This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Xcel Energy CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: XEL

I will now turn the call over to, Ben.

Ben Fowke

Thanks, Paul and good morning. Today, we reported second quarter earnings of $0.38 per share compared with $0.33 per share in 2011. New electric rates in Colorado, combined with warmer than normal June weather across our service territory and continued strong expense control, led to our solid second quarter results.

As a result, we remain on track to deliver 2012 earnings in the lower half of our earnings guidance range of $1.75 to $1.85 per share. Teresa will discuss our quarterly results and earnings guidance in greater detail in a few moments.

I will now provide you a few recent developments, starting with an operational update. I am pleased to report that our operating systems performed very well throughout the recent period of hot weather across our service territory. Record temperatures drove new peak demands in several states with only minimal service interruptions.

In addition to the record heat, numerous severe storms occurred in our northern service territory. Excellent response, planning and performance during system outage events minimized customer impacts and our crew has performed their work safely under difficult conditions.

In addition to reliability, our efforts to provide value to our customers are also reflected in two recently proposed transactions. This summer, we agreed to purchase the Brush assets for $75 million. The Brush assets consist of three gas-fired generating units with a total capacity of 237 megawatts. These plants currently provide energy and capacity to PSCo under purchase power agreements that are set to expire in 2017 and 2022.

While smaller, this transaction is very similar to our acquisition of generation assets from Calpine in late 2010 which provided benefits to both customers and investors. The Brush acquisition has many positive attributes including saving our customers' money beginning in the first year. Additionally, owning these peaking plants will give us greater control over our resources. Purchase is subject to various regulatory approvals including the Colorado Commission. We anticipate this transaction will close in early 2013.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs