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Jun 30, 2020
NextEra Energy Partners Q2 2020 Earnings Report
Reported a strong second quarter with significant year-over-year growth, successful resolution of the PG&E bankruptcy resulting in a cash distribution, and maintained flexibility to achieve distribution growth objectives.
Key Takeaways
NextEra Energy Partners reported a solid second quarter with net income attributable to NextEra Energy Partners of $47 million, adjusted EBITDA of $349 million, and cash available for distribution (CAFD) of $166 million. The resolution of the PG&E bankruptcy resulted in a $65 million cash distribution from Desert Sunlight projects. The company expects to achieve its 2020 distribution growth objectives and maintain a payout ratio of approximately 70%.
Delivered significant year-over-year growth.
Successful resolution of the PG&E bankruptcy results in distribution of approximately $65 million of cash from Desert Sunlight projects.
Maintained flexibility to achieve long-term distribution growth objectives without additional acquisitions until 2022.
Grew distributions approximately 15% year-over-year.
Forward Guidance
NextEra Energy Partners expects a Dec. 31, 2020, run rate for adjusted EBITDA in a range of $1.225 billion to $1.4 billion and CAFD in a range of $560 million to $640 million, reflecting calendar year 2021 expectations for the portfolio at year-end 2020. The company continues to expect 12% to 15% per year growth in limited partner distributions through at least 2024.
Positive Outlook
- Expects run-rate adjusted EBITDA in a range of $1.225 billion to $1.4 billion for year-end 2020.
- Expects CAFD in a range of $560 million to $640 million for year-end 2020.
- Anticipates 12% to 15% per year growth in limited partner distributions through at least 2024.
- Expects the annualized rate of the fourth-quarter 2020 distribution to be in a range of $2.40 to $2.46 per common unit.
- Can achieve its long-term distribution growth expectations without the need for additional asset acquisitions until 2022.
Challenges Ahead
- Expectations assume normal weather and operating conditions.
- Expectations assume public policy support for wind and solar development and construction.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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