Xplr Infrastructure, Lp · NYSE:XIFR
Xplr Infrastructure, Lp — Q3 2023 Earnings Presentation
47 slides from Xplr Infrastructure, Lp's earnings presentation, Oct 25, 2023
Slide 1: Earnings Conference Call Third Quarter 2023
Earnings Conference Call Third Quarter 2023 October 24, 2023
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results These presentations include 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
Slide 3: NextEra Energy delivered strong third quarter results
NextEra Energy delivered strong third quarter results NextEra Energy Highlights • NextEra Energy grew third quarter adjusted EPS by ~10.6% year-over-year • FPL: – Earnings per share increased by 4 cents year-over-year – Grew regulatory capital employed by ~13.6% versus the same quarter last year • E
Slide 4: FPL's earnings per share increased 4 cents from the prior-year quarter
FPL’s earnings per share increased 4 cents from the prior- year comparable quarter FPL Results Net Income EPS ($ MM) $0.58 $1,183 $0.54 $1,074 2022 2023 2022 2023 4
Slide 5: FPL EPS Contribution Drivers
Investment in the business to continue to enhance long- term value for customers was the principal driver of growth at FPL FPL EPS Contribution Drivers EPS Growth Regulatory Capital Employed(1) Third Quarter $B FPL – 2022 EPS $0.54 $70.0 $62.9 Drivers: $60.0 $55.4 New investments $0.06 $50.0 Other,
Slide 6: Florida's economy remains healthy and FPL's retail sales continue to grow
Florida’s economy remains healthy and FPL’s retail sales continue to grow Florida Economy & Customer Characteristics Retail kWh Sales Customer Growth(1,2) (Change vs. prior-year quarter) (Change vs. prior-year quarter) 120 UKU Vero Impact Third Impact 100 Quarter 80 65.1 Customer Growth & Mix 1.1% #
Slide 7: Energy Resources Results – Third Quarter
Energy Resources’ adjusted earnings per share contribution increased 6 cents from the prior-year comparable quarter Energy Resources Results(1) – Third Quarter GAAP(2) Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $655 $882 $0.43 $0.33 $729 $0.37 ($230) ($0.11) 2022 2023 2022 2023 2022 2023 2
Slide 8: Energy Resources realized strong adjusted EPS growth in the third quarter
Energy Resources realized strong adjusted EPS growth in the third quarter Energy Resources Third Quarter Adjusted EPS(1) Contribution Drivers $0.55 $0.01 ($0.08) $0.04 $0.50 $0.11 ($0.02) $0.45 $0.43 $0.40 $0.37 $0.35 (0.03) New debt to finance growth $0.30 (0.03) Higher interest rates $0.25 (0.02)
Slide 9: Energy Resources had a record quarter of new renewables and storage origination
Energy Resources had a record quarter of new renewables and storage origination Energy Resources Development Program(1) • ~3,245 MW of new renewables and storage added to backlog – Includes ~400 MW of wind, ~1,485 MW of solar, ~905 MW of battery storage and ~455 MW of wind repowering 2023 - 2024 202
Slide 10: NextEra Energy EPS Summary – Third Quarter
NextEra Energy’s adjusted earnings per share increased ~10.6% versus the prior-year comparable quarter NextEra Energy EPS Summary – Third Quarter GAAP 2022 2023 Change FPL $0.54 $0.58 $0.04 Energy Resources $0.33 ($0.11) ($0.44) Corporate and Other ($0.01) $0.13 $0.14 Total $0.86 $0.60 ($0.26) Adjus
Slide 11: NextEra Energy's Financial Expectations
NextEra Energy remains well positioned to continue our strong adjusted earnings and dividends per share growth NextEra Energy’s Financial Expectations(1) • Expect 6 to 8% annual growth rate through 2026, off the 2024 adjusted EPS expectations range $3.63 - • From 2021 to 2026 expect $3.45 - $4.00 co
Slide 12: NextEra Energy Partners is focused on executing against its transition plan
NextEra Energy Partners is focused on executing against its transition plan NextEra Energy Partners’ Focus Areas Transition Plan 6% Growth Plan Suspended IDR(1) fees Enter into agreements to sell ✓ through 2026 to largely replace gas pipeline cash available for distribution 1 Texas pipelines in 2023
Slide 13: NextEra Energy Partners – Third Quarter Drivers
NextEra Energy Partners’ adjusted EBITDA and CAFD were driven primarily by new projects and absence of IDR fees NextEra Energy Partners – Third Quarter Drivers(1) Adjusted EBITDA CAFD ($ MM) ($ MM) $600 $300 $39 $1 $488 $39 ($3) $247 $500 $5 $250 $66 $32 ($6) $400 $377 $200 $185 $300 $150 $200 $100
Slide 14: NextEra Energy Partners' Financial Expectations
