It's like AT&T or Comcast, but for electricity and natural gas.

• Electricity Service: Xcel Energy generates, transmits, and distributes electricity to residential, commercial, and industrial customers.
• Natural Gas Service: The company distributes natural gas to residential, commercial, and industrial customers for heating and other uses.

Xcel Energy (XEL) is a public utility company that primarily sells electricity and natural gas directly to end-users within its service territories. Therefore, its major customers are categorized rather than being other companies.

Xcel Energy serves the following primary categories of customers:

1. Residential Customers: This category includes individual households and families who use electricity and natural gas for their homes. These customers represent a significant portion of Xcel Energy's customer base and energy sales.

2. Commercial Customers: This category encompasses various businesses, including small and medium-sized enterprises, retail stores, office buildings, restaurants, and other service-oriented establishments. These customers typically have higher energy demands than residential users.

3. Industrial Customers: This category includes large manufacturing plants, industrial facilities, data centers, and other heavy energy consumers. Industrial customers often have the highest individual energy consumption among Xcel Energy's customer types.

• Arch Resources, Inc. (ARCH)
• Peabody Energy Corporation (BTU)
• Union Pacific Corporation (UNP)
• BNSF Railway Company

Bob Frenzel, Chairman, President and Chief Executive Officer

Bob Frenzel assumed the role of Chairman, President, and CEO of Xcel Energy in August 2021. He previously served as President and Chief Operating Officer (COO) of Xcel Energy. Prior to his role as COO, Frenzel joined Xcel Energy in 2016 as Chief Financial Officer. Before joining Xcel Energy, he was a managing director in the investment banking division of Goldman Sachs. He also held various leadership positions at Public Service Enterprise Group (PSEG).

Brian Van Abel, Executive Vice President and Chief Financial Officer

Brian Van Abel is the Executive Vice President and Chief Financial Officer of Xcel Energy. He previously held the position of Senior Vice President, Utility Operations. Van Abel joined Xcel Energy in 2003 and has served in various financial leadership roles, including Vice President, Controller and Chief Accounting Officer. Before joining Xcel Energy, he worked as an auditor for Arthur Andersen and Deloitte & Touche.

Frank Prager, Executive Vice President, Group President — Utilities

Frank Prager serves as the Executive Vice President, Group President — Utilities. His career at Xcel Energy includes roles such as Senior Vice President, Strategy, Planning and External Affairs; Vice President, Environmental; and Regional Vice President, Rates and Regulatory Affairs.

Brett Carter, Executive Vice President, Group President — Utilities and Chief Customer Officer

Brett Carter is the Executive Vice President, Group President — Utilities and Chief Customer Officer. He joined Xcel Energy in 2012 as Senior Vice President and Chief Information Officer. Prior to Xcel Energy, he held leadership positions at Duke Energy and was a management consultant at Ernst & Young.

Amanda R. Rome, Executive Vice President, Group President — Utilities and Chief Legal Officer

Amanda R. Rome is the Executive Vice President, Group President — Utilities and Chief Legal Officer. She joined Xcel Energy in 2007. Her previous roles at Xcel Energy include Executive Vice President, General Counsel and Corporate Secretary, and Vice President and Deputy General Counsel. Before joining Xcel Energy, she was a partner at a law firm.

The key risks to Xcel Energy (XEL) are:

1. Operational Risks and Wildfire Liabilities: Xcel Energy's natural gas and electric generation, transmission, and distribution operations inherently involve numerous risks, including the potential for accidents, property damage, environmental pollution, and substantial financial losses. Recent incidents, such as the 2021 Marshall Fire in Colorado, which resulted in a $640 million settlement, and a lawsuit from the Texas Attorney General regarding the 2024 Smokehouse Creek Fire, highlight significant and escalating wildfire liabilities. These events pose direct financial costs through settlements and litigation, alongside indirect costs from regulatory scrutiny and reputational damage.
2. High Debt Levels: Xcel Energy carries a significant amount of debt on its balance sheet, with net debt to EBITDA ratios indicating a heavy debt load. The company's liabilities also outweigh its cash and near-term receivables, which is a concern given its market capitalization. This high level of leverage and potential liquidity issues, as suggested by a low current ratio and Altman Z-Score, could impact Xcel Energy's ability to fund its operations, invest in necessary infrastructure, or obtain financing on favorable terms.
3. Regulatory Risk and Cost Recovery: The profitability of Xcel Energy is heavily dependent on the ability of its utility subsidiaries to recover their costs from customers. Changes in regulation or an inability to secure timely and adequate rate adjustments can impair this cost recovery. The utility sector is increasingly exposed to regulatory and operational risks driven by climate-related disasters, which can lead to heightened scrutiny and potential disallowance of costs related to mitigation or disaster response.

