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Jun 30, 2021
NextEra Energy Partners Q2 2021 Earnings Report
Reported second-quarter financial results with distribution growth and strategic acquisitions.
Key Takeaways
NextEra Energy Partners reported a net loss of $74 million for the second quarter of 2021. However, adjusted EBITDA increased by 9% and CAFD increased by 11% compared to 2020. They announced an agreement to acquire a 590-megawatt net interest in wind and solar projects from NextEra Energy Resources and completed multiple financings to enhance financial flexibility.
Grew distributions approximately 15% year-over-year.
Announced agreement to acquire an approximately 590-megawatt net interest in portfolio of wind and solar projects from NextEra Energy Resources.
Completed multiple financings during the second quarter to fund recently announced acquisitions and further enhance its financing flexibility.
Remains well-positioned to achieve its best-in-class long-term distribution growth objectives.
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.
Positive Outlook
- Adjusted EBITDA expected in the upper end of $1.44 billion to $1.62 billion range.
- CAFD expected in the upper end of $600 million to $680 million range.
- Expects 12% to 15% per year growth in limited partner distributions through at least 2024.
- 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.
- Portfolio acquisition expected to contribute adjusted EBITDA of approximately $90 million to $100 million and CAFD of approximately $41 million to $49 million.
Challenges Ahead
- Expectations are subject to normal weather and operating conditions.
- Expectations are subject to public policy support for wind and solar development and construction.
- Expectations are subject to market demand and transmission expansion support for wind and solar development.
- Expectations are subject to market demand for pipeline capacity.
- Expectations are subject to access to capital at reasonable cost and terms.