Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Q2 2023 Earnings Presentation
30 slides from Xcel Energy's earnings presentation, Jul 27, 2023
Slide 1: 2023 Second Quarter Earnings Report Presentation
2023 SECOND QUARTER EARNINGS REPORT PRESENTATION JULY 27, 2023
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 2023 EPS guidance, long-term EPS
Slide 3: 2023 Q2 Financial and Operational Highlights
2023 Q2 Financial and Operational Highlights • Strong progress on resource plan RFPs: – Recommended 250 MW of company-owned solar at NSP – Recommended 418 MW of company-owned solar at SPS – Expect to file PSCo recommended portfolio in third quarter • Filed second Transportation Electrification Plan
Slide 4: Generation RFPs Outstanding
Generation RFPs Outstanding RFP Scope* Key Dates • IRP needs through 2028 • Bids received March 2023 • 2,800 MW renewables • Recommended portfolio Q3 2023 PSCo • 200 MW storage • CPUC decision 2023 • 1,176 MW firm peaking • PSCo will file additional RFPs for remaining requirements • In May, NSPM fil
Slide 5: Sustainability Goals - Tangible Progress
Sustainability Goals - Tangible Progress GOAL PROGRESS CO2 80% lower carbon emissions by 2030, 53% reduction 2005 - 2022 100% carbon-free electricity by 2050* 25% lower net GHG emissions by 2030, Filing first Clean Heat Plan in Colorado in Q3 2023 net-zero by 2050** 70% less water consumption by 203
Slide 6: EPS Results by Operating Company
EPS Results by Operating Company Second Quarter YTD Operating Company 2023 2022 2023 2022 PSCo $ 0.17 $ 0.24 $ 0.56 $ 0.56 NSPM 0.23 0.22 0.48 0.45 SPS 0.15 0.17 0.25 0.27 NSPW 0.05 0.03 0.13 0.11 Earnings from equity method investments 0.01 0.01 0.02 0.02 Regulated utility 0.60 0.67 1.43 1.41 Holdi
Slide 7: Quarterly GAAP and Ongoing EPS Change
Quarterly GAAP and Ongoing EPS Change $0.06 $0.02 $0.02 ($0.23) $0.10 ($0.03) ($0.02) $0.60 $0.52 2022 Q2 2023 Q2 EPS EPS * Electric margin includes ~$0.03 of negative weather impacts (post regulatory mechanisms) 6
Slide 8: YTD GAAP and Ongoing EPS Change
YTD GAAP and Ongoing EPS Change $0.03 $0.02 $0.02 ($0.09) ( $0.05 $0.04 $0.09) ( $0.08 $0.08) $1.30 $1.28 2022 YTD 2023 YTD EPS EPS * Combined electric and natural gas margins include ~$0.04 of negative weather impacts (post regulatory mechanisms) ** Includes PTCs and plant regulatory amounts, which
Slide 9: Sales and Customer Data
Sales and Customer Data 2023 YTD W/A Retail Electric Sales Growth 2023 Q2 YoY Electric Customer Growth 4.6% 1.1% 1.2% 0.7% 1.1% 0.7% 0.5% 0.6% -0.4% -1.2% NSPM NSPW PSCo SPS Xcel Energy NSPM NSPW PSCo SPS Xcel Energy 2023 YTD W/A Natural Gas Sales Growth 2023 Q2 YoY Natural Gas Customer Growth 1.2%
Slide 10: NSPM Minnesota Electric Rate Case
NSPM Minnesota Electric Rate Case Proceeding No. 21-630 • In October 2021, NSPM filed a three-year electric rate case: − Revised rate request seeking an increase of $498 million over three years − ROE of 10.2% and equity ratio of 52.5% − 2022 - 2024 forward test years − MPUC approved interim rates o
Slide 11: NSPM South Dakota Electric Rate Case
NSPM South Dakota Electric Rate Case Proceeding No. EL22-017 • In June 2022, NSPM filed an electric rate case requesting: − Rate increase of ~$44 million − ROE of 10.75% and equity ratio of 53% − Rate base of ~$947 million − 2021 historic test year − Interim rates implemented in January 2023 • In Ju
Slide 12: PSCo Colorado Electric Rate Case
PSCo Colorado Electric Rate Case Proceeding No. 22AL-0530E • In November 2022, PSCo filed an electric rate case requesting: − Revised net base rate increase of ~$253 million − ROE of 10.25% and equity ratio of 55.7% − 2023 forward test year − Rate base of $11.3 billion • In June 2023, filed nearly c
Slide 13: SPS New Mexico Electric Rate Case
SPS New Mexico Electric Rate Case Proceeding No. 22-00286-UT • In November 2022, SPS filed an electric rate case requesting: − Revised rate increase of ~$75 million − ROE of 10.75% and equity ratio of 54.7% − Rate base of ~$2.4 billion − Acceleration of Tolk coal plant depreciation life from 2032 to
Slide 14: NSPW Wisconsin Electric & Natural Gas Rate Case
NSPW Wisconsin Electric & Natural Gas Rate Case Proceeding No. 4220-UR-126 • In April 2023, NSPW filed an electric and natural gas rate case requesting: − Base electric rate increase of ~$40 million − Base natural gas rate increase of ~$9 million − ROE of 10.25% and equity ratio of 52.5% − 2024 forw
