer or affiliated purchasers during the quarter ended June 30, 2025[319] Item 5 — Other Information This section confirms that none of the company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the quarter[320] Item 6 — Exhibits This section lists all exhibits filed with the Form 10-Q, including organizational documents, supplemental indentures, credit agreements, and certifications, with references to their original filing reports - Exhibits include Amended and Restated Articles of Incorporation and Bylaws, Supplemental Trust Indentures, and Fifth Amended and Restated Credit Agreements for Xcel Energy Inc and its subsidiaries[321] - Certifications from the Principal Executive Officer and Principal Financial Officer pursuant to the Sarbanes-Oxley Act of 2002 are also included[321] SIGNATURES This section contains the required signatures for the Form 10-Q, confirming its submission on behalf of Xcel Energy Inc by its Senior Vice President, Controller (Principal Accounting Officer) and Executive Vice President, Chief Financial Officer (Principal Financial Officer) - The report is signed by Melissa L Ostrom, Senior Vice President, Controller (Principal Accounting Officer), and Brian J Van Abel, Executive Vice President, Chief Financial Officer (Principal Financial Officer)[324] - The filing date of the report is July 31, 2025[324]