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Mar 31, 2021
NextEra Energy Partners Q1 2021 Earnings Report
Reported strong first-quarter results driven by portfolio acquisitions and existing operations, achieving significant growth in distributions and CAFD.
Key Takeaways
NextEra Energy Partners reported a net income of $202 million for the first quarter of 2021. The company's adjusted EBITDA grew by 20% and CAFD increased by 36% compared to the prior-year quarter. They also anticipate year-end 2021 run-rate expectations for adjusted EBITDA and CAFD to be in the upper end of its previously announced ranges.
Grew distributions approximately 15% year-over-year.
Achieved cash available for distribution growth of 36% versus prior-year comparable quarter.
Announced an agreement to acquire an approximately 400-megawatt portfolio of long-term contracted wind assets.
Anticipates year-end 2021 run-rate expectations for adjusted EBITDA and CAFD to be in the upper end of its previously announced ranges.
NextEra Energy Partners
NextEra Energy Partners
Forward Guidance
NextEra Energy Partners expects a Dec. 31, 2021, run rate for adjusted EBITDA in the upper end of its previously announced range of $1.44 billion to $1.62 billion and CAFD in the upper end of its previously announced range of $600 million to $680 million, reflecting calendar year 2022 expectations for the portfolio at year-end 2021. From a base of its fourth-quarter 2020 distribution per common unit at an annualized rate of $2.46 per common unit, NextEra Energy Partners continues to expect 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024. NextEra Energy Partners expects the annualized rate of the fourth-quarter 2021 distribution, which is payable in February 2022, to be in a range of $2.76 to $2.83 per common unit.
Positive Outlook
- Adjusted EBITDA to be in the upper end of its previously announced range of $1.44 billion to $1.62 billion.
- CAFD to be in the upper end of its previously announced range of $600 million to $680 million.
- Expects 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024.
- Expects the annualized rate of the fourth-quarter 2021 distribution, which is payable in February 2022, to be in a range of $2.76 to $2.83 per common unit.
- Remains well-positioned to achieve its best-in-class long-term distribution growth objectives
Challenges Ahead
- Expectations are subject to the usual caveats.
- Expectations include the impact of incentive distribution rights fees, as these fees are treated as an operating expense.
- Adjusted EBITDA, CAFD, limited partner distribution and other expectations assume, among other things, normal weather and operating conditions.
- Expectations assume public policy support for wind and solar development and construction.
- Expectations assume market demand and transmission expansion support for wind and solar development; market demand for pipeline capacity; and access to capital at reasonable cost and terms.