STEEL FOR FUEL 2.0
March Investor Meetings
March 2024
© 2024 Xcel Energy | 1 |
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 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, 2022 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; cyber security 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; 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.
Contacts
Paul Johnson | Roopesh Aggarwal | Darin Norman |
Vice President, Treasurer & IR | Senior Director, Investor Relations | Consultant, Investor Relations |
(612) 215-4535 | (303) 571-2855 | (612) 337-2310 |
paul.a.johnson@xcelenergy.com | roopesh.k.aggarwal@xcelenergy.com | darin.norman@xcelenergy.com |
Website: https://investors.xcelenergy.com/ | Xcel Energy app also available | 2 |
Attractive Investment Thesis
Pure-Play, Regulated Utility that Consistently Delivers
Robust Capital Investment Opportunities
Low Customer Bills
Sustainably Leading the Clean Energy Transition
3
Attractive Investment Thesis
Pure-Play, Regulated Utility that Consistently Delivers
Robust Capital Investment Opportunities
Low Customer Bills
Sustainably Leading the Clean Energy Transition
4
Fully Regulated and Vertically Integrated Utility
Four
Operating Companies
Eight
States
3.8 Million
Electric Customers
2.2 Million
Natural Gas Customers
$42 Billion
2023E Rate Base
21 GW
Owned Gen. Capacity
~11,000 Employees
As of 12/31/2023
Northern States Power Minnesota (NSPM)
Minnesota, South Dakota, North Dakota
- 2023E Rate Base: $15.6 billion
- 2023 Ongoing EPS: $1.28
- 2024 - 2028 Base Cap Ex: $13.1 billion
Public Service Company of Colorado (PSCo)
Colorado
- 2023E Rate Base: $16.8 billion
- 2023 Ongoing EPS: $1.26
- 2024 - 2028 Base Cap Ex: $19.2 billion
Northern States Power Wisconsin (NSPW)
Wisconsin, Michigan
- 2023E Rate Base: $2.4 billion
- 2023 Ongoing EPS: $0.25
- 2024 - 2028 Base Cap Ex: $3.0 billion
Southwestern Public Service (SPS) | ||
Texas, New Mexico | ||
• 2023E Rate Base: $7.1 billion | ||
• | 2023 Ongoing EPS: $0.70 | |
• | 2024 - 2028 Base Cap Ex: $4.1 billion | 5 |
Strategy
VISION
We will be the preferred and trusted provider of the energy our customers need
MISSION
We provide our customers the safe, clean, reliable energy services they want and value at a competitive price
VALUES Connected
PRIORITIES
CO2 Lead the Clean Energy Transition
- Electricity: 80% carbon reduction by 2030, 100% carbon-free by 2050
- Natural gas: 25% GHG reduction by 2030, net-zero by 2050
Enhance the Customer Experience
• Conservation, new products/services
• 1 in 5 EVs enabled by 2030
Keep Bills Low
• Average bill increases <rate of inflation
Committed Safe Trustworthy
6
Target Returns
~8-10% Total Shareholder
Return
5-7% EPS Growth
~4.2% Dividend Yield
5-7% CAGR | 50-60% Payout Ratio
7
Proven Track Record
Ongoing EPS
$3.50- $3.60
$1.15
2005 | 2007 | 2009 | 2011 | 2013 | 2015 | 2017 | 2019 | 2021 | 2023 | 2024E |
Guidance Range
Dividend
2005 | 2007 | 2009 | 2011 | 2013 | 2015 | 2017 | 2019 | 2021 | 2023 2024 |
Annual Increase
Performance Within Guidance
2023 | ||||||||||||||||||||
2022 | ||||||||||||||||||||
2021 | ||||||||||||||||||||
2020 | ||||||||||||||||||||
2019 | ||||||||||||||||||||
2018 | ||||||||||||||||||||
2017 | ||||||||||||||||||||
2016 | ||||||||||||||||||||
2015 | ||||||||||||||||||||
2014 | ||||||||||||||||||||
2013 | ||||||||||||||||||||
2012 | ||||||||||||||||||||
2011 | Actual | |||||||||||||||||||
2010 | ||||||||||||||||||||
2009 | Result | |||||||||||||||||||
2008 | ||||||||||||||||||||
2007 | ||||||||||||||||||||
2006 | ||||||||||||||||||||
2005 | ||||||||||||||||||||
Low End | Midpoint | High End |
8
Attractive Investment Thesis
Pure-Play, Regulated Utility that Consistently Delivers
Robust Capital Investment Opportunities
Low Customer Bills
Sustainably Leading the Clean Energy Transition
9
Updated Base Capital Forecast 2024 - 2028
Investment by Function
Other | Electric |
8% | Distribution |
Natural Gas | 27% |
LDC 8% |
~$39
Electric Billion
Generation
13%Electric Transmission
Renewables 30% 14%
Investment by Driver
Carbon-Free | ||
SPS | Generation | |
16%NSPM | ||
Other | ||
15% | 37% | |
20% | T&D | |
$22.5 | ||
~$39 | Resiliency | |
Billion | 27% |
Economic
GrowthNSPW
25% Generation10% Reliability
EV 10% 2%
Base capital forecast excludes additional generation investment associated with resource plans
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Xcel Energy Inc. published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2024 16:10:03 UTC.