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Image source: The Motley Fool. Thursday, July 30, 2026 at 10:00 a.m. ET Vice President, Investor Relations - Roopesh Aggarwal Chairman, President and Chief Executive Officer - Robert Frenzel Executive Vice President and Chief Financial Officer - Brian Van Abel Operator: Hello, and welcome to the Xcel Energy Second Quarter 2026 Earnings Conference Call. My name is Jordan, and I'll be your coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions] Reporters can contact Media Relations with inquiries, and investors and others can reach out to Investor Relations. I'll now turn the call over to your host today, Mr. Roopesh Aggarwal, Vice President, Investor Relations, to begin the conference. Please go ahead, sir. Roopesh Aggarwal: Thank you, Jordan. Good morning, and welcome to Xcel Energy's 2026 Second Quarter Earnings Call. Joining me today are Bob Frenzel, Chairman, President and Chief Executive Officer; and Brian Van Abel, Executive Vice President and Chief Financial Officer. In addition, we have other members of the management team in the room to answer your questions if needed. This morning, we will review our 2026 second quarter results and highlights, provide updated 2026 assumptions and share recent business and regulatory updates. Slides that accompany today's call are available on our website. Some comments during today's call may contain forward-looking information. Significant factors that could cause results to differ from those anticipated are described in our earnings release and SEC filings. Today, we will discuss certain metrics that are non-GAAP measures. Information on the comparable GAAP measures and reconciliations are included in our earnings release. I will now turn the call over to Bob. Robert Frenzel: Thank you, Roopesh, and good morning, everyone. I'm often reminded of the quote that we are living in interesting times. But regardless of the times, we know that access to abundant affordable energy is highly correlated to a nation's competitiveness, its security, its economic growth and its quality of life. We at Xcel Energy are here as we have been for over 100 years, ready to meet the moment and help our customers, our states and our country build the infrastructure we need to fuel economic prosperity and growth for decades to come. While this opportunity is extraordinary, we've not lost sight of what matters most to our customers. We remain acutely focused on customer satisfaction and affordability, system reliability and resiliency, financial discipline and meeting both the pace of needed infrastructure as well as the clean energy goals of our communities. And in 2026, Xcel Energy continues to demonstrate strong execution across all aspects of these priorities. Xcel Energy remains the largest builder of new high-voltage transmission lines in the country as well as one of the largest providers of renewable generation for our utility customers. And during the second quarter, we invested $3 billion and over $6 billion year-to-date in critical generation transmission and distribution infrastructure across all 8 of our states. This includes achieving commercial operations of Group 2 of the Colorado Power Pathway and beginning construction on our 150-mile 345 kV transmission project in the Upper Midwest. We also placed into service Phase 3 of our Sherco solar facility, bringing its total capacity to 710 megawatts, making one of the largest utility-scale solar facilities in the country. Last week, the independent monitor for our SPS RFP filed a report on our selection of 2,600 megawatts of new company-owned generation, representing 70% of the total recommended portfolio and $6 billion of new investment needs in Texas and New Mexico. We now have line of sight to the $70-plus billion of total investments that we described in our 5-year plan from last November, all for the benefit of our customers and our communities. We received approval for our Large Load Tariff in Minnesota and made additional Large Load Tariff filings in Colorado and Wisconsin. And we've advanced these critical initiatives with strong focus on our customers and a commitment to keeping their bills as low as possible. And finally, we delivered for our investors with strong second quarter earnings of $0.93 per share. We remain confident in our ability to deliver on our earnings guidance for the 22nd year in a row, continuing one of the best track records in the industry. Regulatory execution has been a focus all year for the company. I'm proud to say that we advanced settlements and/or reached decisions in 6 active rate cases, all while keeping long-term bill growth at or below the rate of inflation and total energy bills among the lowest in the country. This includes commission decisions in our Minnesota electric rate case and South Dakota electric rate case settlement and proposed settlements in our Colorado Electric and Natural Gas Cases, New Mexico Electric and Minnesota Natural Gas Rate Cases. At the same time, we improved and invested in programs for the most vulnerable in our communities who struggled with affordability even with our low bills. Our settlements in our Colorado rate case provide a path to nearly double the size and participation in our energy assistance programs. While in Minnesota, our recent Electric Rate Case significantly expands both accessibility and funding for customer assistance programs. In addition, we made integrated customer program filings in Colorado and Minnesota, which bundle voluntary customer programs into a single coordinated plans, making it easier for customers to compare options to find rebates and to choose solutions that best fit their needs and their budgets. This extraordinary progress reflects strong preparation, early engagement with stakeholders and disciplined execution. Our regulatory strategy is consistent: invest in reliability and resiliency and cleaner energy while pursuing outcomes that are fair, transparent, balanced and mindful of customer bill impacts. Moving to capital delivery. We believe that Xcel Energy's approach to project execution is a differentiator in the industry and a benefit to our customers, enabling our ability to deliver a growing portfolio of capital investments on budget, on time and on scope. The first part of our formula is strategic partnerships. And as I mentioned earlier, Xcel Energy is one of the largest regulated builders of renewable and dispatchable generation and the largest builder of new transmission line miles in the country. So effective execution of projects on this scale are not new for us. Neither are the partnerships with key supply chain and EPC vendors that are needed to deliver for our customers. What is changing is the structure and the depth of these partnerships. Over the past 3 to 4 years, we have shifted our approach to ensure that we are a partner of choice with our Tier 1 suppliers and EPC partners over our 5-plus year portfolio, which includes nearly 13 gigawatts of new renewable generation and battery storage, over 3 gigawatts of new natural gas generation and nearly 2,000 high-voltage transmission line miles. These partnerships help ensure that we have access to the labor and equipment capacity that we need to deliver with certainty for our customers well into the 2030s. In addition, we've consolidated and standardized major project planning and execution under one organization, ensuring consistency, accountability and visibility across our generation, transmission and distribution investments. By using repeatable designs and strong governance, we're driving greater capital efficiency, reducing execution risk and increasing schedule certainty across our portfolio. And finally, we know that our people and access to critical talent is essential to long-term success. We have an incredibly talented and tenured workforce. We're also investing in workforce development through partnerships with our EPC firms, high schools, trade programs and universities. These efforts are supporting thousands of students, apprentices and trainees, helping us build the skilled workforce needed to deliver projects safely and reliably while creating economic opportunity in the communities that we serve. Accordingly, Xcel Energy continues to demonstrate that our regulated development team is one of the best in the industry, helping build 16 gigawatts of new generation and storage and over 2,000 miles of new transmission for our communities while keeping costs low for our customers. Last week, the Independent Monitor filed its report on our SPS competitive RFP process that was seeking 1,500 to 3,000 megawatts of incremental nameplate capacity. SPS was selected to provide 2,400 megawatts of renewables and 200 megawatts of natural gas-fired generation, representing 70% of the overall portfolio and approximately $6 billion of investment that supports continued economic growth in Texas and New Mexico. This portfolio allocation brings line of sight in our incremental investment plan to $10-plus billion. We're 6 months into our 5-year plan, and we've already executed on the original pipeline we identified with more opportunities to come. From here, we see additional opportunities not in our base plan to invest and serve our growing customer needs, including ongoing and upcoming generation RFPs in Colorado and the Upper Midwest, transmission investments in each of our operating companies and generation to support 3 gigawatts of data center demand that we added to our target plan on our Q4 earnings call. Our base capital plan remains anchored in the core investments needed to retire legacy coal generation assets this decade and make critical investments into our transmission and distribution systems to support reliability, resiliency and industrial growth. Capital investments arising from future data center opportunities are generally ascribed to our upside plan, and we're taking a disciplined approach to ensure that new load growth is supported by appropriate commercial structures and regulatory frameworks. This includes large and load tariffs that were recently approved in Minnesota and filed in Colorado and Wisconsin, each of which protect and lower bills for existing customers while creating long-term benefits for our communities and investors. We remain confident in our ability to deliver on our data center forecast. We have 1 gigawatt of data centers in operation or under construction, an additional gigawatt of data centers under signed ESAs, and we expect to secure an additional 4 gigawatts of data center load by year-end 2027, including at least 1 gigawatt by the end of this year. Our confidence is supported by the strength and depth of our customer pipeline, our proven ability to execute large-scale infrastructure projects and the differentiated position of our service territories, which includes geographic diversity across our high probability pipeline. Finally, I want to highlight Xcel Energy's 21st sustainability report, which we released this quarter. At Xcel Energy, we are balancing reliability and affordability while supporting safety, economic vitality and environmental stewardship. And as our customer needs evolve and expectations of the energy system continue to grow, our responsibility is to lead with transparency, purpose and disciplined execution. The report reflects meaningful progress at scale. Over the past 2 decades, Xcel Energy has reduced carbon emissions nearly 60%, reduced water consumption more than 35% and enabled nearly 14,000 megawatts of wind and solar in our system, all while maintaining a resilient grid and keeping customer bills amongst the lowest in the country. As we look ahead, the energy system will continue to change with growing demand from economic development, electrification and new large loads, but our destination has not changed. We remain committed to leading the energy transition in a way that is reliable, affordable, sustainable and grounded in customer value. And with that, I'll turn it over to Brian. Brian Van Abel: Thanks, Bob, and good morning, everyone. Starting with our financial results. Xcel Energy had strong earnings of $0.93 per share for the second quarter of 2026 compared to earnings of $0.75 per share in 2025. The most significant earnings drivers for the quarter are as follows: higher electric revenues due to nonfuel riders and sales growth increased earnings by $0.17 per share. Higher AFUDC increased earnings by $0.08 per share. Lower depreciation and amortization increased earnings by $0.08 per share and other items combined to increase earnings by $0.03 per share, primarily driven by positive returns in our venture capital portfolios. For the year, these returns largely offset the negative weather that we saw in the first quarter of 2026. Offsetting these positive drivers, higher interest expense decreased earnings by $0.12 per share and the impacts of common equity financing decreased earnings by $0.06 per share. These financing costs reflect the funding of our infrastructure investments and discipline to maintain a strong balance sheet. Turning to sales. On a weather-adjusted basis, year-to-date electric sales increased by 2.1%, driven by increased activity in the energy sector in SPS and manufacturing sector across all OpCos. For 2026, we remain on track for full year weather-adjusted electric sales to increase 3%. As we look to our financing plan, Xcel Energy is continuing our commitment to maintain a strong balance sheet to fund accretive growth with the balance of equity and debt. Between our equity forward and collared contracts of our ATM program and our junior sub note issuances, we are already in front of approximately $6 billion or 85% of our $7 billion equity need in our base 5-year plan. And moving to guidance. We are reaffirming our 2026 ongoing EPS guidance range of $4.04 to $4.16. We remain confident in our ability to deliver 6% to 8-plus percent long-term earnings growth with line of sight to $10-plus billion of opportunities beyond our base plan, we expect to deliver 9-plus percent EPS growth on average through 2030. Updates to key assumptions are included in our slides and earnings release. With that, I'll wrap up with a quick summary. Xcel Energy posted strong second quarter 2026 earnings of $0.93 per share. We continue to lead a clean energy transition while ensuring safe, affordable and reliable service. We've reached productive settlements or outcomes in 6 of our active cases while keeping long-term customer bill growth at or below the rate of inflation and amongst the lowest in the country. We now have line of sight to $10-plus billion of opportunities in our incremental investment plan with additional opportunities to come. We have a formula for major project execution that combines strategic partnerships with project standardization and workforce development that will enable Xcel Energy to deliver projects on budget, on time and on scope well into the 2030s. We maintain a strong balance sheet and credit metrics and have addressed approximately 85% of our base $7 billion 5-year equity need. We are reaffirming our 2026 ongoing EPS guidance of $4.04 to $4.16 per share. And finally, we remain confident in our ability to deliver 6% to 8-plus percent long-term earnings growth and expect to deliver 9-plus percent EPS growth on average through 2030. This concludes our prepared remarks. Operator, we will now take questions. Operator: And your first question comes from the line of Richard Sunderland from Truist. Richard Sunderland: A lot to dig into here. And I thought I'd just start with the SPS update and the broader CapEx tailwinds you highlighted. I think if you -- if I caught that $6 billion figure correctly, it's taking line of sight CapEx to, I guess, at least $13 billion based on that $7 billion from last quarter. And so with your rate base framework, the 20 to 25 bps, that's at least a 250 basis point uplift, moving 11% growth on rate base to well into double digits. How are you thinking about that in the context of 9% plus? Is 9% plus still the way to think about growth in the context of a 3Q update? Or are the tailwinds aggregating to something that demands more? Brian Van Abel: There's a lot to unpack in the multiple questions there. So let me see if I can hit all of it. And you're right, we had $7 billion of line of sight in Q1, we added $6 billion. We just simply say $10-plus billion in terms of our line of sight. Some of that will flow into the early 2030s. So there's a timing component of it. But I think maybe I'll step back before talking about how we're thinking about roll forward is if you look at that $10-plus billion, the vast majority of that is our generation development. And we have, as Bob said, one of the best regulated generation development teams or probably the best regulated generation development teams in the business. And what that does is that accretes value to our customers in terms of bringing forward really low-cost competitive projects. We're winning these projects through competitive RFPs, wind, solar, storage, gas CPs, and that's due to our execution in our development team and really delivering low-cost projects for the benefit of our customers. So we're excited about what we saw in SPS and the other RFPs and really deliver on that $10-plus billion. As I think about -- I said in Q1, we talked about 9% EPS growth through 2030. You heard -- you picked up on the language we say 9-plus percent EPS growth through 2030. As we think about rolling forward in Q3, we'll roll forward everything in -- we'll also roll forward off of a new base, as we always do, we roll forward to a new 5-year. So we'll align everything, our new capital plan, our new financing plan and kind of a '27 to '31 view. So -- but as you can hear, we're excited about it. I think we're in a really good place from an execution perspective in the first 6 months of the year. Richard Sunderland: Great. So tackling the multiparts there. I'll pick that up, the thought on the generation wins and the commentary on the EPC side as well. It clearly has been a success. How do you think about these recent wins, these recent trends and the work on the EPC side positioning you on that even more upside basis highlighted in the deck? Is this sort of a structural change to what might be the resource opportunity net to Xcel as we think about Colorado, Upper Midwest or other generation needs beyond? And is there anything else you'd highlight on the EPC front in terms of how the EPC side has enabled those wins? Robert Frenzel: Richard, it's Bob. Thanks for the question. You do great math. I think that as I think about strategically where we sit, we've been in a generational investment opportunity to rethink how we power and energize our communities reliably, affordably and sustainably. And we've been tapping into the very strategic advantage that the company has to serve customers where wind blows and sun shines. And as we've done that, we've been able to drive win-win for customers with a more sustainable, more clean product with bills that are at or below the national average and some of the lowest in the country. And we think that will continue. As I said in my prepared remarks, we've got more investment opportunity that we have line of sight to. We will need more large-scale transmission in the country. We're the largest provider over the last 15 years. We think we'll be a large provider of large-scale transmission going forward, and that will present long-term investment opportunities and the partnerships with our EPCs makes us very credible whether those are direct assigned or those are competitively bid. Similarly, on the generation side, we know we have customers who value a very sustainable product. If you took our Google data center deal, it's largely a carbon-free portfolio of generation assets serving that customer. And as we look at that, we can do carbon-free portfolios for our customers quite cost effectively. And we think that as energy-intensive industries look to find homes for their assets, whether they're data centers, whether they're new manufacturing, we think they'll selectively choose our territories as places to locate industrial businesses because of the type and the quality of the system that we have, the cost effectiveness of the system and the sustainable nature of the energy that we sell. So we think it's a strategic advantage. We continue to lean into it. We want to partner with our states in economic development and bring that to fruition as we look this decade, but really into next. Brian Van Abel: Yes. And I would just add, if you look at -- we talked about 15-plus gigawatts of new generation that we're building out over the next number of years. That's the pipeline that we think makes