Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Q4 2019 Earnings Presentation
23 slides from Xcel Energy's earnings presentation, Jan 30, 2020
Slide 1: 2019 Year End Earnings Report Presentation
2019 YEAR END EARNINGS REPORT PRESENTATION JANUARY 30, 2020
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 our 2020 earnings per share (EPS) guidance, long-t
Slide 3: 2019 Highlights
2019 Highlights • Met or exceeded earnings guidance for the 15th consecutive year • Increased annual dividend 10 cents (6.6%), marking the 16th consecutive annual increase • Issued $3 billion of bonds on favorable terms, including $1.5 billion of green bonds • Issued $750 million of forward equity w
Slide 4: Wind Development – Proven Ability to Execute
Wind Development – Proven Ability to Execute Largest Multi-state Wind Investment in the Nation >4,300 MW Owned wind Owned and in service Capacity Project Capacity Border 150 MW Freeborn 200 MW Courtenay 200 MW Blazing Star 1 200 MW Grand Meadow 100 MW Blazing Star 2 200 MW Nobles 200 MW Crowned Ridg
Slide 5: Grid Hardening and Digitization
Grid Hardening and Digitization Achieving Top-quartile Reliability and Creating New Customer Offerings Program Elements, Benefits and Timeline 2020 - 2024 Capital Investment SPS Smart meters Enhanced security 10% Private network Improved reliability Advanced software Better data and faster outage re
Slide 6: ESG Leadership
ESG Leadership Environmental Social Governance Most aggressive carbon goals: Ranked 1st in employee safety Diverse and engaged Board with 80% carbon reduction by 2030 among natural gas peer group (AGA)* requisite experience 100% carbon free by 2050 Top quartile OSHA performance Carbon reduction goal
Slide 7: External Recognition
External Recognition • Recognized among Fortune Magazine’s “Most Admired” utilities • Recognized as a “Best for Vets” employer by Military Times • Received EEI’s “Emergency Recovery Award” for post-tornado restoration efforts in South Dakota • Received S&P Global’s “Award of Excellence” for our carb
Slide 8: EPS Results by Operating Company
EPS Results by Operating Company Fourth Quarter Full Year Operating Company 2019 2018 2019 2018 PSCo $ 0.25 $ 0.17 $ 1.11 $ 1.08 NSPM 0.24 0.17 1.04 0.96 SPS 0.09 0.08 0.51 0.42 NSPW 0.03 0.04 0.15 0.19 Equity earnings 0.01 0.01 0.05 0.04 Regulated utility 0.62 0.47 2.86 2.69 Holding company and oth
Slide 9: Quarterly GAAP and Ongoing EPS Change
Quarterly GAAP and Ongoing EPS Change $0.02 $0.01 ($0.03) ($0.02) $0.07 $0.03 ($0.01) $0.07 $0.56 $0.42 2018 Q4 2019 Q4 EPS EPS * Combined electric and natural gas margins include ~$0.01 of positive weather impacts (post decoupling) ** Includes PTCs and timing of tax reform regulatory decisions, whi
Slide 10: Annual GAAP and Ongoing EPS Change
Annual GAAP and Ongoing EPS Change $0.08 $0.02 ($0.18) $0.29 $0.15 ($0.11) ($0.08) $2.47 $2.64 2018 2019 EPS EPS * Combined electric and natural gas margins include ~$0.00 of positive weather impacts (post decoupling) ** Includes PTCs and timing of tax reform regulatory decisions, which are primaril
Slide 11: Sales and Customer Data
Sales and Customer Data 2019 W/A Retail Electric Sales Growth 2019 Q4 YoY Electric Customer Growth 3.4% 1.4% 0.8% 0.8% 1.0% 0.6% -0.3% -0.3% -2.1% -1.6% NSPM NSPW PSCo SPS Xcel Energy NSPM NSPW PSCo SPS Xcel Energy 2019 W/A Natural Gas Sales Growth 2019 Q4 YoY Natural Gas Customer Growth 4.1% 2.7% 1
