Xplr Infrastructure, Lp · NYSE:XIFR
Xplr Infrastructure, Lp — Q4 2024 Earnings Presentation
26 slides from Xplr Infrastructure, Lp's earnings presentation, Jan 28, 2025
Slide 1: XPLR Infrastructure, LP Business Update
Business Update XPLR Infrastructure, LP January 28, 2024
Slide 2: Cautionary Statements and Risk Factors That May Affect Future Results
2 | Business Update 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
Slide 3: Announcing a strategic repositioning to unlock the value of cash flows
3 | Business Update XPLR Infrastructure is announcing a strategic repositioning which we believe will unlock the value of the strong cash flows in the existing portfolio Overview of Strategic Repositioning 1 2 3 4 Moving from an Suspending Investing in Relationship with acquisition and unitholder ex
Slide 4: Historical acquisition and distribution growth model required ongoing access to new equity
4 | Business Update XPLR Infrastructure’s historical acquisition and distribution growth model required ongoing access to new equity Historical Business Model Equity and Convertible Equity Portfolio Financings; $ B Access to Acquire Low-Cost Assets Equity 1.8 1.2 0.9 1.1 0.8 0.8 0.2 0.6 Grow 0.5 0.3
Slide 5: Repositioning to economic allocation of cash flows from existing assets
5 | Business Update XPLR Infrastructure is repositioning to a business model that focuses on the economic allocation of cash flows generated by its existing assets Attractive Investment Opportunities Execute buyout Organic growth Investments option of selected investments in in clean convertible rep
Slide 6: Relationship with NextEra Energy unchanged
6 | Business Update Relationship with NextEra Energy unchanged XPLR Public Infrastructure Unitholders • Relationship with XPLR NextEra Energy NextEra Energy1 unchanged Infrastructure (NEE) (XIFR) • Board of Directors unchanged XPLR • Management Services Infrastructure Agreement remains in place Oper
Slide 7: One of the largest, most diverse independent power producers in the U.S.
7 | Business Update XPLR Infrastructure is one of the largest, most diverse independent power producers in the U.S. Portfolio Today 3rd largest producer of wind and solar energy in the U.S.2 Weighted average remaining contract life of ~13 years3 Roughly 80 unique customers4 Average customer credit r
Slide 8: Capital allocation strategy focused on four key priorities
8 | Business Update XPLR Infrastructure’s capital allocation strategy will focus on four key priorities to generate attractive returns for unitholders Buyout selected Invest in Investments Return of capital convertible existing in clean to unitholders, equity portfolio portfolio of energy assets inc
Slide 9: Committed to balance sheet capacity and liquidity for 2025 and 2026 refinancing
9 | Business Update XPLR Infrastructure is committed to ensuring sufficient balance sheet capacity and liquidity to facilitate its refinancing activities in 2025 and 2026 Balance sheet capacity Recently reaffirmed Eliminated need to issue enhances ratings1: equity financial flexibility BB / Ba1 / BB
Slide 10: Plan for debt maturities and CEPFs through 2027
10 | Business Update After executing on our plan through the end of 2027, XPLR Infrastructure expects to have only two of the five CEPFs remaining, CEPF 4 and CEPF 5 Plan for Debt Maturities and CEPFs1 Refinance of existing debt: ~$2.2 B of debt maturities (2025-2027)2 Plan to address CEPFs: CEPF 1
Slide 11: Full-year 2024 Adjusted EBITDA of ~$2 B
11 | Business Update XPLR Infrastructure delivered full year adjusted EBITDA of ~$2 B, roughly at the midpoint of its year-end 2023 run-rate expectations for calendar year 20241 notwithstanding wind resource of 98% Full-Year 2024 Adjusted EBITDA2 ($ MM) $111 $39 ($181) $71 $44 $1,959 $1,875 $36 Inte
Slide 12: Adjusted EBITDA expectations for 2025 and 2026
12 | Business Update XPLR Infrastructure’s portfolio of long-term contracted clean energy assets are expected to produce strong Adjusted EBITDA XPLR Infrastructure’s Adjusted EBITDA Expectations ($ MM)1 $1,850 - $1,750 - $1,959 $2,050 ~($105) $1,950 2024A 2025E Expected Meade 2026E Adjusted Adjusted
Slide 13: New cash flow expectation: Free Cash Flow Before Growth
