Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (December 2023)
51 slides from Nextera Energy's investor presentation, December 2023
Slide 1: December 2023 Investor Presentation
December 2023 Investor Presentation 1
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 is a leading clean energy company anchored by two industry leaders
NextEra Energy is a leading clean energy company anchored by two industry leaders and supported by a common platform 70 GW $118 B $172 B In Operation(1) Market TotalAssets(3) Capitalization(2) Clean Energy Generation Portfolio Supply Chain, Engineering and Construction Best-in-class Operations The l
Slide 4: NextEra Energy is well positioned for future growth given its focus on regulated investment
NextEra Energy is well positioned for future growth given its focus on regulated investment and contracted renewables NextEra Energy Business Mix(1) • Florida is one of the >70% <30% • Over 20% renewable fastest growing states in origination market share the U.S. • Over 20 years experience • Custome
Slide 5: NextEra Energy has continued to execute on its growth expectations
NextEra Energy has continued to execute on its growth expectations while maintaining a strong balance sheet NextEra Energy Execution Recent Highlights Adjusted Earnings Per Share • Grew adjusted EPS ~11% year-to-date 2023(1) ~9.8% $2.90 CAGR • Executing against FPL’s capital plan for the benefit $1.
Slide 6: The U.S. clean energy transition presents near- and long-term opportunity
The U.S. clean energy transition presents both a near- and long-term opportunity for new renewables and storage U.S. Renewables and Storage Opportunity Near-Term(1) Long-Term(2) 2023 - 2026 2027 - 2030 2021 - 2050 (Full Economy Decarbonization) ~175 GW ~250 GW ~7,000 GW U.S. renewables U.S. renewabl
Slide 7: Renewables provide customers the ability to lock in power costs
Renewables provide customers the ability to lock in power costs and avoid potentially volatile market power prices for years to come Market Prices for Renewables Alternatives(1) Forward Gas Prices Forward Power Prices 7x24 ($/MMBtu) 7x24 ($/MWh) $4.5 55 50 $4.0 45 ~60% 11/22/2023 $3.5 ~25% 11/22/202
Slide 8: FPL is recognized as one of the best and most innovative electric providers
FPL is recognized as one of the best and most innovative electric providers in the U.S. Florida Power & Light Company(1) Largest electric utility in the U.S. ~5.8 MM customer accounts ~5.8 MM customer accounts Areas Served by FPL (in Northwest FL, Counties with Areas ~34 GW in operation Served by FP
Slide 9: FPL's strategy is focused on delivering outstanding customer value
FPL’s strategy is focused on delivering outstanding customer value through smart capital investments and a commitment to productivity FPL’s Areas of Focus Customer Value Proposition • Unyielding commitment to customer value proposition – Low bills, high reliability and Smart Best-in- excellent custo
Slide 10: Modernization of FPL's Clean Generation Fleet
FPL continues to invest in the modernization of its generation fleet to improve efficiency, reduce fuel costs and lower O&M Modernization of FPL’s Clean Generation Fleet Customer Benefits • Industry-leading fleet heat rate of <6.7 MMBtu/MWh • Modernized fossil fleet saved customers ~$14 B in fuel co
Slide 11: FPL's Reliability and Resiliency Investments
FPL has invested in a stronger, smarter and more resilient grid to provide superior service for customers FPL’s Reliability and Resiliency Investments Transmission Distribution Innovative Drone Program Hardening Hardening Technologies • ~96% of • ~48% of distribution • Deployed 210,000 • More than 1
Slide 12: FPL's customer commitment and best-in-class service reliability
FPL’s customer commitment and best-in-class service reliability earned outstanding customer service recognitions FPL’s Customer Service • FPL’s focus on investments Service Reliability(1) that drive efficiency enables 180 (Minutes) excellent customer service Good 160 – Smart investments have helped
Slide 13: FPL's Customer Value Proposition
We believe FPL is the highest-quality U.S. utility with the industry’s best customer value proposition FPL’s Customer Value Proposition 1,000-kWh Residential Bill(1) Service Reliability(2) Good ~29%lower ~140 thannational ~66% average better than ~$192 ~$170 the national ~47 average ~$136 National S
Slide 14: Energy Resources is North America's most experienced clean energy company
