Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Wolfe Research 2015 Power & Gas Leaders Conference
26 slides from Nextera Energy's conference presentation, Sep 29, 2015
Slide 1: Wolfe Research 2015 Power & Gas Leaders Conference
Wolfe Research 2015 Power & Gas Leaders Conference Jim Robo Chairman and CEO September 29, 2015
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
Slide 3: Our starting point is a long-term vision
Our starting point is a long-term vision Long-Term Vision • Largest, most profitable clean energy provider in the U.S. • Best skills and capabilities across the industry value-chain • FPL: the best utility in the U.S. – Customer value – Operations – Regulatory environment – Invest capital in ways th
Slide 4: First half 2015 was another period of very strong performance
First half 2015 was another period of very strong performance and we continue to exceed expectations presented to investors at our March conference First Half 2015 Performance Review • Adjusted EPS of $2.95(1) up 9% vs. first half 2014 • Strong financial and operational execution • At FPL, major cap
Slide 5: NextEra Energy is well-positioned for future growth
NextEra Energy is well-positioned for future growth NextEra Energy Expectations Adjusted Earnings Per Share(1) Dividend Per Share $4.30 - $4.60 $6.60 - $7.10 $5.30 $3.08 2014 (2) 2018E 2015E (3) 2018E Dividend payout ratio expected to increase from 55% current level to 65% by 2018 (1) See Appendix f
Slide 6: NextEra Energy Partners
NeExTera energy” PARTNERS Z
Slide 7: We believe NEP is the premier company in the yieldco space
We believe NEP is the premier company in the yieldco space and we are focused on sustaining this position Characteristics of a Great Yieldco NEP • Strong sponsor • Operational excellence • High quality projects • High-profile drop-down visibility • Well-aligned incentives 7
Slide 8: NEP has strong visibility into future growth potential
NEP has strong visibility into future growth potential NEP Expectations(1) • We are re-affirming our 2015 adjusted EBITDA and CAFD expectations • We are introducing run-rate adjusted EBITDA and CAFD expectations for year-end 2015 and year-end 2016 Adjusted EBITDA CAFD 2015 $400 - $440 MM $100 - $120
Slide 9: We are re-affirming our expectations for NEP distributions
We are re-affirming our expectations for NEP distributions NEP Expectations Annualized Rate of Quarterly LP Unit Distributions Growth Expectations $1.23 • Grow LP unit distributions to $0.94 $0.82 an annualized rate of $1.23 $0.75 $0.78 by end of 2015 • Thereafter grow LP units distributions at 12 –
Slide 10: Q&A Session
Qé&A Session NExTera’ NexTera energy” ENERGY PARTNERS 7 10
Slide 11: Appendix
Appendix NExTera’ NexTera energy” ENERGY PARTNERS 7 i
Slide 12: NextEra Energy
NEXT@ra ENERGY &%
Slide 13: Reconciliation of Adjusted Earnings to GAAP Net Income (Six Months 2015)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2015) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $
Slide 14: Reconciliation of Adjusted Earnings to GAAP Net Income (Six Months 2014)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2014) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $
Slide 15: Reconciliation of Adjusted Earnings to GAAP Net Income (Full Year 2014)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Full Year Ended December 31, 2014) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy, Inc.
Slide 16: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the unrealized mark- to-market effect of non-qualifying hedges, net OTTI losses on securities held in NextEra Ener
Slide 17: 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 18: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) inability or failure to manage properly or hedge effectively the commodity risk within its portfolio; potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-
Slide 19: NextEra Energy Partners
NeExTera energy” PARTNERS Z
Slide 20: Reconciliation of Income Before Taxes to Adjusted EBITDA and CAFD
Reconciliation of Income Before Taxes to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) 2015E Income before income taxes $95 - $105 Less financial results of entities under common control prior to their respective acquisition dates (65 - 75) Add back: Depreciation and amortiza
Slide 21: 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 revenue less fuel expense, project operating expenses, a portion of corporate G&A asso
Slide 22: 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 23: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP is subject to risks associated with litigation or administrative proceedings that could materially impact its operations, including future proceedings related to projects it subsequently acquires; the Summerhaven, Cones
Slide 24: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP’s subsidiaries’ substantial amount of indebtedness may adversely affect NEP’s ability to operate its business and its failure to comply with the terms of its subsidiaries’ indebtedness could have a material adverse effe
Slide 25: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP GP’s interest in NEP and the control of NEP GP may be transferred to a third party without unitholder consent; the IDR fee may be transferred to a third party without unitholder consent; NEP may issue additional units w
Slide 26: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may be unable to secure renewals of long-term natural gas transportation agreements, which could expose its revenues to increased volatility; if NEP completes the acquisition of NET Midstream, NEP may not succeed in rea
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