us a partner of choice with our EPCs. And if you think about -- you can go from standard design for projects, you go from project to project, keeping the workforce together, keeping that crew learning together, keep driving those efficiencies and then just giving a line of sight for a long-term partnership and project execution that helps with that on scope, on time, on budget. So I think it does set us up well as we look into the future -- for the future RFPs and how we plan to execute for the benefit of our customers. So I am pretty excited about it. Operator: Your next question comes from the line of Nick Campanella from Barclays. Nicholas Campanella: Maybe just a follow-up on Rich's rate base growth outlook question. Just is there anything you'd like to highlight that's changed across the portfolio with the upcoming plan versus the prior, whether it's improved, lagged through rate case processes and trackers or sales growth visibility? Does that -- would that change at all how you're viewing the delta between rate base growth and EPS growth? And how we should be thinking about that 40% financing function for equity? Brian Van Abel: Nick, as I think we've always talked about kind of long-term, you see that 200, 250 bps difference between rate base growth and EPS growth. And I don't think that has changed with our kind of construction of projects or opportunities. Like I said, we'll certainly roll forward everything in Q3 and including a new sales growth plan. So -- but I don't see anything that we've announced that changes that. We remain focused on execution. Certainly, there's -- you have a little bit more delta between rate base and EPS growth in the nearer part of our plan, and that closes from just given our equity financing plan, some catch-up in terms of some ROE improvements in Colorado as we think about working through the rate cases that we've talked about. So -- but overall, long term, nothing's changed in terms of that kind of construct that you asked about. Nicholas Campanella: Great. And then just in the context of the $13 billion, I guess, of visibility now to the upside. Just the timing around the 4-gigawatt NSP RFP is pretty large and in the fourth quarter expected outcome. And since that's generation for 2030, can you kind of talk about how that makes it into the third quarter update or not? Brian Van Abel: Yes. So that -- yes, that should be a fourth quarter update by end of year. So we'll certainly -- just depending on the timing of that, whether it makes it into our Q3 plan or not, but we'll certainly provide visibility when we make that recommendation filing to the commission. So we'll work through that and just be very explicit about kind of where it sits in our Q3 plan, but it might be a little bit early in terms of our Q3 call. Operator: Your next question comes from the line of Carly Davenport from Goldman Sachs. Carly Davenport: Just to start on the regulatory side. You've executed really well on getting settlements in place across a number of your jurisdictions. Just curious as you think about the path to final approval, how you'd characterize your confidence level there or any risk of intervention that you're watching? Brian Van Abel: Yes, Carly, if I just think about kind of we've had really good success. Our operating companies and the regulatory teams have worked really hard with the parties as we think about reaching settlements across a number of our states. So we certainly appreciate the engagement of all the parties as you work through a settlement. Obviously, there's a lot of call it, constructive give and take that goes into it. And hopefully, our commissions recognize the give and takes and what we think is we put forth a settlement, we think it's in the public interest. So we're hopeful our commissions see that and that we get the constructive decisions coming out of the commissions here in the next few months. Carly Davenport: Great. And then the follow-up was just on the 2026 EPS guidance that you're reiterating here. It seemed like there are a couple of assumptions that were changing in the build to earnings this year. It seems like more puts and takes there, all else equal. Just any read-through to where you'd expect to fall within the guidance range this year based on those changes? Brian Van Abel: Yes. If you think of just our guidance changes, certainly, we had a significant change in depreciation guidance. That's earnings neutral, just given the change in the nuclear depreciation lives of our nuclear plants in the Minnesota rate case. And then we had just some gives and takes in terms of lower rider revenue, but that's offset by higher AFUDC. So really not much change from a guidance perspective when I look at it from a bottom line earnings perspective. So we -- like I said, we have a good start. We feel really good about our first 6 months of the year. And our just regular cadence is we tightened guidance in Q3. So -- but just we're sitting here off to a good start for the first part of the year. Operator: Your next question comes from the line of Jeremy Tonet from JPMorgan. Diana Niles: This is Diana Niles on the call for Jeremy. So you've outlined expectations to sign another gigawatt of data center load this year and an additional 3 gigawatts in 2027. I guess within this year and then in next, how are you thinking about the mix between gigawatt scale or 100-megawatt scale projects? Any color there would be appreciated. Robert Frenzel: Sure. It's Bob. Look, really excited about the portfolio we have. I would say our high probability portfolio exceeds 20 gigawatts. We are focused largely in the Upper Midwest and the Southwest in the near term. And we see projects in the backlog in the portfolio both -- in both camps, honestly. We see everything from urban data centers in the 10- to 20-megawatt range to 1,000-megawatt campuses across our portfolio. So it's hard to say exactly what will happen. I think that our customers are largely aligned -- we're spending a lot of time with the hyperscalers and the big data center developers. They're largely aligned to larger campuses for scale benefits, and we're equipped and prepared to move in that direction, and we see scale campuses in the regions that I mentioned. We also have people looking for maybe -- it's hard to say 200 to 300 megawatts are more modest, but those are -- we have more modest projects in our portfolio as well. And so we'll bring them forward as we get to execution. We feel great about our guidance on 1 gig this year and 3 next. Diana Niles: Great. And if I may kind of go back to the topic that Rich introduced earlier in terms of the future for rate base growth moving forward. It sounds like with timing considerations to do math of that full $13 billion math in 2030 isn't quite how to look at it. But how should we think about the horizon for rate base growth maybe in the -- how long can this double-digit rate base growth extend? Brian Van Abel: Maybe I'll just answer it a little bit higher level. Certainly, we -- when we look at these longer-term prospects and you look at our incremental portfolio, renewables will be in service by the end of 2030. We need to make sure that we capture the production tax credits for the benefit of our customers. And so when you look at the renewables that we're moving forward with in that incremental pipeline would be before or by the end of 2030. So certainly captured in our 5-year plan. Certainly, some of the larger transmission may slip out a little bit past 2030 as we think about the size and scale of that build and just getting through all the processes. But overall, we feel really good about what's in the 5-year plan. But then also, just if I think about longer term, it's a little bit what Bob was talking about is when we look at data centers here, a gigawatt by the end of this year and 3 additional gigawatts at end of next year, that's really going to drive a lot of incremental opportunities in the early 2030s. As you think about they may energize by the end of the decade, but when they need the energy and when they ramp, it's going to be well into the 2030s. So it's how do we think about extending this growth opportunity. But that growth opportunity also comes with it affordability benefits for all of our current customers, community benefits when you do data center development rights. And so we're pretty excited about that opportunity not only from a growth perspective for investors, but just an affordability benefit for our current customers as we think longer term. Robert Frenzel: And I think just one thing to add to Brian's comments is as we think about data center development, particularly in our resource-rich areas, if you have a gigawatt of data centers, you have choices to power with 100% natural gas I would suggest that in our regions, it's going to be largely wind, solar, storage and backup gas, which leads to for every gigawatt of a data center, you're looking at something like $5 billion to $6 billion of investments on the generation side and maybe more. And so as we think about that ramp that Brian talked about, the data center ramp, the generation ramp that follows that will be capital investment late this decade, but probably extending well into next decade as well as the transmission needed to support that. So there's real investment opportunities in the next decade as we see on our radar. Operator: Your next question comes from the line of Julien Dumoulin-Smith from Jefferies. Julien Dumoulin-Smith: So just kicking off, I'd love to hear your thoughts about Colorado and wildfire, right? I mean, obviously, this year, especially in the state, it's been tragic in some respects. But obviously, the state is focused on this in the context of just dealing with some of their issues in the western part of the state. How do you think about your objectives when it comes to wildfire in Colorado, right? I know that historically, we've talked about kind of a 2027 session and talking about like a standard of care bill or something like this. But how do you think about the scope of what you're looking at, whether that includes expanded mitigation efforts, et cetera? I'm just thinking through some sort of refreshed view on wildfire here and tackling at the state level, if you will. -- Or how do you think about '27 at large going forward? Robert Frenzel: Appreciate the question and the recognition that wildfire is a statewide issue, a tragedy in many cases for the community that it impacts. And I think as everybody in this room and on the call know that with a low snowpack year and winter last year and drought conditions that continue that the conditions in Colorado were challenging. I'm really proud of what we've been able to do operationally in Colorado. We have executed with excellence. From a sheer wildfire mitigation plan effort at Xcel Energy, we had laid out 4 focus areas for our company. First and foremost, the situational awareness, making sure we understand localized weather patterns and are able to communicate that in localized areas to our customers. We have, over the course of the last year, installed over 50 AI-enabled cameras to help not only our situational awareness, but real response to the offices of emergency management at the city and the county levels, which is really helping manage and get early detection of risk areas in the state. The second is weather stations. We put in over almost 300 weather stations in Colorado, and we are performing at a level of excellence in meteorology that also benefits us, but it also benefits the entirety of the state and the region by which we operate in, and making sure that not only is the Xcel Energy territory protected, but the entirety of the state. Operational mitigants is the second big bucket. This is EPSS and PSPS activities in the state and in the region. We have seen more EPSS days than we have last year, and we've had more PSPS events this year than we had last year. Those are enormously valuable risk-reducing mitigants in the state and protecting our communities and our customers as we experience the wildfire regime that we sit in this year. All the while, we're spending a lot of time, money and effort hardening our system. That's the third bucket is system hardening, whether it's pole inspections, pole replacements, insulators, nonexplosive fuses, you name it, we're working on our system to harden it, to segment it to make it more resilient to the operating environment we find ourselves in. And the fourth is really communication with customers and making sure that we have a deep understanding of our customers' needs, who has durably medical equipment that needs protection, what are our critical customers, not just on the residential side, but on the community side, community centers, offices of emergency management and making sure we can maintain services to those while we protect the other customers in the event we have an EPSS or a PSPS event. We've executed across those 4 buckets with excellence this year and really proud of what we've done to protect our communities. The state has had some wildfires and some -- has had to deal with managing those, but we've spent a lot of time making sure that our system, our communities and our customers are protected. As we roll into 2027, two things I'd highlight for you. You mentioned one about state-level legislation, obviously, a priority for the company. We have legislation in the Dakotas, Texas and looking at other states as well. Colorado will be a focus area for us in 2027. And we're working with legislators and stakeholders on that as we speak. The second is another wildfire mitigation plan. So this plan was a 3-year plan. It ends at the end of 2027. We expect to file another wildfire plan with the commission in the early part of 2027 with our plans for moving past this investment cycle and what we do next based on lessons learned and things we've seen in the season. So a long answer, Julien, but we are working really hard on making sure we can protect our communities and protect our infrastructure. Julien Dumoulin-Smith: Awesome. Thank you for the details. Certainly merits it. And if I can, just going back to the SPP -- you talked about transmission, obviously. I'm focused here on SPP and SPS. How do you think about the ITP plan coming out this year? It seems like it could be another record outcome. Obviously, you all have seen pretty meaningful developments on that front in past years. And then also at SPS, I mean, this was, I think, previously framed as kind of a longer-term data center opportunity. How are you seeing -- as the data center thesis has crept and expanded in geographic footprint, again, I'm curious about SPS in particular, given the way that you've framed it as being more longer term previously. Robert Frenzel: Yes. Thank you for the question. We've been a leading provider of transmission new construction in the country. I think by my math, I said this on the last call, we might be building 20% of the 765 kV lines in the country that we know of. As the ITP comes out in the next tranche, we would expect a meaningful investment opportunity for us given our skill and our background and our capability to deliver with excellence and with cost effectiveness. The region itself is really attractive from a resource perspective. And I think we see a lot of interest from data center developers and hyperscalers around locating data centers there. I mean our SPS business is maybe one of the lowest, if not the lowest C&I rates in the country. And we see real attraction from data center developers for -- the infrastructure we have and the cost effectiveness that we have down there. That will take more transmission in SPS. We are at the south and western end of the Southwest Power Pool and making sure that we have a reliable grid to attract development, but not just data centers, we're seeing enormous growth in the Permian and the Delaware Basins from our oil and gas customers, including additional electrification of oil and gas loads. So real growth down in SPS, not just from data centers and a need to harden the grid and bring new generation there. And you see that playing out in RFPs, IRPs, and I think you'll see it play out in the SPP ITP. Is that enough acronyms for everybody? Brian Van Abel: And Julien, just Bob hit it well is our growth, the RFPs that we just had in SPS, that's really there to serve the oil and gas growth in the Permian Basin. And so we think about Bob said in his opening comments, we really have a diversified growth plan. We are just not anchored on data center growth. Our base plan has very little data center growth baked into it. So that is all potential upside is how we think about longer term. And so we don't have any of that longer-term transmission opportunities in our base plan. We see that certainly helping well into 2030s as we look at the significant investment that will be needed in the backbone transmission in that region. Julien Dumoulin-Smith: Tying that back to the earlier commentary, not included in the upside buckets is the ITP spend coming later in the half. Later in the -- decade -- later in this year, sorry. And then also separately, the -- there's no contemplated RFP for like specific data center build per se, right? Obviously, it's much more diversified at least for now. And so that's another bucket to watch for over time. Brian Van Abel: Yes, you're absolutely correct. And as Bob said, there's been a growing interest in that region from a data center perspective as we look at it and see our pipeline. Obviously, you have a lot of land out there, a lot of territory to build. And so a growing interest there, along with really good renewable resources and access to a lot of gas. Operator: Your next question comes from the line of Sophie Karp from KeyBanc Capital Markets. Sophie Karp: A lot of ground has been covered here and obviously, a great update, guys. I was curious where you stand on new nuclear, a lot of your peers are beginning to, I guess, nibble at that a little bit and exploring potential government incentives as well as hyperscaler and other large offtaker appetite for participating in that. So kind of where do you stand on that given that you have some nuclear in your portfolio? Robert Frenzel: Sophie, it's Bob. Thanks for the question. I think I'm on the record as an unabashed fan of nuclear energy in the country. And I think we, as a country, absolutely need to have an energy policy, and industrial policy to manage both new build as well as the supply chain and the fuel cycle around that -- when I step back and think about Xcel Energy, and based on the comments you've heard from us before, we have amazing access to wind and solar resources in the regions that we serve. And when I look out into the horizon, we've always said we needed -- when we committed to being a carbon-free company by mid-decade -- mid-century, sorry, we always said we needed new dispatchable carbon-free technologies, nuclear and advanced nuclear being one of those, geothermal being another and carbon capture and sequestration being a third. We still haven't seen real commercialization of those technologies, although they're on the come for sure. We don't see a need in our resource plans for new nuclear in the near term. In fact, we're quite confident in our ability to meet the growing needs we have with a big portfolio of wind, solar, storage and gas-fired backups. But that doesn't stop me from being an advocate for what I think the country needs and the policies, I think we need to support them. We will not be an early adopter of new nuclear power plants at Xcel Energy. Sophie Karp: Got it. This is helpful. And then on the large and load tariffs, clearly not a major driver for your plan, but a source of upside. We've seen some pushback in other regions from hyperscalers on overly restrictive large and load tariffs in terms of credit ratings and the associated collateral requirements. Is there anything in the large and load tariffs in your core territories that could be a source of pushback as well? Or are they more or less accommodating, should I say? Brian Van Abel: Sophie, I can take that question. I mean we just recently earlier this year, got our Large Load Tariff approved in Minnesota. We thought that was a constructive outcome, and we worked with some of the hyperscalers to help craft that. And so a lot of our large and load tariffs look and feel similar to that. Obviously, there's some nuances across our territories, but really focused on customer protections and making sure we have the right contract provisions given the potential size of these contracts. No, we certainly pay attention in terms of -- I think you could be alluding to the Large Load Tariff proceeding to our East here. When