10-QPeriod: Q3 FY2012

XCEL ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2012

Filed October 26, 2012For Securities:XELXELLL

Summary

Xcel Energy Inc. reported solid financial results for the nine months ended September 30, 2012, with net income increasing to $765.1 million from $700.7 million in the same period of 2011. Diluted earnings per share (EPS) rose to $1.57 from $1.43. This growth was primarily driven by higher electric and natural gas margins resulting from rate increases implemented across its service territories, improved weather normalization, and effective cost management initiatives. The company continued to invest significantly in its infrastructure, with capital expenditures totaling $1.61 billion for the nine months ended September 30, 2012, primarily for utility capital and construction expenditures. Xcel Energy also strengthened its balance sheet by issuing substantial amounts of long-term debt across its utility subsidiaries, securing favorable interest rates and extending maturities. Despite these investments and debt issuances, the company maintained a strong liquidity position, with significant credit facilities available.

Financial Highlights

46 data points
Beta

Revenue

$2.72B

Net Income

$398.11M

14.6% Net Margin

EPS (Diluted)

$0.81

Total Assets

$31.06B

Cash & Equivalents

$747.27M

Free Cash Flow

$706.63M

Financial Statements
Beta
Revenue$2.72B
Operating Expenses$2.00B
Operating Income$720.43M
Interest Expense$153.72M
Net Income$398.11M
EPS (Basic)$0.82
EPS (Diluted)$0.81
Shares Outstanding (Basic)488.08M
Shares Outstanding (Diluted)488.58M

Key Highlights

  • 1Net income increased by 9.2% to $765.1 million for the nine months ended September 30, 2012, compared to $700.7 million in the prior year period.
  • 2Diluted EPS grew to $1.57 for the nine months ended September 30, 2012, up from $1.43 in the same period of 2011.
  • 3Total operating revenues decreased slightly to $7.58 billion from $8.09 billion for the nine months ended September 30, 2012, mainly due to lower electric and natural gas revenues.
  • 4Operating income saw a healthy increase of 4.8% to $1.51 billion for the nine months ended September 30, 2012.
  • 5Capital expenditures were substantial at $1.61 billion for the nine months ended September 30, 2012, reflecting ongoing investment in utility infrastructure.
  • 6The company successfully issued new long-term debt across its subsidiaries, raising significant capital at favorable interest rates.
  • 7Cash provided by operating activities decreased to $1.57 billion for the nine months ended September 30, 2012, primarily due to working capital timing and higher pension contributions.

Frequently Asked Questions

For the nine months ended September 30, 2012, Xcel Energy reported a net income of $765.1 million, an increase from $700.7 million in the same period of 2011. Diluted earnings per share (EPS) also improved to $1.57 from $1.43 year-over-year. This performance was driven by higher electric and natural gas margins due to rate increases, improved weather normalization, and effective cost management.

Xcel Energy continued to invest heavily in its utility infrastructure, with capital expenditures of $1.61 billion for the nine months ended September 30, 2012. The company raised significant capital through the issuance of new long-term debt across its subsidiaries, often securing favorable interest rates and extending debt maturities. Despite these investments, Xcel Energy maintained a strong liquidity position, supported by available credit facilities.

Xcel Energy is involved in various regulatory proceedings related to rate cases, environmental compliance, and transmission projects across its operating states. Notably, the company is addressing environmental contingencies, including a settlement for the Ashland MGP site remediation and ongoing litigation related to climate change claims. The company also faces potential impacts from evolving environmental regulations and ongoing transmission planning initiatives like FERC Order 1000.

For 2012, Xcel Energy projected ongoing earnings guidance between $1.75 and $1.85 per share, anticipating GAAP earnings in the upper half of this range. Key assumptions include constructive regulatory outcomes, normal weather patterns, and projected increases in O&M, depreciation, and property taxes. For 2013, the ongoing earnings guidance is projected at $1.85 to $1.95 per share, with similar assumptions regarding regulatory matters and weather, but with projected sales growth and changes in interest expense.