Xcel Energy Reports Slight Revenue Decline, Increased Net Income in Q3 2024

Xcel Energy Inc. reported its financial results for the third quarter and the first nine months of 2024, revealing a slight decline in operating revenues but an increase in net income compared to the same periods in 2023. For the three months ended September 30, 2024, operating revenues were $3,644 million, down from $3,662 million in 2023. For the nine months, revenues decreased to $10,321 million from $10,764 million. Despite the revenue decline, net income for the third quarter rose to $682 million, compared to $656 million in the prior year, while year-to-date net income increased to $1,472 million from $1,362 million.

Operating expenses for the third quarter decreased to $2,733 million from $2,747 million, and for the nine months, they fell to $8,282 million from $8,858 million. This reduction in expenses contributed to an increase in operating income for the nine-month period, which rose to $2,039 million from $1,906 million in 2023. Earnings per share for the third quarter were $1.21, up from $1.19, and for the nine months, they increased to $2.63 from $2.47.

Xcel Energy's total assets grew to $69,286 million as of September 30, 2024, from $64,079 million at the end of 2023. The company also reported an increase in long-term debt to $27,471 million from $24,913 million. Notably, additional paid-in capital rose to $9,577 million from $8,465 million, and retained earnings increased to $8,406 million from $7,858 million.

In terms of strategic developments, Xcel Energy issued $3,643 million in long-term debt during the nine months ended September 30, 2024, compared to $2,631 million in the same period of 2023. The company also raised $1,109 million from the issuance of common stock, a significant increase from $83 million in the previous year.

Operationally, Xcel Energy faced challenges with rising O&M expenses, which increased by $69 million for the third quarter and $58 million year-to-date, primarily due to operational activities and the recognition of previously deferred costs. Additionally, depreciation and amortization expenses rose significantly, reflecting ongoing system expansion.

Xcel Energy's ongoing earnings guidance for 2024 is projected between $3.50 and $3.60 per share, with expectations of a 1% increase in weather-normalized retail electric sales. The company aims for long-term annual EPS growth of 6% to 8% and plans to increase dividends by 4% to 6% annually.