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Jun 30, 2024
NextEra Energy Partners Q2 2024 Earnings Report
Reported solid second-quarter financial performance with a net income attributable to NextEra Energy Partners of $62 million.
Key Takeaways
NextEra Energy Partners reported a solid financial performance in Q2 2024, with net income attributable to NextEra Energy Partners of $62 million. Adjusted EBITDA was $560 million, and cash available for distribution (CAFD) was $220 million. The company declared a quarterly distribution of $0.9050 per common unit.
Declared quarterly distribution of $0.9050 per common unit.
Net income attributable to NextEra Energy Partners was $62 million.
Adjusted EBITDA was $560 million.
Cash available for distribution (CAFD) was $220 million.
NextEra Energy Partners
NextEra Energy Partners
Forward Guidance
NextEra Energy Partners continues to expect 5% to 8% growth per year in limited partner distributions per unit through at least 2026, with a current target of 6% growth per year. The partnership expects the annualized rate of the fourth-quarter 2024 distribution that is payable in February 2025 to be $3.73 per common unit.
Positive Outlook
- Targeting 6% growth per year in limited partner distributions per unit through at least 2026.
- Expects the annualized rate of the fourth-quarter 2024 distribution payable in February 2025 to be $3.73 per common unit.
- Run-rate contributions for adjusted EBITDA from its forecasted portfolio at Dec. 31, 2024, to be in the ranges of $1.9 billion to $2.1 billion.
- Run-rate contributions for CAFD from its forecasted portfolio at Dec. 31, 2024, to be in the ranges of $730 million to $820 million.
- The partnership does not expect to need an acquisition in 2024 to achieve its 6% limited partner distribution growth target.
Challenges Ahead
- 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, property damage, personal injury or loss of life.
- NEP's business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions and related impacts, including, but not limited to, the impact of severe weather.
- NEP depends on certain of the renewable energy projects and the investment in pipeline assets in its portfolio for a substantial portion of its anticipated cash flows.