Xcel Energy First Quarter 2024 Earnings Report

• First quarter GAAP and ongoing diluted earnings per share were $0.88 in 2024 compared with $0.76 in 2023.
• Xcel Energy reaffirms 2024 EPS guidance of $3.50 to $3.60 per share.

MINNEAPOLIS–(BUSINESS WIRE)–Xcel Energy Inc. (NASDAQ: XEL) today reported 2024 first quarter GAAP and ongoing earnings of $488 million, or $0.88 per share, compared with $418 million, or $0.76 per share in the same period in 2023.

First quarter ongoing earnings results reflect increased recovery of infrastructure investments and lower O&M expenses, partially offset by increased interest charges and depreciation.

“Our thoughts remain with the communities impacted by wildfires in the Texas Panhandle, an area we have served for more than 100 years,” said Bob Frenzel, chairman, president and CEO of Xcel Energy. “Like all energy companies, we are navigating changes in weather and climate-induced impacts on our operations. Wildfire mitigation and system resiliency will continue to be priorities going forward. We have already advanced a number of wildfire risk reduction initiatives — including preventive power shutoffs during high-risk conditions, non-reclose and fast-trip safety settings, and accelerated pole inspections and replacements — and will continue to enhance our wildfire mitigation efforts.”

At 9:00 a.m. CDT today, Xcel Energy will host a conference call to review financial results. To participate in the call, please dial in 5 to 10 minutes prior to the start and follow the operator’s instructions.

US Dial-In:		1 (866) 580-3963
International Dial-In:		(400) 120-0558
Conference ID:		2618878

The conference call also will be simultaneously broadcast and archived on Xcel Energy’s website at www.xcelenergy.com. To access the presentation, click on Investors under Company. If you are unable to participate in the live event, the call will be available for replay from April 25th through April 29th.

Replay Numbers
US Dial-In:		1 (866) 583-1035
Access Code:		2618878#

Except for the historical statements contained in this report, 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 and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, and expected impact on our results of operations, financial condition and cash flows of resettlement calculations and credit losses relating to certain energy transactions, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2023 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs and our subsidiaries’ ability to recover costs from customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; uncertainty regarding epidemics, the duration and magnitude of business restrictions including shutdowns (domestically and globally), the potential impact on the workforce, including shortages of employees or third-party contractors due to quarantine policies, vaccination requirements or government restrictions, impacts on the transportation of goods and the generalized impact on the economy; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

This information is not given in connection with any sale, offer for sale or offer to buy any security.

XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (amounts in millions, except per share data)
		Three Months Ended March 31
			2024				2023
Operating revenues
Electric		$	2,685			$	2,763
Natural gas			941				1,288
Other			23				29
Total operating revenues			3,649				4,080
Operating expenses
Electric fuel and purchased power			948				1,117
Cost of natural gas sold and transported			483				844
Cost of sales — other			8				12
Operating and maintenance expenses			605				650
Conservation and demand side management expenses			97				76
Depreciation and amortization			658				624
Taxes (other than income taxes)			171				184
Total operating expenses			2,970				3,507
Operating income			679				573
Other income, net			14				5
Earnings from equity method investments			8				11
Allowance for funds used during construction — equity			37				19
Interest charges and financing costs
Interest charges — includes other financing costs			291				253
Allowance for funds used during construction — debt			(14	)			(10	)
Total interest charges and financing costs			277				243
Income before income taxes			461				365
Income tax benefit			(27	)			(53	)
Net income		$	488			$	418
Weighted average common shares outstanding:
Basic			556				551
Diluted			556				551
Earnings per average common share:
Basic		$	0.88			$	0.76
Diluted			0.88				0.76

XCEL ENERGY INC. AND SUBSIDIARIES

Notes to Investor Relations Earnings Release (Unaudited)

Due to the seasonality of Xcel Energy’s operating results, quarterly financial results are not an appropriate base from which to project annual results.

Non-GAAP Financial Measures

The following discussion includes financial information prepared in accordance with generally accepted accounting principles (GAAP), as well as certain non-GAAP financial measures such as ongoing return on equity (ROE), ongoing earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that adjusts measures calculated and presented in accordance with GAAP. Xcel Energy’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.

Ongoing ROE

Ongoing ROE is calculated by dividing the net income or loss of Xcel Energy or each subsidiary, adjusted for certain nonrecurring items, by each entity’s average stockholder’s equity. We use these non-GAAP financial measures to evaluate and provide details of earnings results.

