Xplr Infrastructure, Lp · NYSE:XIFR
Xplr Infrastructure, Lp — NextEra Energy Partners — FY2015 Earnings Presentation
48 slides from Xplr Infrastructure, Lp's earnings presentation, Jan 28, 2016
Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2015
Earnings Conference Call Fourth Quarter and Full Year 2015 January 28, 2016
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: NextEra Energy and NEP delivered excellent growth in 2015
NextEra Energy and NEP delivered excellent growth in 2015 2015 Highlights • NEE achieved adjusted EPS of $5.71(1), up 8% from 2014 • Outstanding customer value and execution at FPL – Florida PSC approved need for Okeechobee Clean Energy Center in 2019 – Continued solid progress on major capital init
Slide 4: FPL's full-year contribution to EPS increased 18 cents
FPL’s full-year contribution to EPS increased 18 cents Florida Power & Light Results Fourth Quarter Full Year Net Income EPS Net Income EPS ($ MM) ($ MM) $365 $0.79 $1,648 $3.63 $286 $0.65 $1,517 $3.45 2014 2015 2014 2015 2014 2015 2014 2015 4
Slide 5: Continued investment in the business was the principal driver of growth at FPL
Continued investment in the business was the principal driver of growth at FPL Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Employed(1) Fourth Full $B Quarter Year 35.0 $31.3 FPL – 2014 EPS $0.65 $3.45 $29.3 30.0 4.3 Drivers: 3.3 25.0 New investments, incl clauses $0.
Slide 6: Customer growth and strong weather effects drove higher retail sales at FPL
Customer growth and strong weather effects drove higher retail sales at FPL Customer Characteristics (through December 2015) Retail kWh Sales Customer Growth(1,3) (Change vs. prior-year period) (Change vs. prior-year quarter) Fourth Full 100 Quarter Year 80 ~66 UKU Impact Customer Growth & Mix 1.4%
Slide 7: Energy Resources' 2015 adjusted EPS increased 14 cents over the prior year
Energy Resources’ 2015 adjusted EPS increased 14 cents over the prior year Energy Resources Results Fourth Quarter Full Year Net Income EPS Net Income EPS ($ MM) ($ MM) $1,092 GAAP: $989 $2.25 $2.41 $615 $1.39 $156 $0.34 2014 2015 2014 2015 2014 2015 2014 2015 Adjusted: $926 $837 $2.04 $1.90 $179 $1
Slide 8: Energy Resources' adjusted EPS growth was largely driven by new investments
Energy Resources’ adjusted EPS growth was largely driven by contributions from new investments Energy Resources Full Year 2015 Adjusted EPS(1) Contribution Drivers $3.00 0.24 (0.02) (0.22) $2.50 0.31 (0.22) (0.08) 0.13 $2.04 $2.00 $1.90 $1.50 $0.27 Renewables ($0.29) Wind resource $0.04 Gas pipeline
Slide 9: Energy Resources' adjusted EBITDA and cash flow from operations increased in 2015
Energy Resources’ adjusted EBITDA and cash flow from operations increased in 2015 Energy Resources Full Year 2015 Adjusted EBITDA and Cash Flow from Operations 2014 2015 Change ($ MM) ($ MM) (Growth %) (1) Adjusted EBITDA $3,277 $3,574 ~9% CFO $1,866 $2,346 ~26% CFO Excluding the Impact (1) $1,900 $
Slide 10: Energy Resources had an outstanding year of new renewables origination
Energy Resources had an outstanding year of new renewables origination Energy Resources Development Program(1) • We have exceeded the expectations we discussed in March for our 2015-2016 development program: March 2015 Investor Conference(2) Current(3) Additional Signed 2015-2016 Signed Potential To
Slide 11: NEP achieved the distribution per unit expectations that we have shared for the year
NEP achieved the distribution per unit expectations that we have shared for the year NextEra Energy Partners Results Fourth Quarter 2015(1) 2015 Highlights • Grew portfolio through the $135 acquisition of over 1,200 MW of $MM $75 contracted renewables projects from Energy Resources Adjusted CAFD EBI
Slide 12: NextEra Energy's adjusted EPS increased ~8% year-over-year
NextEra Energy’s adjusted EPS increased ~8% year-over-year NextEra Energy Results Fourth Quarter EPS Full Year EPS GAAP 2014 2015 Change GAAP 2014 2015 Change FPL $0.65 $0.79 $0.14 FPL $3.45 $3.63 $0.18 Energy Resources $1.39 $0.34 ($1.05) Energy Resources $2.25 $2.41 $0.16 Corporate and Other ($0.0
Slide 13: We have a lot of execution to do in 2016
We have a lot of execution to do in 2016 Focus for 2016 • At FPL: – Rate case proceeding will be a key focus – Continue to make progress on major capital initiatives, including generation modernization at Port Everglades and expected delivery of three new large scale solar projects – Continue to del
Slide 14: FPL will file in 2016 for rate relief beginning in 2017
FPL will file in 2016 for rate relief beginning in 2017 FPL Base Rate Proceeding • Filed Test Year Letter on January 15, 2016 • Four-year plan to phase in base rate adjustments to support continued investments that benefit customers: – $860 MM adjustment effective January 2017 – $265 MM adjustment e
