10-KPeriod: FY2008

XCEL ENERGY INC Annual Report, Year Ended Dec 31, 2008

Filed February 27, 2009For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) reported its 2008 annual performance with a focus on its regulated utility operations across eight states. The company operates through four main utility subsidiaries: NSP-Minnesota, NSP-Wisconsin, PSCo, and SPS, providing both electric and natural gas services. A significant strategic priority for Xcel Energy is environmental leadership, which includes investing in renewable energy, emission reduction programs, and energy efficiency initiatives, positioning the company to navigate future climate change regulations and mandates. Financially, the company is focused on growing its rate base through strategic investments, aiming for a 5-7% annual earnings-per-share growth and 2-4% annual dividend increases. While the company experienced a slight decline in electric residential sales in 2008, attributed partly to economic conditions, its overall electric revenues and margins saw an increase driven by rate adjustments and sales growth. Natural gas revenues also increased due to higher natural gas costs recovered from customers. Capital expenditures are substantial, with significant investments planned in transmission infrastructure, renewable energy projects, and plant upgrades to meet growing customer demand and regulatory requirements.

Financial Highlights

44 data points
Beta

Revenue

$11.20B

Net Income

$641.31M

5.7% Net Margin

EPS (Diluted)

$1.46

Total Assets

$24.96B

Cash & Equivalents

$259.84M

Free Cash Flow

$1.69B

Financial Statements
Beta
Revenue$11.20B
Operating Expenses$9.81B
Operating Income$1.39B
Interest Expense$552.92M
Net Income$641.31M
EPS (Basic)$1.47
EPS (Diluted)$1.46
Shares Outstanding (Basic)437.05M
Shares Outstanding (Diluted)441.81M

Key Highlights

  • 1Xcel Energy operates four major utility subsidiaries (NSP-Minnesota, NSP-Wisconsin, PSCo, SPS) providing electric and natural gas services across eight states.
  • 2Environmental leadership is a core strategic priority, with significant investments in wind energy (largest utility wind energy provider) and other renewable sources.
  • 3The company is focused on growing its rate base, targeting 7% annual growth, and aims for a 5-7% annual EPS growth and 2-4% annual dividend increases.
  • 4Total operating revenues for 2008 reached $11.2 billion, with income from continuing operations at $646 million.
  • 5Significant capital expenditures are planned for 2009-2012, totaling $8.85 billion, primarily in electric utility infrastructure, including transmission and renewable projects.
  • 6The company is subject to extensive federal and state utility regulation, which impacts rates, services, and operational decisions.
  • 7Despite a slight dip in electric residential sales in 2008, the company managed to increase electric revenues and margins through rate increases and growth initiatives.

Frequently Asked Questions

Xcel Energy's primary business segments are regulated electric utility operations and regulated natural gas utility operations, serving customers across Minnesota, Wisconsin, Michigan, North Dakota, South Dakota, Colorado, Texas, and New Mexico. It also has an 'All Other' segment that includes non-regulated activities and holding company operations.

In 2008, Xcel Energy reported income from continuing operations of $646 million, or $1.46 per diluted share, on total operating revenues of $11.2 billion. The company experienced a slight decline in electric residential sales, partly due to economic conditions, but managed to increase electric revenues and margins through rate adjustments and other initiatives.

Xcel Energy's strategy, 'Building the Core,' focuses on environmental leadership, achieving financial objectives, and optimizing its portfolio of operating utilities. Key investments are planned in renewable energy, transmission infrastructure upgrades, and emission reduction projects, with significant capital expenditures anticipated over the next several years to meet growing customer demand and comply with environmental regulations.

Key risks include regulatory changes that could affect cost recovery, commodity price volatility, interest rate fluctuations, credit risks from customers and counterparties, environmental laws and regulations, and the potential impact of climate change policies. The company also faces risks associated with its nuclear operations in Minnesota, economic conditions, and the long-term planning of its utility operations.