Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — J.P. Morgan 2018 Energy Conference
28 slides from Nextera Energy's conference presentation, Jun 19, 2018
Slide 1: J.P. Morgan 2018 Energy Conference
J.P. Morgan 2018 Energy Conference Jim Robo Chairman and CEO June 19, 2018
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
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 actual results to d
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP financial measures can be foun
Slide 4: NextEra Energy is comprised of two strong businesses supported by a common platform
NextEra Energy is comprised of two strong businesses supported by a common platform • ~$75 B market capitalization(1) • ~47 GW in operation(2) • ~$94 B in total assets(3) • The largest electric utility • The world leader in in the United States by electricity generated retail MWh sales from the wind
Slide 5: We have a long-term track record of delivering value to shareholders
We have a long-term track record of delivering value to shareholders Adjusted Earnings Per Share(1) Total Shareholder Return(2) $6.70 $6.19 40% 70% $5.71 34% 60% $5.30 60% $4.97 $4.39 $4.57 30% 50% $3.84 $4.05 $4.30 $3.49 22% 38% 40% $3.04 20% $2.63 30% 24% 12% 10% 20% 10% 0% 0% '05 '06 '07 '08 '09
Slide 6: We are well positioned to continue this track record
We are well positioned to continue this track record Wholesale & Service FPL Coal FPL Territory Retirements Energy Expansion Services FPL FPL Battery FPL T&D FPL New Solar Infrastructure Generation Storage Expect $40 B - $44 B(1) FPL Capital New Wind Generation Asset of capital Recycling Growth Mode
Slide 7: Florida Power & Light's focus is on providing customers low bills, high reliability and outstanding customer service
Florida Power & Light’s focus is on providing customers low bills, high reliability and outstanding customer service FPL – Areas of Focus FPL 1,000-kWh Residential Bill FPL Service Reliability (“SAIDI”)(4) $140 ~$138 ~101 minutes $120 ~$119 ~$109 ~$99 $100 $80 ~56 minutes $60 Good $40 $20 $- FPL FPL
Slide 8: NextEra Energy announced agreement to acquire Gulf Power, Florida City Gas, and the Stanton and Oleander natural gas power plants
NextEra Energy announced agreement to acquire Gulf Power, Florida City Gas, and the Stanton and Oleander natural gas power plants Transaction Overview • Addition of attractive regulated electric and natural gas franchises that are an excellent complement to our existing Florida operations – NextEra
Slide 9: Gulf Power and Florida City Gas are an excellent geographic and strategic fit for NextEra Energy
Gulf Power and Florida City Gas are an excellent geographic and strategic fit for NextEra Energy Strategic Rationale • Complementary service Tallahassee Tallahassee Tallahassee Tallahassee Tallahassee Tallahassee territories to FPL Pensacola Pensacola Pensacola Pensacola Pensacola Pensacola Jacksonv
Slide 10: Energy Resources' growth is driven by its best-in-class development skills
Energy Resources’ growth is driven by its best-in-class development skills Energy Resources Development Skills Wind and Solar Portfolio(1) 20,000 Customer 15,000 Relationships MW Engineering/ Regulatory 10,000 Construction Management 5,000 0 Best-In-Class Integrated Environmental/ Development Produc
Slide 11: Disruptive Industry Changes
We are well positioned to capitalize on and respond to potentially disruptive changes to our industry in the next decade Disruptive Industry Changes Potential Cost per kWh Post-2020(1) Shale (¢/kWh) Gas 3.5 - 5¢ 4 - 5¢ 3 - 4¢ 3 - 4¢ Big Data Renewables /Storage 2 - 2.5¢ Generation Wind Solar Gas Coa
Slide 12: Adjusted earnings per share expectations and expected accretion from the transactions
The announced agreement to acquire Gulf Power, Florida City Gas, and the Stanton and Oleander natural gas power plants are expected to be immediately accretive to earnings upon closing NextEra Energy’s Adjusted Earnings Per Share Expectations(1) • Upon closing, transactions are $9.40 - $8.70 - $9.95
Slide 13: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 14: Since the IPO, NEP has grown distributions by ~124% and delivered total unitholder return of 107%
Since the IPO, NEP has grown distributions by ~124% and delivered total unitholder return of 107% Annualized Total Unitholder Return LP Distributions(1) NEP vs. Indices $1.68 107% 100% 90% 80% 70% 60% 50% 50% 40% 33% 30% $0.75 20% 10% 0% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 201
Slide 15: NEP's value proposition is built upon four core strengths
NEP’s value proposition is built upon four core strengths NextEra Energy Partners’ Core Strengths High-Quality Portfolio(1) Financial Strength and Flexibility Issuer Credit ~3.7 GW Rating(4) Year-end 2017 18-Yr A3 Renewables >90% Ba1/BB/BB+ Remaining Counterparty Capacity of Project Debt ~1.2x & Tax
Slide 16: We have extended NEP's long-term outlook for distribution growth through 2023
We have extended NEP’s long-term outlook for distribution growth through 2023 NextEra Energy Partners’ Long-Term Distribution per Unit Growth Expectations(1) Annual 12% - 15% Growth(2) $1.62 Q4 2017 Q4 2023E 1) Represents expected fourth quarter annualized distributions payable in February of the fo
Slide 17: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 17
Slide 18: NEXT@ra
NEXT@ra ENERGY &%
Slide 19: Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share 1) Net of approximately $0.08 of income tax benefit at FPL 19
Slide 20: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the effect of non- qualifying hedges, the transitional impacts of tax reform, NEP investment gains, as well as unr
Slide 21: 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 22: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) effectiveness of NextEra Energy's and FPL's risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historica
Slide 23: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 24: 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 25: 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 26: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) A change in the jurisdictional characterization of some of the Texas pipeline entities' assets, or a change in law or regulatory policy, could result in increased regulation of these assets, which could have a material adve
Slide 27: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The natural gas pipeline industry is highly competitive, and increased competitive pressure could adversely affect NEP's business; NEP may not be able to access sources of capital on commercially reasonable terms, which wou
Slide 28: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) Holders of NEP's common units and preferred units currently cannot remove NEP GP without NEE’s consent; NEE’s interest in NEP GP and the control of NEP GP may be transferred to a third party without unitholder consent; The