Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Q1 2024 Earnings Presentation
25 slides from Xcel Energy's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings Report Presentation
FIRST QUARTER 2024 EARNINGS REPORT PRESENTATION April 25, 2024 © 2024 Xcel Energy 1
Slide 2: Safe Harbor
Safe Harbor Except for the historical statements contained in this presentation, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2024 EPS guidance, long-term EPS
Slide 3: 2024 Q1 Highlights
2024 Q1 Highlights • 2024 Q1 EPS of $0.88 compared to $0.76 in 2023 Q1 • Raised dividend by 5.3% (21st consecutive annual increase) • Tangible progress on clean energy transition investments: – Filed IRP for NSP system, which includes addition of 6,400 MW of new resources – New Mexico PRC accepted S
Slide 4: EPS Results by Operating Company
EPS Results by Operating Company First Quarter Operating Company 2024 2023 PSCo $0.39 $0.39 NSPM 0.38 0.25 SPS 0.10 0.10 NSPW 0.08 0.08 Earnings from equity method investments 0.01 0.01 Regulated utility 0.96 0.83 Holding company and other (0.08) (0.07) Total GAAP and Ongoing diluted EPS $ 0.88 $ 0.
Slide 5: Smokehouse Creek Fire
Smokehouse Creek Fire • Our distribution poles appear to have been involved in an ignition of the Smokehouse Creek Fire and the smaller Reamer Fire (which burned into the Smokehouse Creek Fire) – We do not believe that our facilities caused the Windy Deuce or Grapevine Creek fires and believe that t
Slide 6: Wildfire Mitigation
Wildfire Mitigation • Accelerated wildfire risk reduction initiatives: – Proactive de-energizing of lines during high-risk events – Executed de-energization events for the first time in Colorado, Texas and New Mexico – Adjusting safety settings for non-reclose and fast trip – Accelerated pole inspec
Slide 7: Current RFP Update
Current RFP Update Current RFPs Upcoming RFPs • CPUC approval of ~6,100 MW portfolio • Just transition filing in 2024, which could include • Owned = ~3,300 MW (54%; ~$4.8 billion) remaining generation from preferred portfolio PSCo • Transmission (~$2.6 billion) will be reviewed • Additional resource
Slide 8: Quarterly GAAP and Ongoing EPS Change
Quarterly GAAP and Ongoing EPS Change Recovery of Recovery of AFUDC 0.04 (0.24) Fuel Costs Natural Gas (0.48) Costs Interest Rate (0.05) 0.09 Charges Outcomes Rate 0.03 Outcomes D&A (0.05) Non-Fuel 0.05 Riders Other (0.02) Other, net (0.02) Other (0.01) * Cost of natural gas sold and transported, an
Slide 9: Sales and Customer Data
Sales and Customer Data 2024 Q1 W/A Retail Electric Sales Growth 2024 Q1 YoY Electric Customer Growth (leap year adjusted) 4.3% 1.3% 1.1% 1.1% 0.8% 0.5% -0.2% -0.3% -2.9% -3.0% NSPM NSPW PSCo SPS Xcel Energy NSPM NSPW PSCo SPS Xcel Energy 2024 Q1 W/A Natural Gas Sales Growth 2024 Q1 YoY Natural Gas
Slide 10: SPS Texas Electric Rate Case
SPS Texas Electric Rate Case Proceeding No. 54634 • In December 2023, SPS and parties filed a settlement with the PUCT. Key terms include: − Rate increase of $65 million − ROE of 9.55% and equity ratio of 54.5% for AFUDC and other proceedings − Acceleration of Tolk coal plant retirement from 2034 to
Slide 11: NSPM Minnesota Natural Gas Rate Case
NSPM Minnesota Natural Gas Rate Case Proceeding No. 23-413 • In November 2023, NSPM filed a natural gas rate case requesting: − Base rate increase of ~$59 million − ROE of 10.2%, equity ratio of 52.5%, rate base of $1.27 billion and 2024 forward test year • MPUC approved interim rates of $51 million
Slide 12: PSCo Colorado Natural Gas Rate Case
PSCo Colorado Natural Gas Rate Case Proceeding No. 24AL-0049G • In January 2024, PSCo filed a natural gas rate case requesting: − Base rate increase of ~$171 million − ROE of 10.25%, equity ratio of 55%, rate base of $4.2 billion and 2023 historic test year • Procedural Schedule: − Intervenor testim
