Ramps up five-year capital plan to $60 billion
Initiates 2026 adjusted profit forecast to be between $4.04 to $4.16 per share
Misses Q3 estimates on higher interest charges, O&M expenses
Recasts lede and adds shares, details from conference call and analyst quote throughout
By Pooja Menon
Oct 30 (Reuters) - U.S. utility Xcel Energy XEL.O ramped up its capital investment plan to $60 billion for the next five years to cater to increased power demand and make required investments to strengthen its transmission and distribution systems.
Utilities have been adding billions of dollars to their capital expenditure budgets as they field massive requests for new power capacity from data centers, which aim to support complex AI-related tasks.
Quarterly operating revenue at its electric segment rose 7.2% to $3.64 billion, while that at its natural gas division climbed to $264 million from $239 million a year ago.
Xcel said in September it had reached settlement agreements to resolve all claims related to the 2021 Marshall Fire in Colorado, while reiterating that it does not admit any fault, wrongdoing or negligence in connection with the resolution.
The Minneapolis, Minnesota-based company said it will invest nearly $5 billion to improve resiliency and reduce future risk from wildfires, adding that it continues to make progress on the Smokehouse Creek fire claims process.
Xcel provides electric services to about 3.9 million customers and natural gas services to 2.2 million customers across eight Western and Midwestern states.
The utility's total interest charges rose 17.8% to $384 million in the three months ended September 30, while operating and maintenance expenses rose 5.6% to $692 million.
J.P. Morgan analysts said the capital plan update approaches investor expectations, but does not exceed them.
The investors will still appreciate the positive in the 6% to 8% earnings per share growth rate put forth by Xcel, which might ultimately "carry the day," the analysts added.
Shares of the company rose 2.4% in afternoon trading.
Xcel also initiated 2026 adjusted earnings in the range of $4.04 to $4.16 per share, the midpoint of which is less than analysts' average estimate of $4.12 apiece, according to data compiled by LSEG.
The company's third-quarter profit came in at $1.24 per share on an adjusted basis, missing estimates of $1.32 per share.
(Reporting by Pooja Menon in Bengaluru; Editing by Shreya Biswas)
((Pooja.Menon@thomsonreuters.com;))