Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Wolfe Research 2019 Power & Gas Leaders Conference
28 slides from Nextera Energy's conference presentation, Oct 2, 2019
Slide 1: Wolfe Research 2019 Power & Gas Leaders Conference
Wolfe Research 2019 Power & Gas Leaders Conference Jim Robo Chairman and CEO, NextEra Energy October 2, 2019
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results These presentations include forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to
Slide 3: NextEra Energy achieved strong financial results in the first half of 2019
NextEra Energy achieved strong financial results in the first half of 2019 NextEra Energy First Half 2019 Results Adjusted EPS(1) • NEE achieved year-over-year growth of ~13% in adjusted EPS ~13% • Continued execution on our growth $4.55 best-in-class customer value $4.04 proposition at FPL – Regula
Slide 4: FPL – Areas of Focus
At FPL, we will continue to focus on the long-term strategy that has delivered our best-in-class customer value proposition FPL – Areas of Focus 1,000-kWh Residential Bill(1) Service Reliability(2) minutes ~$139 ~$120 ~93 ~$101 Good ~55 FPL FL IOUs National FPL FL Avg 2019 Average Average Operationa
Slide 5: The NextEra Energy Playbook at Gulf Power
We expect Gulf Power customers will benefit from the NextEra Energy playbook, as will our shareholders The NextEra Energy Playbook at Gulf Power Operational Cost Effectiveness(1) Regulatory Capital Employed $/Retail MWh ~$29 $4.6 B - ~50% ~16% $4.8 B_ Reduction CAGR $3.0 B Good $14 - $15 2018 2021E
Slide 6: The NextEra Energy Playbook at Gulf Power
We expect Gulf Power customers will benefit from the NextEra Energy playbook, as will our shareholders The NextEra Energy Playbook at Gulf Power Service Reliability(1) CO2 Emissions Rate minutes CO2 Lbs. / MWh ~1,680 ~101_ Good ~20% ~40% Reduction Reduction ~1,060 ~80_ 2018 2021E 2018 2021E 1000-kWh
Slide 7: Energy Resources’ renewables development opportunities have never been stronger
We believe Energy Resources’ renewables development opportunities have never been stronger Low Cost Battery Battery Renewables Storage Storage Nuclear/Coal- Nuclear/Coal- Technology to-Renewables to-Renewables Improvements Buy Build Switching Switching Cheaper Cheaper Federal Tax Development ~80 GW
Slide 8: Disruptive industry factors will expand and accelerate over the coming years
We expect the industry’s disruptive factors will further expand and accelerate over the coming years Disruptive Industry Changes Today Potential Cost per MWh Post-2023(1) AI / ($/MWh) Machine Learning Near-Firm Wind $20 - $30 Big Data Renewables / Storage Near-Firm Solar $30 - $40 Natural Gas $30 -
Slide 9: NextEra Energy Financial Expectations
We remain well positioned to continue our strong adjusted EPS and DPS growth going forward NextEra Energy Financial Expectations Adjusted EPS Dividends Per Share $10.00 - $9.40 - $10.75 $5.50 - $5.80 $8.70 - $9.95 $8.00 - $9.20 $8.50 $7.70 Expected $3.93 Adjusted EPS CAGR 6% - 8% 2018 2019E 2020E 20
Slide 10: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 11: NextEra Energy Partners to acquire Meade Pipeline Co.
NextEra Energy Partners announced an agreement to acquire Meade Pipeline Co. (Meade) Transaction Overview • Meade owns ~40% interest in Central Penn Line, a FERC regulated intrastate natural gas pipeline in Pennsylvania – Provides the Marcellus producing region access to large demand centers in the
Slide 12: Total transaction value includes initial consideration plus future capital contributions
The ~$1.37 B total transaction value includes an initial consideration of $1.28 B(1) plus future capital contributions of ~$90 MM related to an expansion opportunity Financing Details • Initial purchase price expected to be financed with: – ~$820 MM in partially amortizing project finance debt Inclu
Slide 13: Adjusted EBITDA and CAFD Expectations
Following the transaction, NEP does not expect to need any further asset acquisitions until 2021 to achieve its targeted distribution growth expectations Adjusted EBITDA and CAFD Expectations Adjusted CAFD(4) CAFD EBITDA(3) (Including (Excluding Desert PG&E-Related) Sunlight CAFD) 12/31/19 Run Rate(
Slide 14: Seca
Seca ENERGY & a | NeExTera energy” PARTNERS Z
Slide 15: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 15
Slide 16: NEXT@ra
NEXT@ra ENERGY &%
Slide 17: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(1) 2017(1) 2018 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 2.34 $ 3.23 $ 3.27 $ 4.07 $ 3.97 $ 4.74 $
Slide 18: Reconciliation of GAAP Net Income to Adjusted Earnings (Six Months 2019)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2019) Florida Pow er Gulf Energy Corporate & NextEra (m illions, except per share am ounts) & Light Pow er Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra En
Slide 19: Reconciliation of GAAP Net Income to Adjusted Earnings (Six Months 2018)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2018) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $
Slide 20: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effects of non-qualifying hedges and unrealized ga
Slide 21: 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 statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, bu
Slide 22: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) effectiveness of NextEra Energy's risk management tools associated with its hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior;
Slide 23: NextEra Energy Partners
NExTera energy’ PARTNERS Ve
Slide 24: Expected Cash Available for Distribution
Expected Cash Available for Distribution(1) (December 31, 2019 Run Rate CAFD; $ MM) $1,350-$1,525 ($20-$30) ($90-$100) $1,225-$1,400 ($175-$225) ($420-$500) ($40-$45) ($5-$15) $560-$640 ($52-$56) $505-$585 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated Dese
Slide 25: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA and CAFD expectations. NEP’s adjusted EBITDA expectations represent projected (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
Slide 26: 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 statements” within the meaning of the federal securities laws. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra
Slide 27: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP does not own all of the land on which the projects in its portfolio are located and its use and enjoyment of the property may be adversely affected to the extent that there are any lienholders or land rights holders tha
Slide 28: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's financial condition and ability to make distributions to its unitholders, as well as its ability to grow distributions in the future, is highly dependent on NEER’s performance of its obligations to return all or a por
NextEra Energy — Wolfe Research 2019 Power & Gas Leaders Conference on 6ix