Slide 13: 2024 Ongoing EPS Guidance: $3.50 - $3.60
2024 Ongoing EPS Guidance: $3.50 - $3.60 Earnings Drivers Key Assumptions (as compared to 2023 levels unless noted) Regulatory proceedings Constructive outcomes in all pending proceedings Weather Normal weather patterns for the remainder of the year W/A retail electric sales Increase of ~1 - 2% W/A
Slide 14: Appendix
APPENDIX 14
Slide 15: ROE Results – Ongoing Earnings
ROE Results – Ongoing Earnings Ongoing ROE* 2023E Rate Base Twelve Months Ended 3/31/2024 SPS 11.08% 17% 9.65% 9.94% 10.12% NSPM 8.95% 7.73% 37% ~$42 PSCo Billion 40% NSPM NSPW PSCo SPS Total Xcel Energy NSPW OpCo 6% * Ongoing ROEs exclude impacts of Comanche Unit 3 litigation and workforce reductio
Slide 16: Base Capital Expenditures by Function
Base Capital Expenditures by Function $ Millions 2024 2025 2026 2027 2028 Total Electric Transmission $1,710 $2,020 $2,450 $2,850 $2,470 $11,500 Electric Distribution $1,770 $1,960 $2,200 $2,200 $2,470 $10,600 Renewables $1,500 $2,910 $940 $240 $20 $5,610 Electric Generation $940 $1,290 $1,050 $1,06
Slide 17: Base Capital Expenditures by Company
Base Capital Expenditures by Company $ Millions 2024 2025 2026 2027 2028 Total NSPM $2,660 $2,970 $2,380 $2,500 $2,540 $13,050 NSPW $570 $600 $570 $600 $650 $2,990 PSCo $3,300 $5,230 $4,320 $3,620 $2,730 $19,200 SPS $910 $780 $660 $870 $830 $4,050 Other* ($20) ($300) $10 $10 $10 ($290) Total $7,420
Slide 18: Financing Plan 2024 – 2028
Financing Plan 2024 – 2028* $3,500 $500 $ Millions $13,000 $3,780 $3,780 $39,000 $22,000 CFO** Maturing Refinanced Incremental Equity Equity Base Plan LT Debt LT Debt Debt (Other) (DRIP) * Financing plans reflect tax credit transferability and are subject to change ** Cash from operations is net of
Slide 19: 2024 Debt Financing Plan
2024 Debt Financing Plan $ Millions Issuer Security Amount Status Tenor Coupon Hold Co Unsecured Bonds $800 Complete 10-Yr 5.50% NSPM First Mortgage Bonds $700 Complete 30-Yr 5.40% 10-Yr 5.35% PSCo First Mortgage Bonds $1,200 Complete 30-Yr 5.75% NSPW First Mortgage Bonds $400 Q2 N/A N/A SPS First M
Slide 20: Keep Customer Bills Low
Keep Customer Bills Low Average Xcel Energy Residential Bill to 2014-2024E Residential Electric CAGR = ~1.4% National Average 2014-2024E Natural Gas CAGR = ~(0.4%) Electric Natural Gas $98 $98 $95 $89 $83 $84 $84 $80 $81 $81 $80 $81 Electric $68 $62 $60 $54 -14% $51 $48 $42 $48 $45 $44 Natural Gas 2
Slide 21: 2024 Q1 W/A Electric Sales Growth
2024 Q1 W/A Electric Sales Growth NSPM NSPW PSCo SPS Residential C&I Total Retail 6.3% 4.3% -0.3% -0.1% -0.2% -2.1% -2.5% -3.0% -3.3% -2.9% -4.1% -4.1% Leap year adjusted Extreme weather variations, windchill and cloud cover may not be reflected in estimates 21
Slide 22: Xcel Energy W/A Sales Growth
Xcel Energy W/A Sales Growth Residential C&I Total Retail Electric Natural Gas Electric Natural Gas 3.2% 1.2% 1.0% 0.5% 1.8% 1.0% 1.4% 1.7% 0.1% -0.3% -1.3% -1.9% YTD YTD YTD YTD 2022 2023 2024* 2022 2023 2024* 2022 2023 2024* 2022 2023 2024* * Leap year adjusted Extreme weather variations, windchil
Slide 23: NSPM North Dakota Natural Gas Rate Case
NSPM North Dakota Natural Gas Rate Case Proceeding No. 23-367 • In December 2023, NSPM filed a natural gas rate case requesting: − Base rate increase of ~$8 million − ROE of 10.2%, equity ratio of 52.5% and 2024 forward test year − Rate base of $168 million • Interim rates of ~$8 million in effect M
Slide 24: 2024 Q2 Events
2024 Q2 Events Events Dates New York City Non-Deal Roadshow May 6 AGA Financial Conference May 18-21 European Non-Deal Roadshow May 28-30 RBC Global Energy, Power & Infrastructure Conference June 4 J.P. Morgan Energy, Power & Renewables Conference June 18 Japan Non-Deal Roadshow June 24-25 24
Slide 25: © 2024 Xcel Energy
© 2024 Xcel Energy 25