Dive Brief:
- Xcel Energy Q3 2014 earnings were up slightly to $369 million, and $0.73 per share, from Q3 2013’s $365 million, and $0.73 cents per share, but fell short of analyst projections of $0.76 per share despite benefiting from higher electric and natural gas rates.
- Costs imposed by severe weather lowered Q3 ongoing earnings by $0.07 per share. There was also a $0.04 per share charge for a potential customer refund required of subsidiary Southwestern Public Service for a 2004 complaint about fuel costs and base rates.
- Q3 2014 revenue was $2.9 billion, up 1.7% from Q3 2013, and 2014's first nine months of revenue was $8.8 billion, up 7% over the first nine months of 2013. Net income for the first nine months of 2014 was $825 million, and $1.64 per share, up from the $798.2 million and $1.61 per share for the first nine months of 2013.
Dive Insight:
“While weather was unfavorable, we had a solid quarter that keeps us on track to achieve our 2014 ongoing earnings guidance,” said Xcel Chair/President/CEO Ben Fowke. He added that O&M expenses were down, providing for anticipated 2% to 3% 2014 O&M growth.
Xcel’s updated capital plan is expected to support 4%-6% annual earnings growth, as well as a new 2014 earnings guidance narrowed from between $1.90 to $2.05 per share to between $1.95 to $2.05 per share, and a 2015 ongoing earnings projection of between $2.00 to $2.15 per share.
Xcel Energy has 3.5 million electricity customers and 1.9 million natural gas customers in eight Western and Midwestern states.
