Xplr Infrastructure, Lp · NYSE:XIFR
Xplr Infrastructure, Lp — Q2 2024 Earnings Presentation
44 slides from Xplr Infrastructure, Lp's earnings presentation, Jul 25, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call July 24, 2024 NextEra Energy and NextEra Energy Partners 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 These presentations refer to Adjusted Earnings, Adjusted These presentations include certain financial measures that EBITDA, Adjusted EBITDA by forward-looking st
Slide 3: NextEra Energy delivered strong second quarter results
NextEra Energy delivered strong second quarter results NextEra Energy Adjusted Earnings Per Share NextEra Energy Adjusted Earnings Per Share (Second Quarter) (Year-to-Date) ~9.4% $1.87 $1.71 ~9.1% $0.96 $0.88 2023 2024 2023 2024 NextEra Energy 3
Slide 4: FPL has continued to deliver for our customers
FPL has continued to deliver for our customers Operational Cost Effectiveness1 ($/MWh Non-Fuel O&M) Typical 1,000 kWh Residential Customer Bill2 ($) GOOD GOOD $37.97 ~40% lower ~70% lower $199 $152 $20.00 $121 $11.59 National Average Top Decile FPL National Sample Average FL IOU Average FPL SAIDI3 –
Slide 5: Energy Resources benefiting from replacement cycle and new growth cycle
Energy Resources is benefiting from demand through an existing replacement cycle and new growth cycle U.S. Renewables and Storage Additions1 Energy Resources 3x growth Renewables and storage best positioned to meet this new demand growth ~300 GW pipeline and scale, experience and technology are comp
Slide 6: FPL's earnings per share increased 3 cents from prior-year quarter
FPL’s earnings per share increased 3 cents from the prior-year comparable quarter FPL Results – Second Quarter Net Income EPS ($ MM) $1,232 $0.60 $1,152 $0.57 2023 2024 2023 2024 NextEra Energy 6
Slide 7: FPL focus on smart capital investments that keep bills low
FPL continues to focus on making smart capital investments that keep bills low while delivering reliable electricity FPL EPS Contribution Drivers EPS Growth Regulatory Capital Employed1 ($ B) ~10.7% Second Growth Quarter $67.6 FPL – 2023 EPS $0.57 $61.0 Drivers: New investments $0.04 Other, includin
Slide 8: Florida's economy remains healthy; retail sales see strong customer growth
Florida’s economy remains healthy, and FPL’s retail sales continue to see positive impacts from strong customer growth Florida Economy & Customer Characteristics Retail kWh Sales (Change vs. prior-year) Customer Growth1,2 (Change vs. prior-year quarter; 000s) Second Quarter Vero 111.8 120 Impact Cus
Slide 9: Energy Resources' adjusted earnings increased approximately 10.8%
NextEra Energy Resources’ adjusted earnings increased approximately 10.8% from the prior-year comparable quarter NextEra Energy Resources Results1 – Second Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $1,462 $0.72 $865 $0.42 $781 $0.39 $552 $0.27 2023 2024 2023 2024 2023 2024 20
Slide 10: 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 Second Quarter Adjusted EPS1 Contribution Drivers $0.06 ($0.03) ($0.07) $0.12 ($0.05) $0.42 $0.39 Q2 2023 New Existing Customer Gas Other Q2 2024 Adjusted EPS Investment Clea
Slide 11: Energy Resources strong quarter of new renewables and storage origination
NextEra Energy Resources had a strong quarter of new renewables and storage origination NextEra Energy Resources Development Program1 ~3,015 MW of new renewables 2024 - 2025 2024 - 2025 2026 - 2027 2026 - 2027 2024 - 2027 and storage added to backlog COD & Backlog Expectations Backlog Expectations E
Slide 12: NextEra Energy EPS Summary – Second Quarter
NextEra Energy’s adjusted earnings per share increased more than 9% versus the prior-year comparable quarter NextEra Energy EPS Summary – Second Quarter GAAP 2023 2024 Change FPL $0.57 $0.60 $0.03 NextEra Energy Resources $0.72 $0.27 ($0.45) Corporate and Other $0.09 ($0.08) ($0.17) Total $1.38 $0.7
Slide 13: NextEra Energy well positioned to continue strong adjusted earnings growth
NextEra Energy remains well positioned to continue our strong adjusted earnings growth NextEra Energy’s Financial Expectations1 6% - 8% off 2024 adjusted EPS range $3.85 - $3.63 - $4.32 • Expect 6 to 8% annual growth rate through $3.45 - $4.00 $3.23 - $3.70 2027, off the 2024 adjusted EPS $3.43 expe
