Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Q1 2014 Earnings Presentation
31 slides from Nextera Energy's earnings presentation, Apr 30, 2014
Slide 1: Earnings Conference Call First Quarter 2014
Earnings Conference Call First Quarter 2014 April 30, 2014
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results Any statements made herein about future operating and/or financial results and/or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These f
Slide 3: NextEra Energy
NEX Tera ENERGY &
Slide 4: NextEra Energy had an excellent first quarter
NextEra Energy had an excellent first quarter NextEra Energy: 2014 First Quarter Highlights • On track versus strategies and expectations discussed at March 2013 Investor Conference • FPL: – Strong operating performance Customer bills remain significantly below state and national averages Top quarti
Slide 5: FPL delivered solid earnings growth during the quarter
FPL delivered solid earnings growth during the quarter Florida Power & Light Results – First Quarter Net Income EPS ($ MM) $347 $0.79 $288 $0.68 2013 2014 2013 2014 5
Slide 6: FPL's EPS grew 11 cents versus Q1 2013
FPL’s EPS grew 11 cents versus Q1 2013, driven by continued investment in the business and increased profitability Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Employed(1) First Quarter $B FPL – 2013 EPS $0.68 30 28.8 27.0 Drivers: 25 New investment growth 0.06 20 15
Slide 7: Florida's economy continues to strengthen
Florida’s economy continues to strengthen Florida Economy Florida Unemployment Rate(1) Florida Building Permits(2) 12% 12,000 10% 10,000 8% 8,000 6% 6,000 4% 4,000 2% 2,000 0% 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Florida Mo
Slide 8: FPL's customer metrics showed solid improvement in the first quarter
FPL’s customer metrics showed solid improvement in the first quarter Customer Characteristics (through March 2014) Retail kWh Sales Customer Growth(1,3) (Change vs. prior-year quarter) (Change vs. prior-year quarter) 100 87 Customer Growth & Mix 1.1% # of 80 Customers (000’s) 60 + Usage Growth Due t
Slide 9: Energy Resources' adjusted earnings per share increased ~14%
Energy Resources’ adjusted earnings per share increased ~14% versus Q1 2013 Energy Resources Results(1) – First Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $211 $0.48 $177 $0.42 $86 $0.20 $0.31 ($40) ($0.09) 2013 2014 2013 2014 2013 2014 2013 2014 9 (1) See Appendix for reconci
Slide 10: Energy Resources' adjusted earnings increased 6 cents
Energy Resources’ adjusted earnings increased 6 cents over the comparable quarter Energy Resources First Quarter 2014 Adjusted EPS(1) Contribution Drivers $0.80 $0.70 $0.06 $0.01 ($0.11) $0.60 $0.14 ($0.04) $0.50 $0.48 $0.42 $0.40 $0.30 $0.20 $0.10 $0.00 Q1 2013 Existing Assets New Gas Customer Supp
Slide 11: Energy Resources executed well on major capital projects
Energy Resources executed well on major capital projects Energy Resources’ Highlights • Development backlog remains on track – Brought into service ~165 MW of contracted U.S. solar – Commissioned ~75 MW of U.S. wind during the first quarter • Continue to pursue incremental opportunities – Signed a n
Slide 12: NextEra Energy's adjusted EPS increased 14 cents
NextEra Energy’s adjusted earnings per share increased 14 cents versus the prior year comparable quarter NextEra Energy EPS Summary(1) – First Quarter GAAP 2013 2014 Change FPL $0.68 $0.79 $0.11 Energy Resources ($0.09) $0.20 $0.29 Corporate and Other $0.05 ($0.01) ($0.06) Total $0.64 $0.98 $0.34 Ad
Slide 13: Adjusted Earnings Per Share Expectations
NextEra Energy Adjusted Earnings Per Share Expectations 2014 $5.05 - $5.45 2016 $5.50 - $6.00 (5% - 7% CAGR off a 2012 base) 13
Slide 14: Q&A Session
14 Q&A Session NeExTera’ ENERGY
Slide 15: NextEra Energy
NEX Tera ENERGY &
Slide 16: Appendix
16 Appendix NeExTera’ ENERGY
Slide 17: Potential drivers of variability to consolidated adjusted EPS
