Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Q4 2024 Earnings Presentation
37 slides from Nextera Energy's earnings presentation, Jan 24, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Conference Call
Fourth Quarter and Full Year 2024 Earnings Conference Call January 24, 2025 NextEra Energy 1
Slide 2: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements and Non-GAAP Financial Other Risk Factors That May Affect Information See Appendix for definition of Future Results This presentation refers to Adjusted Earnings, Adjusted This presentation includes certain financial measures that EBITDA and Adjusted EBITDA forward-looking stat
Slide 3: Strong operational and financial performance at both FPL and Energy Resources in 2024
NextEra Energy had strong operational and financial performance at both FPL and Energy Resources in 2024 NextEra Energy Historical EPS CAGR vs Peers1 Achieved adjusted EPS of $3.43, up more than 8% from prior year 10.4% 10.4% 10.0% 8.9% Delivered compound annual growth in 8.5% adjusted EPS of ~10% o
Slide 4: As FPL approaches its 100th year, focus on high reliability and low bills
As FPL approaches its 100th year, we continue to focus on delivering high reliability while keeping bills as low as possible Investments in smart grid technology enabled FPL to avoid more than 2.7 MM customer outages in 20241 Improved on our best-in-class non-fuel O&M cost per customer, which was al
Slide 5: Energy Resources had another record year of new renewables and storage origination
Energy Resources had another record year of new renewables and storage origination Added more than 12 GW of new renewables and storage to the backlog in 2024, including ~3.3 GW since our last call Grew adjusted earnings by more than 13% compared to prior year Commissioned more than 6 GW1 of new rene
Slide 6: Most economic answer to America's power needs is to build renewables
We believe the most economic answer to America’s power needs is to build renewables for energy and storage and gas-fired generation for capacity Estimated Costs of Firmed Generation U.S. Power Demand2; thousand TWh Expected Deployment Timelines by Resources, 20301; $/MWh Generation Type ~6x increase
Slide 7: FPL's full-year contribution to adjusted EPS increased 12 cents
FPL’s full-year contribution to adjusted EPS increased 12 cents over the prior year FPL Results1 – Fourth Quarter and Full Year Fourth Quarter - GAAP Full Year - GAAP Net Income EPS Net Income EPS ($ MM) ($ MM) $4,552 $4,543 $2.24 $2.21 $1,146 $0.56 $845 $0.41 2023 2024 2023 2024 2023 2024 2023 2024
Slide 8: FPL focuses on smart capital investments that keep bills low
FPL continues to focus on making smart capital investments that keep bills as low as possible while delivering reliable electricity FPL EPS Contribution Drivers EPS Growth Regulatory Capital Employed2 ($ B) Fourth ~9.9% Full Year Growth Quarter $68.0 FPL – 2023 Adjusted EPS $0.41 $2.09 $61.9 Drivers
Slide 9: Florida's economy remains healthy, FPL retail sales see customer growth
Florida’s economy remains healthy, and FPL’s retail sales continue to see positive impacts from strong customer growth Florida Economy & Customer Characteristics Retail kWh Sales (Change vs. prior-year) Customer Growth1,2 (Change vs. prior-year quarter; 000s) Fourth Full Vero 140 Impact 118.9 Quarte
Slide 10: FPL notified Florida PSC of intent to file base rate filing
FPL notified the Florida Public Service Commission of its intent to file its formal base rate filing as early as February 2025 for rates effective in January 2026 Expect proposal to include base rate adjustment requests of ~$1.6 B in 2026 and ~$0.9 B for 2027, as well as continued recovery through S
Slide 11: Energy Resources full year adjusted earnings increased over 13%
NextEra Energy Resources’ full year adjusted earnings increased by over 13% versus the prior year NextEra Energy Resources Results1 – Fourth Quarter and Full Year Fourth Quarter – GAAP2 Full Year – GAAP2 Net Income (Loss) EPS Net Income (Loss) EPS ($ MM) ($ MM) $885 $0.43 $3,558 $1.75 $2,299 $1.12 (
