Xcel Energy 2012 Year End Earnings Report

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

-

GAAPdiluted earnings per share

$

0.29

$

0.29

$

1.85

$

1.72

(a)

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.

XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(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

10,654,770

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

8,291

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

XCEL ENERGY INC. AND SUBSIDIARIES
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