we think about our Large Load Tariff filing in Wisconsin, we look at the provisions and we look at an overall -- kind of the overall package we put forth. We think that is really well constructed and feel good about what we put forth. Some of it has more strict provisions in it than maybe some of our peers had. So we feel good about what we put forward and looking forward to working with our stakeholders to get these approved. We also -- the couple -- we have talked about the ones we filed. We're also working and will be filing in Texas and New Mexico. Our large and load tariffs certainly appreciate some of the letters and things that have gone on in Texas and making sure we address that and incorporate that into our Large Load Tariff filing in Texas, which should get filed here in Q3. Operator: Your next question comes from the line of Steve Fleishman from Wolfe Research. Your next question comes from the line of Steve D’Ambrisi from RBC Capital Markets. Stephen D’Ambrisi: Just quickly, a lot of the questions, whether it's Richard's question or Julien's question, have focused on upside to upside and -- or longer-term upside. And at the risk of asking for more when you've just on this call, talked about 9-plus percent EPS CAGRs. Just several of your peers have moved to starting to give kind of longer-term capital guidance and pushing to 10-year, whether it's capital outlooks or earnings outlooks. And as you layer in a lot of these RFPs where the capital is spilling into kind of the next 5-year plan and additionally start signing up data center contracts, which will be ramping beyond the 2030s. Just interested to hear your thoughts on the value or the potential to provide even longer-term capital or earnings forecasts. Brian Van Abel: Steve, I'm thinking back, we did provide a 10-year capital plan a number of years ago. And so that is something that we've done before. We'll continue to evaluate it. I think you could argue, I certainly appreciate people's perspectives on that. But it is something we evaluate. We certainly look at the 10-year. And I think that's a little bit how we think about -- we give our long-term EPS growth guidance. We say 6% to 8-plus percent, and that's much more than a 5-year view. So we'll continue to evaluate that. But when we look out beyond the 5 years beyond 2030, we're really thinking about 2030 to 2035. And like you alluded to, that's really where some of our data center strategy comes in. And so we'll work through that. But I think right now, we'll continue to provide a 5-year, but also color on maybe a longer term, if that's helpful. Stephen D’Ambrisi: Okay. I think that would be great. And then just can you talk a little bit about in Minnesota, where the alternative use like environmental study is progressing. I think the last time we talked, the message was that the community is aligned and just has to go through a longer process, but I wanted to hear if there's been any updates there. Brian Van Abel: Well, so we continue to work with the stakeholders on that. You're talking about the Google progress. We filed the proceeding with the commission. There's a lot of stakeholder support for that project, community support, over $1 billion of customer benefits. And we're committed on it moving forward. So if you look, we expect the schedule on the commission proceeding should hopefully get approval early in 2027. So overall, moving forward, excited to bring that project to our community. There's a lot of investment that Google is making, investments in STEM education, investments in a distributed capacity program that's industry-leading here in Minnesota. So looking forward to moving that forward, and we'll continue to work with our parties. Overall, when we think about it, we think the environmental review is consistent with Minnesota, and we'll continue to work with that party to make sure we can move forward with that project. Operator: The next question comes from the line of Steve Fleishman from Wolfe Research. Steven Fleishman: I think my question has been asked and answered. Operator: Your next question comes from the line of Alex Kania from BTIG. Alexis Kania: I'm just wondering if you could just give maybe just a little color on stemming from the previous question on the Minnesota Google project. Just overall, what's your sense in terms of public acceptance of the large and load? Any kind of pushback that you're seeing from any of the jurisdictions that you might be seeing one way or another? And then maybe just any color just on key elections that we should be particularly focused on going into November? Robert Frenzel: It's Bob. Yes, I'll just -- I'll reiterate kind of what Brian said, real community support for the Google Data Center here in Minnesota down in Pine Island. We've had great feedback, real customer benefits and think we'll have our opportunity to put that in front of -- I know we put it in front of the commission. We expect the commission to take that up in early part of next year and expect to move forward on that project and excited about that. And excited about that as a project that we could replicate across our country -- our companies -- in the company. So it is a highly renewable project, which we have access to wind, solar, storage and gas plants. We can replicate projects like that in our Colorado company. We can replicate projects like that in our SPS company, and we're seeing interest from other hyperscalers and data center developers that want a project that looks like that in various parts of our territory. So we're excited about that as a template and hopefully, we use that alongside our large and load tariffs as we move forward. Second part of your question was really election cycle. It's certainly a busy cycle in the country. It's a busy cycle across Xcel Energy and our 8 states. And by and large, we've shown that we can manage our business through various political backdrops. As I think about our company, we don't really see a significant change in backdrop through the election cycle. We serve 8 states. Half of them probably lean a little bit more progressive and the other half lean a little bit more conservative. We probably think that mix sticks through the election cycle, and we're prepared to continue to have an infrastructure build plan and work with any administration to make sure that we can execute on our capital investment plans for the benefit of our customers and communities. Operator: Your final question comes from the line of Nick Amicucci from Evercore ISI. Nicholas Amicucci: Bob, you kind of just touched upon a little bit on my question, but I just wanted to put a little bit of a finer point on it. As we think about kind of within Minnesota and just leveraging the Clean Energy Accelerator charge, is that also kind of applicable across all jurisdictions where you're now able to kind of both showcase the clean attributes of building it and the kind of the community acceptance as well as an expedited interconnection process? Robert Frenzel: Yes. Thanks, Nick. I mean when you step back and think philosophically of what we're trying to accomplish with data center customers, we expect data centers to pay their full and fair share of their cost to serve them as a company. And when the data center shows up and needs new generation, that's how we would expect that to be paid. In Minnesota, we call it a clean energy accelerator charge. It could take a bunch of different names and packages. But basically, new large and load customers will pay for the generation that they need to serve them and they'll pay for the interconnection that they need to serve them. And customers will get the benefit of having more load on a fixed asset like the grid, and that is how you show real customer benefits over time is spreading the cost of fixed assets amongst more units of production. And that's philosophically how we're approaching large and loads. It will take different names and shapes in different states, but I think that's how we think about protecting our customers, driving economic benefit in the states and bringing new assets and new infrastructure to our regions. Brian Van Abel: Yes. And I'd just add, if you look at our Large Load Tariff filing in Colorado, we really have kind of two pathways to bring large loads forward and one create kind of speed and flexibility focused on -- we didn't call it the Clean Energy accelerator in Colorado, but really very similar opportunity. Colorado is really interesting in terms of the geothermal resources that you have from a clean energy perspective. So when we think about what we did in Minnesota, it's really just kind of a really good way to frame up both how we drive and help drive state policy and customer benefits together. And so we're excited about what we can do and expect similar concepts across our -- across our states. Operator: That concludes our question-and-answer session. I would now like to turn the call over to CFO, Brian Van Abel for closing remarks. Brian Van Abel: Thanks all for participating in our earnings call this morning. Please contact our Investor Relations team with any follow-up questions. Thank you. Operator: This concludes today's meeting. You may now disconnect. Before you buy stock in Xcel Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xcel Energy wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Xcel Energy (XEL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by higher electric revenues from non-fuel riders and sales growth, alongside increased AFUDC and lower depreciation from nuclear asset life extensions. Management attributes their competitive advantage to a 'partner of choice' model with Tier 1 suppliers, ensuring labor and equipment access for a 15-gigawatt generation and storage pipeline. The company achieved line of sight for $10-plus billion in incremental investment beyond the base plan, primarily through winning 70% of the SPS RFP portfolio. Strategic positioning focuses on leveraging low-cost renewable resources in the Upper Midwest and Southwest to attract energy-intensive industries like data centers. Operational discipline is maintained through standardized project designs and a consolidated organization to drive capital efficiency across generation and transmission. Regulatory success is anchored in reaching settlements in 6 active cases while keeping long-term bill growth at or below the rate of inflation. Management expects to deliver 9-plus percent EPS growth on average through 2030, while remaining confident in its long-term earnings growth range of 6% to 8-plus percent. The data center strategy assumes securing 4 gigawatts of additional data center load by year-end 2027, with at least 1 gigawatt expected to be secured by the end of 2026. Future capital upside is tied to upcoming generation RFPs in Colorado and the Upper Midwest, as well as backbone transmission needs identified in the SPP ITP. The financing framework maintains a commitment to a strong balance sheet, with 85% of the $7 billion 5-year equity need already addressed through forward contracts and ATM programs. Guidance for 2026 assumes 3% weather-adjusted electric sales growth, supported by manufacturing and energy sector activity. Wildfire mitigation remains a critical operational focus in Colorado, with a new 3-year plan and potential state-level legislation targeted for 2027. Large Load Tariffs have been implemented or filed in Minnesota, Colorado, and Wisconsin to ensure existing customers are protected from the infrastructure costs of new large-scale loads. The company is transitioning away from legacy coal assets this decade, anchoring the base capital plan in reliability and resiliency investments. Management explicitly stated they will not be an early adopter of new nuclear technology, prioritizing wind, solar, and storage due to current resource availability. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that the $10-plus billion in line-of-sight opportunities supports the shift to a 9-plus percent EPS growth outlook through 2030. The delta between rate base growth and EPS growth is expected to remain around 200-250 basis points over the long term, despite near-term financing timing. Xcel is executing a four-pillar plan: situational awareness, operational mitigants (EPSS/PSPS), system hardening, and customer communication. A new wildfire mitigation plan will be filed in early 2027, coinciding with targeted legislative efforts to establish a standard of care in Colorado. The high-probability pipeline exceeds 20 gigawatts, with projects ranging from 10-megawatt urban centers to 1,000-megawatt campuses. Every 1 gigawatt of data center load is estimated to drive $5 billion to $6 billion in associated generation and transmission investment. Tariffs are designed to ensure new large loads pay their full cost of service and interconnection, protecting and lowering bills for existing customers. The Minnesota 'Clean Energy Accelerator' model serves as a template for other states to provide speed and flexibility for hyperscalers while securing community benefits.

Image source: The Motley Fool. Thursday, July 30, 2026 at 10:00 a.m. ET Vice President, Investor Relations - Roopesh Aggarwal Chairman, President and Chief Executive Officer - Robert Frenzel Executive Vice President and Chief Financial Officer - Brian Van Abel Operator: Hello, and welcome to the Xcel Energy Second Quarter 2026 Earnings Conference Call. My name is Jordan, and I'll be your coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions] Reporters can contact Media Relations with inquiries, and investors and others can reach out to Investor Relations. I'll now turn the call over to your host today, Mr. Roopesh Aggarwal, Vice President, Investor Relations, to begin the conference. Please go ahead, sir. Roopesh Aggarwal: Thank you, Jordan. Good morning, and welcome to Xcel Energy's 2026 Second Quarter Earnings Call. Joining me today are Bob Frenzel, Chairman, President and Chief Executive Officer; and Brian Van Abel, Executive Vice President and Chief Financial Officer. In addition, we have other members of the management team in the room to answer your questions if needed. This morning, we will review our 2026 second quarter results and highlights, provide updated 2026 assumptions and share recent business and regulatory updates. Slides that accompany today's call are available on our website. Some comments during today's call may contain forward-looking information. Significant factors that could cause results to differ from those anticipated are described in our earnings release and SEC filings. Today, we will discuss certain metrics that are non-GAAP measures. Information on the comparable GAAP measures and reconciliations are included in our earnings release. I will now turn the call over to Bob. Robert Frenzel: Thank you, Roopesh, and good morning, everyone. I'm often reminded of the quote that we are living in interesting times. But regardless of the times, we know that access to abundant affordable energy is highly correlated to a nation's competitiveness, its security, its economic growth and its quality of life. We at Xcel Energy are here as we have been for over 100 years, ready to meet the moment and help our customers, our states and our country build the infrastructure we need to fuel economic prosperity and growth for decades to come. While this opportunity is extraordinary, we've not lost sight of what matters most to our customers. We remain acutely focused on customer satisfaction and affordability, system reliability and resiliency, financial discipline and meeting both the pace of needed infrastructure as well as the clean energy goals of our communities. And in 2026, Xcel Energy continues to demonstrate strong execution across all aspects of these priorities. Xcel Energy remains the largest builder of new high-voltage transmission lines in the country as well as one of the largest providers of renewable generation for our utility customers. And during the second quarter, we invested $3 billion and over $6 billion year-to-date in critical generation transmission and distribution infrastructure across all 8 of our states. This includes achieving commercial operations of Group 2 of the Colorado Power Pathway and beginning construction on our 150-mile 345 kV transmission project in the Upper Midwest. We also placed into service Phase 3 of our Sherco solar facility, bringing its total capacity to 710 megawatts, making one of the largest utility-scale solar facilities in the country. Last week, the independent monitor for our SPS RFP filed a report on our selection of 2,600 megawatts of new company-owned generation, representing 70% of the total recommended portfolio and $6 billion of new investment needs in Texas and New Mexico. We now have line of sight to the $70-plus billion of total investments that we described in our 5-year plan from last November, all for the benefit of our customers and our communities. We received approval for our Large Load Tariff in Minnesota and made additional Large Load Tariff filings in Colorado and Wisconsin. And we've advanced these critical initiatives with strong focus on our customers and a commitment to keeping their bills as low as possible. And finally, we delivered for our investors with strong second quarter earnings of $0.93 per share. We remain confident in our ability to deliver on our earnings guidance for the 22nd year in a row, continuing one of the best track records in the industry. Regulatory execution has been a focus all year for the company. I'm proud to say that we advanced settlements and/or reached decisions in 6 active rate cases, all while keeping long-term bill growth at or below the rate of inflation and total energy bills among the lowest in the country. This includes commission decisions in our Minnesota electric rate case and South Dakota electric rate case settlement and proposed settlements in our Colorado Electric and Natural Gas Cases, New Mexico Electric and Minnesota Natural Gas Rate Cases. At the same time, we improved and invested in programs for the most vulnerable in our communities who struggled with affordability even with our low bills. Our settlements in our Colorado rate case provide a path to nearly double the size and participation in our energy assistance programs. While in Minnesota, our recent Electric Rate Case significantly expands both accessibility and funding for customer assistance programs. In addition, we made integrated customer program filings in Colorado and Minnesota, which bundle voluntary customer programs into a single coordinated plans, making it easier for customers to compare options to find rebates and to choose solutions that best fit their needs and their budgets. This extraordinary progress reflects strong preparation, early engagement with stakeholders and disciplined execution. Our regulatory strategy is consistent: invest in reliability and resiliency and cleaner energy while pursuing outcomes that are fair, transparent, balanced and mindful of customer bill impacts. Moving to capital delivery. We believe that Xcel Energy's approach to project execution is a differentiator in the industry and a benefit to our customers, enabling our ability to deliver a growing portfolio of capital investments on budget, on time and on scope. The first part of our formula is strategic partnerships. And as I mentioned earlier, Xcel Energy is one of the largest regulated builders of renewable and dispatchable generation and the largest builder of new transmission line miles in the country. So effective execution of projects on this scale are not new for us. Neither are the partnerships with key supply chain and EPC vendors that are needed to deliver for our customers. What is changing is the structure and the depth of these partnerships. Over the past 3 to 4 years, we have shifted our approach to ensure that we are a partner of choice with our Tier 1 suppliers and EPC partners over our 5-plus year portfolio, which includes nearly 13 gigawatts of new renewable generation and battery storage, over 3 gigawatts of new natural gas generation and nearly 2,000 high-voltage transmission line miles. These partnerships help ensure that we have access to the labor and equipment capacity that we need to deliver with certainty for our customers well into the 2030s. In addition, we've consolidated and standardized major project planning and execution under one organization, ensuring consistency, accountability and visibility across our generation, transmission and distribution investments. By using repeatable designs and strong governance, we're driving greater capital efficiency, reducing execution risk and increasing schedule certainty across our portfolio. And finally, we know that our