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Xcel Energy is a major U.S. regulated electric and natural gas delivery company headquartered in Minneapolis, Minnesota, serving customers in eight states through its four utility subsidiaries: NSP-Minnesota, NSP-Wisconsin, PSCo, and SPS . The company operates in two primary segments: Regulated Electric and Regulated Natural Gas, focusing on generating, transmitting, and distributing electricity, as well as transporting, storing, and distributing natural gas . Xcel Energy's primary focus is on electricity generation and distribution, which accounts for the majority of its revenue .
- Regulated Electric - Generates, transmits, and distributes electricity across several states, including Minnesota, Wisconsin, Michigan, North Dakota, South Dakota, Colorado, Texas, and New Mexico, and includes wholesale commodity and trading operations.
- Regulated Natural Gas - Transports, stores, and distributes natural gas primarily in Minnesota, Wisconsin, North Dakota, Michigan, and Colorado.
- All Other - Includes smaller revenue streams such as steam revenue, appliance repair services, and non-utility real estate activities.
- Given the significant increase in O&M expenses, particularly from wildfire mitigation and storm expenses leading to a revised forecast of a 3% to 4% increase over 2023, what specific measures are you implementing to control these rising costs and ensure they don't negatively impact your earnings growth targets?
- With the tripling of excess liability insurance premiums and a reduction in capacity, along with $215 million in estimated accrued liabilities from the Smokehouse Creek wildfire, how do you plan to manage the financial impact of potential future wildfire events, and are you confident in your ability to secure regulatory approval for cost recovery?
- You issued $1.1 billion of equity through your ATM program this year, which is not part of your 2025 to 2029 financing plan; can you explain the rationale behind this unexpected equity issuance and how it affects your capital structure and shareholder dilution?
- You've updated your long-term EPS growth objective to 6% to 8% with expectations to deliver earnings in the upper half of the range, yet you've modified your dividend growth objective to 4% to 6% and expect to be at the low end; could you discuss the reasons for lowering dividend growth and how this decision balances shareholder returns with funding your capital investment plan?
- Considering your significant reliance on data center load growth, with nearly 9,000 megawatts of opportunities and 50% of your 5% per year electric sales growth coming from data centers, what are the risks if these large data center loads do not materialize as expected, and how are you mitigating potential demand fluctuations from these customers?
Recent developments and announcements about XEL.
Corporate Leadership
Board Change
Devin Stockfish has been elected to the Xcel Energy Board of Directors, effective January 23, 2025. He will serve on the Finance Committee and the Operations, Nuclear, Environmental, and Safety Committee. With his addition, the board now has 14 members.
Financial Actions
New Share Buyback Program
Xcel Energy Inc. has announced a new buyback program. The key details are as follows: The company will repurchase shares to offset shareholder dilution from employee incentive plans, reinvestment of dividends, and director compensation programs. The buyback program is designed to avoid being classified as a Potential Adjustment Event under the 2002 Definitions .
New Share Buyback Program
Xcel Energy has initiated a new buyback program through Forward Sale Agreements with Barclays Bank PLC and Bank of America, N.A. This involves the potential repurchase of up to 18,320,610 shares of its common stock. The initial forward sale price is set at $64.4356 per share, subject to daily adjustments based on a floating interest rate factor. The program allows Xcel Energy to settle these agreements by issuing shares at the forward sale price on or before June 30, 2026 .