Slide 1: Earnings Conference Call Second Quarter 2023
Earnings Conference Call Second Quarter 2023 July 25, 2023
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 delivered solid second quarter results
NextEra Energy delivered solid second quarter results NextEra Energy Highlights • NEE grew second quarter adjusted EPS by ~8.6% year-over-year • FPL: – Continued to execute on our well-established capital plans, adding new solar and investing in T&D infrastructure – Earnings per share increased by 7
Slide 4: FPL's earnings per share increased 7 cents from prior-year quarter
FPL’s earnings per share increased 7 cents from the prior- year comparable quarter FPL Results Net Income EPS ($ MM) $0.57 $1,152 $0.50 $989 2022 2023 2022 2023 4
Slide 5: FPL EPS Contribution Drivers
Investment in the business to continue to enhance long- term value for customers was the principal driver of growth at FPL FPL EPS Contribution Drivers EPS Growth Regulatory Capital Employed(1) Second Quarter $B FPL – 2022 EPS $0.50 $70.0 $61.0 Drivers: $60.0 $54.4 New investments $0.06 $50.0 Other,
Slide 6: Florida's economy remains healthy and FPL's retail sales continue to grow
Florida’s economy remains healthy and FPL’s retail sales continue to grow Florida Economy & Customer Characteristics Retail kWh Sales Customer Growth(1,2) (Change vs. prior-year quarter) (Change vs. prior-year quarter) 120 UKU Vero Impact Second Impact 100 Quarter 80 66.1 Customer Growth & Mix 1.1%
Slide 7: Energy Resources results – Second Quarter
Energy Resources’ adjusted earnings per share contribution increased 4 cents from the prior-year comparable quarter Energy Resources Results(1) – Second Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $1,462 $0.72 $781 $0.39 $683 $0.35 $133 $0.07 2022 2023 2022 2023 2022 2023 2022
Slide 8: Energy Resources adjusted EPS contribution drivers
Contributions from new investments increased 10 cents per share from the prior-year comparable quarter Energy Resources Second Quarter Adjusted EPS(1) Contribution Drivers $0.50 $0.09 ($0.09) $0.10 ($0.06) $0.45 $0.39 $0.40 $0.35 $0.35 $0.30 (0.03) New debt to finance growth $0.25 (0.03) Higher inte
Slide 9: Energy Resources now has roughly 20 GW in its backlog
Energy Resources now has roughly 20 GW(1) in its backlog Energy Resources Development Program(2) • ~1,665 MW of new renewables and storage added to backlog – Includes ~150 MW of wind, ~1,215 MW of solar and ~300 MW of battery storage 2023 - 2024 2023 - 2024 2025 - 2026 2025 - 2026 2023 - 2026 COD Ex
Slide 10: NextEra Energy EPS Summary – Second Quarter
NextEra Energy’s adjusted earnings per share increased ~8.6% versus the prior-year comparable quarter NextEra Energy EPS Summary – Second Quarter GAAP 2022 2023 Change FPL $0.50 $0.57 $0.07 Energy Resources $0.07 $0.72 $0.65 Corporate and Other $0.13 $0.09 ($0.04) Total $0.70 $1.38 $0.68 Adjusted 20
Slide 11: NextEra Energy's Financial Expectations
NextEra Energy remains well positioned to continue our strong adjusted earnings 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 - $4.00 co
Slide 12: NextEra Energy Partners' Highlights
NextEra Energy Partners remains well positioned to deliver on its growth expectations NextEra Energy Partners’ Highlights • Delivered adjusted EBITDA and cash available for distribution of $486 MM and $200 MM, respectively, reflecting weaker wind resource • NEP Board declared a quarterly distributio
Slide 13: NextEra Energy Partners second quarter adjusted EBITDA and CAFD drivers
NextEra Energy Partners’ adjusted EBITDA and CAFD were driven primarily by lower wind resource from existing projects NextEra Energy Partners – Second Quarter Drivers(1) Adjusted EBITDA CAFD ($ MM) ($ MM) $600 $49 ($99) $250 $500 $207 $5 ($49) $38 ($2) $486 $38 ($1) $200 $500 $200 $400 $150 $300 $10
Slide 14: NextEra Energy Partners' Financial Expectations
NextEra Energy Partners remains well positioned to deliver on its long-term growth objectives NextEra Energy Partners’ Financial Expectations Annualized LP DPU(1) Year-End Portfolio Run-Rate(3) ($ MM) $5.11 - $5.68 $2,220 - $2,420 $4.57 - $4.94 $4.08 - $4.30 $3.64 - $3.74 $3.25 $770 - $860 2022 2023
Slide 15: NEXT aie
NEXT aie ENERGY & NeExTera energy’ PARTNERS Z
Slide 16: Q&A Session
Qé&A Session NExTera’ NextTera energy’ ENERGY & PARTNERS Z% —
Slide 17: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z% —
Slide 18: NEXTe@ra
NEXTe@ra ENERGY &%
Slide 19: 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 20: Potential drivers of variability to adjusted EPS
Potential drivers of variability to consolidated NextEra Energy adjusted EPS 2023 Potential Sources of Variability(1) FPL • Timing of investment ± $0.005 - $0.01 NextEra Energy Resources • Wind resource(2) (± 1% deviation) ± $0.005 - $0.01 • Interest rates (± 100 bps shift in yield curve) ± $0.005 -
Slide 21: Energy Resources Projected 2023 Portfolio Financial Information