people and access to critical talent is essential to long-term success. We have an incredibly talented and tenured workforce. We're also investing in workforce development through partnerships with our EPC firms, high schools, trade programs and universities. These efforts are supporting thousands of students, apprentices and trainees, helping us build the skilled workforce needed to deliver projects safely and reliably while creating economic opportunity in the communities that we serve. Accordingly, Xcel Energy continues to demonstrate that our regulated development team is one of the best in the industry, helping build 16 gigawatts of new generation and storage and over 2,000 miles of new transmission for our communities while keeping costs low for our customers. Last week, the Independent Monitor filed its report on our SPS competitive RFP process that was seeking 1,500 to 3,000 megawatts of incremental nameplate capacity. SPS was selected to provide 2,400 megawatts of renewables and 200 megawatts of natural gas-fired generation, representing 70% of the overall portfolio and approximately $6 billion of investment that supports continued economic growth in Texas and New Mexico. This portfolio allocation brings line of sight in our incremental investment plan to $10-plus billion. We're 6 months into our 5-year plan, and we've already executed on the original pipeline we identified with more opportunities to come. From here, we see additional opportunities not in our base plan to invest and serve our growing customer needs, including ongoing and upcoming generation RFPs in Colorado and the Upper Midwest, transmission investments in each of our operating companies and generation to support 3 gigawatts of data center demand that we added to our target plan on our Q4 earnings call. Our base capital plan remains anchored in the core investments needed to retire legacy coal generation assets this decade and make critical investments into our transmission and distribution systems to support reliability, resiliency and industrial growth. Capital investments arising from future data center opportunities are generally ascribed to our upside plan, and we're taking a disciplined approach to ensure that new load growth is supported by appropriate commercial structures and regulatory frameworks. This includes large and load tariffs that were recently approved in Minnesota and filed in Colorado and Wisconsin, each of which protect and lower bills for existing customers while creating long-term benefits for our communities and investors. We remain confident in our ability to deliver on our data center forecast. We have 1 gigawatt of data centers in operation or under construction, an additional gigawatt of data centers under signed ESAs, and we expect to secure an additional 4 gigawatts of data center load by year-end 2027, including at least 1 gigawatt by the end of this year. Our confidence is supported by the strength and depth of our customer pipeline, our proven ability to execute large-scale infrastructure projects and the differentiated position of our service territories, which includes geographic diversity across our high probability pipeline. Finally, I want to highlight Xcel Energy's 21st sustainability report, which we released this quarter. At Xcel Energy, we are balancing reliability and affordability while supporting safety, economic vitality and environmental stewardship. And as our customer needs evolve and expectations of the energy system continue to grow, our responsibility is to lead with transparency, purpose and disciplined execution. The report reflects meaningful progress at scale. Over the past 2 decades, Xcel Energy has reduced carbon emissions nearly 60%, reduced water consumption more than 35% and enabled nearly 14,000 megawatts of wind and solar in our system, all while maintaining a resilient grid and keeping customer bills amongst the lowest in the country. As we look ahead, the energy system will continue to change with growing demand from economic development, electrification and new large loads, but our destination has not changed. We remain committed to leading the energy transition in a way that is reliable, affordable, sustainable and grounded in customer value. And with that, I'll turn it over to Brian. Brian Van Abel: Thanks, Bob, and good morning, everyone. Starting with our financial results. Xcel Energy had strong earnings of $0.93 per share for the second quarter of 2026 compared to earnings of $0.75 per share in 2025. The most significant earnings drivers for the quarter are as follows: higher electric revenues due to nonfuel riders and sales growth increased earnings by $0.17 per share. Higher AFUDC increased earnings by $0.08 per share. Lower depreciation and amortization increased earnings by $0.08 per share and other items combined to increase earnings by $0.03 per share, primarily driven by positive returns in our venture capital portfolios. For the year, these returns largely offset the negative weather that we saw in the first quarter of 2026. Offsetting these positive drivers, higher interest expense decreased earnings by $0.12 per share and the impacts of common equity financing decreased earnings by $0.06 per share. These financing costs reflect the funding of our infrastructure investments and discipline to maintain a strong balance sheet. Turning to sales. On a weather-adjusted basis, year-to-date electric sales increased by 2.1%, driven by increased activity in the energy sector in SPS and manufacturing sector across all OpCos. For 2026, we remain on track for full year weather-adjusted electric sales to increase 3%. As we look to our financing plan, Xcel Energy is continuing our commitment to maintain a strong balance sheet to fund accretive growth with the balance of equity and debt. Between our equity forward and collared contracts of our ATM program and our junior sub note issuances, we are already in front of approximately $6 billion or 85% of our $7 billion equity need in our base 5-year plan. And moving to guidance. We are reaffirming our 2026 ongoing EPS guidance range of $4.04 to $4.16. We remain confident in our ability to deliver 6% to 8-plus percent long-term earnings growth with line of sight to $10-plus billion of opportunities beyond our base plan, we expect to deliver 9-plus percent EPS growth on average through 2030. Updates to key assumptions are included in our slides and earnings release. With that, I'll wrap up with a quick summary. Xcel Energy posted strong second quarter 2026 earnings of $0.93 per share. We continue to lead a clean energy transition while ensuring safe, affordable and reliable service. We've reached productive settlements or outcomes in 6 of our active cases while keeping long-term customer bill growth at or below the rate of inflation and amongst the lowest in the country. We now have line of sight to $10-plus billion of opportunities in our incremental investment plan with additional opportunities to come. We have a formula for major project execution that combines strategic partnerships with project standardization and workforce development that will enable Xcel Energy to deliver projects on budget, on time and on scope well into the 2030s. We maintain a strong balance sheet and credit metrics and have addressed approximately 85% of our base $7 billion 5-year equity need. We are reaffirming our 2026 ongoing EPS guidance of $4.04 to $4.16 per share. And finally, we remain confident in our ability to deliver 6% to 8-plus percent long-term earnings growth and expect to deliver 9-plus percent EPS growth on average through 2030. This concludes our prepared remarks. Operator, we will now take questions. Operator: And your first question comes from the line of Richard Sunderland from Truist. Richard Sunderland: A lot to dig into here. And I thought I'd just start with the SPS update and the broader CapEx tailwinds you highlighted. I think if you -- if I caught that $6 billion figure correctly, it's taking line of sight CapEx to, I guess, at least $13 billion based on that $7 billion from last quarter. And so with your rate base framework, the 20 to 25 bps, that's at least a 250 basis point uplift, moving 11% growth on rate base to well into double digits. How are you thinking about that in the context of 9% plus? Is 9% plus still the way to think about growth in the context of a 3Q update? Or are the tailwinds aggregating to something that demands more? Brian Van Abel: There's a lot to unpack in the multiple questions there. So let me see if I can hit all of it. And you're right, we had $7 billion of line of sight in Q1, we added $6 billion. We just simply say $10-plus billion in terms of our line of sight. Some of that will flow into the early 2030s. So there's a timing component of it. But I think maybe I'll step back before talking about how we're thinking about roll forward is if you look at that $10-plus billion, the vast majority of that is our generation development. And we have, as Bob said, one of the best regulated generation development teams or probably the best regulated generation development teams in the business. And what that does is that accretes value to our customers in terms of bringing forward really low-cost competitive projects. We're winning these projects through competitive RFPs, wind, solar, storage, gas CPs, and that's due to our execution in our development team and really delivering low-cost projects for the benefit of our customers. So we're excited about what we saw in SPS and the other RFPs and really deliver on that $10-plus billion. As I think about -- I said in Q1, we talked about 9% EPS growth through 2030. You heard -- you picked up on the language we say 9-plus percent EPS growth through 2030. As we think about rolling forward in Q3, we'll roll forward everything in -- we'll also roll forward off of a new base, as we always do, we roll forward to a new 5-year. So we'll align everything, our new capital plan, our new financing plan and kind of a '27 to '31 view. So -- but as you can hear, we're excited about it. I think we're in a really good place from an execution perspective in the first 6 months of the year. Richard Sunderland: Great. So tackling the multiparts there. I'll pick that up, the thought on the generation wins and the commentary on the EPC side as well. It clearly has been a success. How do you think about these recent wins, these recent trends and the work on the EPC side positioning you on that even more upside basis highlighted in the deck? Is this sort of a structural change to what might be the resource opportunity net to Xcel as we think about Colorado, Upper Midwest or other generation needs beyond? And is there anything else you'd highlight on the EPC front in terms of how the EPC side has enabled those wins? Robert Frenzel: Richard, it's Bob. Thanks for the question. You do great math. I think that as I think about strategically where we sit, we've been in a generational investment opportunity to rethink how we power and energize our communities reliably, affordably and sustainably. And we've been tapping into the very strategic advantage that the company has to serve customers where wind blows and sun shines. And as we've done that, we've been able to drive win-win for customers with a more sustainable, more clean product with bills that are at or below the national average and some of the lowest in the country. And we think that will continue. As I said in my prepared remarks, we've got more investment opportunity that we have line of sight to. We will need more large-scale transmission in the country. We're the largest provider over the last 15 years. We think we'll be a large provider of large-scale transmission going forward, and that will present long-term investment opportunities and the partnerships with our EPCs makes us very credible whether those are direct assigned or those are competitively bid. Similarly, on the generation side, we know we have customers who value a very sustainable product. If you took our Google data center deal, it's largely a carbon-free portfolio of generation assets serving that customer. And as we look at that, we can do carbon-free portfolios for our customers quite cost effectively. And we think that as energy-intensive industries look to find homes for their assets, whether they're data centers, whether they're new manufacturing, we think they'll selectively choose our territories as places to locate industrial businesses because of the type and the quality of the system that we have, the cost effectiveness of the system and the sustainable nature of the energy that we sell. So we think it's a strategic advantage. We continue to lean into it. We want to partner with our states in economic development and bring that to fruition as we look this decade, but really into next. Brian Van Abel: Yes. And I would just add, if you look at -- we talked about 15-plus gigawatts of new generation that we're building out over the next number of years. That's the pipeline that we think makes us a partner of choice with our EPCs. And if you think about -- you can go from standard design for projects, you go from project to project, keeping the workforce together, keeping that crew learning together, keep driving those efficiencies and then just giving a line of sight for a long-term partnership and project execution that helps with that on scope, on time, on budget. So I think it does set us up well as we look into the future -- for the future RFPs and how we plan to execute for the benefit of our customers. So I am pretty excited about it. Operator: Your next question comes from the line of Nick Campanella from Barclays. Nicholas Campanella: Maybe just a follow-up on Rich's rate base growth outlook question. Just is there anything you'd like to highlight that's changed across the portfolio with the upcoming plan versus the prior, whether it's improved, lagged through rate case processes and trackers or sales growth visibility? Does that -- would that change at all how you're viewing the delta between rate base growth and EPS growth? And how we should be thinking about that 40% financing function for equity? Brian Van Abel: Nick, as I think we've always talked about kind of long-term, you see that 200, 250 bps difference between rate base growth and EPS growth. And I don't think that has changed with our kind of construction of projects or opportunities. Like I said, we'll certainly roll forward everything in Q3 and including a new sales growth plan. So -- but I don't see anything that we've announced that changes that. We remain focused on execution. Certainly, there's -- you have a little bit more delta between rate base and EPS growth in the nearer part of our plan, and that closes from just given our equity financing plan, some catch-up in terms of some ROE improvements in Colorado as we think about working through the rate cases that we've talked about. So -- but overall, long term, nothing's changed in terms of that kind of construct that you asked about. Nicholas Campanella: Great. And then just in the context of the $13 billion, I guess, of visibility now to the upside. Just the timing around the 4-gigawatt NSP RFP is pretty large and in the fourth quarter expected outcome. And since that's generation for 2030, can you kind of talk about how that makes it into the third quarter update or not? Brian Van Abel: Yes. So that -- yes, that should be a fourth quarter update by end of year. So we'll certainly -- just depending on the timing of that, whether it makes it into our Q3 plan or not, but we'll certainly provide visibility when we make that recommendation filing to the commission. So we'll work through that and just be very explicit about kind of where it sits in our Q3 plan, but it might be a little bit early in terms of our Q3 call. Operator: Your next question comes from the line of Carly Davenport from Goldman Sachs. Carly Davenport: Just to start on the regulatory side. You've executed really well on getting settlements in place across a number of your jurisdictions. Just curious as you think about the path to final approval, how you'd characterize your confidence level there or any risk of intervention that you're watching? Brian Van Abel: Yes, Carly, if I just think about kind of we've had really good success. Our operating companies and the regulatory teams have worked really hard with the parties as we think about reaching settlements across a number of our states. So we certainly appreciate the engagement of all the parties as you work through a settlement. Obviously, there's a lot of call it, constructive give and take that goes into it. And hopefully, our commissions recognize the give and takes and what we think is we put forth a settlement, we think it's in the public interest. So we're hopeful our commissions see that and that we get the constructive decisions coming out of the commissions here in the next few months. Carly Davenport: Great. And then the follow-up was just on the 2026 EPS guidance that you're reiterating here. It seemed like there are a couple of assumptions that were changing in the build to earnings this year. It seems like more puts and takes there, all else equal. Just any read-through to where you'd expect to fall within the guidance range this year based on those changes? Brian Van Abel: Yes. If you think of just our guidance changes, certainly, we had a significant change in depreciation guidance. That's earnings neutral, just given the change in the nuclear depreciation lives of our nuclear plants in the Minnesota rate case. And then we had just some gives and takes in terms of lower rider revenue, but that's offset by higher AFUDC. So really not much change from a guidance perspective when I look at it from a bottom line earnings perspective. So we -- like I said, we have a good start. We feel really good about our first 6 months of the year. And our just regular cadence is we tightened guidance in Q3. So -- but just we're sitting here off to a good start for the first part of the year. Operator: Your next question comes from the line of Jeremy Tonet from JPMorgan. Diana Niles: This is Diana Niles on the call for Jeremy. So you've outlined expectations to sign another gigawatt of data center load this year and an additional 3 gigawatts in 2027. I guess within this year and then in next, how are you thinking about the mix between gigawatt scale or 100-megawatt scale projects? Any color there would be appreciated. Robert Frenzel: Sure. It's Bob. Look, really excited about the portfolio we have. I would say our high probability portfolio exceeds 20 gigawatts. We are focused largely in the Upper Midwest and the Southwest in the near term. And we see projects in the backlog in the portfolio both -- in both camps, honestly. We see everything from urban data centers in the 10- to 20-megawatt range to 1,000-megawatt campuses across our portfolio. So it's hard to say exactly what will happen. I think that our customers are largely aligned -- we're spending a lot of time with the hyperscalers and the big data center developers. They're largely aligned to larger campuses for scale benefits, and we're equipped and prepared to move in that direction, and we see scale campuses in the regions that I mentioned. We also have people looking for maybe -- it's hard to say 200 to 300 megawatts are more modest, but those are -- we have more modest projects in our portfolio as well. And so we'll bring them forward as we get to execution. We feel great about our guidance on 1 gig this year and 3 next. Diana Niles: Great. And if I may kind of go back to the topic that Rich introduced earlier in terms of the future for rate base growth moving forward. It sounds like with timing considerations to do math of that full $13 billion math in 2030 isn't quite how to look at it. But how should we think about the horizon for rate base growth maybe in the -- how long can this double-digit rate base growth extend? Brian Van Abel: Maybe I'll just answer it a little bit higher level. Certainly, we -- when we look at these longer-term prospects and you look at our incremental portfolio, renewables will be in service by the end of 2030. We need to make sure that we capture the production tax credits for the benefit of our customers. And so when you look at the renewables that we're moving forward with in that incremental pipeline would be before or by the end of 2030. So certainly captured in our 5-year plan. Certainly, some of the larger transmission may slip out a little bit past 2030 as we think about the size and scale of that build and just getting through all the processes. But overall, we feel really good about what's in the 5-year plan. But then also, just if I think about longer term, it's a little bit what