The primary clear emerging threat for Xcel Energy is the accelerating adoption and increasing economic viability of distributed energy resources (DERs), primarily rooftop solar combined with behind-the-meter battery storage.

This trend empowers customers to generate and store their own electricity, significantly reducing their reliance on grid-supplied power. As the cost of DER technologies continues to decline and their efficiency improves, a growing segment of Xcel Energy's customer base may substantially decrease their electricity purchases from the grid, and in some cases, approach grid independence. This erodes the utility's traditional sales volumes, particularly during valuable peak demand periods, and challenges its regulated business model which relies on predictable sales to recover the fixed costs of extensive generation, transmission, and distribution infrastructure.

Xcel Energy (XEL) primarily offers electricity and natural gas distribution as its main products and services. The company serves approximately 3.9 million electricity customers and 2.2 million natural gas customers across parts of eight U.S. states: Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin.

The addressable markets for Xcel Energy's main products and services are sized for the entire United States, given that their operations span multiple states within the U.S.

• For Electricity Distribution, the U.S. power market size was valued at approximately USD 363.74 billion in 2024 and is anticipated to reach USD 380.33 billion in 2025. Another source indicates the U.S. electricity sector earned $491 billion in revenue in 2023.
• For Natural Gas Distribution, the U.S. natural gas market was valued at USD 454.5 billion in 2024 and is projected to increase to USD 577.9 billion by 2032.

Xcel Energy (XEL) is poised for future revenue growth over the next two to three years, driven by several key factors:

1. Significant Capital Investments and Infrastructure Modernization: Xcel Energy plans substantial capital expenditures, including an updated five-year infrastructure investment plan totaling $60 billion, which covers 7.5 GW of new renewable generation, 3 GW of gas generation, 1.9 GW of energy storage, and 1,500 miles of high-voltage transmission. These investments are critical for modernizing its grid, enhancing reliability, and meeting future energy demands. The ability to earn a regulated return on these growing assets directly contributes to revenue.
2. Accelerated Growth from Data Centers: A major driver of increased energy demand is the rapid expansion of data centers. Xcel Energy has identified a 3 GW pipeline of contracted or "high probability" data center projects, with the potential for its data center queue to exceed 20 GW if earlier-stage prospects materialize. This robust demand from energy-intensive data centers is expected to drive significant load growth.
3. General Customer and Electrification Load Growth: Beyond data centers, Xcel Energy anticipates revenue growth from broader electrification trends. This includes the electrification of the oil and gas sector, particularly in the Permian Basin, and general residential load growth across its service territories. The company also reported 2.7% growth in electric customer volume in the first half of 2025.
4. Strategic Rate Increases and Favorable Regulatory Recoveries: To support its extensive capital plans and operational costs, Xcel Energy strategically pursues rate adjustments. For instance, it intends to file for a 13.2% rate increase with Minnesota regulators, with a 9.6% increase in 2025 followed by 3.6% in 2026. Successful regulatory outcomes and the ability to recover these infrastructure investments through regulated rates are crucial for driving future revenue growth.

Share Repurchases

Xcel Energy's buyback yield for fiscal years ending December 2020 to 2024 averaged -1.6%, indicating net share issuance rather than significant repurchases.

Share Issuance

• Xcel Energy closed a registered underwritten offering of approximately 18.3 million shares of common stock in November 2024, expected to generate around $1.18 billion in net proceeds.
• For the nine months ended September 30, 2025, Xcel Energy raised $1.151 billion from common stock issuances as part of its financing activities.
• In August 2025, Xcel Energy announced an equity distribution agreement allowing for the sale of up to $4 billion of its common stock.

Capital Expenditures

• Xcel Energy has announced a $60 billion capital spending plan for the five-year period from approximately 2026 through 2030.
• This plan includes significant investments in 7.5 GW of new renewable generation, 3 GW of new natural gas generation, 1.9 GW of energy storage, 1,500 miles of high-voltage transmission, and $5 billion allocated for wildfire mitigation.
• For the nine months ended September 30, 2025, Xcel Energy's capital expenditures totaled $7.470 billion.