XCEL ENERGY INC Q1 FY2026 earnings call

• Xcel Energy invested over $3 billion in new infrastructure in the first quarter for increased resilience and cleaner energy, on track for the most extensive capital investment plan in history.
• Announced details of the contract with Google for a new data center in the Upper Midwest, including 1,900 MW of new wind and solar generation and long-duration storage, estimated to save customers $1 to $1.5 billion over the term. Also reached an agreement with NextEra Energy to co-develop generation, storage, and interconnections for data center development.
• Filed large load tariff proposals in Colorado and planned similar filings in other states to protect existing customers from costs. Confident in securing six gigawatts of data center load by year-end 2027.
• Outlined a $60 billion base investment plan for energy transition and infrastructure, with line of sight to at least $7 billion of the $10+ billion opportunity, including transmission and generation projects related to Google data center and others.
• Invested in new solar generation and utility scale battery storage, delivering system resiliency and reliability and over $425 million in tax credit benefits to customers. Alliances with GE Vernova and Nextera and strategic agreements with Tier 1 EPC firms critical for executing investment pipeline.
• Field teams recognized for emergency recovery and Xcel Energy named world's most ethical company.

In the first quarter of 2026, ongoing earnings were $0.91 per share. Higher electric revenues due to rate case outcomes, non-fuel riders, and sales growth, partially offset by weather, increased earnings by $0.23 per share. Higher APDC increased earnings by $0.10 per share. Offsetting factors included higher interest charges and common equity financing decreasing earnings by $0.18 per share, higher depreciation and amortization decreasing earnings by $0.05 per share, and lower natural gas revenues due to weather, partially offset by rate case outcomes, decreasing earnings by $0.03 per share. Weather-wise, Colorado had the warmest winter on record, reducing earnings by $0.09 per share. On a weather-adjusted basis, first quarter electric sales increased by 2.8%, and full-year weather-adjusted electric sales were expected to increase 3% in 2026. Regulatory activity included approvals in North Dakota and South Dakota electric rate cases, intervener testimony in Colorado electric rate case, ALJ report in Minnesota electric rate case recommending a 9.8% ROE and 52.5% equity ratio, and upcoming actions in New Mexico electric rate case.

Reaffirming 2026 ongoing EPS guidance range of $4.04 to $4.16 per share. Remain confident in 6 to 8 plus percent long-term earnings growth and expect 9% EPS growth on average through 2030. Updates to key assumptions included in slides and earnings release. Already addressed over half of $7 billion equity need in five-year base plan with equity issuances and note issuance.

Significant factors could cause results to differ from anticipated, including those described in earnings release and SEC filings. Supply chains and qualified labor for generation, transmission, and distribution projects could become more constrained. Uncertainties in regulatory outcomes and rate case resolutions could impact earnings and investment plans. Risks associated with extreme weather and wildfire claims processes, although progress is being made on Smokehouse Creek wildfire claims.

Q: Richard Sunderland from Truist Securities asked about regulatory progress in Colorado and Minnesota, and data center activity financing.

A: Bob and Brian responded on regulatory timelines, data center backlog, financing, and equity financing assumptions.

Q: Nicholas Campanella from Barclays asked about incremental spend shaping and equity financing cadence.

A: Bob discussed incremental spend components and equity financing considerations.

Q: Julian Smith from Jeffries asked about Colorado intervener testimony settlement prospects and data center geographic footprint.

A: Bob and others responded on settlement negotiations and data center regional interests.

Q: Carly Dazenport from Goldman Sachs asked about Colorado PUC sunset bill and wildfire risk reduction.

A: Bob commented on PUC sunset bill provisions and wildfire risk reduction efforts.

Q: Jeremy Tonette from JP Morgan asked about Google agreement trends and data center win factors.

A: Bob and others discussed alignment with state policies and data center win key factors.

Q: Ross Fowler from Bank of America asked about JDA with NextEra expansion and execution risk.

A: Bob responded on JDA expansion and execution risk mitigation.

Q: Steve Fleischman from Wolf Research asked about slide eight non-checkmarked items visibility.

A: Steve discussed visibility on RFP filings and project timelines.

Q: Sophie carp from key bank asked about quantifying customer benefits from data center load.

A: Bob responded on customer savings from Google data center and potential for future quantification.

Q: Anthony Crowdell from Mizzou of Securities asked about equity issuance cadence and Smokehouse Creek claims.

A: Brian responded on equity issuance flexibility and Smokehouse Creek claims progress.

Q: Steve D'Ambrisi from RBC Capital Markets asked about large loads impact on earned returns.

A: Bob discussed impact of large loads on earned returns and staying out of rate cases long-term.