Bob was talking about is when we look at data centers here, a gigawatt by the end of this year and 3 additional gigawatts at end of next year, that's really going to drive a lot of incremental opportunities in the early 2030s. As you think about they may energize by the end of the decade, but when they need the energy and when they ramp, it's going to be well into the 2030s. So it's how do we think about extending this growth opportunity. But that growth opportunity also comes with it affordability benefits for all of our current customers, community benefits when you do data center development rights. And so we're pretty excited about that opportunity not only from a growth perspective for investors, but just an affordability benefit for our current customers as we think longer term. Robert Frenzel: And I think just one thing to add to Brian's comments is as we think about data center development, particularly in our resource-rich areas, if you have a gigawatt of data centers, you have choices to power with 100% natural gas I would suggest that in our regions, it's going to be largely wind, solar, storage and backup gas, which leads to for every gigawatt of a data center, you're looking at something like $5 billion to $6 billion of investments on the generation side and maybe more. And so as we think about that ramp that Brian talked about, the data center ramp, the generation ramp that follows that will be capital investment late this decade, but probably extending well into next decade as well as the transmission needed to support that. So there's real investment opportunities in the next decade as we see on our radar. Operator: Your next question comes from the line of Julien Dumoulin-Smith from Jefferies. Julien Dumoulin-Smith: So just kicking off, I'd love to hear your thoughts about Colorado and wildfire, right? I mean, obviously, this year, especially in the state, it's been tragic in some respects. But obviously, the state is focused on this in the context of just dealing with some of their issues in the western part of the state. How do you think about your objectives when it comes to wildfire in Colorado, right? I know that historically, we've talked about kind of a 2027 session and talking about like a standard of care bill or something like this. But how do you think about the scope of what you're looking at, whether that includes expanded mitigation efforts, et cetera? I'm just thinking through some sort of refreshed view on wildfire here and tackling at the state level, if you will. -- Or how do you think about '27 at large going forward? Robert Frenzel: Appreciate the question and the recognition that wildfire is a statewide issue, a tragedy in many cases for the community that it impacts. And I think as everybody in this room and on the call know that with a low snowpack year and winter last year and drought conditions that continue that the conditions in Colorado were challenging. I'm really proud of what we've been able to do operationally in Colorado. We have executed with excellence. From a sheer wildfire mitigation plan effort at Xcel Energy, we had laid out 4 focus areas for our company. First and foremost, the situational awareness, making sure we understand localized weather patterns and are able to communicate that in localized areas to our customers. We have, over the course of the last year, installed over 50 AI-enabled cameras to help not only our situational awareness, but real response to the offices of emergency management at the city and the county levels, which is really helping manage and get early detection of risk areas in the state. The second is weather stations. We put in over almost 300 weather stations in Colorado, and we are performing at a level of excellence in meteorology that also benefits us, but it also benefits the entirety of the state and the region by which we operate in, and making sure that not only is the Xcel Energy territory protected, but the entirety of the state. Operational mitigants is the second big bucket. This is EPSS and PSPS activities in the state and in the region. We have seen more EPSS days than we have last year, and we've had more PSPS events this year than we had last year. Those are enormously valuable risk-reducing mitigants in the state and protecting our communities and our customers as we experience the wildfire regime that we sit in this year. All the while, we're spending a lot of time, money and effort hardening our system. That's the third bucket is system hardening, whether it's pole inspections, pole replacements, insulators, nonexplosive fuses, you name it, we're working on our system to harden it, to segment it to make it more resilient to the operating environment we find ourselves in. And the fourth is really communication with customers and making sure that we have a deep understanding of our customers' needs, who has durably medical equipment that needs protection, what are our critical customers, not just on the residential side, but on the community side, community centers, offices of emergency management and making sure we can maintain services to those while we protect the other customers in the event we have an EPSS or a PSPS event. We've executed across those 4 buckets with excellence this year and really proud of what we've done to protect our communities. The state has had some wildfires and some -- has had to deal with managing those, but we've spent a lot of time making sure that our system, our communities and our customers are protected. As we roll into 2027, two things I'd highlight for you. You mentioned one about state-level legislation, obviously, a priority for the company. We have legislation in the Dakotas, Texas and looking at other states as well. Colorado will be a focus area for us in 2027. And we're working with legislators and stakeholders on that as we speak. The second is another wildfire mitigation plan. So this plan was a 3-year plan. It ends at the end of 2027. We expect to file another wildfire plan with the commission in the early part of 2027 with our plans for moving past this investment cycle and what we do next based on lessons learned and things we've seen in the season. So a long answer, Julien, but we are working really hard on making sure we can protect our communities and protect our infrastructure. Julien Dumoulin-Smith: Awesome. Thank you for the details. Certainly merits it. And if I can, just going back to the SPP -- you talked about transmission, obviously. I'm focused here on SPP and SPS. How do you think about the ITP plan coming out this year? It seems like it could be another record outcome. Obviously, you all have seen pretty meaningful developments on that front in past years. And then also at SPS, I mean, this was, I think, previously framed as kind of a longer-term data center opportunity. How are you seeing -- as the data center thesis has crept and expanded in geographic footprint, again, I'm curious about SPS in particular, given the way that you've framed it as being more longer term previously. Robert Frenzel: Yes. Thank you for the question. We've been a leading provider of transmission new construction in the country. I think by my math, I said this on the last call, we might be building 20% of the 765 kV lines in the country that we know of. As the ITP comes out in the next tranche, we would expect a meaningful investment opportunity for us given our skill and our background and our capability to deliver with excellence and with cost effectiveness. The region itself is really attractive from a resource perspective. And I think we see a lot of interest from data center developers and hyperscalers around locating data centers there. I mean our SPS business is maybe one of the lowest, if not the lowest C&I rates in the country. And we see real attraction from data center developers for -- the infrastructure we have and the cost effectiveness that we have down there. That will take more transmission in SPS. We are at the south and western end of the Southwest Power Pool and making sure that we have a reliable grid to attract development, but not just data centers, we're seeing enormous growth in the Permian and the Delaware Basins from our oil and gas customers, including additional electrification of oil and gas loads. So real growth down in SPS, not just from data centers and a need to harden the grid and bring new generation there. And you see that playing out in RFPs, IRPs, and I think you'll see it play out in the SPP ITP. Is that enough acronyms for everybody? Brian Van Abel: And Julien, just Bob hit it well is our growth, the RFPs that we just had in SPS, that's really there to serve the oil and gas growth in the Permian Basin. And so we think about Bob said in his opening comments, we really have a diversified growth plan. We are just not anchored on data center growth. Our base plan has very little data center growth baked into it. So that is all potential upside is how we think about longer term. And so we don't have any of that longer-term transmission opportunities in our base plan. We see that certainly helping well into 2030s as we look at the significant investment that will be needed in the backbone transmission in that region. Julien Dumoulin-Smith: Tying that back to the earlier commentary, not included in the upside buckets is the ITP spend coming later in the half. Later in the -- decade -- later in this year, sorry. And then also separately, the -- there's no contemplated RFP for like specific data center build per se, right? Obviously, it's much more diversified at least for now. And so that's another bucket to watch for over time. Brian Van Abel: Yes, you're absolutely correct. And as Bob said, there's been a growing interest in that region from a data center perspective as we look at it and see our pipeline. Obviously, you have a lot of land out there, a lot of territory to build. And so a growing interest there, along with really good renewable resources and access to a lot of gas. Operator: Your next question comes from the line of Sophie Karp from KeyBanc Capital Markets. Sophie Karp: A lot of ground has been covered here and obviously, a great update, guys. I was curious where you stand on new nuclear, a lot of your peers are beginning to, I guess, nibble at that a little bit and exploring potential government incentives as well as hyperscaler and other large offtaker appetite for participating in that. So kind of where do you stand on that given that you have some nuclear in your portfolio? Robert Frenzel: Sophie, it's Bob. Thanks for the question. I think I'm on the record as an unabashed fan of nuclear energy in the country. And I think we, as a country, absolutely need to have an energy policy, and industrial policy to manage both new build as well as the supply chain and the fuel cycle around that -- when I step back and think about Xcel Energy, and based on the comments you've heard from us before, we have amazing access to wind and solar resources in the regions that we serve. And when I look out into the horizon, we've always said we needed -- when we committed to being a carbon-free company by mid-decade -- mid-century, sorry, we always said we needed new dispatchable carbon-free technologies, nuclear and advanced nuclear being one of those, geothermal being another and carbon capture and sequestration being a third. We still haven't seen real commercialization of those technologies, although they're on the come for sure. We don't see a need in our resource plans for new nuclear in the near term. In fact, we're quite confident in our ability to meet the growing needs we have with a big portfolio of wind, solar, storage and gas-fired backups. But that doesn't stop me from being an advocate for what I think the country needs and the policies, I think we need to support them. We will not be an early adopter of new nuclear power plants at Xcel Energy. Sophie Karp: Got it. This is helpful. And then on the large and load tariffs, clearly not a major driver for your plan, but a source of upside. We've seen some pushback in other regions from hyperscalers on overly restrictive large and load tariffs in terms of credit ratings and the associated collateral requirements. Is there anything in the large and load tariffs in your core territories that could be a source of pushback as well? Or are they more or less accommodating, should I say? Brian Van Abel: Sophie, I can take that question. I mean we just recently earlier this year, got our Large Load Tariff approved in Minnesota. We thought that was a constructive outcome, and we worked with some of the hyperscalers to help craft that. And so a lot of our large and load tariffs look and feel similar to that. Obviously, there's some nuances across our territories, but really focused on customer protections and making sure we have the right contract provisions given the potential size of these contracts. No, we certainly pay attention in terms of -- I think you could be alluding to the Large Load Tariff proceeding to our East here. When we think about our Large Load Tariff filing in Wisconsin, we look at the provisions and we look at an overall -- kind of the overall package we put forth. We think that is really well constructed and feel good about what we put forth. Some of it has more strict provisions in it than maybe some of our peers had. So we feel good about what we put forward and looking forward to working with our stakeholders to get these approved. We also -- the couple -- we have talked about the ones we filed. We're also working and will be filing in Texas and New Mexico. Our large and load tariffs certainly appreciate some of the letters and things that have gone on in Texas and making sure we address that and incorporate that into our Large Load Tariff filing in Texas, which should get filed here in Q3. Operator: Your next question comes from the line of Steve Fleishman from Wolfe Research. Your next question comes from the line of Steve D’Ambrisi from RBC Capital Markets. Stephen D’Ambrisi: Just quickly, a lot of the questions, whether it's Richard's question or Julien's question, have focused on upside to upside and -- or longer-term upside. And at the risk of asking for more when you've just on this call, talked about 9-plus percent EPS CAGRs. Just several of your peers have moved to starting to give kind of longer-term capital guidance and pushing to 10-year, whether it's capital outlooks or earnings outlooks. And as you layer in a lot of these RFPs where the capital is spilling into kind of the next 5-year plan and additionally start signing up data center contracts, which will be ramping beyond the 2030s. Just interested to hear your thoughts on the value or the potential to provide even longer-term capital or earnings forecasts. Brian Van Abel: Steve, I'm thinking back, we did provide a 10-year capital plan a number of years ago. And so that is something that we've done before. We'll continue to evaluate it. I think you could argue, I certainly appreciate people's perspectives on that. But it is something we evaluate. We certainly look at the 10-year. And I think that's a little bit how we think about -- we give our long-term EPS growth guidance. We say 6% to 8-plus percent, and that's much more than a 5-year view. So we'll continue to evaluate that. But when we look out beyond the 5 years beyond 2030, we're really thinking about 2030 to 2035. And like you alluded to, that's really where some of our data center strategy comes in. And so we'll work through that. But I think right now, we'll continue to provide a 5-year, but also color on maybe a longer term, if that's helpful. Stephen D’Ambrisi: Okay. I think that would be great. And then just can you talk a little bit about in Minnesota, where the alternative use like environmental study is progressing. I think the last time we talked, the message was that the community is aligned and just has to go through a longer process, but I wanted to hear if there's been any updates there. Brian Van Abel: Well, so we continue to work with the stakeholders on that. You're talking about the Google progress. We filed the proceeding with the commission. There's a lot of stakeholder support for that project, community support, over $1 billion of customer benefits. And we're committed on it moving forward. So if you look, we expect the schedule on the commission proceeding should hopefully get approval early in 2027. So overall, moving forward, excited to bring that project to our community. There's a lot of investment that Google is making, investments in STEM education, investments in a distributed capacity program that's industry-leading here in Minnesota. So looking forward to moving that forward, and we'll continue to work with our parties. Overall, when we think about it, we think the environmental review is consistent with Minnesota, and we'll continue to work with that party to make sure we can move forward with that project. Operator: The next question comes from the line of Steve Fleishman from Wolfe Research. Steven Fleishman: I think my question has been asked and answered. Operator: Your next question comes from the line of Alex Kania from BTIG. Alexis Kania: I'm just wondering if you could just give maybe just a little color on stemming from the previous question on the Minnesota Google project. Just overall, what's your sense in terms of public acceptance of the large and load? Any kind of pushback that you're seeing from any of the jurisdictions that you might be seeing one way or another? And then maybe just any color just on key elections that we should be particularly focused on going into November? Robert Frenzel: It's Bob. Yes, I'll just -- I'll reiterate kind of what Brian said, real community support for the Google Data Center here in Minnesota down in Pine Island. We've had great feedback, real customer benefits and think we'll have our opportunity to put that in front of -- I know we put it in front of the commission. We expect the commission to take that up in early part of next year and expect to move forward on that project and excited about that. And excited about that as a project that we could replicate across our country -- our companies -- in the company. So it is a highly renewable project, which we have access to wind, solar, storage and gas plants. We can replicate projects like that in our Colorado company. We can replicate projects like that in our SPS company, and we're seeing interest from other hyperscalers and data center developers that want a project that looks like that in various parts of our territory. So we're excited about that as a template and hopefully, we use that alongside our large and load tariffs as we move forward. Second part of your question was really election cycle. It's certainly a busy cycle in the country. It's a busy cycle across Xcel Energy and our 8 states. And by and large, we've shown that we can manage our business through various political backdrops. As I think about our company, we don't really see a significant change in backdrop through the election cycle. We serve 8 states. Half of them probably lean a little bit more progressive and the other half lean a little bit more conservative. We probably think that mix sticks through the election cycle, and we're prepared to continue to have an infrastructure build plan and work with any administration to make sure that we can execute on our capital investment plans for the benefit of our customers and communities. Operator: Your final question comes from the line of Nick Amicucci from Evercore ISI. Nicholas Amicucci: Bob, you kind of just touched upon a little bit on my question, but I just wanted to put a little bit of a finer point on it. As we think about kind of within Minnesota and just leveraging the Clean Energy Accelerator charge, is that also kind of applicable across all jurisdictions where you're now able to kind of both showcase the clean attributes of building it and the kind of the community acceptance as well as an expedited interconnection process? Robert Frenzel: Yes. Thanks, Nick. I mean when you step back and think philosophically of what we're trying to accomplish with data center customers, we expect data centers to pay their full and fair share of their cost to serve them as a company. And when the data center shows up and needs new generation, that's how we would expect that to be paid. In Minnesota, we call it a clean energy accelerator charge. It could take a bunch of different names and packages. But basically, new large and load customers will pay for the generation that they need to serve them and they'll pay for the interconnection that they need to serve them. And customers will get the benefit of having more load on a fixed asset like the grid, and that is how you