April 25 (Reuters) - Xcel Energy ( XEL ) posted a

better-than-expected first-quarter profit on Thursday, as the

electric and natural gas utility benefited from lower operating

expenses due to cost-cutting initiatives and lower natural gas

costs.

Xcel has been embroiled in legal battles over its role in

the Texas Smokehouse Creek blaze that raged in Texas, with two

lawsuits claiming that it was negligent in maintaining

electrical infrastructure.

The firm had said last month that its facilities were likely

to have started the fire, the largest on record in the state,

and recorded a related $215 million pre-tax charge during the

quarter.

"We are navigating changes in weather and climate-induced

impacts on our operations. Wildfire mitigation and system

resiliency will continue to be priorities going forward," CEO

Bob Frenzel said.

Still, the firm, which serves 3.7 million customers across

eight U.S. states, reported an adjusted quarterly profit of 88

cents, above Wall Street expectations of 78 cents, according to

LSEG data.

Its operating expenses were $2.97 billion, 15.3% lower than

the prior year as the cost of natural gas sold and transported

shrunk by 44% year over year.

The company said lower operation and maintenance costs were

primarily due to decreased labor and benefit expenses.

Xcel cut over 4% of its workforce in 2023 and had eliminated

159 roles as well as offered buyouts to 400 employees last

quarter amid inflationary pressures.