© Reuters. Xcel Energy (XEL) Stock Falls Due to Texas Wildfire
Xcel Energy (NASDAQ:) shares fell more than 8% on Thursday after the company revealed that the Smokehouse Creek wildfire in Texas is burning in or near Southwestern Public Service Company's (SPS) service territory.
“As of February 28, 2024, around 7:30 pm CT, the largest fire, called the Smokehouse Creek Fire, was reported to be approximately 900,000 acres in size and approximately 3% contained,” it stated the company.
Additionally, Xcel said that on Feb. 28, a law firm sent a letter to Xcel Energy requesting that a fallen SPS utility pole located near the potential fire origin area be preserved.
Reacting to the news, analysts at KeyBanc Capital Markets said details remain scarce, but given current events, they “view the removal of ~$1.9 billion from XEL's market cap as an overreaction.
However, the company said this is understandable given widespread anxiety among investors around the specific risk of wildfires. “Our views on XEL remain unchanged at this time as we await further details on the origins of the fire,” they concluded.
