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

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

the electric and natural gas utility faced growing liabilities

tied to the largest wildfire in Texas history.

Xcel faces 15 lawsuits in connection with the Texas

Smokehouse Creek blaze, which burned more than 1 million acres

in the Lone Star state this year, with at least two of the

complaints claiming the utility was negligent in maintaining

electrical infrastructure that led to the fire.

Anticipating losses from the Smokehouse Creek Fire, Xcel

recorded a pre-tax charge during the quarter of $215 million,

which it called the low-end of a range. Xcel said last month

that its distribution poles likely started the fire, but it

disputes claims of negligence.

Xcel also faces large potential damages from the Marshall

Fire, which erupted in Colorado in 2021 and is the most costly

blaze recorded by the state. The company says its power lines

were not to blame for the fire.

The company said it was investing in hardening its

infrastructure, moving power lines underground, and taking other

measures to reduce fire risks.

"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.

Despite fire risks, the firm, which has 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.