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In a significant advancement for its energy portfolio, Xcel Energy Inc. (NASDAQ:XEL), a $40.23 billion utility company known for its low price volatility and 54-year track record of consistent dividend payments according to InvestingPro, received approval from the Minnesota Public Utilities Commission (MPUC) on Thursday for its comprehensive resource plan. The plan includes the addition of a company-owned 420 MW combustion turbine in Lyon County and a 300 MW 4-hour battery energy storage system at Sherco.
The MPUC’s verbal nod also allows Xcel Energy to advance multiple power purchase agreements (PPAs) to the negotiation stage and mandates the addition of 3,200 MW of wind, 400 MW of solar, and 600 MW of stand-alone storage by 2030. These additions are part of a broader strategy to utilize the Minnesota Energy Connection transmission line, with approximately 2,800 MW of wind energy projected. With a beta of 0.44 and current dividend yield of 3.16%, Xcel Energy demonstrates strong defensive characteristics. For detailed analysis of Xcel’s investment potential, including additional ProTips and comprehensive metrics, explore InvestingPro.
Furthermore, the commission has sanctioned life extensions for the Prairie Island and Monticello nuclear plants into the early 2050s, alongside extensions for the Red Wing and Mankato refuse-derived fuel plants until 2037. Xcel Energy is also directed to propose a tariff for super-large load customers, primarily data centers, by mid-July 2025.
The company plans to issue additional RFPs for its approved resource needs starting late 2025 or early 2026. While this report is based on a press release statement, it contains forward-looking information subject to risks and uncertainties. The actual outcomes may differ materially from those currently anticipated. Trading near its InvestingPro Fair Value with a P/E ratio of 20.38, Xcel Energy maintains a "FAIR" financial health score. Access the complete Pro Research Report and more detailed valuation metrics through InvestingPro.
Xcel Energy’s strategic moves are in line with the industry’s shift towards renewable energy and storage solutions, reflecting the company’s commitment to sustainable energy generation and management. The approved resource plan represents a forward-thinking approach to meeting the future energy demands of Xcel Energy’s customer base while adhering to evolving environmental standards and regulations.
In other recent news, Xcel Energy reported mixed results for the fourth quarter, with earnings falling short of analyst expectations but maintaining its guidance for 2025. The company announced adjusted earnings per share of $0.81 for the quarter, which was $0.08 below the analyst consensus of $0.89. Revenue also disappointed, coming in at $3.12 billion compared to the expected $3.77 billion. Despite these quarterly figures, Xcel Energy reported full-year 2024 adjusted earnings per share of $3.50, an increase from $3.35 in 2023, marking the 20th consecutive year it has met its earnings guidance. The company attributed its year-over-year earnings growth to improved recovery of infrastructure investments, although this was partially offset by increased depreciation and interest charges, along with higher operating and maintenance expenses. Looking forward, Xcel Energy reaffirmed its 2025 earnings per share guidance range of $3.75 to $3.85, aligning closely with the analyst consensus. Bob Frenzel, chairman, president, and CEO, expressed optimism about future plans, emphasizing the company’s focus on building a robust energy grid to meet rising demand and enhance customer experience.
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