Xcel Energy Announces $345 Million Bond Buyback Offer for Three Series
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
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Source: Newsfilter
- Buyback Overview: Xcel Energy has announced a cash offer to repurchase up to $345 million of three series of mortgage bonds, aimed at optimizing its capital structure and reducing financing costs.
- Bond Details: The buyback involves bonds with interest rates of 13.600%, 24.00%, and 34.125%, maturing in 2046, 2045, and 2044 respectively, indicating the company's sensitivity to future interest rate changes.
- Buyback Conditions: The offer is subject to specific conditions, and failure to meet these may affect the acceptance priority of the bonds, reflecting the company's cautious approach to capital management.
- Market Reaction Expectations: The buyback will expire on December 19, 2025, and is expected to positively impact the company's debt structure, enhancing investor confidence and potentially improving stock performance.
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Analyst Views on XEL
Wall Street analysts forecast XEL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XEL is 88.86 USD with a low forecast of 79.00 USD and a high forecast of 97.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 76.010
Low
79.00
Averages
88.86
High
97.00
Current: 76.010
Low
79.00
Averages
88.86
High
97.00
About XEL
Xcel Energy Inc. is an electric and natural gas delivery company. The Company provides a comprehensive portfolio of energy-related products and services to approximately 3.9 million electric customers and 2.2 million natural gas customers through four utility subsidiaries, NSP-Minnesota, NSP-Wisconsin, PSCo and SPS. The Company operates through two segments. Its regulated electric utility segment generates, purchases, transmits, distributes and sells electricity in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes wholesale commodity and trading operations. Its regulated natural gas utility segment purchases, transports, stores, distributes and sells natural gas primarily in portions of Colorado, Michigan, Minnesota, North Dakota and Wisconsin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Xcel Energy Named One of Fortune's Most Admired Companies for Twelfth Year
- Top in Social Responsibility: Xcel Energy ranked first in social responsibility and fourth overall in Fortune's survey, highlighting its leadership in the electric and gas sector, which enhances its brand image and market competitiveness.
- Significant Investment Progress: The company is advancing its five-year investment plan by 2025 to strengthen grid resilience against extreme weather, ensuring it meets the increasing energy demands of an electrified economy, thereby enhancing customer safety and satisfaction.
- Lower Bills than National Average: Xcel Energy's electric and gas bills are 28% and 12% below the national average, respectively, with historical bill growth well below inflation over the past decade, demonstrating its success in cost control and providing affordable energy.
- Commitment to Clean Energy Transition: The company is committed to leading the clean energy transition, meeting customer demands for cleaner power while keeping bills as low as possible, which not only enhances customer loyalty but also lays a foundation for sustainable future growth.
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Exelon Appoints New Executive to Lead Customer Strategy in 2026
- Executive Appointment: Exelon announced that Tim Peterson will join as Executive Vice President and Chief Customer and Technology Officer in February 2026, leading an integrated organization that aligns information technology with customer strategy for over 10.7 million utility customers, aiming to enhance service quality and strengthen competitive positioning.
- Transmission Security Agreements: Exelon's ComEd unit has introduced long-term Transmission Security Agreements and a new multi-year grid plan designed to shield existing customers from large-load transmission costs while supporting Illinois' clean energy and reliability goals, which is expected to improve customer electricity experiences.
- Investment Narrative Reshaping: ComEd's new grid plan links required grid investments with projected bill impacts and targeted assistance for vulnerable customers, potentially influencing the regulatory returns on Exelon's planned grid modernization, highlighting the critical role of regulatory decisions in shaping future earnings.
- Financial Outlook: Exelon projects $26.2 billion in revenue and $3.2 billion in earnings by 2028, with an analysis indicating a fair value of $49.35, representing a 10% upside to its current price, reflecting the company's growth potential amid improving regulatory conditions.
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