NextEra Energy Partners is focused on realizing unitholder value and executing on its transition plan NextEra Energy Partners’ Financial Expectations(1) Adjusted EBITDA CAFD 12/31/23 Run Rate(2) $1,900 - $2,100 MM $730 - $820 MM Unit Distributions 2023 DPU(3) $3.52 annualized rate by year-end DPU Gr
Slide 15: NEXT aie
NEXT aie ENERGY & NeExTera energy’ PARTNERS Z
Slide 16: Q&A Session
Qé&A Session NExTera’ NextTera energy’ ENERGY & PARTNERS Z% —
Slide 17: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z% —
Slide 18: NEXTe@ra
NEXTe@ra ENERGY &%
Slide 19: NextEra Energy plans to fund the business in a manner similar to the past
NextEra Energy plans to fund the business in a manner similar to the past NextEra Energy Funding Plan 2024-2026(1) ($ B) ~$3 ~($14) ~$3 ~$25 - $35 ~$65 - $75 ~$20 - $30 ~$35 - $45 ~($19) 2024-2026 Cash Debt Corporate Tax Equity Equity Unit NEP Sales / Dividend (2) 2024-2026 From Operations Maturitie
Slide 20: IRA transferability provisions allow for the sale of tax credits to third parties
IRA transferability provisions allow for the sale of tax credits to third parties Tax Credit Transferability • The sale of tax credits serves as a new source of Illustrative Example capital funding for renewable projects • It provides NextEra Energy the opportunity to sell tax credits and recognize
Slide 21: NextEra Energy is well positioned to navigate the current interest rate environment
NextEra Energy is well positioned to navigate the current interest rate environment Interest Rate Sensitivity Estimated Adjusted EPS Impact of +50 bps Interest Rate Increase(1) 2024 2025 2026 $0.00 ($0.03) – ($0.05) ($0.03) – ($0.05) 1) Includes effect of $20.5 B of interest rate swaps; the illustra
Slide 22: Potential drivers of variability to consolidated NextEra Energy adjusted EPS
Potential drivers of variability to consolidated NextEra Energy adjusted EPS 2023 Potential Sources of Variability(1) FPL • Timing of investment ± $0.00 - $0.01 NextEra Energy Resources • Wind resource(2) (± 1% deviation) ± $0.00 - $0.01 • Asset reliability(3) (± 1% EFOR) ± $0.00 - $0.01 Corporate a
Slide 23: NextEra Energy's credit metrics remain on track
NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics A- Downgrade Actual Target S&P Range Threshold 2022 2023 FFO/Debt 13% - 23% 18% 19.2% >18% Baa Downgrade Actual Target Moody’s Range Threshold 2022 2023 CFO Pre-WC/Debt 13% - 22% 17% 18.4% >17% CFO-Div/Debt 9% - 17% 12.1%
Slide 24: Energy Resources Projected 2023 Portfolio Financial Information
NextEra Energy Resources Projected 2023 Portfolio Financial Information (includes NEER’s share of NEP assets) Value of pre-tax tax Remaining Adjusted credits included in Pre-Tax Cash Contract EBITDA(1) adjusted EBITDA(2) Debt Service (3) Other(4) Flows(5) Life (6) New Clean Energy Assets(7) $475 - $
Slide 25: Energy Resources Wind Production Index
Energy Resources Wind Production Index(1,2) 2022 2023 3RD QTR 4TH QTR 1ST QTR 2ND QTR 3RD QTR Location MW Jul Aug Sep QTR MW QTR YE MW QTR MW QTR MW Jul Aug Sep QTR YTD Midwest 5,037 97% 95% 97% 97% 5,037 107% 108% 5,304 100% 5,504 92% 5,504 74% 95% 81% 83% 93% West 5,010 101% 90% 90% 94% 5,210 95%
Slide 26: Energy Resources Renewables Development Program
Energy Resources Renewables Development Program(1,2) Wind 2023-2024 2025-2026 Northeast 111 0 Southeast 0 0 Midwest 1,161 1,242 Texas 1,533 815 West 1,391 0 Total 4,196 2,057 Solar 2023-2024 2025-2026 Northeast 311 10 Southeast 1,533 3,503 Midwest 1,894 1,225 Texas 444 1,524 West 1,571 508 Total 5,7
Slide 27: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges(1) - Summary of Activity ($ millions, after-tax) Primary Drivers: Asset/(Liability) Balance as of 6/30/23(2) ($1,348) Gas Infrastructure Amounts Realized During 3rd Quarter 10 Hedges ($392) Change in Forward Prices (all positions) 274 Electricity related positions (57) Subtotal
Slide 28: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges(1) - Summary of Activity ($ millions) 3rd Quarter Asset / Asset / (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance Description 6/30/23 (2) Realized Prices (Loss) Other (3) 9/30/23 Pretax amounts at share Electricity related positions $ (960) $
Slide 29: Non-Qualifying Hedges - Summary of Forward Maturity
Non-Qualifying Hedges(1) - Summary of Forward Maturity ($ millions) Gain / (Loss)(2) Asset / (Liability) Balance Total Description 9/30/23 4Q 2023 2024 2025 2026 2027 - 2050 2023 - 2050 Pretax amounts at share Electricity related positions $ (1,009) $ 102 $ 238 $ 214 $ 115 $ 340 $ 1,009 Gas Infrastr
