10-QPeriod: Q1 FY2022

XCEL ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2022

Filed April 28, 2022For Securities:XELXELLL

Summary

Xcel Energy Inc. reported solid financial results for the first quarter of 2022, with net income increasing to $380 million, or $0.70 per diluted share, compared to $362 million, or $0.67 per diluted share, in the same period of 2021. This growth was primarily driven by regulatory recovery of capital investments, partially offset by increased depreciation, interest, and operating and maintenance (O&M) expenses. The company also saw a significant increase in natural gas revenues and costs due to market price fluctuations, though earnings were largely insulated by cost recovery mechanisms. Looking ahead, Xcel Energy reaffirmed its 2022 earnings guidance of $3.10 to $3.20 per share and its long-term objectives for annual EPS growth of 5% to 7% and dividend increases of 5% to 7%. The company continues to invest in capital projects, including renewable energy sources, and navigates regulatory proceedings and market risks, such as supply chain disruptions and commodity price volatility. The company's strong operational performance and commitment to regulated recovery mechanisms provide a stable outlook for investors.

Financial Highlights

43 data points
Beta

Net Income

$380.00M

EPS (Diluted)

$0.70

Total Assets

$57.98B

Cash & Equivalents

$90.00M

Free Cash Flow

$1.14B

Financial Statements
Beta
Operating Expenses$3.24B
Operating Income$510.00M
Interest Expense$214.00M
Net Income$380.00M
EPS (Basic)$0.70
EPS (Diluted)$0.70
Shares Outstanding (Basic)545.00M
Shares Outstanding (Diluted)545.00M

Key Highlights

  • 1Net income increased by 5.0% to $380 million in Q1 2022 compared to $362 million in Q1 2021.
  • 2Diluted Earnings Per Share (EPS) rose to $0.70 in Q1 2022 from $0.67 in Q1 2021, reflecting regulatory recovery of capital investments.
  • 3Total operating revenues grew by 5.9% to $3,751 million in Q1 2022, driven by a significant increase in natural gas revenues.
  • 4Operating expenses also increased, particularly the cost of natural gas sold and transported, due to market price fluctuations.
  • 5The company reaffirmed its 2022 full-year earnings guidance of $3.10 to $3.20 per share.
  • 6Xcel Energy continues its long-term strategy of investing in capital expenditures, including renewable energy projects, and expects annual EPS growth of 5%-7% and dividend growth of 5%-7%.
  • 7The company is managing various regulatory proceedings across its service territories, with several rate cases and settlements in progress.

Frequently Asked Questions

The primary drivers of earnings growth were regulatory recovery of capital investments across its utility operations. While natural gas revenues and costs increased significantly due to market volatility, earnings were largely protected by regulatory mechanisms that allow for the recovery of fuel costs.

Xcel Energy's regulated nature allows it to generally recover increased costs for natural gas and purchased power through regulatory mechanisms. While these price fluctuations impact revenues and expenses, they have a minimal earnings impact because the costs are offset by corresponding revenue adjustments, subject to regulatory approval.

Xcel Energy reaffirmed its 2022 earnings per share guidance of $3.10 to $3.20. The company also maintains its long-term objectives of delivering annual EPS growth of 5% to 7% and annual dividend increases of 5% to 7%, supported by ongoing capital investments in regulated utility infrastructure and renewable energy projects.

Xcel Energy is involved in various ongoing regulatory proceedings, including rate cases and settlements across its service territories. The company is also addressing the potential financial impacts of Winter Storm Uri, with ongoing proceedings in Minnesota and Colorado. While these matters are being managed, investors should monitor their outcomes, as they can affect future financial performance.