Analyst Report: Xcel Energy, Inc.

Summary

Minneapolis-based Xcel Energy is an electric and natural gas utility with regulated operations in eight Western and Midwestern states. XEL provides generation, distribution, and transmission services and has a generating capacity of about 20,600 megawatts. The company provides utility services to 3.8 million electricity customers and 2.1 million natural gas customers through its regulated utilities. As of 1H24, electricity accounts for about 80% of total operating revenues. In addition to providing power, XEL has pipeline infrastructure and natural gas storage/compression operations. About one-fourth of customers are in the Denver area and are served by subsidiary PSCo. While the company has benefited from favorable regulatory decisions, we note that Colorado gas rates are largely tied to wholesale rates, which can stress overall earnings growth. The company's 2023 fuel mix is: coal, 19%; nuclear, 10%;