Earnings Adjusted for Certain Items (Ongoing Earnings and Ongoing Diluted EPS)

GAAP diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents) were settled. The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc.’s diluted EPS is calculated using the treasury stock method. Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items. Ongoing diluted EPS for Xcel Energy is calculated by dividing net income or loss, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. Ongoing diluted EPS for each subsidiary is calculated by dividing the net income or loss for such subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period.

We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance. For instance, to present ongoing earnings and ongoing diluted earnings per share, we may adjust the related GAAP amounts for certain items that are non-recurring in nature. We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. These non-GAAP financial measures should not be considered as an alternative to measures calculated and reported in accordance with GAAP. For the three months ended March 31, 2024 and 2023, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings for these periods.

Note 1. Earnings Per Share Summary

Xcel Energy’s first quarter GAAP and ongoing diluted earnings were $0.88 per share, compared with $0.76 per share in the same period in 2023. The increase in earnings per share was primarily driven by increased recovery of infrastructure investments, higher allowance for funds used during construction (AFUDC) and lower O&M expenses, partially offset by increased interest charges and depreciation. Fluctuations in electric and natural gas revenues associated with changes in fuel and purchased power and/or natural gas sold and transported generally do not significantly impact earnings (changes in costs are offset by the related variation in revenues).

Summarized diluted EPS for Xcel Energy:

		Three Months Ended March 31
Diluted Earnings (Loss) Per Share			2024				2023
PSCo		$	0.39			$	0.39
NSP-Minnesota			0.38				0.25
SPS			0.10				0.10
NSP-Wisconsin			0.08				0.08
Earnings from equity method investments — WYCO			0.01				0.01
Regulated utility			0.96				0.83
Xcel Energy Inc. and Other			(0.08	)			(0.07	)
GAAP and ongoing diluted EPS		$	0.88			$	0.76

PSCo — GAAP and ongoing earnings were flat for the first quarter primarily reflecting increased recovery of electric infrastructure investments, which was offset by unfavorable weather and increased depreciation and interest charges.

NSP-Minnesota — GAAP and ongoing earnings increased $0.13 per share for the first quarter of 2024. The change was driven by increased recovery of electric and natural gas infrastructure investments and lower O&M expenses, partially offset by higher interest expenses and depreciation.

SPS — GAAP and ongoing earnings were flat for the first quarter of 2024 primarily due to regulatory rate outcomes and lower O&M expenses, offset by increased depreciation and amortization expenses.

NSP-Wisconsin — GAAP and ongoing earnings were flat for the first quarter of 2024 as lower O&M expenses were offset by increased depreciation.

Xcel Energy Inc. and Other — Primarily includes financing costs and interest income at the holding company and earnings from Energy Impact Partners (EIP) funds equity method investments. The decline in earnings is largely due to increased interest rates.

Components significantly contributing to changes in 2024 EPS compared to 2023:

Diluted Earnings (Loss) Per Share		Three Months Ended March 31
GAAP and ongoing diluted EPS — 2023		$	0.76
Components of change – 2024 vs. 2023
Lower cost of natural gas sold and transported (a)			0.49
Lower electric fuel and purchased power (a)			0.23
Lower O&M expenses			0.06
Higher AFUDC			0.04
Lower natural gas revenues			(0.47	)
Lower electric revenues			(0.11	)
Higher depreciation and amortization			(0.05	)
Higher interest charges			(0.05	)
Other, net			(0.02	)
GAAP and ongoing diluted EPS — 2024		$	0.88

(a)

Cost of natural gas sold and transported and electric fuel and purchased power are generally recovered through regulatory recovery mechanisms and offset in revenue.

Note 2. Regulated Utility Results

Estimated Impact of Temperature Changes on Regulated Earnings — Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The estimated impact of weather on earnings is based on the number of customers, temperature variances, the amount of natural gas or electricity historically used per degree of temperature and excludes any incremental related operating expenses that could result due to storm activity or vegetation management requirements. As a result, weather deviations from normal levels can affect Xcel Energy’s financial performance. However, electric sales true-up and gas decoupling mechanism in Minnesota predominately mitigate the positive and adverse impacts of weather in that jurisdiction.

Normal weather conditions are defined as either the 10, 20 or 30-year average of actual historical weather conditions. The historical period of time used in the calculation of normal weather differs by jurisdiction, based on regulatory practice. To calculate the impact of weather on demand, a demand factor is applied to the weather impact on sales. Extreme weather variations, windchill and cloud cover may not be reflected in weather-normalized estimates.