Slide 15: SPS Texas Electric Rate Case
SPS Texas Electric Rate Case Proceeding No. 54634 • In February 2023, SPS filed an electric rate case requesting: − Revised base rate increase of ~$158 million − ROE of 10.65% and equity ratio of 54.6% − Rate base of ~$3.6 billion − Acceleration of Tolk coal plant retirement from 2034 to 2028 − Hist
Slide 16: 2023 GAAP and Ongoing EPS Guidance: $3.30 - $3.40
2023 GAAP and Ongoing EPS Guidance: $3.30 - $3.40 Earnings Drivers Key Assumptions (as compared to 2022 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%
Slide 17: Appendix
APPENDIX 16
Slide 18: ROE Results – GAAP and Ongoing Earnings
ROE Results – GAAP and Ongoing Earnings GAAP and Ongoing ROE 2022 Rate Base Twelve Months Ended 6/30/2023 SPS 10.62% 10.55% 17% 8.92% 8.09% 8.84% 8.66% NSPM ~$39 38% PSCo Billion 40% NSPM NSPW PSCo SPS Total Xcel NSPW OpCo Energy 5% 17
Slide 19: Base Capital Expenditures by Function
Base Capital Expenditures by Function $ Millions 2023 2024 2025 2026 2027 Total Electric Distribution $1,610 $1,790 $1,680 $2,000 $2,450 $9,530 Electric Transmission $1,280 $1,650 $1,890 $1,690 $1,900 $8,410 Electric Generation $710 $910 $900 $560 $650 $3,730 Natural Gas $740 $730 $760 $650 $680 $3,
Slide 20: Base Capital Expenditures by Company
Base Capital Expenditures by Company $ Millions 2023 2024 2025 2026 2027 Total NSPM $2,000 $2,400 $2,530 $2,200 $2,580 $11,710 NSPW $540 $570 $500 $450 $540 $2,600 PSCo $2,140 $2,440 $2,550 $1,980 $2,190 $11,300 SPS $710 $780 $720 $770 $900 $3,880 Other* $10 $10 ($30) $10 $10 $10 Total $5,400 $6,200
Slide 21: Financing Plan 2023 - 2027
Financing Plan 2023 - 2027* $ Millions $325 $425 $8,210 $3,800 $3,800 $29,500 $20,540 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 div
Slide 22: 2023 Debt Financing Plan
2023 Debt Financing Plan $ Millions Issuer Security Amount Status Tenor Coupon PSCo First Mortgage Bonds $850 Completed 30-Yr 5.25% NSPW First Mortgage Bonds $125 Completed 30-Yr 5.30% NSPM First Mortgage Bonds $800 Completed 30-Yr 5.10% Hold Co Unsecured Bonds $700 Q3 N/A N/A SPS First Mortgage Bon
Slide 23: Strong Credit Metrics
Strong Credit Metrics Plan 2023 2024 2025 2026 2027 FFO/Debt ~18% ~19% ~18% ~18% ~18% Debt/EBITDA 4.9x 4.9x 4.9x 4.9x 4.9x Equity Ratio 40% 40% 40% 40% 40% Hold Co Debt/Total Debt 24.1% 24.3% 24.9% 24.7% 24.9% Credit Ratings Moody’s S&P Fitch Xcel Energy Unsecured Baa1 BBB+ BBB+ NSPM Secured Aa3 A+
Slide 24: Long-Term Transmission Buildout
Long-Term Transmission Buildout Major Expansion to Enable More Renewables NSP PSCo NSP Tranche 1 cap ex of ~$1.2 billion ~$1.7 billion Pathway enables 5.5 GW renewables via 560 miles of 345 kV lines NSP Futures 1: Estimated cumulative $4 - $5 billion investment (over 10-15 years) Additional $0.5 - $
Slide 25: Minnesota Resource Plan
Minnesota Resource Plan 85% Carbon Reduction & Coal Exit by 2030 Full coal exit by 2030 Significant renewable additions • King (511 MW) retire 2028 • 2,500 MW universal scale solar • Sherco 3 (517 MW) retire 2030 • 2,150 MW wind • Additional 1,100 MW beyond 2032 Firm peaking capacity (reliability dr
Slide 26: Colorado Resource Plan
Colorado Resource Plan 85% Carbon Reduction & Coal Exit by 2030 Full coal exit by 2030 Significant renewable additions • Hayden 1 & 2 (233 MW) retire 2028/2027 • ~2,300 MW wind • Pawnee (505 MW) conversion to natural • ~1,600 MW universal scale solar gas no later than January 2026 • ~1,200 MW distri
Slide 27: 2023 YTD W/A Electric Sales Growth
2023 YTD W/A Electric Sales Growth NSPM NSPW PSCo SPS Residential C&I Total Retail 5.5% 4.6% 1.1% 0.5% 0.3% -0.6%-0.3% -0.4% -0.9% -1.1%-1.3% -1.2% Extreme weather variations, windchill and cloud cover may not be reflected in estimates 26
Slide 28: 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% 2.1% 1.7% 1.8% 0.8% 1.2% 0.6% 0.4% 0.1% 0.1% -1.3%-0.7% 2023 2023 2023 2023 2021* 2022 YTD 2021* 2022 YTD 2021* 2022 YTD 2021* 2022 YTD * Leap year adjusted Extreme weather variations, windchill
Slide 29: 2023 Q3 Events
2023 Q3 Events Events Dates UBS Kohler Conference August 17 Barclays Conference September 6 Wolfe Research Conference September 28 28
Slide 30: © 2023 Xcel Energy Inc.
(2) Xcel Energy’ © 2023 Xcel Energy Inc.