10-QPeriod: Q3 FY2019

XCEL ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2019

Filed October 25, 2019For Securities:XELXELLL

Summary

Xcel Energy Inc. reported solid financial results for the nine months ended September 30, 2019, with net income of $1,080 million, an increase from $1,047 million in the same period of 2018. Diluted earnings per share also saw a slight increase to $2.08 from $2.05. The company's operating revenues showed a modest increase to $8,731 million for the nine-month period, driven by higher natural gas revenues. Electric revenues saw a slight decrease, but overall margin improved due to regulatory rate outcomes and non-fuel riders. The company continues to invest heavily in its infrastructure, with utility capital expenditures totaling $3,018 million for the nine months ended September 30, 2019, up from $2,681 million in the prior year. This investment is focused on projects like wind farms and grid modernization. Xcel Energy also successfully managed its debt and equity, with net cash provided by financing activities increasing significantly due to higher proceeds from long-term debt and common stock issuances.

Financial Highlights

45 data points
Beta

Revenue

$3.01B

Net Income

$527.00M

17.5% Net Margin

EPS (Diluted)

$1.01

Total Assets

$50.24B

Cash & Equivalents

$864.00M

Free Cash Flow

$1.22B

Financial Statements
Beta
Revenue$3.01B
Operating Expenses$2.25B
Operating Income$758.00M
Interest Expense$199.00M
Net Income$527.00M
EPS (Basic)$1.02
EPS (Diluted)$1.01
Shares Outstanding (Basic)519.00M
Shares Outstanding (Diluted)521.00M

Key Highlights

  • 1Net income increased by $33 million to $1,080 million for the nine months ended September 30, 2019.
  • 2Diluted earnings per share rose to $2.08 for the nine months ended September 30, 2019, from $2.05 in the prior year.
  • 3Total operating revenues for the nine months ended September 30, 2019, were $8,731 million, a slight increase from $8,657 million in the same period of 2018.
  • 4Utility capital expenditures increased to $3,018 million for the nine months ended September 30, 2019, reflecting ongoing investment in infrastructure, particularly wind projects.
  • 5Electric margin increased by $154 million to $4,666 million for the nine months ended September 30, 2019, driven by regulatory rate outcomes and non-fuel riders.
  • 6Natural gas margin increased by $34 million to $678 million for the nine months ended September 30, 2019, supported by infrastructure and integrity riders.
  • 7The company narrowed its 2019 earnings per share guidance to $2.60 - $2.65 and provided 2020 guidance of $2.73 - $2.83 per share.

Frequently Asked Questions

For the nine months ended September 30, 2019, Xcel Energy reported a net income of $1,080 million, an increase from $1,047 million in the same period of 2018. Diluted earnings per share also improved to $2.08 from $2.05. Total operating revenues rose slightly to $8,731 million, with improvements in electric and natural gas margins contributing to the profitability.

Xcel Energy continues to invest significantly in its infrastructure. For the nine months ended September 30, 2019, utility capital expenditures increased to $3,018 million, up from $2,681 million in the prior year. These investments are primarily directed towards wind projects and grid modernization efforts, supporting the company's long-term growth and reliability objectives.

The increase in electric margin for the nine months ended September 30, 2019, was primarily driven by favorable regulatory rate outcomes and the impact of non-fuel riders. For natural gas margin, improvements were supported by infrastructure and integrity riders, as well as retail sales growth. These regulatory mechanisms help offset fluctuations in fuel costs and ensure stable margin.

Xcel Energy narrowed its full-year 2019 earnings per share guidance to a range of $2.60 to $2.65. For 2020, the company provided initial guidance of $2.73 to $2.83 per share. These projections are based on assumptions of constructive regulatory outcomes, normal weather patterns, and projected sales growth.