Xcel Energy Inc.
) recorded operating earnings in the first quarter 2013 of 52
cents per share, up 26.8% from the year-ago quarter. Earnings
also beat the Zacks Consensus Estimate by 20.9%.
Earnings outperformed on the back of higher electric and gas
margins owing to a severe winter, lower interest expense and
constructive rate cases in Colorado, South Dakota and
GAAP earnings were 48 cents per share compared with 38 cents
per share in the year-ago period. The disparity between GAAP and
pro forma earnings can be attributed to a net loss of 4 cents
from miscellaneous costs.
Revenue increased 8% year over year to $2,782.8 million in the
reported quarter. The sharp year-over-year upswing was due to
encouraging sales from the Natural Gas and Electric segments.
Quarterly revenue marginally surpassed the Zacks Consensus
Estimate of $2,754.0 million.
Revenue from this segment went up 8% year over year to $2,092.2
Revenue from gas business also registered an increase of 7.8% to
Segment revenue in the reported quarter was $21.1 million versus
$20.3 million in the year-ago period.
Total operating expenses climbed 5.9% to $2,328.2 million from
the year-ago quarter. Cost accelerated on account of a 7.1% rise
in electric fuel and purchased costs compounded by a 5.1%
escalation in natural gas sold and transported.
Operating income on the other hand received a 19.6% boost year
over year to $454.6 million due to the greater upturn in revenue
overshadowing the cost accretion.
Total interest charges after Allowance for funds used during
construction ("AFUDC") plunged 9.9% at the end of the first
quarter 2013 to $130.9 million.
Long-term debts as of Mar 31, 2013 were $10.6 billion. As of
Apr 30, 2013, Xcel Energy had available liquidity of $2.0
The company in Mar 2013 issued $250 million worth first
mortgage bonds carrying a 2.5% interest due Mar 15, 2023 and $250
million, 3.95% bonds due Mar 15, 2043. Xcel Energy informed the
trustees of its plans to redeem $400 million, 7.6% notes on May
Xcel Energy intends to issue $500 million first mortgage bonds
and $400 million unsecured bonds in the first half of 2013.
Xcel Energy expects earnings in the range of $1.85 to $1.95
per share in 2013. Operating and maintenance expenses are
estimated to increase 4% to 5%, while depreciation expense is
projected to increase in the range of $75 million to $85 million
over 2012 levels.
Interest expenses are forecast in the range $30.0 million to
$35.0 million approximately from 2012.
Other Utility Company Releases
CMS Energy Corp
) posted adjusted earnings of 53 cents in the first quarter,
higher than the Zacks Consensus Estimate of 46 cents per
TECO Energy Inc.
) reported first quarter 2013 earnings of 19 cents per share
surpassing the Zacks Consensus Estimate by 11.8%.
NextEra Energy Inc.
) reported pro forma earnings of $1.12 per share beating the
Zacks Consensus Estimate by 10.9%.
Xcel Energy continued with its good run reporting yet another
earnings surprise in the first quarter 2013. The company is
expected to do well in the summer months, which normally witness
a rise in power sales.
Moreover, the premier CapX2020 midstream project as well as
the high-end renewable additions to its generation portfolio is
expected to be the major highlight in 2013. Xcel's modernization
activities will also contribute to improved service quality and
hence lead to customer retention.
Xcel Energy currently retains a Zacks Rank #2 (Buy). Based in
Minneapolis, Xcel Energy is a U.S. electricity and natural gas
company, with operations in eight Western and Midwestern
CMS ENERGY (CMS): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
XCEL ENERGY INC (XEL): Free Stock Analysis
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