show real customer benefits over time is spreading the cost of fixed assets amongst more units of production. And that's philosophically how we're approaching large and loads. It will take different names and shapes in different states, but I think that's how we think about protecting our customers, driving economic benefit in the states and bringing new assets and new infrastructure to our regions. Brian Van Abel: Yes. And I'd just add, if you look at our Large Load Tariff filing in Colorado, we really have kind of two pathways to bring large loads forward and one create kind of speed and flexibility focused on -- we didn't call it the Clean Energy accelerator in Colorado, but really very similar opportunity. Colorado is really interesting in terms of the geothermal resources that you have from a clean energy perspective. So when we think about what we did in Minnesota, it's really just kind of a really good way to frame up both how we drive and help drive state policy and customer benefits together. And so we're excited about what we can do and expect similar concepts across our -- across our states. Operator: That concludes our question-and-answer session. I would now like to turn the call over to CFO, Brian Van Abel for closing remarks. Brian Van Abel: Thanks all for participating in our earnings call this morning. Please contact our Investor Relations team with any follow-up questions. Thank you. Operator: This concludes today's meeting. You may now disconnect. Before you buy stock in Xcel Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xcel Energy wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Xcel Energy (XEL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Xcel Energy Inc.? Here are five stocks we like better. Second-quarter earnings rose to $0.93 per share from $0.75 a year earlier, driven by higher electric revenue, AFUDC and lower depreciation. Xcel reaffirmed its 2026 EPS guidance of $4.04–$4.16 and expects average annual EPS growth above 9% through 2030. Xcel invested more than $6 billion year to date in generation, transmission and distribution infrastructure, with over $10 billion in additional investment opportunities identified beyond its base plan. Its pipeline includes nearly 13 gigawatts of renewable generation and storage, more than 3 gigawatts of natural-gas generation and nearly 2,000 miles of transmission. Data-center demand is becoming a major growth driver, with more than 20 gigawatts in the high-probability pipeline and 4 gigawatts of additional load expected by the end of 2027. Xcel is introducing large-load tariffs to ensure these customers cover their share of generation and interconnection costs, while continuing regulatory and wildfire-mitigation efforts. MarketBeat Week in Review – 06/29 - 07/03 Xcel Energy (NASDAQ:XEL) reported second-quarter 2026 earnings of $0.93 per share, up from $0.75 per share a year earlier, as higher electric revenues, allowance for funds used during construction (AFUDC), and lower depreciation and amortization more than offset increased financing costs. The utility reaffirmed its 2026 ongoing earnings guidance of $4.04 to $4.16 per share and said it remains confident in delivering long-term earnings growth of 6% to 8% or more. The company also said it expects average EPS growth of more than 9% through 2030, supported by a growing pipeline of investment opportunities beyond its base capital plan. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Xcel Energy Stock Offers Stability as Electricity Demand Builds Chairman, President and Chief Executive Officer Bob Frenzel said Xcel invested $3 billion during the second quarter and more than $6 billion year to date in generation, transmission and distribution infrastructure across its eight-state service territory. During the quarter, the company placed Group 2 of Colorado’s Power Pathway transmission project into commercial operation, began construction on a 150-mile, 345-kilovolt transmission project in the Upper Midwest, and completed Phase III of the Sherco Solar facility. The latter brought Sherco Solar’s total capacity to 710 megawatts, which Frenzel said makes it one of the country’s largest utility-scale solar facilities. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 3 Utility Stocks With Strong Dividends and Room to Run Higher Xcel also highlighted an independent monitor’s report related to its SPS competitive request for proposals in Texas and New Mexico. The company was selected to provide 2,400 megawatts of renewable generation and 200 megawatts of natural gas-fired generation, representing about 70% of the recommended portfolio and approximately $6 billion in potential investment. Chief Financial Officer Brian Van Abel said the company now has line of sight to more than $10 billion in investments beyond its base plan, though some of those opportunities are expected to extend into the early 2030s. The company’s five-year portfolio includes nearly 13 gigawatts of renewable generation and battery storage, more than 3 gigawatts of new natural-gas generation, and nearly 2,000 miles of high-voltage transmission. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Management said it has sought to support project execution by deepening partnerships with major suppliers and engineering, procurement and construction firms, while consolidating project planning and execution under one organization. Frenzel said the approach is intended to improve capital efficiency, lower execution risk and provide greater schedule certainty. Van Abel said higher electric revenues from non-fuel riders and sales growth increased second-quarter earnings by $0.17 per share. Higher AFUDC added $0.08 per share, while lower depreciation and amortization also contributed $0.08 per share. Other items contributed $0.03 per share, primarily due to positive returns from venture capital portfolios. These gains were partly offset by a $0.12-per-share impact from higher interest expense and a $0.06-per-share impact from common equity financing. Van Abel said the financing costs reflect the company’s efforts to fund infrastructure investment while maintaining a strong balance sheet. Weather-adjusted electric sales rose 2.1% year to date, driven by activity in the energy sector at Southwestern Public Service and manufacturing growth across operating companies. Xcel continues to expect weather-adjusted electric sales to increase 3% for the full year. The company said it has addressed approximately $6 billion, or 85%, of the $7 billion equity need associated with its base five-year plan through equity forward and collar contracts, its at-the-market program and junior subordinated note issuances. Van Abel said Xcel still expects a long-term difference of roughly 200 to 250 basis points between rate-base growth and EPS growth. He said the company plans to provide an updated five-year capital plan, financing plan and 2027-2031 outlook during its third-quarter update. Xcel said it has 1 gigawatt of data-center load either operating or under construction and another 1 gigawatt under signed electric service agreements. The company expects to secure an additional 4 gigawatts of data-center load by the end of 2027, including at least 1 gigawatt by the end of 2026. Frenzel said the company’s high-probability data-center pipeline exceeds 20 gigawatts, with near-term interest concentrated in the Upper Midwest and Southwest. The pipeline includes projects ranging from smaller urban facilities to campuses of roughly 1,000 megawatts. Management said future investments tied to data centers are generally part of its upside plan rather than its base plan. Frenzel said that in Xcel’s resource-rich regions, a gigawatt of data-center demand could require roughly $5 billion to $6 billion, or more, of generation investment when supported by wind, solar, storage and natural-gas backup. Xcel received approval for a large-load tariff in Minnesota and has filed similar tariffs in Colorado and Wisconsin. The company also expects to file a tariff in Texas during the third quarter and is working on one in New Mexico. Management said the tariffs are designed to ensure large-load customers pay their full and fair share of generation and interconnection costs while allowing existing customers to benefit from greater use of grid assets. Frenzel said Xcel advanced settlements or decisions in six active rate cases, including commission decisions in Minnesota’s electric rate case and a South Dakota electric rate-case settlement. The company also cited proposed settlements in Colorado electric and natural-gas cases, as well as New Mexico electric and Minnesota natural-gas cases. The company said its Colorado settlement would provide a path to nearly double the size and participation in energy-assistance programs, while its Minnesota electric rate case expanded access to and funding for customer assistance programs. In Colorado, Frenzel said Xcel has intensified wildfire-mitigation work amid drought conditions and a low snowpack year. The company has installed more than 50 artificial-intelligence-enabled cameras and nearly 300 weather stations in the state, while also using enhanced power-safety settings, public-safety power shutoffs, system hardening and customer communication measures. Xcel expects to file its next Colorado wildfire mitigation plan in early 2027 and said it will also pursue state-level wildfire legislation during the 2027 legislative session. Xcel Energy (NASDAQ: XEL) is a Minneapolis-based, publicly traded utility holding company that develops, owns and operates regulated electricity and natural gas delivery systems. The company's core activities include generation, transmission and distribution of electricity, the delivery of natural gas to customers, and related customer service operations. Xcel provides a mix of utility services to residential, commercial and industrial customers and participates in wholesale energy markets where appropriate. Its generation portfolio combines nuclear, natural gas, coal and a growing share of renewable resources such as wind and solar. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Xcel Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Xcel Energy Inc. XEL reported second-quarter 2026 ongoing earnings of 93 cents per share, beating the Zacks Consensus Estimate of 79 cents by 17.72%. Earnings increased 24% from 75 cents in the year-ago quarter, aided by greater recovery of electric infrastructure investments.Earnings benefited from lower electric fuel and purchased-power costs, which contributed 30 cents per share to the year-over-year change. Higher allowance for funds used during construction, or AFUDC, added 8 cents, while lower depreciation and amortization contributed another 8 cents.These gains were partly offset by a 12-cent drag from higher interest charges, a 6-cent impact from common-equity financing and a 4-cent reduction from lower natural gas revenues. Revenues of $3.12 billion missed the consensus estimate of $3.61 billion by 13.48% and declined 5.1% year over year. Weather-adjusted retail electric sales rose 1.5%, while electric and natural gas customer counts each increased 0.7%.Electric revenues declined 4.8% year over year to $2.74 billion. The decrease reflected lower fuel-cost recovery, production tax credits passed back to customers, weaker wholesale generation revenues and regulatory rate outcomes. These factors were partly offset by higher non-fuel rider revenues, sales and demand, and wholesale transmission revenues.Natural gas revenues fell 7.8% to $365 million, primarily because of lower gas-cost recovery and reduced sales volumes. Other revenues increased to $14 million from $13 million. Electric and natural gas cost fluctuations are generally offset through regulatory recovery mechanisms and have limited impact on earnings. Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote Total operating expenses declined 11% year over year to $2.41 billion. Electric fuel and purchased-power expenses fell $240 million to $678 million, while the cost of natural gas sold and transported decreased $41 million to $93 million.Operating and maintenance expenses increased $16 million to $691 million, partly due to higher generation costs. Operating income advanced 22.4% year over year to $706 million.Interest charges and financing costs increased 23.6% to $398 million, primarily due to higher debt levels. Xcel Energy reaffirmed its 2026 ongoing earnings guidance of $4.04-$4.16 per share. The outlook assumes weather-adjusted retail electric sales growth of approximately 3% and weather-adjusted firm natural gas sales growth of around 1%. The Zacks Consensus Estimate for 2026 is currently pegged at $4.11 per share.Management expects capital-rider revenues to increase $480-$490 million, while operating and maintenance expenses are projected to rise about 3%. The company anticipates interest expense, net of debt AFUDC, to increase $240-$250 million, partly offset by a $150-$160 million increase in equity AFUDC. XEL outlined more than $70 billion of potential capital investment during 2026-2030, comprising a $60 billion base plan and over $10 billion of additional opportunities. The program includes roughly 11,400 megawatts (“MW”) of renewable generation, 3,400 MW of natural gas generation and 2,200 MW of energy storage.The company has about 2 gigawatts (“GW”) of data-center capacity contracted or under construction and expects contracted capacity to reach roughly 4 GW by the end of 2027. Its broader pipeline exceeds 20 GW, providing potential support for future generation and transmission investment. Xcel Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. NextEra Energy NEE reported second-quarter 2026 results with adjusted earnings per share of $1.15, up 9.5% from $1.05 a year ago. The figure beat the Zacks Consensus Estimate of $1.09 by 5.5%.The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates year-over-year growth of 8.36% and 8.73%, respectively.FirstEnergy FE reported second-quarter 2026 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 2.04%. In the year-ago quarter, the company reported earnings of 52 cents per share. The Zacks Consensus Estimate for 2026 and 2027 earnings per share implies year-over-year growth of 7.06% and 7.78%, respectively.WEC Energy Group WEC reported second-quarter 2026 earnings of 91 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents by 13.75%. The bottom line also increased 19.74% from the year-ago quarter’s 76 cents.The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates year-over-year growth of 6.07% and 7.44%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xcel Energy Inc. (XEL) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report FirstEnergy Corporation (FE) : Free Stock Analysis Report WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second quarter diluted GAAP and ongoing earnings per share were $0.93 in 2026 compared with $0.75 in 2025. Year-to-date diluted GAAP earnings per share were $1.82 in 2026 compared with $1.59 in 2025. Year-to-date diluted ongoing earnings per share were $1.84 in 2026 compared with $1.59 in 2025. Xcel Energy reaffirms its 2026 ongoing earnings per share guidance of $4.04 to $4.16. MINNEAPOLIS, July 30, 2026--(BUSINESS WIRE)--Xcel Energy Inc. (NASDAQ: XEL) today reported 2026 second quarter GAAP earnings of $586 million, or $0.93 per share, compared with $444 million, or $0.75 per share in the same period in 2025 and ongoing earnings of $589 million, or $0.93 per share compared with $444 million or $0.75 per share in the same period in 2025. See Note 6 for reconciliation from GAAP to ongoing earnings. The change in earnings per share was primarily driven by increased recovery of electric infrastructure investments, partially offset by higher financing costs. "Xcel Energy has been at the center of transformations and infrastructure shifts in our industry for more than 100 years. Our second quarter results demonstrate strong and consistent execution across all our key priorities: customer satisfaction and affordability, system reliability and resiliency, meeting the clean energy aspirations of our communities and ensuring financial discipline," said Bob Frenzel, chairman, president and CEO of Xcel Energy. At 9:00 a.m. CDT 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. 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 Investors under Company. If you are unable to participate in the live event, the call will be available for replay for one week. Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2026 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases or refunds to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of interest rate changes, increased credit exposure, and legal proceeding outcomes, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would" and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; risks associated with wildfires; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; reputational impacts of actions by employees, directors, or third-parties; our ability to recover costs and our subsidiaries’ ability to recover costs from customers; risks associated with the growth of large load customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets. This information is not given in connection with anysale, offer for sale or offer to buy any security. XCEL ENERGY INC. AND SUBSIDIARIESNotes 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. Non-GAAP Financial Measures The following discussion includes financial information prepared in accordance with generally accepted accounting principles (GAAP), as well as certain non-GAAP financial measures such as ongoing return on equity (ROE), ongoing earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that adjusts measures calculated and presented in accordance with GAAP. Xcel Energy’s management uses non-GAAP measures for financial planning and analysis, for reporting results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures. Ongoing ROE Ongoing ROE is calculated by dividing the net income or loss of Xcel Energy or each subsidiary, adjusted for certain nonrecurring items, by each entity’s average stockholder’s equity. We use these non-GAAP financial measures to evaluate and provide details of earnings results. Earnings Adjusted for Certain Items (Ongoing Earnings and Ongoing Diluted EPS) GAAP diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents) were settled. The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc.’s diluted EPS is calculated using the treasury stock method. Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items. Ongoing diluted EPS for Xcel Energy is calculated by dividing net income or loss, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. Ongoing diluted EPS for each subsidiary is calculated by dividing the net income or loss for such subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance. For instance, to present ongoing earnings and ongoing diluted earnings per share, we may adjust the related GAAP amounts for certain items that are non-recurring in nature. We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. These non-GAAP financial measures should not be considered as an alternative to measures calculated and reported in accordance with GAAP. Note 1. Earnings Per Share Summary Xcel Energy’s second quarter diluted GAAP and ongoing earnings were $0.93 per share compared with $0.75 per share in the same period in 2025. The change in earnings per share was primarily driven by increased recovery of electric infrastructure investments, partially offset by higher financing costs. Fluctuations in electric and natural gas revenues associated with changes in fuel and purchased power and/or natural gas sold and transported generally do not significantly impact earnings (changes in costs are offset by the related variation in revenues). Summarized diluted EPS for Xcel Energy: PSCo — GAAP and ongoing earnings increased $0.06 per share for the second quarter of 2026. Year-to-date GAAP earnings increased $0.03 per share and ongoing earnings increased $0.01 per share. The increase in year-to-date ongoing earnings was driven by higher recovery of electric infrastructure investments which was partially offset by unfavorable weather. The difference between GAAP and ongoing earnings was driven by an increase in the estimated amount recoverable from insurance for Marshall Wildfire costs (See Note 6). NSP-Minnesota — GAAP and ongoing earnings increased $0.05 per share for the second quarter of 2026. Year-to-date GAAP earnings increased $0.03 per share and ongoing earnings increased $0.07 per share. The year-to-date ongoing earnings increase was driven by higher recovery of electric and natural gas infrastructure investments, which was partially offset by increased interest charges. The difference between GAAP and ongoing earnings was driven by recognition of customer refunds related to the 2023-2024 Prairie Island nuclear facility outage (See Note 6). SPS — GAAP and ongoing earnings increased $0.02 per share for the second quarter and $0.06 per share year-to-date. The year-to-date change was driven by sales growth and higher recovery of electric infrastructure investments, partially offset by increased depreciation expense. NSP-Wisconsin — GAAP and ongoing earnings increased $0.01 per share for the second quarter and $0.05 year-to-date. The year-to-date change was driven by higher recovery of electric and natural gas infrastructure investments, partially offset by increased depreciation expense and interest charges. Xcel Energy Inc. and Other — Primarily includes financing costs and interest income at the holding company and earnings from investment funds, which are accounted for as equity method investments. The increase in earnings was largely due to unrealized gains on the investment funds’ interests in energy technology companies, partially offset by higher debt levels. Components significantly contributing to changes in 2026 EPS compared to 2025: Note 2. Regulated Utility Results Estimated Impact of Temperature Changes on Regulated Earnings — Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The estimated impact of weather on earnings is based on the number of customers, temperature variances, the amount of natural gas or electricity historically used per degree of temperature and excludes any incremental related operating expenses that could result due to storm activity or vegetation management requirements. As a result, weather deviations from normal levels can affect Xcel Energy’s financial performance. However, electric sales true-up and gas decoupling mechanisms in Minnesota predominately mitigate the positive and adverse impacts of weather in that jurisdiction. Normal weather conditions are defined as either the 10, 20 or 30-year average of actual historical weather conditions. The historical period of time used in the calculation of normal weather differs by jurisdiction, based on regulatory practice. To calculate the impact of weather on demand, a demand factor is applied to the weather impact on sales. Extreme weather variations, windchill and cloud cover may not be reflected in weather-normalized estimates. Weather — Estimated impact of temperature variations on EPS compared with normal weather conditions: Sales — Sales growth (decline) for actual and weather-normalized sales volumes in 2026 compared to 2025: Weather-normalized electric sales growth (decline) — year-to-date C&I sales — Increase is due to higher use per customer in SPS (6.0%) and NSP-Minnesota (2.0%) and customer growth in NSP-Wisconsin (1.0%). Increased activity in the energy sector in SPS and the manufacturing sector in all jurisdictions contributed to the sales growth. Weather-normalized natural gas sales growth (decline) — year-to-date Decrease in natural gas sales was driven primarily by reduced use per customer in most jurisdictions and customer classes. Electric Revenues — Electric revenues are impacted by fluctuations in the price of natural gas, coal and uranium, regulatory outcomes, market prices and seasonality. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes. Natural Gas Revenues — Natural gas revenues vary with changing sales, the cost of natural gas and regulatory outcomes. Electric Fuel and Purchased Power — Expenses incurred for electric fuel and purchased power are impacted by fluctuations in market prices of electricity, natural gas, coal and uranium, as well as seasonality. These incurred expenses are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact. Electric fuel and purchased power expenses decreased $240 million for the second quarter of 2026 and $241 million year-to-date. The year-to-date change was primarily due to lower commodity prices, largely in SPS. Cost of Natural Gas Sold and Transported — Expenses incurred for the cost of natural gas sold are impacted by market prices and seasonality. These costs are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact. Natural gas sold and transported decreased $41 million for the second quarter of 2026 and $34 million year-to-date. The year-to-date change was primarily due to decreased volumes in PSCo, partially offset by higher commodity prices. O&M Expenses — O&M expenses increased $16 million for the second quarter of 2026 and $5 million year-to-date. The year-to-date change was primarily due to increased generation costs. Depreciation and Amortization — Depreciation and amortization decreased $60 million for the second quarter of 2026 and $20 million year-to-date. The year-to-date change was primarily due to the recognition of 2025 and 2026 depreciation reductions (nuclear life extensions) in the second quarter of 2026, partially offset by system expansion. Interest Charges — Interest charges increased $94 million for the second quarter of 2026 and $174 million year-to-date. The year-to-date change was primarily due to higher debt levels. Earnings from Equity Method Investments — Earnings from equity method investments increased $84 million for the second quarter of 2026 and $98 million year-to-date. The year-to-date change was primarily due to unrealized gains on investment funds’ interests in energy technology companies in the first six months of 2026 and losses in the first six months of 2025. AFUDC, Equity and Debt — AFUDC increased $54 million for the second quarter of 2026 and $115 million year-to-date. The year-to-date change was primarily due to system investment. Income Taxes — Effective income tax rate: Note 3. Capital Structure, Liquidity, Financing and Credit Ratings Xcel Energy’s capital structure: Liquidity — As of July 28, 2026, Xcel Energy Inc. and its utility subsidiaries had the following committed credit facilities available to meet liquidity needs: Credit Ratings — Access to the capital markets at reasonable terms is partially dependent on credit ratings. The following ratings reflect the views of Moody’s, S&P Global Ratings and Fitch. The highest credit rating for debt is Aaa/AAA and the lowest investment grade rating is Baa3/BBB-. The highest rating for commercial paper is P-1/A-1/F-1 and the lowest rating is P-3/A-3/F-3. A security rating is not a recommendation to buy, sell or hold securities. Ratings are subject to revision or withdrawal at any time by the credit rating agency and each rating should be evaluated independently of any other rating. Credit ratings and long-term outlook assigned to Xcel Energy Inc. and its utility subsidiaries as of July 28, 2026: 2026 Financing Activity — During 2026, Xcel Energy Inc. and its utility subsidiaries issued or plan to issue the following long-term debt: During the six months ended June 30, 2026, Xcel Energy Inc. entered forward sale agreements totaling 42.5 million shares (minimum expected proceeds of $3.2 billion). There were no shares issued in at-the-market cash transactions or settlements of forward sale agreements during the period. As of June 30, 2026, 69.7 million shares remain unsettled on forward sale agreements (minimum expected proceeds of $5.2 billion). Financing plans are subject to change, depending on capital expenditures, regulatory outcomes, internal cash generation, market conditions, changes in tax policies and other factors. Note 4. Rates, Regulation and Other NSP-Minnesota — 2024 Minnesota Electric Rate Case — In November 2024, NSP-Minnesota filed an electric rate case in Minnesota based on an ROE of 10.3%, a 52.5% equity ratio and rate base of $13.2 billion in 2025 and $14 billion in 2026. In December 2024, the Minnesota Public Utilities Commission (MPUC) approved interim rates of $192 million, effective Jan. 1, 2025. In October 2025, NSP-Minnesota filed rebuttal testimony, updating its total revenue request to $365 million. In June 2026, the MPUC issued a verbal decision. Terms of the decision include: Estimated rate increase of approximately $211 million over two years (annual average increase of 2.9%). ROE of 9.60%, an increase from the current 9.25% ROE, while maintaining the equity ratio of 52.5%. Continuation of existing true-up mechanisms inclusive of the sales true-up, coupled with authorization of new tracker mechanisms. A final written MPUC order is expected by July 31, 2026. NSP-Minnesota - 2025 Minnesota Natural Gas Rate Case — In October 2025, NSP-Minnesota filed a natural gas rate case in Minnesota, seeking a total revenue increase of $62 million (8.2%) as updated in April 2026. The filing is based on a 2026 forecast test year and includes an ROE of 10.65%, a 52.5% equity ratio and rate base of $1.5 billion. NSP-Minnesota requested interim rates of $51 million effective January 1, 2026, which were approved by the MPUC. In May 2026, NSP-Minnesota and certain intervenors reached a non-unanimous settlement, based on a total revenue increase of $38 million (4.9%) and a weighted average cost of capital of 7.21% (an increase from the previously authorized 7.16%). An Administrative Law Judge (ALJ) report is expected by September 2026 and a MPUC decision is expected in November 2026. NSP-Minnesota — 2025 South Dakota Electric Rate Case — In June 2025, NSP-Minnesota filed a request with the South Dakota Public Utilities Commission (SDPUC) for a net annual electric rate increase of $44 million (15%). The filing is based on a 2024 historic test year, a requested ROE of 10.3%, an equity ratio of 52.87% and rate base of approximately $1.2 billion. Interim rates were implemented on Jan. 1, 2026. In April 2026, NSP-Minnesota and SDPUC Staff filed a black box settlement agreement with the SDPUC, including a net annual electric rate increase of $26 million. In May 2026, the SDPUC approved the settlement agreement, and rates became effective July 1, 2026. NSP-Minnesota — Prairie Island Outage Prudency Review — In March 2024, NSP-Minnesota filed its annual fuel clause adjustment true-up petition to the MPUC. In a response to that petition, intervenors recommended refunds for replacement power costs related to an outage at the Prairie Island generating station (October 2023 through February 2024). In a September 2024 decision, the MPUC ruled NSP-Minnesota was imprudent in the operation of the Prairie Island nuclear plant based on an incident that resulted in the extended outage. The MPUC did not quantify the refund and referred the determination of the refund amount to the Office of Administrative Hearings. NSP-Minnesota recorded an estimated liability for a customer refund in 2024. In March 2026, the ALJ recommended a $41 million disallowance of estimated replacement power costs. In May 2026, the MPUC ordered a $41 million disallowance, consistent with the ALJ recommendation. NSP-Minnesota recognized an incremental $37 million in customer refunds, including interest, to electric revenues in the first quarter of 2026. Incremental interest was recognized in the second quarter of 2026 (see Note 6 for further information). NSP-Minnesota — 2026 North Dakota Natural Gas Rate Case — In January 2026, NSP-Minnesota filed a natural gas rate case in North Dakota, for an annual rate increase of $14 million (11.9%). The filing is based on a 2026 forecast test year and includes an ROE of 10.85%, a 52.5% equity ratio and rate base of $235 million. In March 2026, the North Dakota Public Service Commission approved interim rates of $12 million effective April 1, 2026. The procedural schedule is yet to be determined. NSP System — Resource Acquisition — In December 2025, NSP-Minnesota and NSP-Wisconsin jointly issued a Request for Proposal (RFP) seeking up to 3,500 MW of wind, solar, hydro, standalone storage, or hybrid capacity that will achieve commercial operation by December 31, 2030. Short-listed projects were announced in June 2026, and filing for requisite regulatory approval is expected by the end of 2026. NSP System — Large Load Agreement — In the first quarter of 2026, NSP-Minnesota entered into an electric service agreement to power a new Google data center in Minnesota. Under the agreement, Google will pay all costs for its new service for the duration of the contract, in accordance with Minnesota’s regulatory and legislative requirements for large loads. If approved, the agreement is expected to result in approximately $1.1 billion of benefits to NSP-Minnesota’s customers. A request for approval of the electric service agreement, including a proposed Clean Energy Accelerator Charge for 1,900 MW of clean energy resources, was filed with the MPUC in April 2026. A decision is expected in early 2027. Approvals for 1,000 MW of resources for the Clean Energy Accelerator program are pending as part of existing resource acquisition processes. The remaining resources are expected to be requested in those processes by the end of 2026. PSCo — 2025 Colorado Electric Rate Case — In November 2025, PSCo filed an electric rate case with the Colorado Public Utilities Commission (CPUC) seeking an increase in revenue of $356 million (9.9%) ($526 million inclusive of rider roll-ins). The request is based on a 9.8% ROE, an equity ratio of 55% and a 2025 test year with a projected rate base of $13 billion. In June 2026, PSCo, CPUC Staff and various other parties filed a comprehensive non-unanimous settlement agreement. The AARP, City of Boulder and the Colorado Office of Utility Consumer Advocate (UCA) oppose the settlement. Other parties either support portions of the settlement or do not oppose it. Terms of the settlement include: Revenue increase (excluding rider roll-ins) of $225 million (6.3% total, or an annual average of 2.05% since the last rate case), based on a 2025 historic test year using year-end rate base with limited forward looking known and measurable adjustments. ROE of 9.3% and equity ratio of 54.5%. A performance framework applicable to the operation of Comanche Unit 3 coal facility from effective date of rates through 2029. Transfer of the previous Transmission Cost Adjustment investments into rate base. Continuation of previously authorized trackers and deferrals. A CPUC decision and implementation of final rates is anticipated in the third quarter of 2026. PSCo — 2025 Colorado Natural Gas Rate Case — In December 2025, PSCo filed a natural gas rate case with the CPUC seeking an increase in revenue of $190 million (11.6%). The request is based on a 10.75% ROE, an equity ratio of 55% and a 2025 test year with a projected rate base of $4.7 billion. In July 2026, PSCo, CPUC Staff, the UCA, the Colorado Energy Office, Western Resource Advocates/Sierra Club, Energy Outreach Colorado and various other parties filed a comprehensive non-unanimous settlement agreement. Several parties either do not oppose or take no position on the settlement, and one transportation shipper opposes it. Key terms of the settlement include: Revenue increase of $123 million (7.5% total, or an annual average of 3.7% since the last rate case), based on a 2025 historic test year using average rate base with forward looking known and measurable adjustments. ROE of 9.2% and equity ratio of 54.5%. Hearings to discuss the settlement took place in July 2026. A CPUC decision and implementation of final rates is anticipated in the fourth quarter of 2026. PSCo — 2024 Colorado Electric Resource Plan — In October 2024, PSCo filed its Phase I electric resource plan with the CPUC. In November 2025, the CPUC approved a load forecast that reflects 3% compound annual sales growth through 2031 and a generation capacity need of approximately 5,400 MW. PSCo filed a request for reconsideration of various aspects of the decision which were approved in February 2026. The RFP for the Phase II competitive solicitation process is expected to be issued in the third quarter of 2026. This RFP will seek to acquire the balance of resource needs through 2031 (after consideration of 3,800 MW of approved acquisitions from the Near-Term Procurement RFP). SPS — 2025 New Mexico Electric Rate Case — In November 2025, SPS filed an electric rate case with the New Mexico Public Regulation Commission (NMPRC). As updated in March 2026, SPS requested a revenue increase of $168 million (16.0%). The request was based on a future test year period ending Nov. 30, 2027, a ROE of 10.5%, an equity ratio of 56% and retail rate base of $3.9 billion. In June 2026, SPS, New Mexico Department of Justice, New Mexico Large Customer Group and various other parties filed a comprehensive non-unanimous stipulation. NMPRC Staff opposes certain components of the stipulation. Terms of the stipulation include: Base rate revenue increase of $90 million (7.7% total, or an annual average of 2.4% since the last rate case), based on the filed future test year. ROE of 9.5%. Equity ratio of 54.70%. A hearing on the non-unanimous stipulation took place in July 2026. An NMPRC decision is anticipated in the fourth quarter of 2026, with implementation of rates expected in December 2026. SPS — SPS Resource Acquisition — In October 2023, SPS filed its Integrated Resource Plan with the NMPRC, which supports projected load growth and increasing reliability requirements, and secures replacement energy and capacity for retiring resources. In July 2024, SPS issued a RFP, seeking approximately 3,200 MW of accredited capacity by 2030. In July 2025, the portfolio selection report was publicly filed with the NMPRC. SPS has received NMPRC approval of the Certificate of Convenience and Necessity (CCN) filings for the specific assets, and PUCT approval is expected in the third quarter. SPS is continuing to pursue approximately 2,800 MW of accredited resources, including approximately 4,000 MW of nameplate capacity company owned resources and approximately 500 MW of nameplate capacity Power Purchase Agreements (PPAs). In October 2025, SPS issued a RFP to solicit 870 MW of accredited capacity through 2032 (approximately 1,500 MW to 3,000 MW nameplate capacity, or more depending on resource mix), with additional resources to be evaluated to meet the New Mexico Renewable Portfolio Standard (RPS) compliance need. Bids were received in January 2026, and the portfolio selection report was publicly filed with the NMPRC in July 2026. Project CCNs are expected to be filed in late 2026 or early 2027. The following resources are included in SPS’ preferred portfolio: Note 5. Wildfire Litigation 2024 Smokehouse Creek Fire Complex — On February 26, 2024, multiple wildfires began in the Texas Panhandle, including the Smokehouse Creek Fire and the 687 Reamer Fire, which burned into the perimeter of the Smokehouse Creek Fire (together, referred to herein as the "Smokehouse Creek Fire Complex"). The Texas A&M Forest Service issued incident reports that determined that the Smokehouse Creek Fire and the 687 Reamer Fire were caused by power lines owned by SPS after wooden poles near each fire origin failed. According to the Texas A&M Forest Service’s Incident Viewer and news reports, the Smokehouse Creek Fire Complex burned approximately 1,055,000 acres. After reaching the generally applicable two-year statute of limitations for property damage in Texas, SPS is aware of approximately 73 complaints, most of which have also named Xcel Energy Services Inc. as an additional defendant, relating to the Smokehouse Creek Fire Complex. The complaints, which assert claims on behalf of one or more plaintiffs, generally allege that SPS’ equipment ignited the Smokehouse Creek Fire Complex and seek compensation for losses resulting from the fire, asserting various causes of action under Texas law. In addition to seeking compensatory damages, certain of the complaints also seek exemplary damages. Of the 73 complaints, 28 have been resolved. SPS has received 304 claims through its claims process, net of duplicative, withdrawn and denied claims, and has reached final settlements on 237 of those claims as of the date of this filing. In addition to filed complaints and claims made through SPS’ claims process, SPS has also received information from attorneys for approximately 107 additional claims and has reached settlement of 79 of those claims through mediation. In December 2025, the Texas Attorney General’s office filed a lawsuit against SPS regarding the Smokehouse Creek Fire, seeking monetary damages and civil penalties for losses to property and wildlife resulting from the fires. In February 2026, pending resolution of the lawsuit, SPS and the Texas Attorney General’s office jointly filed a temporary injunction agreeing to certain distribution pole replacement procedures, largely consistent with current procedures. SPS has settled claims related to both fatalities believed to be associated with the Smokehouse Creek Fire Complex. Settlements