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| 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.