Energy Resources is North America’s most experienced and capable clean energy company NextEra Energy Resources(1) World leader in electricity States with Project(s) in Operation generated from the wind Wind and sun Natural Gas Nuclear ~34 GW(2) of clean energy in Universal Solar operation Storage 23
Slide 15: Energy Resources' Customer Focus
Energy Resources is focused on decarbonizing power and commercial and industrial customers’ operations with low- cost renewables Energy Resources’ Customer Focus Industry-Leading Ability 2020-2023 Signed PPAs(1) to Meet Customer Needs • Decades of scale and experience supporting positive regulatory
Slide 16: Committed to renewables for over 20 years: Competitive Advantages
We have been committed to renewables for over 20 years, leveraging our scale, customer relationships and expertise to build high-quality, profitable renewable projects Competitive Advantages Supply Top Decile Buying Chain Wind & Cost of Power Management Solar O&M Capital Construction Optimization ~3
Slide 17: Proprietary Data Analytics
No other energy company has Energy Resources’ software and data analytics capabilities, creating significant customer value Proprietary Data Analytics Advanced Resource Renewables Design Ongoing Site Site Identification Assessment Optimization Analytics • Faster and better • Superior site • Enhanced
Slide 18: Project Development
Energy Resources’ industry-leading renewable development platform ensures the development process is well-positioned to grow the business for customers and shareholders Project Development Land Procurement Permitting • Faster outreach with digitized • Superior in-house digital workflow and scaled te
Slide 19: Permitting & Community Engagement
Community engagement team has a presence in the local communities to help strengthen relationships with key stakeholders Permitting & Community Engagement Long-Term Local Landowner Community Engagement Engagement Chamber of Significant Commerce or Charitable Local Town Council Contributions Taxpayer
Slide 20: Equipment Procurement & EPC Execution
Energy Resources’ experience, scale and buying power enhances our ability to deliver for customers, even in periods of disruption Equipment Procurement & EPC(1) Execution • Decades of experience in renewables and logistics Build Imperatives planning • Certainty of annual build and enhanced contract
Slide 21: Energy Resources' Financing Advantages
Energy Resources’ strong balance sheet supports our ability to deliver for customers Financing Advantages • Buying power and credit drives advantageous terms Use of Strong Balance Sheet • A strong balance sheet supports interest rate hedge utilization to help ✓ No construction loans lock in economic
Slide 22: Renewables Long-Term Growth Opportunity
The clean energy transition represents a significant opportunity for Energy Resources to leverage its competitive advantages to lead the decarbonization of the U.S. economy Renewables Long-Term Growth Opportunity Clean Energy Transition Demand Drivers U.S. Electricity Production by Fuel Type(1) 16%
Slide 23: Energy Resources Development Program
Energy Resources is focused on executing its industry- leading renewables development program Energy Resources Development Program(1) (Development Expectations as of October 24, 2023) 2023 - 2024 2023 - 2024 2025 - 2026 2025 - 2026 2023 - 2026 COD Expectations COD Expectations Expectations Wind 4,02
Slide 24: NextEra Energy's Financial Expectations
NextEra Energy remains well positioned to continue our strong adjusted earnings per share 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
Slide 25: NextEra Energy Value Proposition
We believe NextEra Energy presents a compelling investment opportunity NextEra Energy Value Proposition Drill-down of S&P 500 Companies Adj. EPS CAGR(5) 394 Investment grade(1) ~9% ~8% ~6% 104 Market capitalization > $60 B 50 Adj. EPS CAGR > 8% past 15 years(2) NEE Median Median S&P 500 UTY 30 ‘22 –
Slide 26: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 27: NextEra Energy Partners' Portfolio
NextEra Energy Partners is a leading clean energy investment vehicle NextEra Energy Partners’ Portfolio(1) ~8,049 MW of wind ~1,790 MW of solar ~273 MW paired storage States with Project(s) in ~4.3 Bcf total natural Operation Wind gas pipeline capacity(2) Solar Storage Pipeline NextEra Energy Partne
Slide 28: NextEra Energy Partners' Areas of Focus