Potential drivers of variability to consolidated adjusted EPS Balance of 2014 Potential Sources of Variability(1) Florida Power & Light • Wholesale (primarily volume) ± $0.01 • Timing of investment ± $0.01 NextEra Energy Resources • Natural gas prices (± $1/MMBtu change) ± $0.02 - $0.03 • Wind resou
Slide 18: NextEra Energy Resources Projected 2014 Portfolio Financial Information
NextEra Energy Resources Projected 2014 Portfolio Financial Information (as of March 13, 2014) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MW TWh $ MM Hedged $ MM Life Expiration Contracted 4 Wind 8
Slide 19: Energy Resources' existing assets are largely contracted or hedged for 2015
Energy Resources’ existing assets are largely contracted or hedged for 2015 2015 Equivalent Gross Margin Contributions(1) 2015 Portfolio Sensitivities • $1/MMBtu change in 16% New Investment(2) natural gas ≈ 6 - 7 cents in adjusted EPS(5) 13% 49% Other (3) Contracted Assets(4) (97% hedged) 22% Merch
Slide 20: NextEra Energy Resources Projected 2015 Portfolio Financial Information
NextEra Energy Resources Projected 2015 Portfolio Financial Information (as of March 13, 2014) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MW TWh $ MM Hedged $ MM Life Expiration Contracted 4 Wind 8
Slide 21: Wind Production Index
Wind Production Index(1)(2) 2013 2014 1ST QTR 2ND QTR 3RD QTR 4TH QTR 1ST QTR 3 Location MW Jan Feb Mar QTR MW QTR MW QTR MW QTR YTD MW Jan Feb Mar QTR Midwest 2,816 109% 96% 88% 98% 2,816 104% 2,816 89% 3,066 97% 97% 3,141 128% 111% 108% 116% West 2,951 81% 107% 93% 93% 2,953 96% 2,953 90% 2,730 91
Slide 22: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) Asset/(Liability) Balance as of 12/31/13 $346.3 Amounts Realized During 1st Quarter 46.1 Primary Drivers: Revenue Hedges – Gas Change in Forward Prices (all positions) (169.6) & Power Prices ($117.6) Subtotal – Income Statement (
Slide 23: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) 1st Quarter Asset / Deals Asset / (Liability) Change in Executed Total (Liability) Balance Amounts Forward During Unrealized Balance Description 12/31/13 Realized Prices Period (2) MTM 3/31/14 Natural gas related positions $ 356.
Slide 24: Non-Qualifying Hedges – Summary of Forward Maturity
Non-Qualifying Hedges(1) – Summary of Forward Maturity ($ millions, after-tax) Gain / (Loss) (2) Asset / (Liability) Balance Total Description 3/31/14 2014 2015 2016 2017 2018 - 2034 2014 - 2034 Natural gas related positions $ 331.9 $ (29.3) $ (5.6) $ (47.9) $ (42.4) $ (206.7) $ (331.9) Spark spread
Slide 25: NextEra Energy Resources Portfolio Additions
NextEra Energy Resources Portfolio Additions(1) March 2013 Investor Conference Incremental Opportunities Backlog(2) U.S. Wind: MW COD U.S. Wind: MW COD Tuscola Bay II(3) 100.3 2013 Tuscola Bay II (3) 100.3 2013 Steele Flats(3) 74.8 2013 Steele Flats(3) 74.8 2013 Total U.S. Wind in Backlog: 175.1 Phe
Slide 26: Reconciliation of Adjusted Earnings to GAAP Net Income (Q1 2014)
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended March 31, 2014) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 347 $ 86 $ (3) $ 430 Adjustments, net of income taxes: Net unrealized m
Slide 27: Reconciliation of Adjusted Earnings to GAAP Net Income (Q1 2013)
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended March 31, 2013) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 288 $ (40) $ 24 $ 272 Adjustments, net of income taxes: Net unrealized
Slide 28: Definitional information
Definitional information NextEra Energy Resources, LLC. Adjusted Earnings NextEra Energy Resources’ adjusted earnings exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges as well as the net other than temporary impairment l
Slide 29: 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 30: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of d
Slide 31: NextEra Energy
NEX Tera ENERGY &