XELLL — Xcel Energy Inc. 6.25% Junior Subordinated Notes, Series due 2085

Summary of Xcel Energy Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Xcel Energy reported ongoing earnings of $0.91 per share for Q1 2026, up from $0.84 per share in Q1 2025.
• GAAP earnings were $0.89 per share, impacted by a $37 million charge related to the Prairie Island outage and a $22 million increase in estimated insurance proceeds for wildfire litigation.
• Key earnings drivers included higher electric revenues due to rate case outcomes and sales growth, offset by increased interest charges and higher depreciation and amortization.
• Weather negatively impacted earnings by $0.09 per share due to Colorado experiencing its warmest winter on record.

2. Strategic Updates and Business Highlights:

• Xcel Energy invested over $3 billion in new infrastructure in Q1 2026, part of its $14 billion capital investment plan for the year.
• The company announced a 15-year agreement with Google for a new data center, which is expected to save customers $1 billion to $1.5 billion over the contract's term.
• Xcel is pursuing a joint development agreement with NextEra Energy to co-develop generation and storage solutions aimed at data center growth.
• The company has a $60 billion base investment plan and identified $7 billion of incremental investment opportunities, including transmission and generation needs.

3. Forward Guidance and Outlook:

• Xcel reaffirmed its 2026 ongoing EPS guidance of $4.04 to $4.16 per share and expects 6% to 8% long-term earnings growth with an average of 9% EPS growth through 2030.
• The company is focused on securing 6 gigawatts of data center load by the end of 2027, with in-service dates extending into the early 2030s.

4. Bad News, Challenges, or Points of Concern:

• The $41 million disallowance of replacement power costs related to the Prairie Island outage is a significant negative development.
• Weather impacts have been a concern, with warmer conditions leading to reduced electric and natural gas sales.
• Supply chain constraints and labor shortages in the renewable energy sector could pose challenges to executing the capital investment plan.
• Regulatory uncertainties remain, with multiple rate cases pending in various states, which could affect future earnings.

5. Notable Q&A Insights:

• Management expressed confidence in reaching constructive settlements in ongoing regulatory discussions, particularly in Colorado and Minnesota.
• The company is exploring alternative financing options to support its capital needs while maintaining a strong balance sheet.
• There is a focus on how large data center loads will contribute to earned returns and potentially reduce the frequency of rate cases.
• Management highlighted the importance of partnerships with Tier 1 EPC firms to mitigate execution risks associated with their extensive capital plans.

Overall, Xcel Energy demonstrated strong financial performance in Q1 2026, with significant investments and strategic partnerships aimed at supporting future growth, despite facing regulatory and operational challenges.