Xcel Energy (XEL) Q2 2024 earnings summary

Executive summary

• Q2 2024 diluted EPS was $0.54, up from $0.52 in Q2 2023, driven by infrastructure investment recovery, rate case revenues, and warmer weather, partially offset by higher depreciation, interest, and O&M expenses.

• Net income for Q2 2024 was $302 million, compared to $288 million in Q2 2023; six-month net income was $790 million, up from $706 million year-over-year.

• Reaffirmed 2024 EPS guidance of $3.50–$3.60 and long-term EPS and dividend growth target of 5%–7%.

• Advanced clean energy transition with major RFPs, regulatory approvals, and infrastructure investments.

• Wildfire mitigation efforts accelerated, including new plans, system-wide safety enhancements, and significant capital investments.

Financial highlights

• Q2 2024 EPS: $0.54 vs. $0.52 in Q2 2023; YTD EPS: $1.42 vs. $1.28 in 2023.

• Q2 2024 total operating revenues were $3.03 billion, nearly flat year-over-year; six-month revenues were $6.68 billion, down from $7.10 billion.

• Operating income for Q2 2024 was $449 million, up from $418 million in Q2 2023.

• Positive EPS drivers: $0.26/share from electric rate cases/riders, $0.04/share from AFUDC, $0.02/share from gas rate cases.

• Negative EPS drivers: $0.18/share from higher depreciation/amortization, $0.07/share from higher interest, $0.04/share from higher O&M.

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 annual EPS and dividend growth targeted at 5%–7%, with a payout ratio of 50%–60%.

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

• Expecting to update sales and capital investment forecasts in Q3.