Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Wolfe Research 2018 Power & Gas Leaders Conference
34 slides from Nextera Energy's conference presentation, Oct 3, 2018
Slide 1: Wolfe Research 2018 Power & Gas Leaders Conference
Wolfe Research 2018 Power & Gas Leaders Conference Jim Robo Chairman and CEO, NextEra Energy October 3, 2018
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 achieved strong financial results in the first half of 2018
NextEra Energy achieved strong financial results in the first half of 2018 NextEra Energy First Half 2018 Results Adjusted EPS(1) • NEE achieved year-over-year growth of ~12% in adjusted EPS • Continued execution on our best-in- class customer value proposition at FPL $4.04 – Regulatory capital empl
Slide 4: FPL's focus is 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 FPL – Areas of Focus FPL 1,000-kWh Residential Bill FPL Service Reliability (“SAIDI”)(4) $140 ~$138 ~101 minutes $120 ~$119 ~$109 $100 ~$99 $80 ~56 minutes $60 Good $40 $20 $- FPL FPL
Slide 5: 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 Transaction Overview • Addition of attractive regulated electric and natural gas franchises Tallahassee Tallahassee Tallahassee Tallahassee Jacksonville Jacksonville Jacksonville Jacksonville – NextEra t
Slide 6: Energy Resources' competitive advantages position us well
Energy Resources’ competitive advantages position us well for continued renewables development success Energy Resources – Key Competitive Advantages 2017 Top 10 U.S. Capital Investors(1) Wind O&M(2) $/MWh $20 ~$19 ~$17 ~25% Reduction $15 $B ~$12 ~$11 ~$10 $10 ~$10 ~$9 ~$8 ~$8 ~$8 $5 $0 A B C NEE D E
Slide 7: Energy Resources backlog of future renewables projects has never been stronger
Energy Resources backlog of future renewables projects has never been stronger Energy Resources Renewables Backlog(1) (MW) ~7,400 ~5,000 ~3,700 ~2,900 ~2,400 ~2,100 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q2 2018 Wind Solar Repowering Energy Storage Year to date 2018, Energy Resources announced ~2,6
Slide 8: Well positioned for potentially disruptive changes to our industry
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-2020(1) Shale (¢/kWh) Gas 3.5 - 5¢ 4 - 5¢ 3 - 4¢ 3 - 4¢ Big Data Renewables /Storage 2 - 2.5¢ Generation Wind Solar Gas Coa
Slide 9: Well positioned to achieve $7.70 target adjusted EPS for 2018
We remain well positioned to achieve the $7.70 target adjusted EPS for 2018 as well as our long-term financial expectations NextEra Energy’s Adjusted Earnings Per Share Expectations(1) • The Gulf Power, Florida City $9.40 - Gas, and two natural gas $9.95 $8.70 - power plant acquisitions are $9.20 $8
Slide 10: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 11: NextEra Energy Partners achieved strong financial results in the first half of 2018
NextEra Energy Partners achieved strong financial results in the first half of 2018 NextEra Energy Partners First Half 2018 Results Adjusted EBITDA • Achieved year-over-year growth in adjusted EBITDA and CAFD of ~40% and ~69%, respectively $511 MM • Closed on the sale of Canadian portfolio $366 MM a
Slide 12: 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 ~4.7 GW Rating(4) Year-end 2017 17-Yr Baa1 Renewables >90% Ba1/BB/BB+ Remaining Counterparty Capacity of Project Debt ~1.2x & T
Slide 13: NextEra Energy Partners – Portfolio Additions
NextEra Energy Partners announced an agreement to acquire ~1.4 GW of renewable projects from Energy Resources as we continue to execute on our plan to expand the portfolio NextEra Energy Partners – Portfolio Additions • Purchase price of $1.275 B(1), Portfolio Overview plus assumption of: Remaining
Slide 14: NEP offers a superior value proposition and is better positioned than ever
We believe NEP offers a superior value proposition and is better positioned than ever to deliver upon its long-term expectations Investor Total Return Potential • Opportunity to earn a total return of ~4% 16% - 19% roughly 16% - 19% per year through at least 2023 12% - 15% • Diversified portfolio wi
Slide 15: Seca
Seca ENERGY & a | NeExTera energy” PARTNERS Z
Slide 16: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 16
Slide 17: NEXT@ra
NEXT@ra ENERGY &%
Slide 18: 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 18
Slide 19: Reconciliation of Adjusted Earnings to GAAP Net Income (Six Months 2018)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2018) Florida Power Energy Corporate & (millions, except per share amounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 1,1
Slide 20: Reconciliation of Adjusted Earnings to GAAP Net Income (Six Months 2017)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2017) Florida Power Energy Corporate & (millions, except per share amounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 971
Slide 21: 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 22: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results 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,” “anticipat
Slide 23: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) 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 f
Slide 24: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by Nex
Slide 25: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 26: NEP's portfolio is comprised of ~4.7 GW of renewable assets plus gas pipelines
NEP’s portfolio is comprised of ~4.7 GW of renewable assets plus seven natural gas pipelines with an ~17 year weighted average remaining contract life Portfolio Overview(1) Project COD Location Net MW Technology Counterparty Credit PPA Life Ashtabula III Dec-10 ND 62 Wind A3 20 Baldwin Dec-10 ND 102
Slide 27: Portfolio Financing Summary Terms
Portfolio Financing Summary Terms(1) Key Terms Summary Funding Amount: BlackRock to fund $750 MM; NEP to fund the balance of the $1,275 MM Energy Resources portfolio purchase price Issuer: Newly-formed private HoldCo managed and operated by affiliates of NEP BlackRock to purchase Class B Common Equi
Slide 28: Expected Cash Available for Distribution
Expected Cash Available for Distribution(1) (December 31, 2018 Run Rate CAFD) $1,100-$1,250 ($15-$25) ($75-$85) $1,000-$1,150 ($170-$250) ($400-$480) ($30-$35) ($5-$15) $360-$400 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Non-Cash Maintenance Estimated Adjusted Expenses EBITDA Service (2
Slide 29: Reconciliation of Net Income to Adjusted EBITDA and CAFD
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) Six Months Ended (millions) June 30, 2018 Net Income $ 274 Add back: Depreciation and amortization 102 Interest expense 124 Income taxes (2) Tax credits 142 Gains on disposal of Canadian Holdings and related f
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 (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
Slide 31: 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 32: 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 a material adve
Slide 33: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The natural gas pipeline industry is highly competitive, and increased competitive pressure could adversely affect NEP's business; NEP may not be able to access sources of capital on commercially reasonable terms, which wou
Slide 34: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) Holders of NEP's common units and preferred units currently cannot remove NEP GP without NEE’s consent; NEE’s interest in NEP GP and the control of NEP GP may be transferred to a third party without unitholder consent; The
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