Weather — Estimated impact of temperature variations on EPS compared with normal weather conditions:

	Three Months Ended March 31
	2024 vs. Normal				2023 vs. Normal				2024 vs. 2023
Retail electric	$	(0.029	)		$	0.002			$	(0.031	)
Decoupling and sales true-up		0.016				(0.006	)			0.022
Electric total	$	(0.013	)		$	(0.004	)		$	(0.009	)
Firm natural gas		(0.027	)			0.029				(0.056	)
Decoupling	$	0.017			$	—			$	0.017
Gas total	$	(0.010	)		$	0.029			$	(0.039	)
Total	$	(0.023	)		$	0.025			$	(0.048	)

Sales — Sales growth (decline) for actual and weather-normalized sales in 2024 compared to 2023:

		Three Months Ended March 31
		PSCo			NSP-Minnesota			SPS			NSP-Wisconsin			Xcel Energy
Actual
Electric residential		(2.2	)%		(5.7	)%		(1.7	)%		(7.3	)%		(4.0	)%
Electric C&I		0.4			(3.1	)		7.4			(1.8	)		1.0
Total retail electric sales		(0.5	)		(4.0	)		5.7			(3.5	)		(0.5	)
Firm natural gas sales		(9.1	)		(14.4	)		N/A			(14.6	)		(11.1	)

		Three Months Ended March 31
		PSCo			NSP-Minnesota			SPS			NSP-Wisconsin			Xcel Energy
Weather-Normalized
Electric residential		0.8	%		(1.0	)%		(2.9	)%		(3.0	)%		(0.8	)%
Electric C&I		1.0			(2.2	)		7.5			(1.5	)		1.6
Total retail electric sales		0.9			(1.8	)		5.5			(2.0	)		0.9
Firm natural gas sales		4.7			1.2			N/A			(3.1	)		3.0

		Three Months Ended March 31 (Leap Year Adjusted)
		PSCo			NSP-Minnesota			SPS			NSP-Wisconsin			Xcel Energy
Weather-Normalized
Electric residential		(0.3	)%		(2.1	)%		(4.1	)%		(4.1	)%		(1.9	)%
Electric C&I		(0.1	)		(3.3	)		6.3			(2.5	)		0.5
Total retail electric sales		(0.2	)		(2.9	)		4.3			(3.0	)		(0.3	)
Firm natural gas sales		3.4			(0.1	)		N/A			(4.3	)		1.7

Weather-normalized and leap-year adjusted electric sales growth (decline) — year-to-date

• PSCo — Residential sales decreased due to a 1.5% decrease in use per customer, partially offset by customer growth of 1.3%. The C&I sales decline was related to decreased use per customer, primarily in the information and professional services sectors, partially offset by increases in the manufacturing and health care sectors.
• NSP-Minnesota — Residential sales decreased due to a 3.5% decrease in use per customer, partially offset by a 1.5% increase in customers. C&I sales declined due to decreased use per customer, largely in the manufacturing sector.
• SPS — Residential sales declined as a result of a 4.6% decrease in use per customer, partially offset by 0.5% customer growth. C&I sales increased due to higher use per customer, primarily driven by the energy sector.
• NSP-Wisconsin — Residential sales declined due to a 4.9% decrease in use per customer, partially offset by 0.8% increase in customers. C&I sales decline was associated with decreased use per customer, experienced largely in the professional services and manufacturing sectors.

Weather-normalized and leap-year adjusted natural gas sales growth (decline) — year-to-date

• Increase in natural gas sales was driven by continued strength in PSCo residential and C&I use per customer. Additionally, overall residential and C&I customer growth was 1.1% and 0.6%, respectively.

Electric Revenues — Electric revenues are impacted by fluctuations in the price of natural gas, coal and uranium, regulatory outcomes, market prices and seasonality. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes. In the first quarter, electric revenues decreased $78 million.

(Millions of Dollars)		Three Months Ended March 31, 2024 vs. 2023
Recovery of lower cost of electric fuel and purchased power		$	(178	)
Wholesale generation revenues			(11	)
Estimated impact of weather (net of sales true-up)			(8	)
PTCs flowed back to customers (offset by lower ETR)			(8	)
Regulatory rate outcomes (MN, CO, TX, NM, WI and ND)			66
Non-fuel riders			34
Conservation and demand side management (offset in expense)			20
Sales and demand (a)			15
Other (net)			(8	)
Total decrease		$	(78	)

(a)

Sales excludes weather impact, net of sales true-up mechanism in Minnesota.