Slide 15: FPL's rate proposal reflects our commitment to delivering outstanding, long-term customer value
FPL's rate proposal reflects our commitment to delivering outstanding, long-term customer value FPL Base Rate Request & Bill Impacts • Today, typical residential bill is about 30% lower than the national average and lower than it was ten years ago, in 2006 • After our proposed adjustments, we expect
Slide 16: FPL plans to formally file its petition and testimony in March
FPL plans to formally file its petition and testimony in March to enable a thorough review and a decision to be reached before the end of 2016 Estimated FPL Rate Case Timeline March Late Q2 Q4 2016 Q2 Early Q3 Q3 2016 File formal Quality of Intervenor, Final staff, and FPL Rate rate request service
Slide 17: NextEra Energy's Adjusted Earnings Per Share Expectations
NextEra Energy’s Adjusted Earnings Per Share Expectations(1) 2016 $5.85 - $6.35 $6.60 - $7.10 2018 (6% - 8% CAGR off a 2014 base) (1) See Appendix for definition of Adjusted Earnings expectations 17
Slide 18: NextEra Energy Partners' Adjusted EBITDA and CAFD Expectations
NextEra Energy Partners’ Adjusted EBITDA and CAFD Expectations(1, 2) Adjusted EBITDA CAFD 12/31/15 Run Rate(3) $540 - $580 MM $190 - $220 MM 12/31/16 Run Rate(4) $640 - $760 MM $210 - $290 MM Unit Distributions 2016 $1.38 - $1.41 annualized rate by year end(5) 2016 - 2020 12% - 15% average annual gr
Slide 19: Q&A Session
Qé&A Session NExTera’ NexTera energy” ENERGY & PARTNERS 2 19
Slide 20: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 20
Slide 21: NextEra Energy
NExTera’ ENERGY @
Slide 22: NextEra Energy's credit metrics met the targets we laid out for 2015
NextEra Energy’s credit metrics met the targets we laid out for 2015 and are on track for 2016 Credit Expectations Actual Target Actual Projected S&P A- Range 2014 2015 2015 2016 FFO/Debt 23%-35% 25% 26% 26% 26% Debt/EBITDA 2.5x-3.5x 3.5x 3.4x 3.3x 3.3x Actual Target Actual Projected Moody’s Baa Ran
Slide 23: Potential drivers of variability to consolidated adjusted EPS
Potential drivers of variability to consolidated adjusted EPS 2016 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) ± $0.05 - $0.06 • Wind resource (± 1% d
Slide 24: Energy Resources' 2015 Adjusted EBITDA by Asset Category
Energy Resources’ 2015 Adjusted EBITDA by Asset Category(1) Q3 2014 Primary Expectations(2,3) Actual(3) Driver of Delta Contracted Renewables $1,780- $1,830 $1,703 Wind Resource Contracted Nuclear $335 - $365 $366 Contracted Other $140 - $160 $132 Merchant ERCOT $455 - $515 $445 Wind Resource Mercha
Slide 25: NextEra Energy Resources Projected 2016 Portfolio Financial Information
NextEra Energy Resources Projected 2016 Portfolio Financial Information (1) Adjusted Value of pre-tax tax EBITDA by credits inlcuded in Maintenance Pre-Tax Cash Remaining Asset Category2 adjusted EBITDA3 Debt Service 4 Capital5 Other6 Flows7 Contract Life 8 NEER Contracted(9) Renewables $1,880 - $1,
Slide 26: Wind Production Index
Wind Production Index(1)(2) 2014 2015 4TH QTR 1ST QTR 2ND QTR 3RD QTR 4TH QTR Location MW Oct Nov Dec QTR YTD MW QTR MW QTR MW QTR MW Oct Nov Dec QTR YTD Midwest 3,066 104% 120% 85% 103% 105% 3,066 101% 3,066 97% 3,066 95% 3,066 107% 110% 97% 105% 100% West 2,931 85% 107% 89% 94% 98% 2,931 81% 2,931
Slide 27: The percentage of PTCs allocated to investors continued to grow in 2015
The percentage of PTCs allocated to investors continued to grow in 2015 Wind Production Summary (2) (2) 2010 2011 2012 2013 2014 2015 (1) Effective Capacity (MW) 7,624 8,386 8,887 10,117 10,374 11,653 Wind Production (TWh) 20.4 24.6 25.8 29.2 32.0 33.8 Implied Average Capacity Factor 30% 34% 33% 33%
Slide 28: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($MM, after-tax) Asset/(Liability) Balance as of 9/30/15 $720.7 Primary Drivers: Amounts Realized During 4th Quarter (66.8) Revenue Hedges – Power, Gas & Oil Prices $76.9 Change in Forward Prices (all positions) 38.7 All Other – Net (38.2) Subtotal – In
Slide 29: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($MM after-tax) 1st Quarter 2nd Quarter Asset / Deals Asset / Deals Asset / (Liability) Change in Executed Total (Liability) Change in Executed Total (Liability) Balance Amounts Forward During Unrealized Balance Amounts Forward During Unrealized Balance
Slide 30: Non-Qualifying Hedges – Summary of Forward Maturity
Non-Qualifying Hedges(1) – Summary of Forward Maturity ($MM after-tax) Gain / (Loss) (2) Asset / (Liability) Balance Total Description 12/31/15 2016 2017 2018 2019 2020 - 2034 2016 - 2034 Generation Related: Natural gas related positions $ 515.1 $ (119.2) $ (93.1) $ (68.5) $ (50.1) $ (184.2) $ (515.
