Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Wolfe Research 2020 Utilities & Midstream Conference
24 slides from Nextera Energy's conference presentation, Sep 30, 2020
Slide 1: Wolfe Research 2020 Utilities & Midstream Conference
Wolfe Research 2020 Utilities & Midstream Conference Jim Robo Chairman and CEO, NextEra Energy September 30, 2020
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: Our long-term vision is to be the largest, most profitable clean energy provider in the world
Our long-term vision is to be the largest, most profitable clean energy provider in the world • Vision informed by our values: • We are committed to excellence • We do the right thing • We treat people with respect • Aim to be the most reliable and best operating utilities in the country • Build Nor
Slide 4: We expect the industry's disruptive factors will further expand and accelerate over the coming years
We expect the industry’s disruptive factors will further expand and accelerate over the coming years Disruptive Industry Changes Today Potential Cost per MWh Post-2023/2024(1) AI / ($/MWh) Machine Learning Near-Firm Wind $20 - $30 Big Data Renewables / Storage Near-Firm Solar $30 - $40 Natural Gas $
Slide 5: NextEra Energy Transmission announced an agreement to acquire GridLiance
NextEra Energy Transmission announced an agreement to acquire GridLiance Transaction Overview • GridLiance owns three FERC- regulated transmission utilities spanning six states – ~700 miles of transmission lines – ~$350 MM regulatory capital employed at year-end 2020(1) • ~$660 MM purchase price, in
Slide 6: We recently increased the range of our financial expectations and extended our long-term growth outlook
We recently increased the range of our financial expectations and extended our long-term growth outlook NextEra Energy’s Adjusted Earnings Per Share Expectations • Adjusted EPS ranges updated to reflect 4-for-1 stock split(3) • Increased adjusted earnings $2.77 - expectations for 2021 $2.55 - $2.97
Slide 7: NextEra Energy Partners
NexTera energy’ PARTNERS 2
Slide 8: NextEra Energy Partners achieved strong financial results in the first half of 2020
NextEra Energy Partners achieved strong financial results in the first half of 2020 NextEra Energy Partners First Half 2020 Results Adjusted EBITDA(1) • Achieved year-over-year growth in $643 MM adjusted EBITDA and CAFD of ~26% $509 MM and ~86%, respectively ~26% • NEP’s organic investments continue
Slide 9: NEP completed the successful conversion of ~$300 MM convertible debt into NEP common units
Earlier this month, NEP completed the successful conversion of ~$300 MM convertible debt into NEP common units Convertible Debt/Capped Call Settlement • Significant upside for LP Cumulative 3-Yr Cash Cost(1) unitholders $35 ~$18 MM ~$31 MM – Conversion at a 25% premium to $30 original issuance price
Slide 10: NEP's long-term outlook for distribution growth through 2024 is best-in-class
NEP’s long-term outlook for distribution growth through 2024 is best-in-class NextEra Energy Partners Financial Expectations Annualized LP Distributions(1) Adjusted EBITDA and CAFD(3) Annual $1,225–$1,400 MM 12% - 15% Growth(2) $2.40-$2.46 $2.14 $560–$640 MM Q4 2019 Q4 2020E Q4 2024E 12/31/2020 12/3
Slide 11: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z i
Slide 12: NextEra Energy achieved strong financial results in the first half of 2020
NextEra Energy achieved strong financial results in the first half of 2020 NextEra Energy First Half 2020 Results Adjusted EPS(1) • NEE achieved year-over-year growth of ~10% in adjusted EPS • Continued execution on our best- $4.99 in-class customer value proposition at FPL $4.55 – Regulatory capita
Slide 13: Reconciliation of GAAP Net Income to Adjusted Earnings (Six Months Ended June 30, 2020)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2020) Florida Power Gulf Energy Corporate & NextEra Energy, (millions, except per share amounts) & Light Power Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy,
Slide 14: Reconciliation of GAAP Net Income to Adjusted Earnings (Six Months Ended June 30, 2019)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2019) Florida Power Gulf Energy Corporate & NextEra Energy, (millions, except per share amounts) & Light Power Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy,
Slide 15: 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, the effects of non-qualifying hedges and unrealized ga
Slide 16: 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 17: Cautionary Statement And Risk Factors That May Affect Future Results (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 18: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 19: Expected Cash Available for Distribution
Expected Cash Available for Distribution(1) (December 31, 2020 Run Rate CAFD; $ MM) $1,370-$1,540 ($20-$30) ($110-$120) $1,225-$1,400 ($165-$215) ($430-$510) ($40-$45) ($5-$15) $560-$640 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated (2) (3) (4) Adjusted EB
Slide 20: Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD)
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) Six Months Six Months Ended Ended (millions) June 30, 2020 June 30, 2019 Net Income (loss) $ (593) $ (244) Add back: Depreciation and amortization 133 124 Interest expense 823 362 Income taxes (62) (16) Tax cr
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 (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
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 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 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 24: Cautionary Statement And Risk Factors That May Affect Future Results (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
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