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Dec 31, 2019
NextEra Energy Partners Q4 2019 Earnings Report
Reported net income attributable to NextEra Energy Partners and adjusted EBITDA, also closed on the acquisition of Meade Pipeline Co LLC.
Key Takeaways
NextEra Energy Partners, LP reported a net income of $34 million for the fourth quarter of 2019. The company's adjusted EBITDA stood at $280 million, and cash available for distribution (CAFD), excluding Desert Sunlight projects, was $101 million.
Grows distributions approximately 15% year-over-year
Acquires more than 600 megawatts of new wind and solar projects and Meade Pipeline Co LLC during the year
Partnership continues to expect it can achieve long-term growth expectations without additional acquisitions until 2021
NextEra Energy Partners delivered a total unitholder return of approximately 28% in 2019
NextEra Energy Partners
NextEra Energy Partners
Forward Guidance
NextEra Energy Partners expects 12% to 15% per year growth in limited partner distributions through at least 2024 and expects the annualized rate of the fourth-quarter 2020 distribution, which is payable in February 2021, to be in a range of $2.40 to $2.46 per common unit.
Positive Outlook
- Adjusted EBITDA, CAFD and limited partner distribution expectations assume, among other things, normal weather and operating conditions
- Public policy support for wind and solar development and construction
- Market demand and transmission expansion support for wind and solar development
- Market demand for pipeline capacity
- Access to capital at reasonable cost and terms
Challenges Ahead
- PG&E, which contributes a significant portion of NEP's revenues, has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
- Any rejection by PG&E of a material portion of NEP's PPAs with it or any material reduction in the prices NEP charges PG&E under those PPAs that occurs in connection with PG&E's Chapter 11 proceedings
- Any events of default under the financing agreements of NEP's solar facilities that provide power and renewable energy credits to PG&E under these PPAs as a result of PG&E's reorganization activities, could have a material adverse effect on NEP's results of operations, financial condition or business
- NEP's portfolio includes renewable energy projects that have a limited operating history.
- Such projects may not perform as expected