Slide 31: Contracted Renewables Development Program
Contracted Renewables Development Program(1,2) Wind Location MW COD Solar Location MW COD Breckenridge OK 98 2015 Shafter CA 20 2015 Goshen Ontario 102 2015 Adelanto I & II CA 27 2015 East Durham Ontario 22 2015 McCoy Solar (3) CA 250 2016 Cedar Point JV Ontario 50 2015 Blythe CA 110 2016 Golden Hil
Slide 32: Reconciliation of Adjusted Earnings to GAAP Net Income (Q4 2015)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Three Months Ended December 31, 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,
Slide 33: Reconciliation of Adjusted Earnings to GAAP Net Income (Q4 2014)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Three Months Ended December 31, 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,
Slide 34: Reconciliation of Adjusted Earnings to GAAP Net Income (Twelve Months 2015)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 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,
Slide 35: Reconciliation of Adjusted Earnings to GAAP Net Income (Twelve Months 2014)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 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,
Slide 36: Reconciliation of NEE Adjusted Operating Cash Flow to GAAP Operating Cash Flow
Reconciliation of NEE Adjusted Operating Cash Flow to GAAP Operating Cash Flow Actual Actual (millions) 2014 2015 Inc/(Dec) Grow th Cash flow s from operating activities $ 5,500 $ 6,116 $ 616 11.2% FPL Clause recoveries 67 (176) Cedar Bay acquisition 521 Adjusted cash flow s from operating activitie
Slide 37: 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 38: 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 39: Cautionary Statement And Risk Factors That May Affect Future Results (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 40: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 41: Reconciliation of Net Income to Adjusted EBITDA and CAFD
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) Q4 2015 2015 Net income $ 24 $ 80 Add back: Depreciation and amortization 42 141 Interest expense 32 117 Income taxes 5 21 Tax credits 26 86 Benefits associated with differential membership interest
Slide 42: Expected Cash Available for Distribution (Year-end 2015 Run Rate)
Expected Cash Available for Distribution(1) (Year-end 2015 Run Rate CAFD) $580-$620(2) ($10-$15) ($20-$25) $540-$580 ($220-$260)(3) ($75-$85)(4) $ MM ($20-$25)(5) ($5-$10) $190-$220(6) Project-level Corporate IDR Adjusted Debt Service Pre-tax Non-cash Maintenance Estimated Adjusted Expenses Fees EBI
Slide 43: Expected Cash Available for Distribution (Year-end 2016 Run Rate)
Expected Cash Available for Distribution(1) (Year-end 2016 Run Rate CAFD) $720-$840(2) ($10-$20) ($40-$60) $640-$760 ($240-$260)(3) ($155-$205)(4) $ MM ($20-$25)(5) ($5-$10) $210-$290(6) Project-level Corporate IDR Adjusted Debt Service Pre-tax Non-cash Maintenance Estimated Adjusted Expenses Fees E
Slide 44: 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, corporate G&A, plus other incom
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 That May Affect Future Results (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 agreements, such as its power purchase agreements (PPAs), Renewable Energy Standard Offer Program (RESOP) Contracts and FIT Contracts, at favorable rate
Slide 47: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may be unable to terminate the management services agreement among NEP, NextEra Energy Management Partners, LP (NEE Management), NEP OpCo and NEP GP (Management Services Agreement); if NEE Management terminates the Mana
Slide 48: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may fail to realize the growth prospects anticipated as a result of the NET Midstream acquisition; uncertainties associated with the NET Midstream acquisition may cause a loss of management personnel and other key emplo
NextEra Energy Partners — FY2015 Earnings Presentation on 6ix