Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Merger or Acquisition (May 2018)
13 slides from Nextera Energy's merger presentation, May 21, 2018
Slide 1: NextEra Energy Reaches Agreement to Acquire Gulf Power, Florida City Gas and Two Natural Gas Facilities
NextEra Energy Reaches Agreement to Acquire Gulf Power, Florida City Gas and Two Natural Gas Facilities from Southern Company May 21, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “may,” “will,” “anticipate,” “estimate,” “expect,” “project,” “inte
Slide 3: Transaction Overview
NextEra Energy announces agreement to acquire Gulf Power, Florida City Gas, and the Stanton and Oleander natural gas power plants Transaction Overview • Addition of attractive regulated electric and natural gas franchises that are an excellent complement to our existing Florida operations – NextEra
Slide 4: Gulf Power and Florida City Gas are an excellent geographic and strategic fit
Gulf Power and Florida City Gas are an excellent geographic and strategic fit for NextEra Energy Strategic Rationale • Complementary service Tallahassee Tallahassee Tallahassee Tallahassee Tallahassee Tallahassee Jacksonville Jacksonville Jacksonville territories to FPL Pensacola Pensacola Pensacola
Slide 5: FPL focus on low bills, high reliability and outstanding customer service
Florida Power & Light’s focus is on providing customers low bills, high reliability and outstanding customer service Delivering Customer Value FPL 1,000-kWh Residential Bill FPL Service Reliability (“SAIDI”)(4) $140 ~$138 ~101 minutes $120 ~$119 ~$109 ~$99 $100 $80 ~56 minutes $60 Good $40 $20 $- FP
Slide 6: Transactions subject to receipt of key regulatory approvals
The transactions are subject to the receipt of key regulatory approvals Expected Timeline & Key Approvals • Gulf Power and Stanton & Oleander natural gas power plants: – Subject to FERC approval and Hart-Scott-Rodino antitrust requirements – Transactions are expected to close in first half of 2019 •
Slide 7: Transactions expected to be immediately accretive to earnings upon closing
The transactions are expected to be immediately accretive to earnings upon closing NextEra Energy’s Adjusted Earnings Per Share Expectations(1) • Upon closing, transactions are $9.40 - $8.70 - $9.95 expected to increase 2020 and $8.00 - $9.20 2021 adjusted EPS expectations $7.45 - $8.50 by $0.15 and
Slide 8: Maintaining $5 to $7 B of excess balance sheet capacity
Following the closing of the transactions we expect to continue to maintain $5 to $7 B of excess balance sheet capacity Strong Financial Position NextEra Energy Current Downgrade Expected Post-Closing Rating Agency Corporate Rating Threshold Downgrade Threshold(1) Standard & Poor’s A- 23% Low 20% Ra
Slide 9: 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) $6.70 $6.19 40% 70% $5.71 34% 60% $5.30 60% $4.97 $4.39 $4.57 30% 50% $3.84 $4.05 $4.30 $3.49 22% 38% 40% $3.04 20% $2.63 30% 24% 12% 10% 20% 10% 0% 0% '05 '06 '07 '08 '09
Slide 10: Transactions beneficial for all key stakeholders
We believe the transactions are beneficial for all key stakeholders Expected Benefits for All Stakeholders • Transactions expand NextEra Energy's regulated business operations – Expected to lead to a reduction in credit metric thresholds, allowing NextEra to continue to maintain $5 to $7 B in excess
Slide 11: Q&A
i Q&A NEXTera’ ENERGY 2
Slide 12: Appendix
12 Appendix NExTera’ ENERGY @
Slide 13: 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 1) Net of approximately $0.08 of income tax benefit at FPL 13