Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Q2 2015 Earnings Presentation
19 slides from Xcel Energy's earnings presentation, Jul 30, 2015
Slide 1: Second Quarter 2015 Earnings Release Presentation
Second Quarter 2015 Earnings Release Presentation July 30, 2015
Slide 2: EPS Results
EPS Results Q2 2014 2015 $0.39 $0.39 $0.39 $0.39 Ongoing EPS GAAP EPS YTD 2014 2015 $0.91 $0.85 $0.91 $0.69 Ongoing EPS GAAP EPS YTD 2015 ongoing earnings exclude a charge of $0.16 per share related to the Monticello extended power uprate (EPU) project 11
Slide 3: Xcel Energy Strategic Plan
Xcel Energy Strategic Plan Objectives Measurable Results Improve Utility ● Close ROE gap 50 bps by 2018 Performance ● Derive 75% of revenue from MYPs Drive Operational ● Manage workforce transition Excellence ● Limit annual O&M growth to 0-2% Provide Customer ● Offer more energy options Options & So
Slide 4: Legislative Initiative in Minnesota
Legislative Initiative in Minnesota Governor signed Energy & Jobs bill into law in June 2015 Provides longer, more holistic multi-year rate plans Ability to implement multi-year plans for up to five years Allows for recovery of capital investments Recovery of O&M expenses based on a price
Slide 5: Legislative Initiative in Texas
Legislative Initiative in Texas Governor signed regulatory lag bill into law in June 2015 Legislation will help to reduce regulatory lag — Ability to implement temporary rates or surcharge 155 days after rate case filing date — Allows the addition of post-test year capital additions up to 30 day
Slide 6: Potential Natural Gas Investment
Potential Natural Gas Investment Colorado Commission information meetings — Examine the long term supply of natural gas and approaches to manage prices, including rate-basing of natural gas reserves — Anticipate the Commission will schedule informational meetings in the third quarter 2015 Regula
Slide 7: Renewables & Operations Highlights
Renewables & Operations Highlights Community solar gardens decision in Minnesota Cherokee combined-cycle plant completed first fire Monticello nuclear plant reaches 100% of EPU (671 MW) and receives final NRC approval 66
Slide 8: Quarterly Ongoing EPS Change
Quarterly Ongoing EPS Change $0.60 $0.50 $0.40 $0.39 $0.39 ($0.02) ($0.02) ($0.02) ($0.01) $0.06 $0.30 ($0.01) ($0.01) $0.02 $0.01 $0.20 2Q14 2Q15 Ongoing Ongoing EPS EPS The $0.02 adverse impact of weather is incorporated in electric margins 7
Slide 9: YTD Ongoing EPS Change
YTD Ongoing EPS Change $1.30 $1.20 $1.10 $1.00 $0.91 $0.90 $0.85 $0.80 ($0.06) ($0.04) ($0.04) $0.70 ($0.03) $0.11 ($0.03) $0.05 ($0.02) ($0.01) $0.01 $0.60 $0.50 $0.40 YTD 2014 YTD 2015 Ongoing Ongoing EPS EPS The $0.07 adverse impact of weather is incorporated in electric and natural gas margins 8
Slide 10: ROE Results – Ongoing Earnings
ROE Results – Ongoing Earnings Twelve Months Ended 06/30/2015 2014 Rate Base NSP-W 5% 10.50% PSCo 9.40% 9.80% 8.24% 8.72% 43% 7.92% NSP-M 42% SPS 10% NSP-M NSP-W PSCo SPS Total Xcel Regulated Energy ● Xcel Energy anticipates the full-year 2015 ROE’s for NSP-M, Total Regulated and Xcel Energy will be
Slide 11: EPS Results by Operating Company
EPS Results by Operating Company Second Quarter YTD 2015 2014 2015 2014 PSCo $ 0.19 $ 0.18 $ 0.41 $ 0.41 NSP-Minnesota 0.15 0.15 0.32 0.37 SPS 0.05 0.06 0.08 0.09 NSP-Wisconsin 0.02 0.02 0.07 0.07 Equity earnings 0.01 0.01 0.02 0.02 Regulated utility 0.42 0.42 0.90 0.96 Holding company and other (0.
Slide 12: Economic, Sales & Customer Data
Economic, Sales & Customer Data 2015 Q2 W/A Electric Sales Growth 2015 YTD W/A Electric Sales Growth 0.6% 0.3% -0.6% -0.7% -0.5% -0.4% -1.3% -1.2% -0.8% -1.9% NSP-M * NSP-W PSCo SPS Xcel Energy NSP-M * NSP-W PSCo SPS Xcel Energy 2015 Q2 YoY Customer Growth June Unemployment 1.3% 1.0% 5.5% 0.9% 0.7%
Slide 13: Xcel Energy W/A Electric Sales Growth
Xcel Energy W/A Electric Sales Growth Residential C&I Total 1.7% 1.3% 0.5% 0.2% 0.1% 0.1% 0.1% -1.3% -0.4% 2013 2014 YTD 2013 2014 YTD 2013 2014 YTD YTD = Six months ended June 30, 2015 12 12
Slide 14: 2015 Ongoing Earnings Guidance
2015 Ongoing Earnings Guidance Ongoing EPS Guidance Range: $2.00 – $2.15 Key Assumption Changes Earnings Driver Previous Current W/A Electric Sales Increase 1.0% Increase 0.5% W/A Natural Gas Sales Increase 0% to 1.0% Decrease 2.0% Sensitivities Earnings Driver Sensitivity EPS Retail Electric Sales
Slide 15: Appendix
Appendix Q Xcel Energy’
Slide 16: YTD W/A Electric Sales Growth
YTD W/A Electric Sales Growth NSP-M NSP-W PSCo SPS 2.3% 0.8% 0.6% 0.3% 0.3% 0.0% -0.5% -0.6% -0.8% -1.1% -1.8% -3.4% Residential C&I Total 15 15
Slide 17: Opco ROE Sensitivities
Opco ROE Sensitivities Sensitivity to 100 bps change in ROE 2014 Revenue Opco Jurisdiction Rate Base Requirement EPS ($ millions) ($ millions) MN Electric $7,047 $57 +/- $0.073 MN Gas $453 $4 +/- $0.005 NSPM ND Electric $454 $4 +/- $0.005 ND Gas $48 $0 +/- $0.000 SD Electric $474 $4 +/- $0.005 CO El
Slide 18: Financing Plan for 2015
Financing Plan for 2015 Amount Issuer Security Timing Tenor Coupon (millions) Hold Co Senior Unsecured $250 Completed 2 Yr 1.20% Hold Co Senior Unsecured $250 Completed 10 Yr 3.30% PSCo First Mortgage Bonds $250 Completed 10 Yr 2.90% NSP-W First Mortgage Bonds $100 Completed 9 Yr 3.30% NSP-M First M
Slide 19: Upcoming 2015 Third Quarter Events
Upcoming 2015 Third Quarter Events CFA “investMNt” Conference: Aug. 5 Barclays Kohler Conference: Aug. 19-21 Barclays Conference: Sept. 9 Wolfe Research Conference: Sept. 30 18 18