10-QPeriod: Q1 FY2017

XCEL ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2017

Filed April 28, 2017For Securities:XELXELLL

Summary

Xcel Energy Inc. reported its first quarter 2017 financial results, showing stable earnings per share compared to the prior year. Total operating revenues increased to $2.95 billion from $2.77 billion in the first quarter of 2016, driven by higher electric and natural gas margins. Net income for the quarter was $239.3 million, a slight decrease from $241.3 million in the same period last year, resulting in diluted earnings per share of $0.47, flat year-over-year. The company continues to invest significantly in its infrastructure, with utility capital expenditures totaling $749 million for the quarter. Key drivers for the revenue increase included higher electric margins from rate increases and infrastructure investments, along with increased natural gas margins. These positive impacts were offset by higher operating and maintenance expenses, increased depreciation and amortization, and higher interest charges. The company also benefited from a lower effective tax rate due to increased wind production tax credits. Xcel Energy is actively pursuing significant wind energy development, planning to add substantial new wind capacity by 2020, which is expected to provide customer savings and environmental benefits.

Financial Highlights

45 data points
Beta

Revenue

$2.95B

Net Income

$239.00M

8.1% Net Margin

EPS (Diluted)

$0.47

Total Assets

$41.29B

Cash & Equivalents

$74.00M

Free Cash Flow

$718.00M

Financial Statements
Beta
Revenue$2.95B
Operating Expenses$2.45B
Operating Income$492.00M
Interest Expense$166.00M
Net Income$239.00M
EPS (Basic)$0.47
EPS (Diluted)$0.47
Shares Outstanding (Basic)508.30M
Shares Outstanding (Diluted)508.80M

Key Highlights

  • 1Total operating revenues increased by 6.3% to $2.95 billion in Q1 2017 compared to $2.77 billion in Q1 2016.
  • 2Net income slightly decreased to $239.3 million in Q1 2017 from $241.3 million in Q1 2016.
  • 3Diluted Earnings Per Share (EPS) remained flat at $0.47 for both Q1 2017 and Q1 2016.
  • 4Utility capital expenditures were $749.1 million in Q1 2017, up from $700.3 million in Q1 2016, reflecting ongoing infrastructure investment.
  • 5The company plans significant expansion of wind energy capacity, with 3,380 MW proposed by the end of 2020.
  • 6The effective tax rate decreased due to increased wind production tax credits.
  • 7The company reaffirmed its 2017 GAAP earnings guidance of $2.25 to $2.35 per share.

Frequently Asked Questions

The increase in operating revenues was primarily driven by higher electric margins resulting from rate increases and infrastructure investments, as well as higher natural gas margins. These were partly offset by regulatory adjustments and the impact of weather.

Xcel Energy is aggressively pursuing wind energy development, with plans to add 3,380 MW of new wind capacity by the end of 2020. These projects are expected to provide significant cost savings to customers and environmental benefits, with a substantial portion planned to be owned by the company and included in rate base.

Several regulatory proceedings and rate cases influenced performance. For example, interim electric rates in Minnesota (subject to refund) and final rates in Wisconsin, New Mexico, and Texas contributed to increased electric revenues. The company is also actively involved in ongoing rate case filings and appeals in various jurisdictions.

Xcel Energy reaffirmed its 2017 GAAP earnings guidance of $2.25 to $2.35 per share. Key assumptions include constructive outcomes in rate cases, normal weather patterns, projected increases in capital rider revenue, flat O&M expenses, increased depreciation and interest expenses, and a projected effective tax rate of 32% to 34%.