Slide 12: Energy Resources growth driven by new renewables and storage additions
NextEra Energy Resources’ growth was driven by new additions to our renewables and storage portfolio NextEra Energy Resources Full Year 2024 Adjusted EPS1 Contribution Drivers $0.48 $0.03 ($0.08) ($0.04) ($0.24) $1.51 $1.36 (0.06) New debt to finance growth (0.07) Refinancing of existing debt (0.11)
Slide 13: Energy Resources record year of renewables and storage origination
NextEra Energy Resources had a record year of new renewables and storage origination, adding more than 12 GW to the backlog NextEra Energy Resources Development Program1 ~3.3 GW of new renewable and 2024 - 2025 2024 - 2025 2026 - 2027 2026 - 2027 2024 - 2027 storage added to the backlog COD & Backlo
Slide 14: Adjusted earnings per share increased more than 8% year-over-year
NextEra Energy’s adjusted earnings per share increased more than 8% year-over- year NextEra Energy EPS Summary – Fourth Quarter and Full Year GAAP Q4 2023 Q4 2024 Change 2023 2024 Change FPL $0.56 $0.41 ($0.15) $2.24 $2.21 ($0.03) NextEra Energy $0.43 ($0.21) ($0.64) $1.75 $1.12 ($0.63) Resources Co
Slide 15: Well positioned to continue strong adjusted EPS growth
NextEra Energy remains well positioned to continue our strong adjusted earnings per share growth NextEra Energy’s Financial Expectations1 6% - 8% off 2024 adjusted EPS range2 $3.85 – $4.32 • Expect 6 to 8% annual growth rate through $3.63 – 2027, off the 2024 adjusted EPS $4.00 $3.45 – expectations
Slide 16: Q&A Session
Q&A Session NeExTera’ ENERGY
Slide 17: Appendix
Appendix NeExTera’ ENERGY
Slide 18: Funding plan laid out at June Investor Conference remains unchanged
The funding plan we laid out at our Investor Conference in June remains unchanged NextEra Energy Funding Plan 2024-20271 ~$5 - $6 ~($20) ~$5 - $7 ~$44 - $48 ~$97 - $107 ~$40 - $44 ~$53 - $58 ~($30) - ($36) 2 2024-2027 Cash Debt Corporate Tax Equity Equity Unit Asset Recycling Dividend 2024-2027 From
Slide 19: Well positioned to navigate the current interest rate environment
NextEra Energy is well positioned to navigate the current interest rate environment Interest Rate Sensitivity Estimated Adjusted EPS Impact of +50 bps Interest Rate Increase1 2025 2026 2027 ($0.00) – ($0.02) ($0.01) – ($0.03) ($0.02) – ($0.04) NextEra Energy’s notional interest rate hedges total mor
Slide 20: Potential drivers of variability to adjusted EPS
Potential drivers of variability to consolidated NextEra Energy adjusted EPS 2025 Potential Sources of Variability1 FPL Timing of investment ± $0.01 - $0.02 Retail ROE (± 0.1% change) ± $0.015 - $0.02 NextEra Energy Resources Wind resource2 (± 1% deviation) ± $0.015 - $0.02 Asset reliability3 (± 1%
Slide 21: Credit metrics remain on track
NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics S&P A- Range Downgrade Threshold Actual 20241 Target 2025 FFO/Debt 13% - 23% 18% 19.0% >18% Moody’s Baa Range Downgrade Threshold Actual 20241 Target 2025 CFO Pre-WC/Debt 13% - 22% 17% 19.4% >17% CFO-Div/Debt 9% - 17% 12.3
Slide 22: Energy Resources 2024 Adjusted EBITDA by Asset Category
NextEra Energy Resources 2024 Adjusted EBITDA by Asset Category1,2 2024 2024 Expectations Comment Actuals as of Q4 20233 New Clean Energy Assets Contracted Renewables $1,000 - $1,300 $ 1,479 Higher contributions from new assets Existing Assets Clean Energy $4,350 - $5,050 $ 4,647 Nuclear $800 - $950
Slide 23: Energy Resources Projected 2025 Portfolio Financial Information
NextEra Energy Resources Projected 2025 Portfolio Financial Information (includes NEER’s share of XPLR Infrastructure assets; $MM) Value of pre-tax tax Adjusted Pre-Tax Remaining6 credits included in Debt Service3 Other4 EBITDA1 2 Cash Flows 5 Contract Life adjusted EBITDA New Clean Energy Assets7 $
Slide 24: Energy Resources Wind Production Index
