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Sep 30, 2022
NextEra Energy Partners Q3 2022 Earnings Report
Reported strong financial performance with adjusted EBITDA and CAFD up approximately 13% and 17%, respectively, against the prior-year comparable quarter. The company completed the acquisition of a 67% interest in a 230-megawatt, 4-hour battery storage facility in California. Year-end 2023 run-rate expectations were introduced, reflecting roughly 23% and 12% growth, respectively, from the previously announced year-end 2022 run-rate adjusted EBITDA and cash available for distribution midpoints.
Key Takeaways
NextEra Energy Partners, LP reported third-quarter 2022 net income attributable to NextEra Energy Partners of $79 million, adjusted EBITDA of $377 million, and cash available for distribution (CAFD) of $185 million.
Grew LP distributions per unit approximately 15% year-over-year.
Completed previously announced acquisition of approximately 230-megawatt, 4-hour battery storage project from NextEra Energy Resources.
Introduced year-end 2023 run-rate adjusted EBITDA and cash available for distribution expectations, up roughly 23% and 12%, respectively, versus the midpoints of the previously disclosed year-end 2022 run-rate expectations.
Delivered third-quarter financial results in line with management's expectations.
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 2025. The company expects the annualized rate of the fourth-quarter 2022 distribution to be in a range of $3.17 to $3.25 per common unit. Year-end 2022 run-rate adjusted EBITDA is expected in the range of $1.785 billion to $1.985 billion and CAFD in the range of $685 million to $775 million. Dec. 31, 2023, run-rate expectations for adjusted EBITDA are in a range of $2.220 billion to $2.420 billion and CAFD in a range of $770 million to $860 million.
Positive Outlook
- Expects 12% to 15% growth per year in limited partner distributions per unit through at least 2025.
- The annualized rate of the fourth-quarter 2022 distribution that is payable in February 2023 to be in a range of $3.17 to $3.25 per common unit.
- Year-end 2022 run-rate adjusted EBITDA in the ranges of $1.785 billion to $1.985 billion.
- Year-end 2022 run-rate CAFD in the ranges of $685 million to $775 million.
- Dec. 31, 2023, run-rate expectations for adjusted EBITDA in a range of $2.220 billion to $2.420 billion and CAFD in a range of $770 million to $860 million.
Challenges Ahead
- Expectations are subject to normal weather and operating conditions.
- Expectations are subject to positive macroeconomic conditions in the U.S.
- 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 access to capital at reasonable cost and terms and no changes to governmental policies or incentives.