10-QPeriod: Q1 FY2019

XCEL ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2019

Filed April 26, 2019For Securities:XELXELLL

Summary

Xcel Energy Inc. reported solid financial results for the first quarter of 2019, demonstrating growth in both electric and natural gas segments. Operating revenues increased to $3.14 billion, up from $2.95 billion in the same period last year, driven by higher electric and natural gas margins. Net income rose to $315 million, or $0.61 per diluted share, compared to $291 million, or $0.57 per diluted share, in the first quarter of 2018. This improvement reflects favorable regulatory rate outcomes, beneficial weather conditions, and increased sales, partially offset by higher operating and maintenance expenses, depreciation, and interest charges. The company's balance sheet remains robust, with total assets growing to $47.85 billion. Xcel Energy also made significant capital investments, amounting to $844 million, primarily focused on utility construction expenditures. The company reaffirmed its 2019 earnings guidance and long-term EPS growth objectives, signaling confidence in its continued operational performance and strategic initiatives.

Financial Highlights

44 data points
Beta

Revenue

$3.14B

Net Income

$315.00M

10.0% Net Margin

EPS (Diluted)

$0.61

Total Assets

$47.85B

Cash & Equivalents

$94.00M

Free Cash Flow

$793.00M

Financial Statements
Beta
Revenue$3.14B
Operating Expenses$2.65B
Operating Income$486.00M
Interest Expense$189.00M
Net Income$315.00M
EPS (Basic)$0.61
EPS (Diluted)$0.61
Shares Outstanding (Basic)515.00M
Shares Outstanding (Diluted)516.00M

Key Highlights

  • 1Total operating revenues increased by 6.4% year-over-year to $3.14 billion.
  • 2Net income grew to $315 million, an increase of 8.2% from the prior year's first quarter.
  • 3Diluted Earnings Per Share (EPS) rose to $0.61 from $0.57 in the first quarter of 2018.
  • 4Electric margin increased by 5.4% to $1.41 billion, driven by regulatory rate outcomes and weather.
  • 5Natural gas margin saw a 9.8% increase, reaching $315 million, supported by rate increases and weather normalization.
  • 6Utility capital expenditures for the quarter totaled $844 million, reflecting ongoing investment in infrastructure.
  • 7The company reaffirmed its 2019 GAAP and ongoing earnings guidance range of $2.55 to $2.65 per share.

Frequently Asked Questions

In the first quarter of 2019, Xcel Energy reported an increase in operating revenues to $3.14 billion, up from $2.95 billion in the same period of 2018. Net income rose to $315 million, and diluted EPS increased to $0.61 from $0.57 year-over-year. This growth was primarily driven by higher electric and natural gas margins, supported by favorable regulatory outcomes and weather conditions, despite facing increased operating expenses.

Xcel Energy continued its strategic investments in utility construction, with capital expenditures totaling $844 million during the first quarter of 2019. This reflects the company's commitment to maintaining and enhancing its infrastructure to support future growth and operational efficiency.

Xcel Energy reaffirmed its 2019 GAAP and ongoing earnings guidance to be in the range of $2.55 to $2.65 per share. The company also maintains its long-term objectives of delivering annual EPS growth of 5% to 7%, with dividend increases in the same range, and targeting a dividend payout ratio of 60% to 70%, while aiming to maintain A-range senior secured debt credit ratings.

The filing mentions several ongoing regulatory proceedings, including rate cases and transmission cost recovery filings across its service territories. Additionally, there are ongoing legal matters such as the gas trading litigation and line extension disputes, though management believes the ultimate outcomes will not materially affect the financial statements. The company is actively engaged with regulators to resolve these matters.