10-QPeriod: Q2 FY2009

XCEL ENERGY INC Quarterly Report for Q2 Ended Jun 30, 2009

Filed July 31, 2009For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) reported its second-quarter and first-half 2009 financial results, showing a modest increase in diluted earnings per share for both periods compared to 2008. For the three months ended June 30, 2009, diluted EPS rose to $0.25 from $0.24 in the prior year, while for the six months ended June 30, 2009, diluted EPS was $0.63, up from $0.59 in the same period of 2008. This growth was primarily driven by higher electric margins, improved allowance for funds used during construction, and lower depreciation and amortization expenses, partially offset by rising operating and maintenance costs and higher interest expenses. The company's operating revenues saw a decrease compared to the prior year, largely due to lower electric and natural gas sales, reflecting the broader economic downturn. However, implemented rate increases across various jurisdictions, alongside effective cost management and regulatory recovery mechanisms for fuel and purchased power costs, helped to mitigate the impact on earnings and maintain positive margin performance. Xcel Energy continues to navigate a complex regulatory and economic environment. Significant investments are being made in renewable energy projects and transmission infrastructure. The company is also actively managing various regulatory proceedings related to base rates, environmental compliance, and other operational matters across its operating subsidiaries. Management guidance for 2009 full-year diluted EPS remains between $1.45 and $1.55, assuming normal weather patterns and reasonable regulatory outcomes.

Financial Highlights

38 data points
Beta

Revenue

$2.02B

Net Income

$116.05M

5.8% Net Margin

EPS (Diluted)

$0.25

Total Assets

$24.99B

Cash & Equivalents

$380.25M

Free Cash Flow

$313.22M

Financial Statements
Beta
Revenue$2.02B
Operating Expenses$1.74B
Operating Income$279.37M
Interest Expense$139.30M
Net Income$116.05M
EPS (Basic)$0.25
EPS (Diluted)$0.25
Shares Outstanding (Basic)456.31M
Shares Outstanding (Diluted)456.77M

Key Highlights

  • 1Diluted earnings per share increased to $0.25 for Q2 2009 and $0.63 for the first six months of 2009, up from $0.24 and $0.59 respectively in the prior year.
  • 2Operating revenues decreased year-over-year, reflecting lower electric and natural gas sales attributed to economic conditions.
  • 3Electric margins improved due to rate increases in Minnesota, Texas, Wisconsin, and New Mexico, and effective recovery mechanisms, despite lower sales volumes.
  • 4Significant investments are planned for renewable energy (wind projects) and transmission infrastructure (CapX 2020 project).
  • 5The company is actively engaged in numerous regulatory proceedings across its operating jurisdictions, including rate cases and environmental compliance matters.
  • 6Xcel Energy reaffirmed its 2009 full-year diluted earnings per share guidance of $1.45 to $1.55.

Frequently Asked Questions

Operating revenues decreased primarily due to lower electric and natural gas sales volumes, which are attributed to the ongoing economic downturn. This decline was partially offset by rate increases implemented in various jurisdictions and the recovery of fuel and purchased power costs.

Xcel Energy is managing the economic challenges through a combination of rate increases in its regulated jurisdictions, effective cost management strategies, and by leveraging regulatory mechanisms that allow for the recovery of fuel and purchased power costs. The company is also continuing to invest in infrastructure and renewable energy projects to ensure long-term growth and operational efficiency.

Xcel Energy is focusing on investments in renewable energy projects, particularly wind generation, and in expanding its transmission infrastructure, such as the CapX 2020 project. These investments are aimed at meeting regulatory requirements, enhancing grid reliability, and supporting future energy demand.

Xcel Energy's guidance for full-year 2009 diluted earnings per share is between $1.45 and $1.55. This outlook is based on assumptions of normal weather patterns, reasonable regulatory outcomes, and continued efforts to manage operating expenses and capital expenditures effectively.