Slide 14: NextEra Energy Partners delivered solid second quarter results
NextEra Energy Partners delivered solid second quarter results NextEra Energy Partners Summary NEP Board declared a quarterly distribution of $0.9050 per common unit Delivered $560 MM and $220 MM of adjusted EBITDA and CAFD, respectively Completed NEP Renewables II equity buyout of ~$190 MM NextEra
Slide 15: NEP adjusted EBITDA and CAFD drivers
NextEra Energy Partners’ adjusted EBITDA and CAFD results driven by contributions from new and existing projects, partially offset by divestiture of Texas pipelines NextEra Energy Partners – Second Quarter Drivers1 Adjusted EBITDA CAFD ($ MM) ($ MM) $21 ($43) $33 $220 $62 ($46) $560 $200 $9 $19 $39
Slide 16: NextEra Energy Partners' Financial Expectations
NextEra Energy Partners is continuing to evaluate all options to secure a competitive cost of capital and to address the remaining convertible equity portfolio financing buyouts NextEra Energy Partners’ Financial Expectations1 Adjusted EBITDA CAFD 12/31/24 Run Rate2 $1,900 - $2,100 MM $730 - $820 MM
Slide 17: Q&A Session
Q&A Session NeExTera NexTera energy” ENERGY PARTNERS
Slide 18: Appendix
Appendix NeExTera NexTera energy” ENERGY PARTNERS
Slide 19: NextEra Energy
NEXTera’ ENERGYZ&
Slide 20: Potential drivers of variability to adjusted EPS
Potential drivers of variability to consolidated NextEra Energy adjusted EPS Balance of 2024 Potential Sources of Variability1 FPL Timing of investment ± $0.01 - $0.02 NextEra Energy Resources Wind resource2 (± 1% deviation) ± $0.005 - $0.01 Interest rates (± 50 bps shift in yield curve) ± $0.00 Ass
Slide 21: NextEra Energy's credit metrics remain on track
NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics1 S&P A- Range Downgrade Threshold Actual 2023 Target 2024 FFO/Debt 13% - 23% 18% 18.4% >18% Moody’s Baa Range Downgrade Threshold Actual 2023 Target 2024 CFO Pre-WC/Debt 13% - 22% 17% 18.7% >17% CFO-Div/Debt 9% - 17% 12.3%
Slide 22: Energy Resources Projected 2024 Portfolio Financial Information
NextEra Energy Resources Projected 2024 Portfolio Financial Information (includes NEER’s share of NEP assets; $MM) Value of pre-tax tax Adjusted 3 4 Pre-Tax Remaining 1 credits included in Debt Service Other 5 6 EBITDA Cash Flows Contract Life adjusted EBITDA2 New Clean Energy Assets7 $1,000 - $1,30
Slide 23: Energy Resources Wind Production Index
NextEra Energy Resources Wind Production Index1,2 2023 2024 2ND QTR 3RD QTR 4TH QTR 1ST QTR 2ND QTR Location MW Apr May Jun QTR MW QTR MW QTR YE MW QTR MW Apr May Jun QTR YTD Midwest 5,504 115% 88% 69% 92% 5,504 83% 5,504 97% 94% 5,788 96% 5,788 118% 93% 113% 108% 102% West 5,409 96% 93% 92% 94% 5,4
Slide 24: Energy Resources Renewables Development Program
NextEra Energy Resources Renewables Development Program1,2 Wind (GW) Solar (GW) Storage (GW) Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Northeast 0.0 0.0 Northeast 0.3 0.4 Northeast 0.0 0.0 Southeast 0.0 0.0 Southeast 2.5 2.3 Southeast 0.0 0.0 Midwes
Slide 25: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges1 - Summary of Activity ($ millions, after-tax) Primary Drivers: Asset/(Liability) Balance as of 3/31/24 ($982) Electricity Related Positions ($248) Amounts Realized During 2nd Quarter (63) Gas Infrastructure Hedges (31) Change in Forward Prices (all positions) (191) Interest Ra
Slide 26: Non-Qualifying Hedges - Summary of Second Quarter Activity
Non-Qualifying Hedges1 - Summary of Second Quarter Activity ($ millions) 2nd Quarter Asset / Asset / (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance Description 3/31/24 Realized Prices (Loss) 6/30/24 Pretax amounts at share Electricity related positions $ (698) $ 7
Slide 27: Non-Qualifying Hedges - Summary of Year-to-Date Activity
Non-Qualifying Hedges1 - Summary of Year-to-Date Activity ($ millions) Year to Date Asset/ Asset/ (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance Description 12/31/23 Realized Prices (Loss) 6/30/24 Pretax amounts at share Electricity related positions $ (784) $ 184
Slide 28: Non-Qualifying Hedges - Summary of Forward Maturity
Non-Qualifying Hedges1,2 - Summary of Forward Maturity ($ millions) Gain / (Loss) Asset / (Liability) Balance Total Description 6/30/24 2024 2025 2026 2027 2028 - 2050 2024 - 2050 Pretax amounts at share Electricity related positions $ (875) $ 54 $ 220 $ 151 $ 98 $ 352 $ 875 Gas Infrastructure relat
