EARNINGS REPORT PRESENTATION 2025 YEAR END February 5, 2026 © 2026 Xcel Energy Inc. 1 SAFE HARBOR Except for the historical statements contained in this presentation, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2026 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated ...

Core Insights - Xcel Energy Inc. (XEL) is a major player in the electricity and natural gas sector, with a market capitalization of $44.9 billion [1] Performance Overview - Over the past year, XEL's stock has gained 13.2%, underperforming the S&P 500 Index, which has increased nearly 14% [2] - In 2026, XEL stock has shown a YTD increase of 3.2%, outperforming the S&P 500's marginal rise [2] - Compared to the Utilities Select Sector SPDR Fund (XLU), which gained about 11% over the past year, XEL's performance is relatively stronger on a YTD basis [3] Financial Results - For Q4, XEL reported revenue of $3.6 billion, reflecting a year-over-year increase of 14.1% [5] - The adjusted EPS for the quarter grew 18.5% year-over-year to $0.96 [5] - Analysts project an 8.9% growth in XEL's EPS for the fiscal year ending December 2025, estimating it to reach $3.81 on a diluted basis [5] - XEL has a mixed earnings surprise history, missing consensus estimates in three of the last four quarters [5] Analyst Ratings - Among 18 analysts covering XEL, the consensus rating is a "Strong Buy," with 14 "Strong Buy" ratings, one "Moderate Buy," and three "Holds" [6] - The analyst sentiment has improved compared to three months ago, with 13 analysts now suggesting a "Strong Buy" [8] - BTIG has maintained a "Buy" rating on XEL, lowering the price target to $94, indicating a potential upside of 23.4% from current levels [8] - The mean price target is $87.94, representing a 15.4% premium to XEL's current price, while the highest price target of $95 suggests an upside potential of 24.7% [8]

Core Viewpoint - American Electric Power Company, Inc. (AEP) is a leading U.S. electric utility with a market cap of $64.1 billion, serving approximately 5.6 million customers through a vast network of generation and distribution assets [1]. Group 1: Stock Performance - AEP shares have outperformed the broader market over the past 52 weeks, rising 22.6%, compared to a 14% increase in the S&P 500 Index [2]. - Year-to-date, AEP shares are up 4.1%, while the S&P 500 has seen only a marginal rise [2]. - AEP has also surpassed the State Street Utilities Select Sector SPDR ETF's (XLU) return of 11% over the same period [3]. Group 2: Financial Performance and Outlook - Despite reporting a weaker-than-expected Q3 2025 adjusted EPS of $1.80, AEP's shares increased by 6.1% following the announcement of a $72 billion five-year capital plan, which includes 28 GW of new customer-backed load and a projected 10% annual rate base growth to $128 billion by 2030 [6]. - AEP has set a long-term operating earnings growth target of 7% - 9% through 2030, with management projecting 2026 operating EPS between $6.15 and $6.45 [6]. - For the fiscal year ending December 2025, analysts expect AEP's adjusted EPS to grow nearly 5% year-over-year to $5.90, with a strong earnings surprise history [7]. Group 3: Analyst Ratings - Among 22 analysts covering AEP, the consensus rating is a "Moderate Buy," consisting of seven "Strong Buy" ratings, one "Moderate Buy," 13 "Holds," and one "Strong Sell" [7]. - Morgan Stanley analyst David Arcaro reaffirmed a "Buy" rating on AEP with a price target of $125 [8].

Core Viewpoint - CMS Energy has raised its current-year profit forecast due to increased power demand driven by residential, commercial, and data center growth [1] Company Summary - CMS Energy is experiencing a surge in power demand, which has led to an upward revision of its profit forecast for the current year [1]

Core Insights - Xcel Energy Inc. reported 2025 GAAP diluted earnings of $2.02 billion, or $3.42 per share, a decrease from $1.94 billion, or $3.44 per share in the same period in 2024 [1] - Ongoing earnings for 2025 were $2.24 billion, or $3.80 per share, compared to $1.97 billion, or $3.50 per share in the same period in 2024, indicating an increase [1] - The change in ongoing earnings reflects increased recovery of infrastructure investments [1] Financial Performance - GAAP diluted earnings for 2025: $2.02 billion, $3.42 per share [1] - GAAP diluted earnings for the same period in 2024: $1.94 billion, $3.44 per share [1] - Ongoing earnings for 2025: $2.24 billion, $3.80 per share [1] - Ongoing earnings for the same period in 2024: $1.97 billion, $3.50 per share [1] Investment Insights - The increase in ongoing earnings is attributed to improved recovery of infrastructure investments [1]

