XCEL ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2024

Summary

Xcel Energy Inc. reported solid first-quarter results, demonstrating resilience in its regulated utility operations. Despite a decrease in total operating revenues driven by lower natural gas prices, the company saw an increase in net income and diluted earnings per share compared to the prior year. This improvement was primarily attributed to higher recovery of infrastructure investments, increased Allowance for Funds Used During Construction (AFUDC), and lower operating and maintenance (O&M) expenses, partially offset by higher interest charges and depreciation. The company continues to invest significantly in system expansion and renewable projects, as evidenced by increased capital expenditures. Xcel Energy reiterated its 2024 earnings guidance and long-term EPS and dividend growth objectives, signaling continued confidence in its financial outlook and commitment to shareholder returns.

Key Highlights

• 1Net income increased to $488 million for the three months ended March 31, 2024, up from $418 million in the same period of 2023.
• 2Diluted earnings per share rose to $0.88 from $0.76, driven by infrastructure investment recovery, lower O&M, and increased AFUDC.
• 3Total operating revenues decreased to $3,649 million from $4,080 million, primarily due to lower natural gas prices and sales volumes.
• 4Capital expenditures increased to $1,537 million from $1,265 million, reflecting ongoing investment in system expansion and renewables.
• 5The company issued $1.478 billion in long-term debt during the quarter to support its financing needs.
• 6Significant litigation and potential liabilities related to the Marshall Fire and the Smokehouse Creek Fire Complex are ongoing concerns, with Xcel Energy recording a $215 million pre-tax charge for the latter.
• 7Xcel Energy reaffirmed its 2024 ongoing earnings guidance of $3.50 to $3.60 per share and long-term EPS growth objectives of 5% to 7%.

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