What was the company's financial performance in the third quarter of 2007?

For the third quarter of 2007, Xcel Energy reported income from continuing operations of $246.3 million, or $0.58 per diluted share, an increase from $213.8 million, or $0.53 per diluted share, in the third quarter of 2006. Total operating revenues were $2.40 billion, slightly down from $2.41 billion in the prior year's quarter.

How has the COLI settlement with the IRS impacted the company?

Xcel Energy reached a final settlement with the U.S. government for $64.4 million to resolve tax, penalty, and interest related to Corporate Owned Life Insurance (COLI) policies from 1993-2007. This settlement was accounted for as part of discontinued operations, impacting the company's net income for the period.

What is the outlook for Xcel Energy's earnings in 2007 and 2008?

Xcel Energy provided guidance for 2007 diluted earnings per share from continuing operations between $1.38 and $1.42, with a total company range of $1.31 to $1.35. For 2008, the guidance for continuing operations is projected to be between $1.45 and $1.55 per diluted share.

How did capital expenditures trend in the first nine months of 2007?

Capital expenditures for utility operations significantly increased. For the first nine months of 2007, utility capital and construction expenditures were $1.48 billion, a substantial rise from $1.17 billion during the same period in 2006, reflecting continued investment in infrastructure and projects.

XEL/XELLL 10-Q Quarterly Report Q3 FY2007

Summary

Xcel Energy Inc. (XEL) reported its financial results for the third quarter and the first nine months of 2007. For the third quarter, the company saw an increase in income from continuing operations to $246.3 million, or $0.58 per diluted share, compared to $213.8 million, or $0.53 per diluted share, in the same period of 2006. For the nine-month period, income from continuing operations was $484.6 million, or $1.05 per diluted share, down from $455.1 million, or $1.12 per diluted share, in the comparable period of 2006. The company also finalized a significant settlement with the IRS regarding Corporate Owned Life Insurance (COLI) policies, paying $64.4 million to resolve tax, penalty, and interest for tax years 1993-2007, which impacts discontinued operations. Total operating revenues for the third quarter were $2.40 billion, a slight decrease from $2.41 billion in the prior year's quarter, while for the nine-month period, revenues increased to $7.43 billion from $7.37 billion. The company's regulated electric utility segment remains the primary driver of earnings, showing growth in both periods, while the regulated natural gas utility segment experienced fluctuations. Xcel Energy continues to invest heavily in utility capital and construction expenditures, which increased significantly year-over-year. The company also provided earnings guidance for 2007 and 2008.

Key Highlights

1Third quarter 2007 income from continuing operations increased to $246.3 million ($0.58/share), up from $213.8 million ($0.53/share) in Q3 2006.
2Nine-month 2007 income from continuing operations was $484.6 million ($1.05/share), down from $455.1 million ($1.12/share) in the first nine months of 2006.
3Xcel Energy finalized a $64.4 million settlement with the IRS concerning COLI policies, impacting discontinued operations.
4Total operating revenues for Q3 2007 were $2.40 billion, a slight decrease from $2.41 billion in Q3 2006.
5Nine-month 2007 total operating revenues grew to $7.43 billion from $7.37 billion in the prior year.
6The company's regulated electric utility segment continues to show strong performance, contributing significantly to overall earnings.
7Utility capital and construction expenditures increased substantially to $1.48 billion for the nine months ended Sept. 30, 2007, up from $1.17 billion in the same period of 2006.

XCEL ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2007

Summary

Key Highlights

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