10-QPeriod: Q1 FY2024

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

Filed April 25, 2024For Securities:XELXELLL

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.

Financial Highlights

44 data points
Beta

Net Income

$488.00M

EPS (Diluted)

$0.88

Total Assets

$65.58B

Cash & Equivalents

$501.00M

Free Cash Flow

$1.05B

Financial Statements
Beta
Operating Expenses$2.97B
Operating Income$679.00M
Interest Expense$291.00M
Net Income$488.00M
EPS (Basic)$0.88
EPS (Diluted)$0.88
Shares Outstanding (Basic)556.00M
Shares Outstanding (Diluted)556.00M

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%.

Frequently Asked Questions

The increase in net income and diluted EPS was primarily driven by higher recovery of infrastructure investments, increased Allowance for Funds Used During Construction (AFUDC), and lower operating and maintenance (O&M) expenses. These factors were partially offset by increased interest charges and depreciation expenses.

Xcel Energy is significantly increasing its capital expenditures, with $1,537 million invested in the first quarter of 2024, up from $1,265 million in the prior year. This investment is focused on continued system expansion and increased investment in renewable projects, signaling ongoing commitment to modernizing its infrastructure and pursuing clean energy initiatives.

The primary risks and contingencies highlighted include ongoing litigation and potential liabilities related to the Marshall Fire in Colorado and the Smokehouse Creek Fire Complex in Texas. Xcel Energy has recorded a substantial pre-tax charge for the latter and is unable to estimate the full range of potential losses for either due to the uncertainty of legal proceedings and damages. Additionally, evolving environmental regulations and supply chain disruptions remain factors the company is monitoring.

Xcel Energy actively manages its financing through a combination of short-term and long-term debt issuances, as well as equity programs. During the first quarter of 2024, the company issued $1.478 billion in long-term debt. It also has substantial credit facilities available and plans further debt issuances throughout 2024 to support its capital expenditure program and other financing requirements.