10-QPeriod: Q1 FY2021

XCEL ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2021

Filed April 29, 2021For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) reported solid financial results for the first quarter of 2021, demonstrating resilience and operational strength. The company's net income rose to $362 million from $295 million in the same period last year, translating to diluted earnings per share (EPS) of $0.67, an increase from $0.56. This growth was primarily driven by improved electric and natural gas margins, reflecting successful capital investment recovery and favorable regulatory outcomes, which more than offset increased depreciation and interest expenses. The company's strategic capital investments continue to yield positive results, contributing to higher operating income. Despite facing headwinds such as the ongoing impacts of COVID-19 on industrial sales and significant natural gas and electricity price volatility due to Winter Storm Uri, Xcel Energy managed these challenges effectively. The company's proactive approach to managing costs, coupled with regulatory mechanisms designed to recover fuel expenses, helped mitigate the financial impact of the storm, with most of the increased costs deferred for future recovery, thereby minimizing immediate customer bill shock. Xcel Energy reaffirmed its 2021 EPS guidance and long-term growth objectives, signaling confidence in its future performance and commitment to shareholder returns.

Financial Highlights

43 data points
Beta

Net Income

$362.00M

EPS (Diluted)

$0.67

Total Assets

$56.51B

Cash & Equivalents

$1.04B

Free Cash Flow

-$136.00M

Financial Statements
Beta
Operating Expenses$3.03B
Operating Income$507.00M
Interest Expense$205.00M
Net Income$362.00M
EPS (Basic)$0.67
EPS (Diluted)$0.67
Shares Outstanding (Basic)538.00M
Shares Outstanding (Diluted)539.00M

Key Highlights

  • 1Net income increased to $362 million in Q1 2021 from $295 million in Q1 2020.
  • 2Diluted EPS rose to $0.67 in Q1 2021, up from $0.56 in Q1 2020, driven by higher margins.
  • 3Electric revenues increased by 30.3% to $2,870 million, and natural gas revenues increased by 10.9% to $647 million year-over-year.
  • 4The company experienced a significant increase in operating cash flow generation in Q1 2021, despite a net use of cash in operating activities due to deferral of Winter Storm Uri costs.
  • 5Xcel Energy reaffirmed its 2021 full-year EPS guidance and long-term annual EPS growth target of 5-7%.
  • 6Winter Storm Uri significantly impacted natural gas and electricity markets, leading to approximately $1.16 billion in net costs, largely deferred as regulatory assets for future recovery.

Frequently Asked Questions

Xcel Energy reported a substantial improvement in financial performance. Net income increased from $295 million to $362 million, and diluted earnings per share (EPS) grew from $0.56 to $0.67. This growth was primarily attributed to higher electric and natural gas margins, driven by capital investment recovery and regulatory outcomes.

Winter Storm Uri caused extreme price volatility in natural gas and electricity markets, resulting in approximately $1.16 billion in net costs across Xcel Energy's utility subsidiaries. However, the company was able to mitigate the immediate impact on customers by deferring most of these costs as regulatory assets for future recovery. While the storm led to a net cash used in operating activities of $136 million for the quarter due to these deferrals, the company's regulatory mechanisms are designed to recover these costs over time.

Xcel Energy reaffirmed its 2021 GAAP and ongoing earnings guidance to be in the range of $2.90 to $3.00 per share. The company also reiterated its long-term objectives, expecting annual EPS growth of 5% to 7% and annual dividend increases of 5% to 7%. This outlook is based on assumptions of constructive regulatory outcomes, modest impacts from COVID-19, and normal weather patterns for the rest of the year.

Xcel Energy continues to invest significantly in capital expenditures, including new wind and solar projects, which contributed to increased depreciation expenses but also generated higher electric margins. The company is also actively managing environmental regulations, with plans for coal plant retirements and increased renewable energy generation to meet carbon reduction targets, demonstrating a commitment to a cleaner energy future.