NextEra Energy Resources Projected 2023 Portfolio Financial Information (includes NEER’s share of NEP assets) Value of pre-tax tax Remaining Adjusted credits included in Pre-Tax Cash Contract EBITDA(1) adjusted EBITDA(2) Debt Service (3) Other(4) Flows(5) Life (6) New Clean Energy Assets(7) $475 - $
Slide 22: Energy Resources Wind Production Index
Energy Resources Wind Production Index(1,2) 2022 2023 2ND QTR 3RD QTR 4TH QTR 1ST QTR 2ND QTR Location MW Apr May Jun QTR MW QTR MW QTR YE MW QTR MW Apr May Jun QTR YTD Midwest 5,037 122% 108% 104% 113% 5,037 97% 5,037 107% 108% 5,304 100% 5,504 115% 88% 69% 92% 96% West 4,734 119% 111% 108% 113% 5,
Slide 23: Energy Resources Renewables Development Program
Energy Resources Renewables Development Program(1,2) Wind 2023-2024 2025-2026 Northeast 111 0 Southeast 0 0 Midwest 1,054 959 Texas 1,533 665 West 1,327 0 Total 4,025 1,624 Solar 2023-2024 2025-2026 Northeast 140 790 Southeast 1,505 2,773 Midwest 1,845 1,450 Texas 400 1,495 West 1,419 500 Total 5,30
Slide 24: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges(1) - Summary of Activity ($ millions, after-tax) Primary Drivers: Asset/(Liability) Balance as of 3/31/23 ($2,420) Gas Infrastructure Amounts Realized During 2nd Quarter 65 Hedges $422 Change in Forward Prices (all positions) 1,014 Electricity related positions 432 Subtotal – I
Slide 25: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges(1) - Summary of Activity ($ millions) 2nd Quarter Asset / Asset / (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance (2) (3) Description 3/31/23 Realized Prices (Loss) Other 6/30/23 Pretax amounts at share Electricity related positions $ (1,508)
Slide 26: Non-Qualifying Hedges - Summary of Forward Maturity
Non-Qualifying Hedges(1) - Summary of Forward Maturity ($ millions) (2) Gain / (Loss) Asset / (Liability) Balance Total Description 6/30/23 2023 2024 2025 2026 2027 - 2050 2023 - 2050 Pretax amounts at share Electricity related positions $ (960) $ 111 $ 271 $ 214 $ 101 $ 263 $ 960 Gas Infrastructure
Slide 27: Reconciliation of GAAP Net Income to Adjusted Earnings (Q2 2023)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended June 30, 2023) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 1,152 $ 1
Slide 28: Reconciliation of GAAP Net Income to Adjusted Earnings (Q2 2022)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended June 30, 2022) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 989 $ 133
Slide 29: Reconciliation of GAAP Net Income to Adjusted Earnings (Six Months 2023)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2023) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 2,223 $ 2,9
Slide 30: Reconciliation of GAAP Net Income to Adjusted Earnings (Six Months 2022)
Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2022) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 1,864 $ (1,
Slide 31: Reconciliation of EPS to Adjusted EPS
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share 2021 2022 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 1.81 $ 2.10 Adjustments: Net losses associated with non-qualifying hedges 1.04 0.45 Change in unrealized lo
Slide 32: 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 33: 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 34: 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 35: NeExTera energy’
NeExTera energy’ PARTNERS Z
Slide 36: Reconciliation of Net Income to Adjusted EBITDA and CAFD
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) Q2 2023 Q2 2022 Net Income $ 89 $ 538 Add back: Depreciation and amortization 135 105 Interest expense 15 (414) Income taxes 19 83 Tax credits 225 214 Amortization of intangible assets/liabilities -
Slide 37: NextEra Energy Partners Wind Production Index
NextEra Energy Partners Wind Production Index(1,2) 2022 2023 2ND QTR 3RD QTR 4TH QTR 1ST QTR 2ND QTR Location MW Apr May Jun QTR MW QTR MW QTR YE MW QTR MW Apr May Jun QTR YTD Midwest 1,512 119% 109% 101% 110% 1,512 95% 1,672 106% 107% 1,811 100% 1,970 115% 82% 68% 91% 96% West 1,266 116% 110% 105%
Slide 38: 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% 19.6% >15% HoldCo Debt/EBITDA 5.0x - 6.0x 6.0x 4.5x <6.0x Ba1 Downgrade Actual Target Moody's (2) Range Threshold 20
Slide 39: NextEra Energy Partners Expected Cash Available for Distribution
NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2023 Run-Rate CAFD; $ MM) (2) (3) (4) 1) See Appendix for definition of Adjusted EBITDA and CAFD expectations; Project-Level Adjusted EBITDA represents Adjusted EBITDA before IDR Fees and Corporate Expenses. NextEra E
Slide 40: 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 and other expectations assume, among other things, normal weather and operating conditio
Slide 41: 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 42: 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 43: 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