Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Morgan Stanley Global Energy & Power Conference 2019
28 slides from Nextera Energy's conference presentation, Mar 5, 2019
Slide 1: Morgan Stanley Global Energy & Power Conference
Morgan Stanley Global Energy & Power Conference Rebecca Kujawa Executive VP and CFO, NextEra Energy CFO, NextEra Energy Partners March 5, 2019
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 d
Slide 3: NextEra Energy is comprised of strong businesses supported by a common platform
NextEra Energy is comprised of strong businesses supported by a common platform • ~$90 B market capitalization(1) • ~50 GW in operation(2) • $100+ B in total assets(3) • The largest electric utility in the United States by retail MWh sales • Provides electric service • The world leader in to over 46
Slide 4: Florida Power & Light is one of the best utility franchises in the U.S.
Florida Power & Light is one of the best utility franchises in the U.S. and we recently added Gulf Power to the portfolio Florida Regulated Utilities • FPL – ~5 MM customer accounts – ~24 GW in operation – ~$12 B in operating revenues – ~$53 B in total assets • Gulf Power – ~0.5 MM customer accounts
Slide 5: Energy Resources is the leading North American clean energy company
Energy Resources is the leading North American clean energy company Energy Resources • World leader in electricity generated from the wind and sun • ~23 GW(1) of generation in operation – 15.0 GW wind – 2.4 GW solar Wind Natural Gas Solar Nuclear – 2.7 GW nuclear Storage Other – 2.4 GW natural gas/o
Slide 6: We are well positioned to capitalize on potentially disruptive industry changes
We are well positioned to capitalize on and respond to potentially disruptive changes to our industry in the next decade Disruptive Industry Changes Potential Cost per kWh Post-2023(1) (¢/kWh) Shale 3 - 4¢ w/ 4 - 5¢ Gas storage 3.5 - 5¢ 2 - 3¢ w/ adder 3 - 4¢ storage Renewables adder Big Data /Stora
Slide 7: We expect to grow adjusted EPS at a 6%-8% CAGR
We expect to grow adjusted EPS at a 6% - 8% CAGR through 2021, plus accretion from the Florida acquisitions in 2020 and 2021 NextEra Energy’s Adjusted Earnings Per Share Expectations(1) $9.40 - • The Florida acquisitions are $8.70 - $9.95 expected to be $0.15 and $0.20 $8.00 - $9.20 accretive in 202
Slide 8: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 9: NEP's value proposition is built upon four core strengths
NEP’s value proposition is built upon four core strengths NextEra Energy Partners’ Core Strengths High-Quality Portfolio(1) Financial Strength and Flexibility Issuer Credit Diversified ~5.3 GW Rating(3) Year-end 2018 17-Yr Portfolio with Renewables >90% Ba1/BB/BB+ Capacity of Project Debt ~1.2x Rema
Slide 10: NEP has agreed to purchase a 611 MW portfolio of unlevered renewable projects
NEP has agreed to purchase a 611 MW portfolio of unlevered renewable projects from Energy Resources for $1.02 B(1) Portfolio Additions Remaining Counterparty Asset MW Technology Counterparty COD PPA Term(2) Credit Rating Story II 150 Wind City of Ames, IA; 2010 11 NR / NR; Google AA+ / Aa2 Silver St
Slide 11: Acquired assets and existing NEP projects combined into a new portfolio with KKR
The acquired assets and four existing NEP projects will be combined into a new portfolio with KKR, where existing project debt will be recapitalized Transaction Overview • After closing, NEP to contribute 1,192 MW into a new portfolio Sources – 611 MW of acquired projects KKR investment $900 MM – 58
Slide 12: Transaction completes NEP's growth for the year and de-risks PG&E headwinds
This transaction completes NEP’s growth for the year and de-risks potential headwinds from the PG&E bankruptcy Transaction Benefits and Impact on NEP’s Outlook • Significant CAFD uplift enables NEP to meet 2019 year-end run rate assuming no PG&E related CAFD – Bridges the CAFD impact from the PG&E b
Slide 13: NEP's long-term outlook for distribution growth through 2023 is best-in-class
NEP’s long-term outlook for distribution growth through 2023 is best-in-class NextEra Energy Partners Financial Expectations Annualized LP Distributions(1) Adjusted EBITDA and CAFD(3) Annual $1,200 MM- 12% - 15% $1,375 MM Growth(2) $2.14 $1.86 $410 MM - $480 MM Q4 2018 Q4 2019E Q4 2023E 12/31/2019 1
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: 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, effect of non-qualifying hedges, the transitional impa
Slide 18: 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 19: 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 20: NExTera energy”
NExTera energy” PARTNERS Z
Slide 21: Second Convertible Equity Portfolio Overview
Second Convertible Equity Portfolio Overview(1) Asset MW Technology COD Remaining PPA Term Announced Acquisition Story II 150 Wind 2010 11 Silver State 125 Solar 2016 17 Ashtabula II 120 Wind 2010 21 White Oak 150 Wind 2012 13 Roswell 35 Solar 2016 22 Marshall 31 Solar 2017 23 Total Acquisition 611
Slide 22: Second Convertible Equity Portfolio Financing Summary Terms
Second Convertible Equity Portfolio Financing Summary Terms(1) Key Terms Summary KKR commitment of $900 MM; expected net proceeds prior to offering expenses of approximately $893 MM; NEP to fund the Funding Amount: balance of the $1,020 MM Energy Resources portfolio purchase price and approximately
Slide 23: Low cost of second convertible equity financing allows NEP to retain more cash flow
The low cost of the second convertible equity portfolio financing transaction allows NEP to retain significantly more cash flow relative to alternative financings Net Cash Flow of the Second Transaction vs Equity/Debt 2.0 Transaction 50/50 Equity/Debt(1) $165-$195 ($35-$41) Additional Acquisition ($
Slide 24: NEP - PG&E Related Projects
NEP - PG&E Related Projects 12/31/18 Run 12/31/19 Run 12/31/18 Financing PPA Price Rate CAFD Rate CAFD Financing Maturity (1) Project Customer MW COD Term ($/MWh) ($MM) ($MM) Financing Balance Date (2) Genesis Solar PG&E 250 Mar-14 25 $214 $41 - $45 $41 - $45 Genesis Solar LLC $402 2038 Genesis Sola
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 faces substantial competition primarily from regulated utilities, developers, independent power producers, pension funds and private equity funds for opportunities in North America; The natural gas pipeline industry is
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