Core Insights - The utility sector has shown strong performance, with the Vanguard Utilities Index Fund ETF increasing by over 11% in the past year, driven by rising power demand related to AI [1] - The early stages of the AI power surge are expected to significantly boost utility growth in the coming years, with NextEra Energy and Dominion Energy identified as top stocks to capitalize on this trend [2] NextEra Energy - NextEra Energy operates the largest electric utility in the U.S. (Florida Power & Light) and is a leader in renewable energy infrastructure [4] - The company reported an adjusted earnings per share growth of over 8% in 2025, supported by Florida's growth and strong renewable energy demand [5] - NextEra Energy added 8.7 gigawatts of new generation and storage projects last year and secured a record 13.5 gigawatts of new projects, increasing its backlog to 30 gigawatts [5][7] - The company anticipates an annual earnings per share growth rate of over 8% through 2035, supporting a planned 10% dividend increase this year and 6% increases in 2027 and 2028 [7] Dominion Energy - Dominion Energy operates electric utilities in Virginia and the Carolinas, heavily investing to meet the growing power demand, particularly in Virginia, which is the largest data center hub globally [8][10] - Power demand in Virginia surged by 30% last year, with Dominion planning to supply up to 47 gigawatts of power to data centers, a 17% increase from the previous year [10] - The company plans to invest $50 billion between 2025 and 2029 to enhance its utility operations, with significant investments in the Coastal Virginia Offshore Wind project, expected to deliver nearly 3 gigawatts of power [11] - Dominion aims for 5% to 7% annual earnings per share growth, alongside maintaining its dividend yield of over 4% during this investment phase, potentially leading to double-digit total annual returns [12] Investment Outlook - Both NextEra Energy and Dominion Energy are positioned to benefit from the anticipated AI power surge, which is expected to drive healthy earnings growth and strong total shareholder returns through dividends [13]

Core Thesis - Portland General Electric Company (POR) is positioned favorably in the market, with a current share price of $50.91 and trailing and forward P/E ratios of 18.51 and 14.93 respectively, indicating potential for growth and investment appeal [1]. Company Overview - Portland General Electric is a regulated electric utility serving over 950,000 customers in Oregon, particularly in the Portland metropolitan area, focusing on reliability, affordability, and the transition to clean energy [2]. Market Position and Demand - The company is at the center of increasing power demand due to rapid growth from data centers and semiconductor manufacturers, while also modernizing the grid through AI, battery storage, and participation in California's Extended Day-Ahead Market [3]. Financial Performance - In Q3 2025, POR reported revenue of $952 million, net income of $313 million, operating income of $327 million, and GAAP EPS of $3.01, reflecting a year-over-year revenue growth of 6.5% and EPS growth of 18.4%. Total load increased by 5.5%, with weather-adjusted load up 7.3%, driven by a 13% quarter-over-quarter rise in industrial demand [4]. Infrastructure Investment - To meet rising demand, POR plans to invest $1.8 billion in transmission infrastructure through 2025 and develop 1 gigawatt of solar and battery projects expected to be operational by the end of 2027, alongside over $1 billion in clean energy tax credits [5]. Dividend and Income Stability - Portland General Electric offers a $2.10 annual dividend with a yield of 4.26% and has a track record of 19 consecutive years of dividend growth, supported by stable earnings and regulatory backing, making it an attractive investment for income stability and growth [6].

