Xcel Energy, Inc. (NASDAQ:XEL) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Roopesh Aggarwal - VP, IR Bob Frenzel - Chairman, President & CEO Brian Van Abel - EVP & CFO Conference Call Participants Nicholas Campanella - Barclays Julien Dumoulin-Smith - Jefferies Carly Davenport - Goldman Sachs Durgesh Chopra - Evercore ISI Jeremy Tonet - J.P. Morgan David Arcaro - Morgan Stanley Anthony Crowdell - Mizuho Ryan Levine - Citi Travis Miller - Morningstar Operator Hello, and w ...

Core Insights - Duke Energy and GE Vernova have formed a significant partnership to supply natural gas turbines and associated equipment to address the increasing energy demands from advanced manufacturing and data centers [1][9] - The partnership includes a plan to advance projects for up to 11 7HA gas turbines, complementing eight recently secured turbines, aligning with Duke Energy's integrated resource plans [2][9] - The collaboration is part of a broader strategy to enhance energy reliability and keep customer costs low while preparing for future growth scenarios [2][3] Company Overview - Duke Energy is a major energy holding company serving 8.6 million customers across several states, with a total energy capacity of 55,100 megawatts [5] - The company is actively pursuing an energy transition focused on reliability and value, investing in electric grid upgrades and cleaner energy sources, including natural gas, nuclear, renewables, and energy storage [6] Investment and Expansion - GE Vernova is expanding its Greenville, S.C. facility as part of a nearly $600 million investment in U.S. manufacturing over the next two years, which includes a $300 million investment in its Gas Power business [3] - This expansion aims to replace legacy manufacturing processes with lean manufacturing lines, increasing supplier capacity and creating over 1,500 new jobs [3] Strategic Benefits - The arrangement allows Duke Energy to utilize existing infrastructure, including transmission capabilities, which will significantly reduce costs and expedite the time to market for new energy solutions [4] - GE Vernova's commitment to developing innovative solutions is highlighted as essential for meeting current and future energy demands [4][10]

Group 1 - CMS Energy reported $2.45 billion in revenue for Q1 2025, a year-over-year increase of 12.5% [1] - The EPS for the same period was $1.02, compared to $0.97 a year ago, with a consensus EPS estimate of $1.05, resulting in an EPS surprise of -2.86% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.24 billion by 9.04% [1] Group 2 - Key metrics indicate that CMS Energy's shares returned +0.3% over the past month, while the Zacks S&P 500 composite declined by -5.1% [3] - CMS Energy holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - NorthStar Clean Energy's operating revenue was $99 million, surpassing the three-analyst average estimate of $72.24 million, reflecting a year-over-year change of +25.3% [4] - Consumers Energy (Electric+Gas) reported operating revenue of $2.35 billion, exceeding the three-analyst average estimate of $2.17 billion [4] - The Gas utility segment generated $1.05 billion in operating revenue, above the two-analyst average estimate of $1.01 billion, marking a year-over-year change of +8.7% [4] - The Electric utility segment reported $1.30 billion in operating revenue, compared to the estimated $1.17 billion, representing a +14.8% change year-over-year [4]

NextEra Energy (NEE 1.14%) has been a wealth-creating machine over the decades. The utility company has been growing at an above-average rate for years, powered by Florida's growing economy and its focus on investing in clean energy. Those dual growth drivers have given it the fuel to increase its dividend at a 10% compound annual rate over the past couple of decades. That has helped drive significantly higher total returns compared to the S&P 500 (13% annualized versus 10%). The energy company's growth dri ...

Core Viewpoint - The Zacks Utilities sector is expected to see a 13.2% increase in first-quarter 2025 earnings, driven by new electric, natural gas, and water rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - Four utilities, DTE Energy, American Electric Power, Exelon Corporation, and NiSource Inc., are identified as likely to exceed earnings expectations this reporting cycle due to positive Earnings ESP and favorable Zacks Ranks [2] - The Zacks Consensus Estimate for DTE Energy's first-quarter earnings is $1.91, reflecting a 14.4% increase year-over-year [9] - American Electric Power's first-quarter earnings estimate is $1.75, indicating a 37.8% increase from the previous year [11] - Exelon's first-quarter earnings per share estimate is 75 cents, representing an 8.7% year-over-year increase [13] - NiSource's first-quarter earnings estimate is 88 cents, showing a 3.5% increase from the year-ago figure [15] Group 2: Influencing Factors - Utility providers are benefiting from higher electricity rates, accretive acquisitions, cost reductions, and energy-efficiency programs [3] - The shift to renewable energy sources and improvements in electric infrastructure resilience are also contributing positively [3] - Economic improvements in service territories have increased demand for utility services, boosting revenues [5] - The rise of data centers, particularly those supporting AI, has significantly increased electricity consumption, benefiting utility revenues [5] - Lower capital servicing expenses due to a one percentage point reduction in the Fed's fund rate since September 2024 are expected to enhance margins and profitability for capital-intensive utilities [6] Group 3: Challenges - Severe storms in March 2025 caused power outages in some service regions, potentially leading to higher operating expenses for utilities [7] - DTE Energy's profitability may be impacted by severe storms in southeast Michigan, despite benefiting from rising demand from data centers [8] - American Electric Power also faced negative impacts on earnings due to power outages caused by severe storms in its service areas [10]

