Xcel Energy (XEL) Q2 2024 earnings summary

Executive summary

• Q2 2024 EPS was $0.54, up from $0.52 in Q2 2023, with net income at $302 million, driven by infrastructure investment recovery, warmer weather, and strong operational progress.

• 2024 EPS guidance reaffirmed at $3.50–$3.60, maintaining a long-term growth target of 5%–7% annually.

• Advanced clean energy transition with major RFPs for wind, solar, storage, and regulatory approvals for new renewable generation.

• Wildfire mitigation efforts accelerated, including new plans, system-wide safety enhancements, and $215 million accrued for Smokehouse Creek Fire claims.

• Settlement filed in Minnesota natural gas rate case; sustainability report published.

Financial highlights

• Q2 2024 EPS was $0.54, up from $0.52; YTD EPS reached $1.42 versus $1.28 YTD 2023.

• Q2 2024 net income was $302 million, up from $288 million; operating income rose to $449 million from $418 million.

• Total Q2 2024 operating revenues were $3.03 billion, nearly flat year-over-year.

• Key EPS drivers: electric rate cases, higher AFUDC, and natural gas rate cases; offsets included higher depreciation, interest, and O&M.

• Cash from operations for H1 2024 was $2.24 billion, down $215 million, mainly due to interim rate refunds and deferred fuel cost recovery.

Outlook and guidance

• 2024 ongoing EPS guidance is $3.50–$3.60, assuming constructive regulatory outcomes and normal weather.

• Weather-normalized retail electric sales projected to increase 1% in 2024; natural gas sales expected to be flat.

• Long-term EPS and dividend growth targeted at 5%–7% annually, with a payout ratio of 50%–60%.

• Base five-year capital plan of $39 billion, with potential $5 billion upside.

• Confident in delivering long-term earnings growth at or above the top end of the 5%–7% range starting in 2025.