Loading...
•
Jun 30, 2022
NextEra Energy Partners Q2 2022 Earnings Report
Delivered outstanding operational and financial performance, with adjusted EBITDA and CAFD increased against the prior-year comparable quarter. Executed agreement for modification to partnership's incentive distribution rights fees and completed multiple financings.
Key Takeaways
NextEra Energy Partners reported a net income of $219 million for Q2 2022. The company's adjusted EBITDA was $500 million and cash available for distribution (CAFD) was $207 million. The company continues to expect 12% to 15% growth per year in limited partner distributions per unit through at least 2025.
Grew LP distributions per unit approximately 15% year-over-year
Executed agreement for previously announced modification of the partnership's incentive distribution rights fees
Continues to expect to grow LP distributions per unit by 12% to 15% through at least 2025
S&P revised NextEra Energy Partners' business risk profile upward from 'satisfactory' to 'strong'
NextEra Energy Partners
NextEra Energy Partners
Forward Guidance
NextEra Energy Partners continues to expect year-end 2022 run-rate adjusted EBITDA and CAFD in the ranges of $1.785 billion to $1.985 billion and $685 million to $775 million, respectively, reflecting calendar year 2023 contributions from the forecasted portfolio at the end of 2022. NextEra Energy Partners expects the annualized rate of the fourth-quarter 2022 distribution that is payable in February of 2023 to be in a range of $3.17 to $3.25 per common unit.
Positive Outlook
- Expects year-end 2022 run-rate adjusted EBITDA in the ranges of $1.785 billion to $1.985 billion
- Expects year-end 2022 run-rate CAFD in the ranges of $685 million to $775 million
- Reflects calendar year 2023 contributions from the forecasted portfolio at the end of 2022
- Continues to expect 12% to 15% growth per year in limited partner distributions per unit as being a reasonable range of expectations through at least 2025
- Expects the annualized rate of the fourth-quarter 2022 distribution that is payable in February of 2023 to be in a range of $3.17 to $3.25 per common unit
Challenges Ahead
- Expectations are subject to the usual caveats
- Adjusted EBITDA and CAFD and limited partner distributions and other expectations assume, among other things, normal weather and operating conditions
- Adjusted EBITDA and CAFD and limited partner distributions and other expectations assume positive macroeconomic conditions in the U.S.
- Adjusted EBITDA and CAFD and limited partner distributions and other expectations assume public policy support for wind and solar development and construction
- Adjusted EBITDA and CAFD and limited partner distributions and other expectations assume market demand and transmission expansion support for wind and solar development