NextEra Energy Resources Wind Production Index1,2 A 1% change in the wind production index equates to $0.015 - $0.02 of EPS for 2025 1. Represents a measure of the actual wind speeds available for energy production for the stated period relative to long-term average wind speeds; the numerator is cal
Slide 25: Energy Resources Renewables Development Program
NextEra Energy Resources Renewables Development Program1,2 Wind (GW) Solar (GW) Storage (GW) Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Northeast 0.0 0.0 Northeast 0.4 0.3 Northeast 0.0 0.0 Southeast 0.0 0.0 Southeast 2.4 2.6 Southeast 0.0 0.1 Midwes
Slide 26: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges1 - Summary of Activity ($ millions, after-tax) Primary Drivers: Asset/(Liability) Balance as of 9/30/242 ($1,562) Interest Rate Hedges $1,676 Amounts Realized During 4th Quarter 37 Electricity Related Positions (324) Change in Forward Prices (all positions) 878 Gas Infrastructu
Slide 27: Non-Qualifying Hedges - Summary of Fourth Quarter Activity
Non-Qualifying Hedges1 - Summary of Fourth Quarter Activity ($ millions) 4th Quarter Asset / Asset / (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance 2 Description 9/30/24 Realized Prices (Loss) 12/31/24 Pretax amounts at share Electricity related positions $ (600)
Slide 28: Non-Qualifying Hedges - Summary of Year-to-Date Activity
Non-Qualifying Hedges1 - Summary of Year-to-Date Activity ($ millions) Year Ended Asset/ Asset/ (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance Description 12/31/23 Realized Prices (Loss) 12/31/24 Pretax amounts at share Electricity related positions $ (784) $ 233
Slide 29: Non-Qualifying Hedges - Summary of Forward Maturity
Non-Qualifying Hedges1,2 - Summary of Forward Maturity ($ millions) Gain / (Loss) Asset / (Liability) Balance Total Description 12/31/24 2025 2026 2027 2028 2029 - 2050 2025 - 2050 Pretax amounts at share Electricity related positions $ (855) $ 231 $ 138 $ 110 $ 79 $ 297 $ 855 Gas Infrastructure rel
Slide 30: Reconciliation of GAAP Net Income to Adjusted Earnings (Q4 2024)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended December 31, 2024) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 845 $ (442) $ 8
Slide 31: Reconciliation of GAAP Net Income to Adjusted Earnings (Q4 2023)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended December 31, 2023) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 1,146 $ 885 $ (
Slide 32: Reconciliation of GAAP Net Income to Adjusted Earnings (FY 2024)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 2024) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 4,543 $ 2,299
Slide 33: Reconciliation of GAAP Net Income to Adjusted Earnings (FY 2023)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 2023) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 4,552 $ 3,558
Slide 34: Reconciliation of EPS to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share1 2004 2009 2014 2015 20162 20172 2018 2019 2020 2021 2022 2023 2024 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $0.62 $0.99 $1.40 $1.52 $1.56 $2.85 $3.47 $1.94 $1.
Slide 35: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations NextEra Energy Resources, LLC. NextEra Energy Resources, LLC. (including subsidiaries as applicable) Adjusted EBITDA Adjusted EBITDA by Asset Category This presentation refers to adjusted earnings per share Adjusted EBITDA
Slide 36: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results This presentation contains “forward-looking Energy and its business and financial condition operating costs and various liabilities attributable as well as supply chain disruptions; risks statements” within the meaning of the safe
Slide 37: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) effect of reductions in the liquidity of energy NextEra Energy's ability to successfully identify, credit ratings; poor market performance and Energy’s limited partner interest in XPLR markets on NextEra Energy's ability to