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Sep 30, 2021
NextEra Energy Partners Q3 2021 Earnings Report
Reported third-quarter financial results, grew distributions approximately 15% year-over-year, and closed on previously announced acquisitions.
Key Takeaways
NextEra Energy Partners reported a net income of $18 million, adjusted EBITDA of $334 million, and cash available for distribution (CAFD) of $158 million for the third quarter of 2021. The company also announced an agreement to acquire an approximately 100-megawatt operating California wind asset.
Grows distributions approximately 15% year-over-year
Closes on previously announced acquisitions during the third quarter
Announces an agreement to acquire an approximately 100-megawatt operating California wind asset from a third party
Introduces year-end 2022 run-rate adjusted EBITDA and cash available for distribution expectations, reflecting roughly 23% and 13% growth from the previously announced year-end 2021 run-rate ranges, respectively, at the midpoints
NextEra Energy Partners
NextEra Energy Partners
Forward Guidance
NextEra Energy Partners continues to expect 12% to 15% per year growth in limited partner distributions through at least 2024. They anticipate the annualized rate of the fourth-quarter 2021 distribution to be in a range of $2.76 to $2.83 per common unit and expect to be in the upper end of its previously disclosed year-end 2021 run-rate adjusted EBITDA and CAFD expectations ranges of $1.44 billion to $1.62 billion and $600 million to $680 million, respectively. They also introduced Dec. 31, 2022, run-rate expectations for adjusted EBITDA in a range of $1.775 billion to $1.975 billion and CAFD in a range of $675 million to $765 million.
Positive Outlook
- Expects 12% to 15% per year growth in limited partner distributions through at least 2024
- Anticipates the annualized rate of the fourth-quarter 2021 distribution to be in a range of $2.76 to $2.83 per common unit
- Expects to be in the upper end of its previously disclosed year-end 2021 run-rate adjusted EBITDA expectations ranges of $1.44 billion to $1.62 billion
- Expects to be in the upper end of its previously disclosed year-end 2021 run-rate CAFD expectations ranges of $600 million to $680 million
- Introduced Dec. 31, 2022, run-rate expectations for adjusted EBITDA in a range of $1.775 billion to $1.975 billion and CAFD in a range of $675 million to $765 million.
Challenges Ahead
- Expectations are subject to the usual caveats and include the impact of incentive distribution rights fees.
- Assumes normal weather and operating conditions
- Assumes public policy support for wind and solar development and construction
- Assumes market demand and transmission expansion support for wind and solar development
- Assumes market demand for pipeline capacity and access to capital at reasonable cost and terms