Xcel Energy 2012 Year End Earnings Report

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Xcel Energy 2012 Year End Earnings Report

  • Ongoing 2012 earnings per share were $1.82 compared with $1.72 per share in 2011.
  • GAAP (generally accepted accounting principles) 2012 earnings per share were $1.85 compared with $1.72 per share in 2011.
  • Xcel Energy reaffirms 2013 earnings guidance of $1.85 to $1.95 per share.

MINNEAPOLIS--(BUSINESS WIRE)-- Xcel Energy Inc. (NYS: XEL) today reported 2012 GAAP earnings of $905 million, or $1.85 per share compared with 2011 GAAP earnings of $841 million, or $1.72 per share.

Ongoing earnings, which exclude one adjustment, were $1.82 per share for 2012 compared with $1.72 per share in 2011. Ongoing earnings increased largely due to increases in electric margins driven by the conclusion of various rate cases, which reflect our continued investment in our utility business and a lower effective tax rate. Partially offsetting these positive factors were warmer than normal winter weather, increases in depreciation expense, operating and maintenance expenses and property taxes.

"We had an excellent year financially and operationally in 2012," said Ben Fowke, Chairman, President and Chief Executive Officer. "We delivered earnings in the upper half of our guidance range, which represents the eighth consecutive year in which we have met or exceeded our earnings guidance and for the ninth consecutive year we increased our dividend. We implemented a multi-year rate plan in Colorado and reached constructive regulatory outcomes in several other rate cases. Finally, we maintained excellent reliability during one of the warmest years on record, all executed with outstanding safety performance."

"We have established a solid strategy and continue to execute our business plan. As a result, we are well positioned to deliver on our 2013 earnings guidance of $1.85 to $1.95 per share," stated Fowke.

Earnings Adjusted for Certain Items (Ongoing Earnings)

The following table provides a reconciliation of ongoing earnings per share to GAAP earnings per share:

Three Months Ended Dec. 31   Twelve Months Ended Dec. 31
Diluted Earnings Per Share 2012     2011 2012     2011
Ongoing (a) diluted earnings per share $ 0.29 $ 0.29 $ 1.82 $ 1.72
Prescription drug tax benefit (a)   -   -   0.03   -
GAAP diluted earnings per share $ 0.29 $ 0.29 $ 1.85 $ 1.72


    See Note 6.

At 9:00 a.m. CST today, Xcel Energy will host a conference call to review financial results. To participate in the call, please dial in 5 to 10 minutes prior to the start and follow the operator's instructions.

US Dial-In: (877) 941-0844
International Dial-In: (480) 629-9835
Conference ID: 4577479

The conference call also will be simultaneously broadcast and archived on Xcel Energy's website at www.xcelenergy.com. To access the presentation, click on Investor Relations. If you are unable to participate in the live event, the call will be available for replay from 2:00 p.m. CST on Jan. 31 through 11:59 p.m. CST on Feb. 1.

Replay Numbers
US Dial-In: (800) 406-7325
International Dial-In: (303) 590-3030
Access Code: 4577479 #

Except for the historical statements contained in this release, the matters discussed herein, are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including our 2013 earnings per share guidance and assumptions, are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should" and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries (collectively, Xcel Energy) to obtain financing on favorable terms; business conditions in the energy industry, including the risk of a slow down in the U.S. economy or delay in growth recovery; trade, fiscal, taxation and environmental policies in areas where Xcel Energy has a financial interest; customer business conditions; actions of credit rating agencies; competitive factors, including the extent and timing of the entry of additional competition in the markets served by Xcel Energy Inc. and its subsidiaries; unusual weather; effects of geopolitical events, including war and acts of terrorism; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership or impose environmental compliance conditions; structures that affect the speed and degree to which competition enters the electric and natural gas markets; costs and other effects of legal and administrative proceedings, settlements, investigations and claims; actions by regulatory bodies impacting our nuclear operations, including those affecting costs, operations or the approval of requests pending before the Nuclear Regulatory Commission; financial or regulatory accounting policies imposed by regulatory bodies; availability or cost of capital; employee work force factors; and the other risk factors listed from time to time by Xcel Energy in reports filed with the Securities and Exchange Commission (SEC), including Risk Factors in Item 1A and Exhibit 99.01 of Xcel Energy Inc.'s Annual Report on Form 10-K for the year ended Dec. 31, 2011 and Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and Sept. 30, 2012.

This information is not given in connection with any
sale, offer for sale or offer to buy any security.

