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Xcel EnergyNatural Gas Supply & Price Outlook

Blue Flame Gas ConferenceMike Boughner

9/22/2015

Xcel EnergyNatural Gas Supply & Price Outlook

Blue Flame Gas ConferenceMike Boughner

9/22/2015

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Xcel Energy Footprint

Northern States PowerMinnesota

Northern States PowerWisconsin

Public ServiceColorado

SouthwesternPublic Service

Fully Regulated Operate in 8 statesElectric No. 1 wind power provider 5th largest solar power provider 26,000+ MWs of Generation 3.4 million customersGas 6th largest consumer 400 BCF/year Control ~1.5% of US Storage $1.5 billion annually 1.9 million customers

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Emerson

Joliet

Demarc

Ventura

Cheyenne

CIG

WAHA

Permian

Pipelines and Trading Locations

NSP

PSCo

SPS

Great Lakes

Viking

NNG

CIG

WICEl Paso

Major Trading Hubs

Major Pipelines

ANR

Westex

WBINorthern Border

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Near Term Outlook

Structural Market Change

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0

2

4

6

8

10

12

14

16

Do

lla

rsp

er

MM

Btu

Historical NYMEX Settlement

How does our gas cost compare to Nymex?

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$(2.00)

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

1/4/2010 1/4/2011 1/4/2012 1/4/2013 1/4/2014 1/4/2015

$/D

th

Nymex - Ventura BasisNymex Henry Hub

NNG Ventura

Basis

Polar Vortex &TransCanada Event

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Natural Gas Production and RigCounts

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Crude Oil Crash impact on Drilling

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Production Dropping Due to Low Oiland Gas Prices

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Production Costs Have DroppedSignificantly

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Storage Inventory Back to Normal

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• Strongest El Nino since1997

• Most forecasters agreeon a patter similar to theCPC forecast at left.

Below Normal Demand This Winter?

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Current Winter Strip(Nov, 15 – March, 16)

• Demarc: $3.07• Ventura: $3.19• Emerson: $3.22• Joliet: $3.15

Average: $3.16

Winter 2015/16 Price Outlook

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Longer Term Outlook

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Higher Demand is Coming

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Clean Power Plan Projections

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Ten Year Supply/Demand Balance

Supply: 33.7Demand: 34.6

Net: -0.9 Bcf/d

Ten Year Forward Market

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Source: DTN Prophet X

8/19/2012: $5.07/Dth8/19/2013: $4.84/Dth8/19/2014: $4.47/Dth

8/19/2015: $3.55/Dth

Conclusions

Demand has not yet caught up to the prolific year overyear production increases

Storage expected to be above normal heading intowinter.

Prices for this coming winter trading near fifteen yearlows

How long can this last?

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Questions?

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