Slide 29: Reconciliation of GAAP Net Income to Adjusted Earnings (Q2 2024)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended June 30, 2024) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 1,232 $ 552 $ (162)
Slide 30: Reconciliation of GAAP Net Income to Adjusted Earnings (Q2 2023)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended June 30, 2023) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income Attributable to NextEra Energy, Inc. $ 1,152 $ 1,462 $ 181 $ 2,79
Slide 31: Reconciliation of EPS to Adjusted EPS (Six Months)
Reconciliation of Earnings Per Share Attributable NextEra Energy, Inc. to Adjusted Earnings Per Share (Six Months Ended June 30, 2024 and June 30, 2023) NextEra Energy, Inc. (millions, except per share amounts) 2024 2023 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 1
Slide 32: Reconciliation of EPS to Adjusted EPS (Twelve Months 2023)
Reconciliation of Earnings Per Share Attributable NextEra Energy, Inc. to Adjusted Earnings Per Share (Twelve Months Ended December 31, 2023) NextEra (millions, except per share amounts) Energy, Inc. Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 3.60 Adjustments - pre
Slide 33: 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 34: 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 cause actual results to differ materially from standards applicable to NextEra Energy; effects electric generation, storage, transmission and statements” within the meaning of the safe th
Slide 35: 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 NextEra markets on NextEra Energy's ability
Slide 36: NextEra Energy Partners
NeExTera energy’ PARTNERS 2
Slide 37: Reconciliation of Net Income to Adjusted EBITDA and CAFD
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) Q2 2024 Q2 2023 Net Income $58 $89 Add back: Depreciation and amortization 138 126 Interest expense 54 12 Income taxes 21 16 Tax credits 279 225 Amortization of intangible assets/liabilities - PPAs
Slide 38: NextEra Energy Partners Wind Production Index
NextEra Energy Partners Wind Production Index1,2 2023 2024 2ND QTR 3RD QTR 4TH QTR 1ST QTR 2ND QTR Location MW Apr May Jun QTR MW QTR MW QTR YE MW QTR MW Apr May Jun QTR YTD Midwest 1,970 115% 82% 75% 92% 1,970 80% 1,970 91% 91% 1,970 95% 1,970 115% 92% 112% 106% 100% West 2,038 96% 91% 111% 99% 2,0
Slide 39: NextEra Energy Partners' credit metrics remain on track
NextEra Energy Partners’ credit metrics remain on track NextEra Energy Partners’ Credit Metrics S&P1 BB Range Downgrade Threshold Actual 20234 Target 2024 FFO/Debt 12% - 20% 12% 14.6% >15% HoldCo Debt/EBITDA 5.0x - 6.0x 6.0x 5.8x <6.0x Moody’s2 Ba1 Range Downgrade Threshold Actual 20234 Target 2024
Slide 40: NextEra Energy Partners' Expected Cash Available for Distribution
NextEra Energy Partners’ Expected Cash Available for Distribution1 (December 31, 2024 Run-Rate CAFD; $ MM) $1,930 - $2,130 ($25 - $35) ($0 - $0) $1,900 - $2,100 ($260 - $320) ($780 - $980) ($35 - $45) ($5 - $15) $730 - $820 Project-Level Corporate IDR Fees Adjusted Debt Tax Non-Cash Maintenance Esti
Slide 41: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted NEP’s adjusted EBITDA expectations CAFD is defined as cash available NextEra Energy Partners does not EBITDA and CAFD expectations. represent projected (a) revenue less fo
Slide 42: 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 that could cause NEP’s actual results to differ or other similar events could impact NEP's these laws and regulations or a failure to comply statements” within the meaning of the federal
Slide 43: Cautionary Statement And Risk Factors (Cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (Cont.) transportation agreements or other customer established competitors; certain agreements subsidiaries' indebtedness or refinance, extend unitholders, as well as its ability to grow contracts at favorable rates or on a long-t
Slide 44: Cautionary Statement And Risk Factors (Cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (Cont.) distributions to its unitholders depends on the NEP unitholders may consider favorable; NEE’s distribution for each common unit, will impact the ability of NEP OpCo to make cash distributions to interest in NEP GP and the c