Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Wolfe Research Energy & Power Deep Dive Conference (April 2016)
35 slides from Nextera Energy's conference presentation, Apr 6, 2016
Slide 1: Wolfe Research Energy & Power Deep Dive Conference
Wolfe Research Energy & Power Deep Dive Conference Armando Pimentel President and CEO, NextEra Energy Resources April 6, 2016
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results This presentation includes 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: Table of Contents
Table of Contents • NextEra Energy Value Proposition Slide 4 • Renewables & Infrastructure Slide 10 Development • NextEra Energy Partners Slide 17 • Appendix Slide 22 3
Slide 4: NextEra Energy is comprised of two strong businesses supported by a common platform
NextEra Energy is comprised of two strong businesses supported by a common platform • $55 B market capitalization(1) • 46 GW in operation(2) • $82 B in total assets • Strategic partnership with • One of the largest electric • The leader in North America utilities in the nation by in electricity gene
Slide 5: NextEra Energy: Areas of Focus
Our areas of focus have remained consistent NextEra Energy: Areas of Focus • At FPL: – Consistently deliver superior customer value through world class daily operations (low bills, high reliability, great customer service) – Invest capital in ways that drive out cost and improve reliability • At Ene
Slide 6: Investment proposition enhanced by formation of NextEra Energy Partners
NextEra Energy’s investment proposition is enhanced by the formation of NextEra Energy Partners (NYSE: NEP) NextEra Energy – Partnership with NEP • Best in class YieldCo vehicle through – Strong sponsor with proven development track record – Extensive potential drop down visibility – Well-aligned in
Slide 7: Built on best-in-class operational excellence and financial strength
Built on a foundation of best-in-class operational excellence and financial strength, and focused on clean generation Cost and Reliability Generation Profile 2014 Utility & Corporate Benchmarks 2015 NextEra Energy Fuel Mix MWhs(4) Good Industry 7.4% Nuclear Wind Good 25% 17% Industry ~$24 FL Avg ~97
Slide 8: Long-term track record of delivering value to shareholders
We have a long-term track record of delivering value to shareholders Adjusted Earnings Per Share(1) Total Shareholder Return(2) (4.8%) Dividends Per Share ■ NEE ■ S&P 500 Utility Index (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts ■ S&P 500 8 (2) Source: FactSet; includes d
Slide 9: Table of Contents
Table of Contents • NextEra Energy Value Proposition Slide 4 • Renewables & Infrastructure Slide 10 Development • NextEra Energy Partners Slide 17 • Appendix Slide 22 9
Slide 10: Energy Resources is a diversified clean energy company
Energy Resources is a diversified clean energy company whose skills and assets are well aligned to drive growth Energy Resources Skills and Capabilities Generation Portfolio(1) • Largest, most successful developer of renewables in North America – Consistent strategy to build, own and operate environ
Slide 11: Energy Resources' growth is driven by best-in-class development skills
Energy Resources’ growth is driven by its best-in-class development skills Growth in New Businesses Wind and Solar Portfolio(1) 18,000 Wind Customer 12,000 Solar Relationships MW Engineering/ 6,000 Construction Regulatory Management 0 2002 2004 2006 2008 2010 2012 2014 2016E Environmental/ Best-In-C
Slide 12: Energy Resources has invested ~$23 B in wind and solar
Over the last decade, Energy Resources has invested ~$23 B in wind and solar generation Cumulative Renewable Capital Investments(1) 24 22.8 20.4 17.4 18 14.6 $B 12 10.9 9.3 7.3 6 5.1 2.9 1.2 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Wind Solar Bolstered by tax credit extensions, carbon reg
Slide 13: Tax incentives for renewables projects extended through end of decade
Tax incentives for completed renewables projects have been extended through the end of the decade which could create significant development opportunities Extended U.S Federal Tax Credits 2016-2022 U.S. Wind Production Tax Credit Renewables Demand(2) Start of COD Wind Construction Deadline(1) PTC 10
Slide 14: Renewable energy development opportunities have never been stronger
Renewable energy development opportunities have never been stronger Drivers for New Renewables • Certainty of U.S. Federal Tax incentives for renewables • Wind technology and efficiency improvements • Solar installation costs and improvements • Potential demand from carbon emissions regulation • Pot
Slide 15: Expansion into the gas pipeline business
We have leveraged our skills and capabilities from gas infrastructure activities to expand into the gas pipeline business Gas Pipeline Assets Sabal Trail and Florida Mountain Texas Southeast Connection Valley Pipeline Pipelines(1) • Energy Resources expects • Energy Resources • NEP completed the $2.
