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Jun 30, 2023
NextEra Energy Partners Q2 2023 Earnings Report
Reported second-quarter 2023 financial results, highlighting growth in limited partner distributions per unit and the acquisition of renewable projects.
Key Takeaways
NextEra Energy Partners reported a net income of $49 million for the second quarter of 2023. The company grew its renewables portfolio and launched a process to sell its Texas natural gas pipeline portfolio.
Limited partner distributions per unit grew approximately 12% year over year.
Completed acquisition of approximately 690 megawatts of renewable projects from NextEra Energy Resources.
Launched process to sell Texas natural gas pipeline portfolio.
Renewables portfolio now totals more than 10,000 megawatts.
NextEra Energy Partners
NextEra Energy Partners
Forward Guidance
NextEra Energy Partners expects 12% to 15% growth per year in limited partner distributions per unit through at least 2026 and expects the annualized rate of the fourth-quarter 2023 distribution to be in a range of $3.64 to $3.74 per common unit.
Positive Outlook
- Expects 12% to 15% growth per year in limited partner distributions per unit through at least 2026.
- Expects to grow at or near the bottom end of the 12%-15% range.
- Anticipates annualized rate of the fourth-quarter 2023 distribution to be in a range of $3.64 to $3.74 per common unit.
- Expects Dec. 31, 2023, run-rate adjusted EBITDA in a range of $2.220 billion to $2.420 billion.
- Expects Dec. 31, 2023, run-rate CAFD in a range of $770 million to $860 million.
Challenges Ahead
- Expectations are subject to the usual caveats.
- Net income includes unrealized mark-to-market gains and losses related to derivative transactions, which cannot be determined at this time.
- Future results are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.
- NEP's ability to make cash distributions to its unitholders is affected by the performance of its renewable energy projects which could be impacted by wind and solar conditions and in certain circumstances by market prices.
- Operation and maintenance of renewable energy projects and pipelines involve significant risks that could result in unplanned power outages, reduced output or capacity, personal injury or loss of life.