13 | Business Update XPLR Infrastructure is introducing a new cash flow expectation, Free Cash Flow Before Growth (FCFBG), that aligns with its capital allocation model Cash Flow Bridge1 – Prior Expectation to Current Expectation ($ MM) ~$125 ~$900 ~($75) ($175) $7752 $600-$700 Midpoint of $650 Incl
Slide 14: Repositioning can unlock value of strong cash flows in existing portfolio
14 | Business Update We believe by repositioning the business, XPLR Infrastructure can unlock the value of strong cash flows in its existing portfolio XPLR Infrastructure’s Value Proposition 2026E XPLR Infrastructure Unit Price vs. FCFBG Yield4 ~10 3rd ~1.6 $80 GW1 Largest2 GW3 $70 $60 Wind, solar a
Slide 15: Q&A Session
Q&A Session
Slide 16: Appendix
Appendix
Slide 17: Potential drivers of variability to Adjusted EBITDA
17 | Business Update Potential drivers of variability to XPLR Infrastructure’s Adjusted EBITDA1 XPLR Infrastructure 2025 Wind resource2 (± 1% deviation) ± $18 MM - $20 MM 1. These are not the only drivers of potential variability and actual impacts could fall outside the ranges shown; refer to SEC f
Slide 18: Convertible equity portfolio financings naming conventions
18 | Business Update Convertible equity portfolio financings naming conventions CEPF Naming and Implied Cash Coupon1 CEPF 1 NEP Renewables II <1% CEPF 2 2019 Pipelines <1% CEPF 3 NEP Renewables III ~4.8% CEPF 4 NEP Renewables IV ~2.8% CEPF 5 Genesis Holdings ~4.4% 1. Estimated at the time of issuanc
Slide 19: Only two outstanding CEPFs by end of 2027
19 | Business Update XPLR Infrastructure will have only two outstanding CEPFs by the end of 2027 after executing on plan to complete CEPF 1, CEPF 2 and CEPF 3 buyouts CEPFs - 12/31/24A; $ MM CEPFs - 12/31/27E1; $ MM 510 235 270 510 180 945 1,000 240 550 270 280 465 435 280 240 190 205 150 180 165 17
Slide 20: Expected sources and uses of funds from 2025 to 2026
20 | Business Update XPLR Infrastructure’s expected sources and uses of funds from 2025 to 2026 2025 – 2026 Expected Sources ($ MM) 2025 – 2026 Expected Uses ($ MM) Uses: Sources: Capital Expenditures – New Growth $1,700 – $1,900 Expected Meade pipeline investment $2,475 – $2,625 CEPF Buyout Payment
Slide 21: Reconciliation of Net Income (Loss) to Adjusted EBITDA and CAFD
21 | Business Update Reconciliation of Net Income (Loss) to Adjusted EBITDA and Cash Available For Distribution (CAFD) (millions) Q4 2024 Q4 2023 2024 2023 Net Income (Loss) ($388) $148 ($379) $218 Add back: Depreciation and amortization 139 137 550 521 Interest expense (62) 200 170 394 Income taxes
Slide 22: 2026E Adjusted EBITDA to Free Cash Flow Before Growth walk
22 | Business Update XPLR Infrastructure has meaningful Free Cash Flow Before Growth anchored by contracted Adjusted EBITDA 2026E Adjusted EBITDA to 2026E Free Cash Flow Before Growth Walk; $ MM $1,750 - $1,950 ($655 - $755) ($450 - $500) $600 - ($10 - $30) ($0 - $10) $700 2026E Tax Debt Maint. Capi
Slide 23: Definitional information
23 | Business Update Definitional information XPLR Infrastructure, LP. Adjusted EBITDA and FCFBG Expectations This presentation refers to adjusted XPLR Infrastructure’s adjusted EBITDA FCFBG is defined as free cash flow XPLR Infrastructure does not provide a EBITDA and FCFBG. Adjusted EBITDA expecta
Slide 24: Cautionary Statement And Risk Factors That May Affect Future Results
24 | Business Update Cautionary Statement And Risk Factors That May Affect Future Results This presentation contains “forward-looking which are not a guarantee of future performance. projects, requires up-front capital and other investment may be adversely affected by new or statements” within the m
Slide 25: Cautionary Statement And Risk Factors (Cont.)
25 | Business Update Cautionary Statement And Risk Factors That May Affect Future Results (Cont.) XPLR relies on a limited number of customers the negotiation of project development may be unable to maintain its current credit creditworthiness requirements, and XPLR will be and is exposed to the ris
Slide 26: Cautionary Statement And Risk Factors (Cont.)
26 | Business Update Cautionary Statement And Risk Factors That May Affect Future Results (Cont.) XPRL GP and its affiliates and the directors and which is currently suspended; holders of XPLR’s increases in interest rates could adversely XPLR will not have complete control over XPLR's officers of X