Slide 16: Table of Contents
Table of Contents • NextEra Energy Value Proposition Slide 4 • Renewables & Infrastructure Slide 10 Development • NextEra Energy Partners Slide 17 • Appendix Slide 22 16
Slide 17: NEP is the premier company in the yieldco space
We believe NEP is the premier company in the yieldco space and we are focused on sustaining this position Characteristics of a Great Yieldco NEP • Strong sponsor • Operational excellence • High quality projects • High-profile drop-down visibility • Well-aligned incentives 17
Slide 18: NEP benefits from substantial sponsor strength
NEP benefits from substantial sponsor strength Sponsor Strength • Largest generator in North America of renewable energy from the wind and sun • ~16 GW of renewables in operation by the end of 2016(1) • ~21 GW of all fuel technologies in operation(1) • Assets primarily in 25 states and Canada • Port
Slide 19: NEP has more than doubled its portfolio since the IPO
NEP has more than doubled the size of its portfolio since the IPO NEP Portfolio Additions Renewables Capacity(1) 2,072 MW Average Contract Life(3) Average Counterparty Credit(3,4) (1) Excludes ownership interest in equity method investments (2) Reflects annualized rate of the quarterly LP unit distr
Slide 20: Seiling I and II Acquisition
Recently announced acquisition is another example of the strong and highly visible runway for future growth that we believe is a core strength of the NEP value proposition Seiling I and II Acquisition • Acquisition from sponsor closed on March 1, 2016: Contract Contract Project Resource MW COD Expir
Slide 21: Seiling I and II Financing
The equity for the acquisition was issued concurrent with the announcement, demonstrating the relative strength of NEP and its sponsor Seiling I and II Financing • Financing for the Seiling I and II acquisition was pre- funded at the time of announcement – NEP funded the majority of the purchase pri
Slide 22: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 22
Slide 23: NextEra Energy
NExTera’ ENERGY @
Slide 24: Value delivery founded on low cost position and best-in-class operations
Our value delivery is founded on a low cost position and best- in-class operations Operational Cost Effectiveness(1) Good $/Retail MWh FPL ~$15 Log/Log Retail MWh (1) FERC Form 1, 2014. Excludes pensions and other employee benefits. Note: Holding companies with >100,000 24 customers. Excludes compan
Slide 25: 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 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 2.34 $ 3.23 $ 3.27 $ 4.07 $ 3.97 $ 4.74 $ 4.59 $ 4.56 $ 4.47 $
Slide 26: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the unrealized mark-to-market effect of non-qualifying hedges, net OTTI losses on securities held in NextEra Energ
Slide 27: 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 28: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-term contractual basis; effect of reductions in the liquidity of energy markets on NextEra Energy's ab
Slide 29: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 30: 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 revenue less fuel expense, project operating expenses, corporate G&A, plus other incom
Slide 31: Definitional information
Definitional information NextEra Energy Partners, LP Adjusted EBITDA and CAFD Expectations for the acquisition of the Seiling I & II Wind Energy Centers This presentation refers to adjusted EBITDA and CAFD expectations for the acquisition of the Seiling I & II Wind Energy Centers. NEP's adjusted EBI
Slide 32: 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 33: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) A change in the jurisdictional characterization of some of the Texas pipeline entities' assets, or a change in law or regulatory policy, could result in increased regulation of these assets, which could have material advers
Slide 34: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) Government regulations providing incentives and subsidies for clean energy could change at any time and such changes may negatively impact NEP's growth strategy; NEP's growth strategy depends on the acquisition of projects
Slide 35: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's arrangements with NEE limit NEE’s liability, and NEP has agreed to indemnify NEE against claims that it may face in connection with such arrangements, which may lead NEE to assume greater risks when making decisions r
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