Core Viewpoint - NextEra Energy reported a revenue of $6.25 billion for Q1 2025, marking a 9% year-over-year increase, but fell short of the Zacks Consensus Estimate of $7.34 billion by 14.89% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.99, an increase from $0.91 a year ago, exceeding the consensus EPS estimate of $0.97 by 2.06% [1] - Operating Revenues for NextEra Energy Resources (NEER) were $2.16 billion, significantly below the estimated $3.02 billion, but showed a 16% increase year-over-year [4] - Florida Power & Light (FPL) reported operating revenues of $4 billion, slightly below the $4.30 billion estimate, with a year-over-year increase of 4.3% [4] - Operating income for FPL was reported at $1.80 billion, matching the average estimate [4] - NextEra Energy Resources (NEER) reported an operating income of $525 million, which was below the average estimate of $1.32 billion [4] - Corporate & Other segment reported an operating loss of $68 million, worse than the average estimate of a loss of $24.63 million [4] Stock Performance - Over the past month, NextEra shares have returned -2.8%, outperforming the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

GREENVILLE, S.C., April 23, 2025 /PRNewswire/ -- Throughout the month of April, Duke Energy is highlighting the importance of sustainability of our state's natural assets with $375,000 in grants to organizations that manage and provide support to state and local parks, tree planting and advocacy, trail maintenance and litter prevention. Why it matters: By educating ourselves about environmental issues and making small changes, such as reducing plastic use, recycling, conserving energy and planting trees, we ...

Group 1 - Reykjavík Energy (Orkuveita Reykjavíkur; OR) is conducting a bond auction on April 29, 2025, offering three classes of green bonds [1][2][3] - The bond class OR031033 GB has a fixed nominal interest rate of 8.30% with equal semi-annual payments and matures on October 3, 2033, with a previously issued nominal value of ISK 8,145 million [1] - The bond class OR280845 GB carries a fixed interest rate of 3.70%, is redeemable in 2037, and matures on August 28, 2045, with a previously issued nominal value of ISK 7,850 million [2] - The bond class OR180255 GB has a final maturity date of February 18, 2055, with a previously issued nominal value of ISK 38,216 million [3] Group 2 - Bids for the bonds must be submitted by email before UTC 17:00 on April 29, 2025, and transactions will be settled on May 6, 2025 [4] - Fossar Investment Bank hf. is responsible for overseeing the issuance, sale, and admission of the bonds to the Nasdaq sustainable bonds market in Iceland [3]

Group 1 - Sempra's shares fell nearly 20% in a single session after the company reduced its guidance in February [1] - Dominion Energy has reported solid results despite facing a different market reaction compared to Sempra [1] Group 2 - Joseph Jones, a professor with over fifteen years of market study experience, focuses on portfolio construction from a dividend growth investor's perspective [1]

Core Viewpoint - National Grid (NGG) is positioned to benefit from systematic investments aimed at upgrading and expanding its infrastructure, driven by rising demand from new customer connections and its low-risk, high-quality asset profile, making it a strong investment option in the utility sector [1] Group 1: Earnings Growth Projections - The Zacks Consensus Estimate for fiscal 2025 and 2026 earnings per share (EPS) has increased by 0.21% and 0.58%, respectively, over the past 60 days [2] - National Grid's long-term (three to five years) earnings growth rate is projected at 2.34% [3] Group 2: Focus on Clean Energy - The company is committed to enabling the energy transition and aims to achieve net-zero emissions by 2050, collaborating with partners to accelerate the development of a clean energy future [4] - Significant investments have been made in large-scale renewable energy projects, including wind and solar, particularly in the United States [4] Group 3: Demand from New Customers - National Grid is set to benefit from an additional 2.3 gigawatts of demand from new customer connections in its service region, including requests for transmission-scale data center connections [5] Group 4: Solvency - The time-to-interest earned ratio at the end of fiscal 2024 was 2.8, indicating the company's strong ability to meet future interest obligations [6] Group 5: Dividend Yield - National Grid has consistently increased shareholder value through dividends, with a current dividend yield of 2.84%, compared to the S&P 500 Composite's 1.66% [9] Group 6: Systematic Investments - The company plans to invest nearly $69 billion (£60 billion) across its service territory in the UK and the US over the next five years, with almost half allocated to energy system improvements in Massachusetts and New York [10] Group 7: Stock Performance - Over the past six months, NGG's stock has gained 6.5%, contrasting with a 4% decline in the industry [11]