have also been reached with the subrogated insurer plaintiffs as well as the three largest claims asserted from the fire, as measured by fire-impacted acreage. Settlements reached as of the date of this filing total $404 million of expected loss payments, of which $398 million and $374 million were paid through June 30, 2026 and Dec. 31, 2025, respectively. Based on the current state of the law and the facts and circumstances available as of the date of this filing, Xcel Energy has recorded $56 million of remaining estimated probable losses for the matter (before available insurance), for a total estimated loss of $460 million. Additionally, approximately $43 million in legal costs have been incurred as of June 30, 2026, resulting in total estimated losses and incurred costs related to this proceeding of $503 million as of June 30, 2026. An estimated liability of $62 million and $56 million for estimated losses is presented in other current liabilities as of June 30, 2026 and Dec. 31, 2025, respectively. The estimated remaining probable losses for complaints and claims in connection with the Smokehouse Creek Fire Complex (before available insurance) represents the low end of the range for remaining reasonably estimable losses and is subject to change as additional information becomes available. This estimate does not include amounts for (i) potential penalties or fines that may be imposed by governmental entities on Xcel Energy, (ii) exemplary or punitive damages, (iii) compensation claims by federal, state, county and local government entities or agencies, (iv) unsettled compensation claims for damage to oil and gas equipment, or (v) other amounts that are not reasonably estimable. Xcel Energy remains unable to reasonably estimate any additional loss or the upper end of the range because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability, including the nature of demands that may be made. Resolution of remaining complaints and claims associated with the Smokehouse Creek Fire Complex could exceed our insurance coverage of $525 million for the annual policy period (of which approximately $80 million of coverage remains after consideration of settlements reached and legal costs incurred through June 30, 2026) and could have a material adverse effect on our financial condition, results of operations or cash flows. The process for estimating losses associated with potential claims related to the Smokehouse Creek Fire Complex requires management to exercise significant judgment based on a number of assumptions and subjective factors, including the factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, management estimates and assumptions regarding the potential financial impact of the Smokehouse Creek Fire Complex may change. Texas law does not apply strict liability in determining an electric utility company’s liability for fire-related damages. For negligence claims under Texas law, a public utility has a duty to exercise ordinary and reasonable care. Potential liabilities related to the Smokehouse Creek Fire Complex depend on various factors, including the cause of the equipment failure and the extent and magnitude of potential damages, including damages to residential and commercial structures, personal property, vegetation, livestock and livestock feed (including replacement feed), personal injuries and any other damages, penalties, fines or restitution that may be imposed by courts or other governmental entities if SPS is found to have been negligent. SPS records insurance recoveries when it is deemed probable that recovery will occur, and SPS can reasonably estimate the amount or range. Insurance receivables for estimated losses of approximately $81 million and $195 million, net of recoveries received are presented in prepayments and other current assets as of June 30, 2026 and Dec. 31, 2025, respectively. While SPS plans to seek recovery of all insured losses, it is unable to predict the ultimate amount and timing of such insurance recoveries. Marshall Wildfire Litigation — In December 2021, a wildfire occurred in Boulder County, Colorado (Marshall Fire). According to a 2023 report of the Boulder County Sheriff, on Dec. 30, 2021, a fire ignited on a residential property in Boulder, Colorado for reasons unrelated to PSCo’s power lines. Also according to the report, approximately one hour and 20 minutes after the first ignition, a second fire ignited just south of the Marshall Mesa Trailhead in unincorporated Boulder County, Colorado, approximately 80 to 110 feet away from PSCo’s power lines in the area. PSCo received complaints alleging that PSCo’s equipment ignited the Marshall Fire and asserted various causes of action under Colorado law. In addition to asserting claims against PSCo and certain of its affiliates, various plaintiffs asserted claims against certain telecommunications companies. In September 2025, Xcel Energy and other defendants reached settlement agreements in principle that resolved all claims and required PSCo to make settlement payments of $640 million. PSCo did not admit any fault, wrongdoing or negligence in connection with these settlement agreements. As of July 2026, settlements have been executed with all plaintiffs and subrogation insurers. As a result of settlements as well as legal and other costs of the matter, PSCo recognized charges to earnings of $298 million in the year ended Dec. 31, 2025, after consideration of total costs expected to be reimbursed by insurance. In 2026, PSCo increased its estimated amount recoverable from insurance, contributing to a net $19 million credit to earnings for the six months ended June 30, 2026 (see Note 6 for further information). Note 6. Non-GAAP Reconciliation Xcel Energy’s reported earnings are prepared in accordance with GAAP. Xcel Energy’s management believes that ongoing earnings, or GAAP earnings adjusted for certain items, reflect management’s performance in operating the company and provides a meaningful representation of the underlying performance of Xcel Energy’s core business. In addition, Xcel Energy’s management uses ongoing earnings internally for financial planning and analysis, for reporting results to the Board of Directors and when communicating its earnings outlook to analysts and investors. This non-GAAP financial measure should not be considered as an alternative to measures calculated and reported in accordance with GAAP. Earnings Adjusted for Certain Items (Ongoing Earnings) The following table provides a reconciliation of GAAP earnings (net income) to ongoing earnings: Prairie Island Outage Refunds — As further discussed in Note 4, in March 2026, the ALJ recommended a disallowance of $41 million for estimated replacement power costs incurred during a 2023-2024 outage at NSP-Minnesota’s Prairie Island nuclear facility. The MPUC ordered the ALJ-recommended disallowance in May 2026. Total non-recurring charges of $38 million were recorded to electric revenues during the six months ended June 30, 2026 for incremental customer refunds, including interest. Marshall Wildfire Litigation — As further discussed in Note 5, during the six months ended June 30, 2026, PSCo recognized $19 million of net reductions to operating expenses due primarily to an increase in the estimated amount recoverable from insurance for non-recurring Marshall Wildfire costs. Note 7. Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives Xcel Energy 2026 Earnings Guidance — Xcel Energy’s 2026 ongoing earnings guidance is a range of $4.04 to $4.16 per share. (a) Key assumptions as compared with 2025 actual levels unless noted: Constructive outcomes in all pending rate case and regulatory proceedings. Normal weather patterns for the remainder of the year. Weather-normalized retail electric sales are projected to increase ~3%. Weather-normalized retail firm natural gas sales are projected to increase ~1%. Capital rider revenue is projected to increase $480 million to $490 million. O&M expenses are projected to increase ~3%. Depreciation expense is projected to increase approximately $140 million to $150 million. The decrease from prior guidance is primarily due to nuclear life extensions, which is offset by lower revenue. Property taxes are projected to increase $30 million to $40 million. Interest expense (net of AFUDC - debt) is projected to increase $240 million to $250 million, net of interest income. AFUDC - equity is projected to increase $150 million to $160 million. Long-Term EPS and Dividend Growth Rate Objectives — Xcel Energy expects to deliver an attractive total return to our shareholders through a combination of earnings growth and dividend yield, based on the following long-term objectives: Deliver long-term annual EPS growth of 6% to 8+% based off of $3.80 per share. Deliver annual dividend increases of 4% to 6%. Target a dividend payout ratio of 45% to 55%. Maintain senior secured debt credit ratings in the "A" range. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730823222/en/ Contacts For more information, contact:Roopesh Aggarwal, Vice President - Investor Relations, (612) 215-4535Xcel Energy website address: www.xcelenergy.com, (612) 215-5300

Xcel Energy (XEL) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +17.72%. A quarter ago, it was expected that this utility would post earnings of $0.91 per share when it actually produced earnings of $0.91, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Xcel, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $3.12 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 13.48%. This compares to year-ago revenues of $3.29 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Xcel shares have added about 6.6% since the beginning of the year versus the S&P 500's gain of 6.9%. While Xcel has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Xcel was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.40 on $4.19 billion in revenues for the coming quarter and $4.11 on $15.83 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Ballard Power Systems (BLDP), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31. This fuel cell technology company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ballard Power Systems' revenues are expected to be $26.97 million, up 51.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xcel Energy Inc. (XEL) : Free Stock Analysis Report Ballard Power Systems, Inc. (BLDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xcel Energy Inc (NASDAQ:XEL) reported strong Q2 2026 earnings of $0.93 per share, up from $0.75 in Q2 2025, driven by higher electric revenues and AFUDC. The company has line of sight to over $10 billion in incremental investment opportunities beyond its base five-year plan, including $6 billion from the SPS competitive RFP. Xcel Energy Inc (NASDAQ:XEL) achieved regulatory settlements or outcomes in six active rate cases, keeping long-term bill growth at or below inflation and among the lowest in the country. The company is a leading builder of high-voltage transmission lines and renewable generation, with 16 GW of new generation and over 2,000 miles of transmission built. Xcel Energy Inc (NASDAQ:XEL) has addressed approximately 85% of its $7 billion five-year equity need, maintaining a strong balance sheet and credit metrics. Higher interest expense decreased earnings by $0.12 per share in Q2 2026, reflecting the cost of funding infrastructure investments. Common equity financing impacts reduced earnings by $0.06 per share, driven by the need to fund growth while maintaining balance sheet strength. The company faces ongoing wildfire risks in Colorado, requiring significant investment in mitigation measures and potential legislative action. Data center load growth, while promising, is largely treated as upside and not yet fully baked into the base plan, creating uncertainty in timing and execution. Depreciation guidance was adjusted due to changes in nuclear depreciation in the Minnesota rate case, though it was earnings neutral. Here are the key highlights from the Xcel Energy Inc (NASDAQ:XEL) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Warning! GuruFocus has detected 9 Warning Signs with XEL. Is XEL fairly valued? Test your thesis with our free DCF calculator. Q: With the $6 billion in new CapEx from the SPS competitive RFP, you now have line-of-sight to at least $13 billion in incremental investments. How does this impact your 9% EPS growth target through 2030? A: (Brian Van Abel, CFO) The $6 billion from SPS, combined with the $7 billion from Q1, gives us over $10 billion in line-of-sight. While some of this will flow into the early 2030s, we are excited about the execution. We previously guided to 9% EPS growth through 2030, and we have now updated that language to "9% plus." We will roll forward our full five-year plan in Q3, which will include a new capital plan, financing plan, and a '27 to '31 view. Q: Can you discuss the timing of the upcoming NSP RFP for 4 gigawatts of generation and whether it will be included in your Q3 update? A: (Brian Van Abel, CFO) That RFP outcome is expected by the end of the fourth quarter. Depending on the exact timing, it may or may not make it into our Q3 plan update. We will provide clear visibility on its status when we make the recommendation filing to the commission. Q: You have a goal to sign 1 gigawatt of data center load this year and an additional 3 gigawatts in 2027. What is the expected mix between large-scale campuses and smaller projects? A: (Bob Frenzel, CEO) Our high-probability pipeline exceeds 20 gigawatts. We see projects across the spectrum, from 10-20 megawatt urban data centers to 1,000-megawatt campuses. However, our customers, particularly hyperscalers, are largely aligned with larger campuses for scale benefits. We are well-equipped to handle that, but we also have more modest 200-300 megawatt projects in the portfolio. Q: How should we think about the longevity of your double-digit rate base growth? Can it extend beyond the current five-year plan? A: (Bob Frenzel, CEO & Brian Van Abel, CFO) The incremental renewables in our pipeline will be in service by the end of 2030 to capture tax credits, so they fit within the five-year plan. However, the data center load we are signing now will need energy and ramp well into the 2030s. For every gigawatt of a data center, you are looking at $5-6 billion in generation and transmission investments. This creates a significant investment opportunity that extends well into the next decade. Q: What is your view on new nuclear generation, given the interest from peers and hyperscalers? A: (Bob Frenzel, CEO) I am an unabashed fan of nuclear energy and believe the country needs a policy to support it. However, for Xcel Energy, we have amazing access to wind and solar resources. We do not see a need for new nuclear in our near-term resource plans and are confident in our ability to meet growing demand with wind, solar, storage, and gas backup. We will not be an early adopter of new nuclear power plants. Q: You have achieved several regulatory settlements. What is your confidence level in getting final approvals from the commissions? A: (Brian Van Abel, CFO) Our regulatory teams have worked very hard with all parties to reach constructive settlements. There is a lot of give-and-take in these processes. We believe the settlements we have put forth are in the public interest, and we are hopeful that the commissions will see that and provide constructive decisions in the coming months. Q: Can you provide an update on the Minnesota Google data center project and the environmental review process? A: (Brian Van Abel, CFO) We continue to work with stakeholders. There is strong community support for the project, which provides over $1 billion in customer benefits. We have filed the proceeding with the commission and expect the schedule to lead to approval early in 2027. We are excited to bring this project forward, which includes significant investments in STEM education and a distributed capacity program. Q: With the growing interest in data centers in your SPS territory, how do you view the upcoming SPP ITP transmission plan? A: (Bob Frenzel, CEO & Brian Van Abel, CFO) We are a leading builder of new transmission and expect meaningful investment opportunities from the next ITP tranche. The SPS region is very attractive due to low C&I rates and strong renewable resources. We are seeing growing interest from data center developers there, in addition to significant growth from oil and gas customers in the Permian Basin. These longer-term transmission opportunities are not in our base plan and represent significant upside for the 2030s. Q: Are you seeing any pushback on your large load tariffs, particularly regarding credit and collateral requirements? A: (Brian Van Abel, CFO) Our recently approved Minnesota tariff was crafted with input from hyperscalers and is constructive. Our filings in Wisconsin and the upcoming one in Texas are well-constructed with strong customer protections. We feel good about the provisions we have put forward, which in some cases are more strict than those of our peers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Xcel Energy XEL is set to report second-quarter 2026 earnings on July 30, before the market opens. The company reported earnings in line with the Zacks Consensus Estimate in the last reported quarter.Let us discuss the factors that are likely to be reflected in the upcoming quarterly results. The Zacks Consensus Estimate for earnings is pegged at 79 cents, implying a year-over-year increase of 5.33%. The consensus estimate for revenues is pinned at $3.60 billion, indicating an increase of 9.44% from the year-ago reported number. Xcel Energy's second-quarter 2026 performance is likely to have benefited from higher electric and natural gas demand, along with the implementation of new rates across its regulated service territories. Growing electricity demand from data centers is also likely to have contributed to the company's second-quarter earnings growth.Xcel Energy's strategic capital investments in infrastructure, including transmission, distribution and generation assets, are likely to have supported the company’s second-quarter earnings. On April 14, 2026, the company placed into service a 150-megawatt solar facility at Plant X near Earth, TX and battery energy storage systems at Cunningham Generating Station in New Mexico. The new projects placed into service during the second quarter are likely to have strengthened the company's renewable generation and energy storage portfolio, enhanced grid reliability and expanded its regulated asset base, thereby supporting earnings growth. The company is also expected to have gained from rising demand across its expanding electric and natural gas customer base.However, higher financing costs may partially offset the positives during the second quarter. Our proven model does not conclusively predict an earnings beat for Xcel Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.XEL’s Earnings ESP: The company has an Earnings ESP of -0.06% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.XEL’s Zacks Rank: Currently, Xcel Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Xcel Energy Inc. price-eps-surprise | Xcel Energy Inc. Quote Investors may consider the following players from the same industry, as these have the right combination of elements to post an earnings beat this reporting cycle.Ameren AEE is set to report second-quarter results on July 31 and is likely to have come up with an earnings beat. It has an Earnings ESP of +0.19% and a Zacks Rank #2 at present.AEE’s long-term (three to five years) earnings growth rate is 7.68%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.08, which implies a year-over-year increase of 6.93%.Edison International EIX is set to report second-quarter results on July 30 and is likely to have come up with an earnings beat. It has an Earnings ESP of +4.66% and a Zacks Rank #2 at present.EIX’s long-term earnings growth rate is 2.10%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.02, which implies a year-over-year increase of 5.15%.The Southern Company SO is scheduled to report second-quarter results on July 30 and is likely to have come up with an earnings beat. It has an Earnings ESP of +1.16% and a Zacks Rank #3 at present.SO’s long-term earnings growth rate is 11.36%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.01, which implies a year-over-year increase of 10.99%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xcel Energy Inc. (XEL) : Free Stock Analysis Report Ameren Corporation (AEE) : Free Stock Analysis Report Southern Company (The) (SO) : Free Stock Analysis Report Edison International (EIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research