Core Viewpoint - PacifiCorp is seeking to reverse court rulings that could lead to $52 billion in potential liabilities related to wildfires, which poses significant financial implications for the Berkshire Hathaway-owned utility [1] Group 1 - PacifiCorp has urged an Oregon appeals court to reconsider previous rulings [1] - The potential liabilities from wildfires amount to $52 billion, indicating a substantial financial risk for the company [1]

Investment Rating - The report indicates a positive outlook for the power industry, emphasizing the continuation of green transformation and market-oriented reforms in 2026 [1]. Core Insights - The power industry is expected to maintain a balance between supply and demand, with a significant increase in renewable energy installations and generation, while coal power transitions to a peak-shaving role [1][4]. - The overall credit status of the industry remains strong, with high-rated state-owned enterprises dominating the bond issuance landscape, reflecting significant financing advantages [1][19]. - The report highlights the need for improved system regulation and consumption capacity to support the accelerated green transition of the power supply structure [3][4]. Supply Capacity Analysis - The total installed power generation capacity in China reached 3,890 million kilowatts by the end of 2025, marking a 16.1% year-on-year increase, with renewable energy being the main driver of this growth [3]. - Wind and solar power installations reached a combined total of 1,840 million kilowatts, with solar power growing by 35.4% and wind power by 22.9% year-on-year [3]. - The transition of coal power to a peak-shaving role is becoming more pronounced, although the system's regulation and consumption capacity require urgent enhancement [3][4]. Demand Matching Capability Analysis - The total electricity consumption in China was 10.37 trillion kilowatt-hours in 2025, reflecting a 5.0% year-on-year growth, although the growth rate has slowed compared to previous years [6]. - The demand for electricity is expected to continue growing steadily in 2026, driven by the third industry and urban residents' electricity consumption [9]. Price Change Analysis - Fuel prices have declined, but installation costs are expected to rise, leading to continued pressure on electricity prices in 2026 [10][16]. - The average on-grid electricity price is anticipated to face downward pressure due to the marketization of electricity pricing and the rising costs of renewable energy installations [10][16]. Policy Direction - The report emphasizes that the focus for 2026 will be on deepening the green transition and improving the unified market system, with policies aimed at promoting efficient consumption of renewable energy [17][18]. - The establishment of a new power system and the construction of a national unified electricity market are highlighted as key areas for policy development [17][18]. Credit Rating Situation Analysis - The bond issuance scale in the power industry reached 1,797.64 billion yuan in 2025, a significant increase of 62.24% year-on-year, with the majority of issuers being high-rated state-owned enterprises [19][20]. - The report notes that the credit ratings of power enterprises remain high, with most issuers rated AAA, reflecting the industry's overall strong credit quality [20][26]. Cycle Development Outlook - The power demand is expected to grow steadily alongside economic recovery and electrification processes, maintaining a balance between supply and demand [28]. - The report anticipates that the electricity pricing mechanism will become more flexible, with potential downward pressure on market transaction prices [28][29].

Core Insights - FirstEnergy Pennsylvania Electric Company (FE PA) has filed a new Default Service Plan (DSP) with the Pennsylvania Public Utility Commission (PaPUC) aimed at enhancing customer protections and simplifying energy choices [1][2] Group 1: Default Service Plan Overview - The DSP outlines how FE PA will procure electricity starting June 1, 2027, for customers who do not select an alternative supplier, emphasizing the importance of electricity generation supply, which constitutes approximately 60% of a typical customer's bill in Pennsylvania [2] - FE PA, operating under various local names, serves over two million customers in Pennsylvania [3] Group 2: Customer Protections and Pricing Mechanism - The plan introduces new safeguards to prevent customers from overpaying for electricity, addressing the challenges posed by rising household costs [4] - FE PA will continue to utilize a competitive auction process to purchase electricity at the lowest cost for customers, with large industrial customers paying an hourly market-based price if they do not choose an alternate supplier [5] Group 3: Auction Process and Timing - FE PA plans to engage CRA International, Inc. to manage the auction process, with auctions scheduled for January, April, and November in 2027, and in January and November from 2028 to 2031 [6] Group 4: Time-of-Use Program Adjustments - The proposed plan includes adjustments to the Time-of-Use program, shortening peak hours from 2-9 p.m. to 3-7 p.m. to help customers save by shifting energy use to off-peak hours [7] Group 5: Supplier Guidelines and Customer Options - New guidelines for suppliers will encourage competitive pricing below the utility's standard rate, providing customers with more opportunities to save, while also limiting the amount automatically paid to suppliers each billing cycle [10] - Residential customers will revert to FE PA's standard default service upon the expiration of fixed-term supply contracts unless they opt to continue with their current supplier [10]