10-QPeriod: Q3 FY2018

XCEL ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2018

Filed October 26, 2018For Securities:XELXELLL

Summary

Xcel Energy Inc. reported solid financial results for the nine months ended September 30, 2018, with net income of $1,047 million, an increase from $959 million in the prior year period. Operating revenues also saw a modest increase to $8,657 million from $8,609 million, driven by growth in both electric and natural gas segments. The company continues to invest heavily in infrastructure, with utility capital/construction expenditures totaling $2,760 million for the nine months ended September 30, 2018, up from $2,256 million in the prior year. This investment is crucial for modernizing its utility assets and supporting future growth, particularly in renewable energy. The company's financial health remains robust, supported by effective cost management and regulatory mechanisms. Despite higher operating and maintenance expenses and increased depreciation, Xcel Energy managed to improve its earnings per share. The company has also narrowed its 2018 earnings per share guidance, indicating confidence in its operational performance and outlook. Investors can look to Xcel Energy's continued investment in its regulated utility assets and its commitment to delivering consistent earnings growth and dividends.

Financial Highlights

45 data points
Beta

Revenue

$3.05B

Net Income

$491.00M

16.1% Net Margin

EPS (Diluted)

$0.96

Total Assets

$44.84B

Cash & Equivalents

$213.00M

Free Cash Flow

$1.06B

Financial Statements
Beta
Revenue$3.05B
Operating Expenses$2.35B
Operating Income$696.00M
Interest Expense$177.00M
Net Income$491.00M
EPS (Basic)$0.96
EPS (Diluted)$0.96
Shares Outstanding (Basic)510.00M
Shares Outstanding (Diluted)511.00M

Key Highlights

  • 1Net income increased to $1,047 million for the nine months ended September 30, 2018, up from $959 million in the prior year period.
  • 2Total operating revenues increased slightly to $8,657 million from $8,609 million year-over-year.
  • 3Utility capital/construction expenditures rose significantly to $2,760 million for the nine months ended September 30, 2018, compared to $2,256 million in the same period last year.
  • 4Diluted earnings per share for the nine months ended September 30, 2018, increased to $2.05 from $1.88 in the prior year.
  • 5Xcel Energy narrowed its 2018 GAAP and ongoing earnings per share guidance to a range of $2.45 to $2.49 per share.
  • 6The company expects to deliver long-term annual EPS growth of 5 to 7 percent and annual dividend increases of 5 to 7 percent.

Frequently Asked Questions

For the nine months ended September 30, 2018, Xcel Energy reported total operating revenues of $8,657 million, a slight increase from $8,609 million in the same period of 2017. Net income rose to $1,047 million, up from $959 million in the prior year, indicating improved profitability.

Xcel Energy significantly increased its utility capital/construction expenditures to $2,760 million for the nine months ended September 30, 2018, up from $2,256 million in the comparable period of 2017. These investments are primarily directed towards modernizing its utility infrastructure and expanding its renewable energy generation, such as wind projects.

Xcel Energy has narrowed its 2018 earnings per share guidance to a range of $2.45 to $2.49 per share. Looking long-term, the company aims for annual EPS growth of 5 to 7 percent and anticipates annual dividend increases of 5 to 7 percent, targeting a dividend payout ratio of 60 to 70 percent.

The TCJA led to a lower federal income tax rate, which Xcel Energy has begun to reflect in its financial statements. For the nine months ended September 30, 2018, the effective income tax rate decreased to 15.2% from 30.7% in the prior year. While this reduced tax expense, the benefits are being flowed back to customers through various regulatory mechanisms, impacting revenues and margins, as detailed in the filing.