Natural Gas Revenues — Natural gas revenues vary with changing sales, the cost of natural gas and regulatory outcomes. In the first quarter, natural gas revenues decreased $347 million.

(Millions of Dollars)		Three Months Ended March 31, 2024 vs. 2023
Recovery of lower cost of natural gas		$	(359	)
Estimated impact of weather (net of decoupling)			(29	)
Regulatory rate outcomes (MN, WI, ND and MI)			22
Retail sales growth (net of decoupling in Minnesota)			10
Infrastructure and integrity riders			3
Other (net)			6
Total decrease		$	(347	)

Electric Fuel and Purchased Power — Expenses incurred for electric fuel and purchased power are impacted by fluctuations in market prices of natural gas, coal and uranium, as well as seasonality. However, these incurred expenses are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues and have minimal earnings impact.

Electric fuel and purchased power expenses decreased $169 million for the first quarter of 2024. The decrease is primarily due to lower commodity prices, timing of fuel recovery and decreased volumes.

Cost of Natural Gas Sold and Transported — Expenses incurred for the cost of natural gas sold are impacted by market prices and seasonality. These costs are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues and have minimal earnings impact.

Natural gas sold and transported decreased $361 million for the first quarter of 2024. The decrease is primarily due to lower commodity prices and volumes.

O&M Expenses — O&M expenses decreased $45 million for the first quarter. The decrease was primarily due to decreased labor and benefit costs, gain on land sale and lower bad debt expenses.

Depreciation and Amortization — Depreciation and amortization increased $34 million for the first quarter as a result of system expansion, offset by depreciation life extensions implemented in the Minnesota Electric Rate Case.

Interest Charges — Interest charges increased $38 million for the first quarter, largely due to increased long-term debt levels and higher interest rates.

AFUDC, Equity and Debt — AFUDC increased $22 million for the first quarter driven by increased investment in renewable projects in 2024.

Income Taxes — Effective income tax rate:

		Three Months Ended March 31
		2024			2023			2024 vs. 2023
Federal statutory rate		21.0	%		21.0	%		—	%
State tax (net of federal tax effect)		4.8			4.8			—
(Decreases) increases:
Wind PTCs (a)		(25.9	)		(33.1	)		7.2
Plant regulatory differences (b)		(5.6	)		(5.5	)		(0.1	)
Other tax credits, net NOL & tax credit allowances		(0.6	)		(1.6	)		1.0
Other (net)		0.4			(0.1	)		0.5
Effective income tax rate		(5.9	)%		(14.5	)%		8.6	%

(a)		Wind PTCs net of estimated transfer discounts are generally credited to customers (reduction to revenue) and do not materially impact earnings.
(b)		Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit are offset by corresponding revenue reductions.

Note 3. Capital Structure, Liquidity, Financing and Credit Ratings

Xcel Energy’s capital structure:

(Millions of Dollars)		March 31, 2024			Percentage of Total Capitalization			Dec. 31, 2023			Percentage of Total Capitalization
Current portion of long-term debt		$	552		1	%		$	552		1	%
Short-term debt			463		1				785		2
Long-term debt			26,396		58				24,913		57
Total debt			27,411		60				26,250		60
Common equity			17,841		40				17,616		40
Total capitalization		$	45,252		100	%		$	43,866		100	%

Liquidity — As of April 22, 2024, Xcel Energy Inc. and its utility subsidiaries had the following committed credit facilities available to meet liquidity needs:

(Millions of Dollars)		Credit Facility (a)			Drawn (b)			Available			Cash			Liquidity
Xcel Energy Inc.		$	1,500		$	—		$	1,500		$	11		$	1,511
PSCo			700			30			670			656			1,326
NSP-Minnesota			700			15			685			411			1,096
SPS			500			101			399			29			428
NSP-Wisconsin			150			—			150			6			156
Total		$	3,550		$	146		$	3,404		$	1,113		$	4,517

Contacts

Paul Johnson, Vice President – Treasurer & Investor Relations

(612) 215-4535

Roopesh Aggarwal, Senior Director – Investor Relations

(303) 571-2855

Xcel Energy website address: www.xcelenergy.com
(612) 215-5300

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