Permian Basin Keeps Powering Xcel Energy's Growth
There's a heavy dose of irony contained within the third-quarter 2019 earnings report from Xcel Energy (NASDAQ: XEL). The company is one of the largest investors in wind energy in the United States and last year committed its four regional electric utilities to deliver 100% zero-carbon energy by 2050. It's on pace to reduce its carbon emissions 80% from 2005 levels by 2030. It expects to rely on renewables for 48% of its electricity mix by 2027.
Yet through the first nine months of 2019, it appears all of the company's year-over-year earnings growth came from oil and gas customers operating in the Permian Basin. In fact, it was the only customer group in any territories served by Xcel Energy to see electricity sales growth in that span compared to the year-ago period.
Investors shouldn't get used to it. Xcel Energy expects to earn several rate increases in 2020 on its way to delivering at least 5% to 7% annual growth in earnings per share (EPS). Here's what investors need to know about the latest operating results and some important updates for the road ahead.
Source Fool.com