Slide 12: NSPM Multi-Year Minnesota Electric Rate Case
NSPM Multi-Year Minnesota Electric Rate Case • In November 2019, NSPM filed a three-year electric rate case requesting rate increases of $201 million (2020), $146 million (2021) and $118 million (2022) – Requested ROE of 10.2% and equity ratio of 52.5% – Rate base of $9.0 billion (2020), $9.3 billio
Slide 13: PSCo Colorado Electric Rate Case
PSCo Colorado Electric Rate Case Docket # 19AL-0268E • In 2019, PSCo filed an electric rate case seeking a revised rate increase of $108 million – ROE of 10.2% and equity ratio of 55.6% (ST debt in capital structure & CWIP in rate base) – Electric rate base of $8.2 billion – December 31, 2018 HTY wi
Slide 14: SPS New Mexico Electric Rate Case
SPS New Mexico Electric Rate Case Docket # 19-00170-UT • In 2019, SPS filed an electric rate case seeking a revised rate increase of $47 million, based on a ROE of 10.1%, an equity ratio of 54.8% and a historic test year • In January 2020, SPS reached a settlement reflecting the following: – Rate in
Slide 15: SPS Texas Electric Rate Case
SPS Texas Electric Rate Case Docket # 49831 • In August 2019, SPS filed an electric rate case requesting: – Base rate increase of $136 million – ROE of 10.35% and equity ratio of 54.7% – Rate base of $2.6 billion – June 30, 2019 HTY • Seeks a surcharge from September 2019 through effective date of n
Slide 16: 2020 GAAP & Ongoing EPS Guidance: $2.73 – $2.83
2020 GAAP & Ongoing EPS Guidance: $2.73 – $2.83 Earnings Drivers Key Assumptions (as compared to 2019 levels unless noted) Regulatory proceedings Constructive outcomes in all proceedings Weather Normal weather W/A retail electric sales Increase of approximately 1.0%, including impact of leap year W/
Slide 17: Appendix
APPENDIX 16
Slide 18: ROE Results – GAAP and Ongoing Earnings
ROE Results – GAAP and Ongoing Earnings GAAP and Ongoing ROE 2019E Rate Base Twelve Months Ended 12/31/2019 10.78% SPS 9.31% 9.71% 9.06% 8.27% 8.69% 16% NSPM $30 37% PSCo Billion 41% NSPM NSPW PSCo SPS Total Xcel NSPW OpCo Energy 6% 17
Slide 19: Xcel Energy W/A Sales Growth
Xcel Energy W/A Sales Growth Residential C&I Total Retail Electric Natural Gas Electric 2.7% 2.7% Natural Gas 2.4% 1.5% 1.3% 0.8% 0.4% 0.4% 0.1% -0.5% -0.3% -0.8% 2017* 2018 2019 2017* 2018 2019 2017* 2018 2019 2017* 2018 2019 * Adjusted to exclude the impact of leap day in 2016 Extreme weather vari
Slide 20: 2019 W/A Electric Sales Growth
2019 W/A Electric Sales Growth NSPM NSPW PSCo SPS Residential 3.8% 3.4% C&I Total Retail 1.9% 1.1% 0.1% -0.1% -0.3% -0.6% -1.6% -2.1% -3.0% -2.6% Extreme weather variations, wind chill and cloud cover may not be reflected in growth (decline) estimates 19
Slide 21: 2020 Long-term Debt Financing Plan
2020 Long-term Debt Financing Plan $ Millions Issuer Security Amount Hold Co Senior Unsecured Bonds ~$700 NSPM First Mortgage Bonds ~$550 NSPW First Mortgage Bonds ~$100 PSCo First Mortgage Bonds ~$750 SPS First Mortgage Bonds ~$300 Financing plans are subject to change, depending on capital expendi
Slide 22: 2020 First Quarter Events
2020 First Quarter Events Events Dates Morgan Stanley Conference March 3 Barclays Fixed Income Conference March 3 Bank of America Merrill Lynch Conference March 4 Barclays Chicago Conference and Midwest Non-deal Roadshow March 11-12 UBS European Conference March 31 – April 3 21
Slide 23: © 2020 Xcel Energy Inc.
(2) Xcel Energy’ © 2020 Xcel Energy Inc.