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Sep 30, 2023
NextEra Energy Partners Q3 2023 Earnings Report
Reported solid adjusted EBITDA and CAFD results, announced plans to repower approximately 740 megawatts of wind facilities, and focused on executing against transition plans.
Key Takeaways
NextEra Energy Partners reported a net income of $53 million for Q3 2023. The company is focused on executing against its transition plans and delivering limited partner distribution growth of 6% through at least 2026.
Increased limited partner distributions per unit at an annualized rate of 6% from its second-quarter 2023 distribution.
Announced plans to repower approximately 740 megawatts of wind projects through 2026.
Delivered solid adjusted EBITDA and CAFD results this quarter.
Continuing its process to sell the Texas natural gas pipeline portfolio.
Forward Guidance
NextEra Energy Partners expects 5% to 8% growth per year in limited partner distributions per unit, with a current target of 6% growth per year, as being a reasonable range of expectations through at least 2026. The partnership does not expect to require growth equity until 2027.
Positive Outlook
- 5% to 8% growth per year in limited partner distributions per unit is expected through at least 2026.
- Current target of 6% growth per year.
- The partnership does not expect to require growth equity until 2027.
- For 2023, the partnership currently expects the annualized rate of the fourth-quarter 2023 distribution that is payable in February of 2024 to be $3.52 per common unit.
- NextEra Energy Partners expects run-rate contributions for adjusted EBITDA and CAFD from its forecasted portfolio at Dec. 31, 2023, to be in the ranges of $1.9 billion to $2.1 billion and $730 million to $820 million, respectively.
Challenges Ahead
- Expectations are subject to normal weather and operating conditions.
- Expectations are subject to positive macroeconomic conditions in the U.S.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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