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Dec 31, 2020
NextEra Energy Partners Q4 2020 Earnings Report
Reported fourth-quarter earnings, highlighted by net income, adjusted EBITDA, and cash available for distribution.
Key Takeaways
NextEra Energy Partners reported a solid fourth quarter with a net income of $64 million, adjusted EBITDA of $308 million, and cash available for distribution of $106 million. The partnership also completed the acquisition of a 40% interest in a renewables portfolio and a 100% interest in a solar-plus-storage project.
Grew distributions approximately 15% year-over-year.
Achieved cash available for distribution growth of 40% versus 2019.
Completed acquisition of a 40% interest in an approximately 1-gigawatt renewables portfolio and 100% interest in a 100-megawatt solar-plus-storage project.
Significantly strengthened partnership's balance sheet, further supporting the partnership's long-term growth
NextEra Energy Partners
NextEra Energy Partners
Forward Guidance
NextEra Energy Partners expects 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024. The annualized rate of the fourth-quarter 2021 distribution, which is payable in February 2022, is expected to be in a range of $2.76 to $2.83 per common unit.
Positive Outlook
- 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
- NEP's ability to make cash distributions to its unitholders is affected by wind and solar conditions at its renewable energy projects
- NEP's business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions, including, but not limited to, the impact of severe weather
- Operation and maintenance of renewable energy projects involve significant risks that could result in unplanned power outages, reduced output, personal injury or loss of life
- Natural gas gathering and transmission activities involve numerous risks that may result in accidents or otherwise affect NEP’s pipeline operations
- NEP depends on certain of the renewable energy projects and pipelines in its portfolio for a substantial portion of its anticipated cash flows