Xcel Energy Inc. (NASDAQ:XEL), a Minnesota-based utility company, has finalized additional forward sale agreements related to its common stock, according to a recent 8-K SEC filing. On Wednesday, the company entered into separate agreements with Barclays (LON:BARC) Bank PLC and Bank of America, N.A., acting as forward purchasers, for an aggregate of 2,748,091 shares.
This move follows the company's previous entry into an Underwriting Agreement and initial forward sale agreements for 18,320,610 shares of common stock on November 4, 2024. The underwriters also exercised a 30-day option to purchase up to an additional 2,748,091 shares, which has now been fully utilized.
The additional forward sale agreements, dated November 6, 2024, have terms substantially similar to the initial agreements. These transactions are part of a broader offering registered under Xcel Energy's Form S-3 registration statement (File No. 333-278797), and all shares were offered and sold under this registration.
The company's common stock is listed on the Nasdaq Stock Market LLC with a par value of $2.50 per share. The filing includes legal opinions on the common stock's legality and the additional forward sale agreements as exhibits.
In other recent news, Xcel Energy has made significant strides in its financial performance and strategic advancements. The company reported an increase in ongoing earnings per share from $1.23 to $1.25 in the third quarter of 2024, despite a $35 million charge related to a 2011 outage. Furthermore, Xcel Energy reaffirmed its 2024 earnings guidance of $3.50 to $3.60 per share and introduced a 2025 earnings guidance of $3.75 to $3.85 per share.
In terms of strategic moves, Xcel Energy announced a public offering of over 18 million shares at $65.50 per share, with Barclays Bank PLC and Bank of America serving as forward purchasers in separate agreements. This offering is expected to close by 2024 and the settlement of these forward sale agreements is anticipated to occur by June 30, 2026.
Analysts from Goldman Sachs and Jefferies have shown confidence in Xcel Energy's growth. Goldman Sachs raised Xcel Energy's target to $78 and Jefferies upgraded it to Buy. This follows Xcel Energy's revised load growth forecast from 2-3% to 5% and an increased five-year capital plan by $6 billion.
Lastly, Xcel Energy announced a five-year capital investment plan of $45 billion, primarily targeting clean energy and customer electrification. The company has also settled a significant number of wildfire claims and is managing increased Operations & Maintenance expenses.
InvestingPro Insights
Xcel Energy's recent forward sale agreements align with its strong financial position and commitment to shareholders. According to InvestingPro data, the company boasts a market capitalization of $38.08 billion and has demonstrated consistent profitability with a P/E ratio of 19.78. This valuation reflects investor confidence in Xcel's ability to generate returns.
InvestingPro Tips highlight Xcel Energy's impressive dividend track record, having raised its dividend for 20 consecutive years and maintained payments for 53 years. This consistency is particularly relevant given the company's recent stock offering, as it suggests a balance between growth initiatives and shareholder returns. The current dividend yield stands at 3.29%, which may be attractive to income-focused investors.
Moreover, Xcel Energy's stock is trading near its 52-week high, with a 15.41% total return over the past year. This performance, coupled with the company's low price volatility, indicates stability that could appeal to risk-averse investors.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into Xcel Energy's financial health and market position.
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