NextEra Energy Partners is focused on executing against its transition plan NextEra Energy Partners’ Areas of Focus ✓ Suspend IDR(1) fees through 2026 to largely replace gas pipeline cash available for distribution ✓ Executed agreement to sell Texas pipeline portfolio and use the proceeds (subject t
Slide 29: Texas Pipeline Portfolio Sale
Assuming a successful closing, the sale of the Texas pipeline portfolio allows NextEra Energy Partners to address equity buyouts for two near-term CEPFs Texas Pipeline Portfolio Sale • Announced definitive agreement to sell Texas pipeline portfolio for $1.815 B • Upon closing, proceeds are expected
Slide 30: NextEra Energy Partners' transition plan
NextEra Energy Partners’ transition plan is focused on unitholder value and improving the partnership’s cost of capital NextEra Energy Partners’ Plan 1 Execute sale of Texas pipeline portfolio in 2024 and sell Meade pipeline in 2025 2 Eliminate acquisitions required for 2024 growth 3 Eliminate growt
Slide 31: Wind repowerings: Repower Benefits
NextEra Energy Partners’ growth plan includes wind repowerings which provide an opportunity to deploy capital at attractive returns Repower Benefits Capital Costs Repower Value Drivers ($/kW) (CAFD Yield) Good ~50%- 80% of the cost of new Good build Greenfield Repower Reset PTCs OpEx NCF Uplift (1)
Slide 32: NextEra Energy Partners' Financial Expectations
NextEra Energy Partners is focused on executing 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 Growth through 5% - 8% average annua
Slide 33: Appendix
Appendix NexTera’ Nexvera energy’ ENERGY PARTNERS
Slide 34: NextEra Energy
NEXTCra ENERGY &
Slide 35: FPL 2022 - 2025 Capital Expenditures
FPL has significant investment opportunities for the benefit of customers FPL 2022 - 2025 Capital Expenditures Projected Recovery Opportunity Status Investment(1) Mechanism SoBRA (2024 and 2025) 24 sites projected to be ~$2.7 B Solar Base Rate Adjustment constructed 2024 and 2025 SolarTogether Phase
Slide 36: Renewable Tax Credits
The true economic value of a renewable project is derived from both the PPA and tax credit Renewable Tax Credits Project Revenue Three Ways to Monetize Without a With a Tax Credit Tax Credit 1 Tax Return Tax Credit 2 Transferability PPA PPA 3 Tax Equity The method of monetization changes timing of c
Slide 37: Tax Credit Overview
The monetization of the tax credit will drive how the tax credit is presented in the income statement Tax Credit Overview Income Statement Earned Counterparty Timing Geography 1 Tax Return Equal to Federal As Income Tax PTC Rate Government Generated Benefit Tax Credits 2 Transferability Equal to 3rd
Slide 38: Tax Credit Financing Costs
The cost of tax equity represents an annual cost and reduces NextEra Energy’s earnings each year the tax equity remains outstanding Tax Credit Financing Costs Tax Credit Monetization Income Statement Geography In all cases, the income Tax Tax recognition is the same… Return Transferability Equity +
Slide 39: NextEra Energy Credit Metrics
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 40: Reconciliation of GAAP Net Income to Adjusted Earnings (Nine Months 2023)
Reconciliation of GAAP Net Income to Adjusted Earnings (Loss) Attributable to NextEra Energy, Inc. (Nine Months Ended September 30, 2023) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e Attributable to NextEra Energy, Inc. $ 3,406 $ 2,67
Slide 41: Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings (Nine Months 2022)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings (Loss) 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
Slide 42: 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(1) 2012 2013 2014 2015 2016(2) 2017(2) 2018 2019 2020 2021 2022 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 1.14 $ 1.12 $ 1.40 $ 1.52 $ 1.56 $ 2.85 $ 3.47 $ 1.94
Slide 43: 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 44: 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 45: 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 46: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 47: NextEra Energy Partners Credit Metrics
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 48: 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 49: 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 50: 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 51: 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
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