10-KPeriod: FY2009

XCEL ENERGY INC Annual Report, Year Ended Dec 31, 2009

Filed February 26, 2010For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) reported its annual results for the fiscal year ending December 31, 2009. The company, a major utility holding company operating across eight states, demonstrated resilience amidst prevailing economic conditions. While revenues saw a decrease compared to the previous year, primarily due to lower fuel and purchased power costs and milder weather, the company maintained profitability through effective cost management and regulatory mechanisms. XEL's strategic focus on environmental leadership, financial objectives, and portfolio optimization is evident in its investments. Significant capital expenditures were directed towards enhancing renewable energy capacity, upgrading infrastructure, and improving environmental performance across its electric and natural gas utility operations. The company's robust regulatory relationships facilitated cost recovery for these initiatives, supporting its commitment to providing reliable and increasingly cleaner energy services to its customers. Despite challenges such as increasing operating expenses and regulatory uncertainties, Xcel Energy's diversified operations and proactive management position it to navigate the evolving energy landscape.

Financial Highlights

46 data points
Beta

Revenue

$9.64B

Net Income

$676.65M

7.0% Net Margin

EPS (Diluted)

$1.48

Total Assets

$25.31B

Cash & Equivalents

$115.65M

Free Cash Flow

$1.91B

Financial Statements
Beta
Revenue$9.64B
Operating Expenses$8.18B
Operating Income$1.47B
Interest Expense$561.65M
Net Income$676.65M
EPS (Basic)$1.48
EPS (Diluted)$1.48
Shares Outstanding (Basic)456.43M
Shares Outstanding (Diluted)457.14M

Key Highlights

  • 1Xcel Energy operates regulated electric and natural gas utilities across eight states, serving approximately 3.4 million electric and 1.9 million natural gas customers.
  • 2The company is a national leader in wind energy, being the largest retail utility wind energy provider, and is actively investing in renewable energy to meet aggressive Renewable Portfolio Standards (RPS) in its operating states.
  • 3Capital expenditures in 2009 were significant, focusing on investments in electric and natural gas rate bases, environmental initiatives, and infrastructure reliability, with a projected $2.2 billion in capital expenditures for 2010.
  • 4The company is proactively addressing climate change concerns by pursuing emission reduction programs and investing in clean energy technologies, aiming to reduce Greenhouse Gas (GHG) emissions.
  • 5Xcel Energy's financial performance is influenced by regulatory approvals for rate adjustments and cost recovery mechanisms, which are critical for recovering capital investments and operating expenses.
  • 6The company experienced a decrease in operating revenues in 2009 compared to 2008, largely due to lower fuel and purchased power costs, alongside milder weather impacting energy consumption.
  • 7Xcel Energy faces ongoing regulatory, environmental, and market risks, including potential impacts from climate change legislation, interest rate fluctuations, and commodity price volatility, which it manages through various risk mitigation strategies.

Frequently Asked Questions

Xcel Energy is a holding company whose subsidiaries are primarily engaged in the utility business. Its continuing operations in 2009 included four utility subsidiaries (NSP-Minnesota, NSP-Wisconsin, PSCo, and SPS) that serve electric and natural gas customers in parts of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin.

Xcel Energy's operating revenues decreased in 2009 compared to 2008, mainly due to lower fuel and purchased power costs, which were passed through to customers, and a decline in energy sales attributed to milder weather and economic conditions. Despite the revenue decrease, the company's income from continuing operations and earnings per share saw a slight increase, reflecting effective cost management and constructive rate case outcomes.

Xcel Energy's strategy, 'Building the Core,' focuses on three primary areas: environmental leadership, achieving financial objectives, and optimizing the management of its utility portfolio. This involves significant investments in renewable energy, such as wind generation, upgrading transmission and distribution systems, and implementing programs to reduce environmental impact and emissions.

Xcel Energy is subject to extensive environmental regulations and is proactively addressing climate change by reducing GHG emissions and investing in clean energy. Key regulatory challenges include securing favorable rate decisions from various state and federal commissions to recover costs associated with capital investments, environmental compliance, and renewable energy mandates. The company also faces risks related to potential future climate change legislation and evolving environmental standards.

Xcel Energy manages risks through a comprehensive risk management process that includes identification, analysis, mitigation, and communication. Key risks managed include legislative and regulatory policy, cost recovery, resource planning, financial risks (credit, interest rate, capital markets), commodity price volatility, environmental compliance, and operational disruptions. The company utilizes financial instruments, hedging strategies, and robust compliance programs to mitigate these risks.