Slide 30: Reconciliation of GAAP Net Income to Adjusted Earnings (Q3 2023)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended September 30, 2023) Energy Corporate & NextEra Energy, (millions, except per share amounts) FPL Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 1,183 $
Slide 31: Reconciliation of GAAP Net Income to Adjusted Earnings (Q3 2022)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended September 30, 2022) Energy Corporate & NextEra Energy, (millions, except per share amounts) FPL Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 1,074 $
Slide 32: Reconciliation of GAAP Net Income to Adjusted Earnings (Nine Months 2023)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Nine Months Ended September 30, 2023) Energy Corporate & NextEra Energy, (millions, except per share amounts) FPL Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 3,406 $
Slide 33: Reconciliation of GAAP Net Income to Adjusted Earnings (Nine Months 2022)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Nine Months Ended September 30, 2022) Energy Corporate & NextEra Energy, (millions, except per share amounts) FPL Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 2,939 $
Slide 34: 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 2021 2022 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 1.81 $ 2.10 Adjustments: Net losses associated with non-qualifying hedges 1.04 0.45 Change in unrealized lo
Slide 35: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations (including subsidiaries as applicable) This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effects of
Slide 36: 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 37: 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 markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's risk management tools associated with its hedging and trading procedures to
Slide 38: NeExTera energy’
NeExTera energy’ PARTNERS Z
Slide 39: Repowers provide NextEra Energy Partners an opportunity to deploy capital at attractive returns
Repowers provide NextEra Energy Partners an opportunity to deploy capital at attractive returns Repower Benefits Capital Costs Repower Value Drivers ($/kW) (CAFD Yield) Good ~50%- 80% of the cost of new Good build Greenfield Repower Reset PTCs OpEx NCF Uplift (1) Total Savings Repower NEP Repower Lo
Slide 40: Reconciliation of Net Income to Adjusted EBITDA and CAFD
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) Q3 2023 Q3 2022 Net Income $ 132 $ 232 Add back: Depreciation and amortization 145 107 Interest expense (17) (155) Income taxes 31 45 Tax credits 212 162 Amortization of intangible assets/liabilitie
Slide 41: NextEra Energy Partners Wind Production Index
NextEra Energy Partners Wind Production Index(1,2) 2022 2023 3RD QTR 4TH QTR 1ST QTR 2ND QTR 3RD QTR Location MW Jul Aug Sep QTR MW QTR YE MW QTR MW QTR MW Jul Aug Sep QTR YTD Midwest 1,512 92% 96% 98% 95% 1,672 106% 107% 1,811 100% 1,970 92% 1,970 71% 90% 79% 80% 91% West 1,557 100% 97% 88% 95% 1,5
Slide 42: NextEra Energy Partners' credit metrics remain on track
NextEra Energy Partners’ credit metrics remain on track NextEra Energy Partners Credit Metrics BB Downgrade Actual Target S&P(1) Range Threshold 2022(4) YE 2023 FFO/Debt 12% - 20% 12% 19.9% >15% HoldCo Debt/EBITDA 5.0x - 6.0x 6.0x 4.2x <6.0x Ba1 Downgrade Actual Target Moody's (2) Range Threshold 20
Slide 43: NextEra Energy Partners' Expected Cash Available for Distribution
NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2023 Run-Rate CAFD; $ MM) $1,930 - $1,900 - $2,130 ($25 - $35) ($0 - $0) $2,100 ($210 - $270) ($835 - $1,035) ($35 - $45) ($5 - $15) $730 - $820 (2) Project-Level Corporate IDR Fees Adjusted Debt Service Pre-Tax Tax N
Slide 44: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA and CAFD expectations. Adjusted EBITDA, CAFD, limited partner distributions, equity issuances and other expectations assume, among other things, normal weather and
Slide 45: 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 46: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may not be able to extend, renew or replace expiring or terminated power purchase agreements (PPA), natural gas transportation agreements or other customer contracts at favorable rates or on a long-term basis; If the en
Slide 47: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's ability to make distributions to its unitholders depends on the ability of NEP OpCo to make cash distributions to its limited partners; If NEP incurs material tax liabilities, NEP's distributions to its unitholders ma