Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Wolfe Research 2021 Utilities, Midstream, & Clean Energy Conference
30 slides from Nextera Energy's conference presentation, Sep 30, 2021
Slide 1: Wolfe Research 2021 Utilities, Midstream, & Clean Energy Conference
Wolfe Research 2021 Utilities, Midstream, & Clean Energy Conference Jim Robo Chairman and CEO, NextEra Energy September 30, 2021
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 to be 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 b
Slide 4: NextEra Energy's strategic focus remains on investing for customers, shareholders, and the environment
NextEra Energy’s strategic focus remains on investing for the benefit of customers, shareholders, and the environment NextEra Energy Strategic Focus • FPL’s continued smart investments further enhance its best-in- class value proposition – FPL residential customer bills remain well below the nationa
Slide 5: Clean energy transformation will further expand and accelerate over the coming years
We expect the industry’s clean energy transformation will further expand and accelerate over the coming years Disruptive Industry Changes Today Potential Cost per MWh Mid-2020s(1) AI / ($/MWh) Machine Learning Near-Firm Wind $20 - $30 EV & Renewables / Hydrogen Near-Firm Solar Storage $30 - $40 Mobi
Slide 6: Low-cost renewables with storage can help achieve full decarbonization of U.S. electric sector by 2050
Low-cost renewables combined with battery and hydrogen energy storage can help achieve full decarbonization of the U.S. electric sector by 2050 2050 Decarbonized U.S. Electric Sector(1) • Full decarbonization of the U.S. 2050 U.S. Capacity & Capex electricity sector creates GW $B opportunity for ~3,
Slide 7: Proposed settlement in 2021 base rate proceeding keeps bills low and accelerates solar buildout
Proposed settlement agreement in 2021 base rate proceeding keeps bills low and accelerates solar buildout FPL(1) Base Rate Request Proposed Settlement • Signatories to the proposed 4-year agreement include: – Office of Public Counsel (OPC), Florida Retail Federation (FRF), Southern Alliance for Clea
Slide 8: FPL Base Rate Request Proposed Settlement (Cont'd)
Proposed settlement agreement in 2021 base rate proceeding keeps bills low and accelerates solar buildout FPL(1) Base Rate Request Proposed Settlement (Cont’d) • Other features of the proposed agreement support FPL’s continued investment to benefit customers and innovation to plan for a cleaner ener
Slide 9: Energy Resources is well positioned to benefit as the US pursues electrification
Energy Resources is well positioned to benefit as the US pursues electrification to deliver economic carbon reductions Competitive Advantages • Scale advantage enabling us to buy, 2020 Top 10 US Capital Investors(1) build and operate cheaper $25 $24 – 5th largest capital spender in U.S.(1) $20 $19 $
Slide 10: Strong adjusted EPS and dividends per share growth expectations
We remain well positioned to continue our strong adjusted EPS and dividends per share growth NextEra Energy’s Adjusted Earnings Per Share Expectations • Expect adjusted EPS growth in the range of 6% to 8% off $2.77 - $2.55 - $2.97 2021 adjusted EPS $2.40 - $2.75 $2.54 • From 2018 to 2023 expect $2.3
Slide 11: NextEra Energy Partners
NExTera energy’ PARTNERS Z
Slide 12: NextEra Energy Partners achieved strong financial results in the first half of 2021
NextEra Energy Partners achieved strong financial results in the first half of 2021 NextEra Energy Partners First Half 2021 Results Adjusted EBITDA • Achieved year-over-year growth in $704 MM adjusted EBITDA and CAFD of ~9% $643 MM and ~11%, respectively ~9.5% • NEP’s recently announced growth acqui
Slide 13: Since the IPO, NEP has grown distributions by ~253% and delivered total unitholder return of ~318%
Since the IPO, NEP has grown distributions by ~253% and delivered total unitholder return of ~318% Annualized Total Unitholder Return LP Distributions(1) NEP vs. Indices $2.65 350% 318% 300% 250% 200% 162% 150% 125% 100% 100% 50% $0.75 0% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 20
Slide 14: NEP well positioned for 3rd party M&A success
Best-in-class O&M, repowering, and financing capabilities, a willingness to consider creative structures and new asset classes all position NEP well for 3rd party M&A success Third Party M&A Growth Opportunities • With Energy Resources Energy Resources O&M operating NEP assets, O&M Comparison ($/MWh
Slide 15: 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 $1,440–$1,620 MM 12% - 15% Growth(2) $2.76-$2.83 $2.46 $600–$680 MM Q4 2020 Q4 2021E Q4 2024E 12/31/2021 12/3
Slide 16: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z 16
Slide 17: NextEra Energy achieved strong financial results in the first half of 2021
NextEra Energy achieved strong financial results in the first half of 2021 NextEra Energy First Half 2021 Results Adjusted EPS • NEE achieved year-over-year growth of ~10% in adjusted EPS • Continued execution on our best- $1.38 in-class customer value $1.25 proposition at FPL – Regulatory capital e
Slide 18: Reconciliation of GAAP Net Income to Adjusted Earnings (Twelve Months Ended Dec 31, 2020)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 2020) Florida Power Gulf Energy Corporate & NextEra Energy, (millions, except per share amounts) & Light Power Resources Other Inc. Net Income (Loss) Attributable to NextEra
Slide 19: Reconciliation of GAAP Net Income to Adjusted Earnings (Six Months Ended June 30, 2021)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2021) Florida Pow er Gulf Energy Corporate & NextEra (m illions, except per share am ounts) & Light Pow er Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra En
Slide 20: 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 Pow er Gulf Energy Corporate & NextEra (m illions, except per share am ounts) & Light Pow er Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra En
Slide 21: 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 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 safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, bu
Slide 23: 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 24: NextEra Energy Partners
NExTera energy’ PARTNERS Ve
Slide 25: Expected Cash Available for Distribution
Expected Cash Available for Distribution (December 31, 2021 Run Rate CAFD; $ MM) $1,610-$1,790 ($20-$30) ($140-$150) $1,440-$1,620 ($185-$235) ($590-$670) ($40-$45) ($5-$15) $600-$680 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated (1) Adjusted EBITDA Expens
Slide 26: Reconciliation of Net Income to Adjusted EBITDA and CAFD
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) Six Months Six Months Ended Ended (millions) June 30, 2021 June 30, 2020 Net Income (loss) $ 369 $ (593) Add back: Depreciation and amortization 136 133 Interest expense (169) 823 Income taxes 48 (62) Tax cred
Slide 27: 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 28: 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 29: 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 30: 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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