(amounts in thousands, except per share data)
    Three Months Ended Dec. 31     Twelve Months Ended Dec. 31
2012     2011   2012     2011
Operating revenues
Electric $ 2,010,976 $ 1,988,800 $ 8,517,296 $ 8,766,593
Natural gas 520,513 560,109 1,537,374 1,811,926
Other   19,646     19,501     73,553     76,251  
Total operating revenues 2,551,135 2,568,410 10,128,223



Operating expenses
Electric fuel and purchased power 898,752 920,293 3,623,935 3,991,786
Cost of natural gas sold and transported 323,495 370,351 880,939 1,163,890
Cost of sales — other 8,568


29,067 30,391
Operating and maintenance expenses 599,917 565,130 2,176,095 2,140,289
Conservation and demand side management program expenses 69,285 69,303 260,527 281,378
Depreciation and amortization 231,689 194,303 926,053 890,619
Taxes (other than income taxes)   103,032     96,738     408,924     374,815  
Total operating expenses   2,234,738     2,224,409     8,305,540     8,873,168  
Operating income 316,397 344,001 1,822,683 1,781,602
Other income, net 1,222 960 6,175 9,255
Equity earnings of unconsolidated subsidiaries 7,821 7,714 29,971 30,527
Allowance for funds used during construction — equity 18,336 12,533 62,840 51,223
Interest charges and financing costs
Interest charges — includes other financing costs of
$5,961, $6,295, $24,087 and $24,019, respectively 144,112 152,395 601,582 591,098
Allowance for funds used during construction — debt   (10,586 )   (6,606 )   (35,315 )   (28,181 )
Total interest charges and financing costs 133,526 145,789 566,267 562,917
Income from continuing operations before income taxes 210,250 219,419 1,355,402 1,309,690
Income taxes   70,042     78,478     450,203     468,316  
Income from continuing operations 140,208 140,941 905,199 841,374
(Loss) income from discontinued operations, net of tax   (38 )   (432 )   30     (202 )
Net income 140,170 140,509 905,229 841,172
Dividend requirements on preferred stock - - - 3,534
Premium on redemption of preferred stock   -     -     -     3,260  
Earnings available to common shareholders $ 140,170   $ 140,509   $ 905,229   $ 834,378  
Weighted average common shares outstanding:
Basic 488,428 486,223 487,899 485,039
Diluted 489,136 486,991 488,434 485,615
Earnings per average common share:
Basic $ 0.29 $ 0.29 $ 1.86 $ 1.72
Diluted 0.29 0.29 1.85 1.72
Cash dividends declared per common share $ 0.27 $ 0.26 $ 1.07 $ 1.03

Notes to Investor Relations Earnings Release (Unaudited)

Due to the seasonality of Xcel Energy's operating results, quarterly financial results are not an appropriate base from which to project annual results.

The only common equity securities that are publicly traded are common shares of Xcel Energy Inc. The earnings and earnings per share (EPS) of each subsidiary discussed below do not represent a direct legal interest in the assets and liabilities allocated to such subsidiary but rather represent a direct interest in our assets and liabilities as a whole. EPS by subsidiary is a financial measure not recognized under GAAP that is calculated by dividing the net income or loss attributable to the controlling interest of each subsidiary by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. We use this non-GAAP financial measure to evaluate and provide details of earnings results. We believe that this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. This non-GAAP financial measure should not be considered as an alternative to our consolidated fully diluted EPS determined in accordance with GAAP as an indicator of operating performance.

Note 1. Earnings Per Share Summary

The following table summarizes the diluted earnings per share for Xcel Energy:

Three Months Ended Dec. 31   Twelve Months Ended Dec. 31
Diluted Earnings (Loss) Per Share 2012     2011 2012     2011
Public Service Company of Colorado (PSCo) $ 0.16 $ 0.18 $ 0.90 $ 0.82
NSP-Minnesota 0.13 0.11 0.70 0.73
Southwestern Public Service Company (SPS) 0.01 0.01 0.22 0.18
NSP-Wisconsin 0.02 0.02 0.10 0.10
Equity earnings of unconsolidated subsidiaries 0.01     0.01     0.04     0.04  
Regulated utility — continuing operations (a) 0.33 0.33 1.96 1.87
Xcel Energy Inc. and other costs (0.04 )   (0.04 )   (0.14 )   (0.15 )
Ongoing (b) diluted earnings per share 0.29 0.29 1.82 1.72
Prescription drug tax benefit (b) -     -     0.03     -  
GAAP diluted earnings per share $ 0.29   $ 0.29   $ 1.85   $ 1.72  
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