XCEL ENERGY INC Quarterly Report for Q2 Ended Jun 30, 2019

Summary

Xcel Energy Inc. (XEL) reported its second-quarter and year-to-date financial results for the period ending June 30, 2019. For the second quarter, the company's diluted earnings per share (EPS) were $0.46, a decrease from $0.52 in the same period of the prior year. Year-to-date, diluted EPS stood at $1.07, also a decrease from $1.09 for the first six months of 2018. While total operating revenues saw a slight increase for the six-month period ($5.718 billion in 2019 vs. $5.609 billion in 2018), net income saw a modest decline to $553 million from $556 million year-to-date. The company's financial performance was impacted by a combination of factors including higher electric and natural gas margins, driven by non-fuel riders and regulatory rate outcomes, which were more than offset by unfavorable weather, increased depreciation, interest, and operating and maintenance expenses. The company highlighted its ongoing regulatory proceedings and strategic initiatives. Notably, NSP-Wisconsin reached a settlement for its 2020-2021 rate case, resulting in no change to electric base rates and a decrease in natural gas base rates. PSCo filed for a net rate increase of approximately $158 million for its electric utility, and SPS filed for an increase of approximately $51 million for its electric utility. Xcel Energy continues to focus on its long-term objectives, including delivering annual EPS growth of 5-7% and annual dividend increases of 5-7%, while maintaining strong credit ratings.

Key Highlights

• 1Second-quarter diluted EPS decreased to $0.46 from $0.52 year-over-year, and year-to-date diluted EPS declined to $1.07 from $1.09.
• 2Total operating revenues for the six months ended June 30, 2019, increased to $5.718 billion from $5.609 billion in the prior year, but net income slightly decreased to $553 million from $556 million.
• 3Electric margin increased for both the quarter and year-to-date periods, driven by non-fuel riders and regulatory rate outcomes, partially offsetting other increased costs.
• 4Natural gas margin also saw an increase in both periods, benefiting from retail rate increases and infrastructure riders.
• 5The company is actively engaged in significant regulatory proceedings, with rate case filings and settlements underway in Wisconsin, Colorado, and New Mexico.
• 6Xcel Energy is making progress on its clean energy initiatives, including plans for significant solar and wind additions and potential early retirement of coal plants as part of its Minnesota resource plan.
• 7The company maintained its commitment to long-term shareholder value, targeting annual EPS growth of 5-7% and dividend increases of 5-7%.

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