Xcel Energy on Thursday reported third-quarter earnings of $603 million ($1.14/share), beating Zacks Investment Research’s consensus expectation by 7 cents. A year ago, Xcel’s earnings were $527 million ($1.01/share).
The company narrowed its 2020 earnings guidance to $2.75 to $2.81/share and initiated its guidance for 2021 at $2.90 to $3/share.
The Minneapolis-based company said it intends to invest $22.6 billion in base capital, including an incremental $1.4 billion addressing COVID-19’s economic effects in Minnesota. Xcel has proposed spending money on the grid, solar facilities and repowering aging wind farms, which it said would create 5,000 jobs and add 5 GW to its renewable portfolio.
Xcel also outlined a 10-year vision to power 1.5 million electric vehicles in its service territory by 2030. The company already installs home chargers for customers but wants to see fast-charging stations expanded along highways and other travel corridors.
“I’m particularly excited about EVs. … The variable cost of an EV is significantly below that of a gasoline[-fueled]” vehicle, CEO Ben Fowke told financial analysts, with the cost of EV charging equivalent to 60-cents/gallon gasoline. “So while EVs are expensive today, we think that cost comes down. The key to me is to get these stations built. … One of the biggest barriers to purchasing an EV is range anxiety.”
Xcel’s share price closed Friday at $70.03, having lost 23 cents after the earnings release.
