Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Q3 2024 Earnings Presentation
44 slides from Nextera Energy's earnings presentation, Oct 23, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call October 23, 2024 NextEra Energy and NextEra Energy Partners 1
Slide 2: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements and Non-GAAP Financial Other Risk Factors That May Affect Information See Appendix for definition of Future Results These presentations refer to Adjusted Earnings, Adjusted These presentations include certain financial measures that EBITDA and Adjusted EBITDA forward-looking st
Slide 3: NextEra Energy delivered solid third quarter results, adjusted EPS up ~10%
NextEra Energy delivered solid third quarter results growing adjusted earnings per share by ~10% year-over-year NextEra Energy 3
Slide 4: Preparing for years to help our customers in moments like these
We have been preparing for years to help our customers in moments like these Storm Restoration Days1 / # of Customers Impacted Helene and Milton caused ~680,000 and ~2.0 MM Milton 4 ~2.0 million FPL customers to lose power, respectively Cat 3 (2024) – Restored essentially 95% of customers within Hel
Slide 5: The power sector is at an inflection point
The power sector is at an inflection point U.S. Power Demand1 (thousand TWh) Renewables and Storage Deployment Forecast2 (GW) ~6x increase vs the last 20 years +55% ~375-450 ~3x growth +9% 2.1 ~140 3.5 3.8 3.8 2000 2020 2040 Last 7 Years Next 7 Years Historical Incremental to 2020 1. Historical: Ene
Slide 6: Renewables and storage are a national solution to a national need for power
Renewables and storage are a national solution to a national need for power as other forms of generation have practical near to medium-term limitations Renewables remain advantaged Generation capacity in the U.S. is expected to nearly double by 20401 ~20 merchant nuclear plants in the U.S.2 Only 2 m
Slide 7: Well positioned to capitalize on expected U.S. power demand growth
NextEra Energy is well positioned to capitalize on the massive opportunity of expected power demand growth in the U.S. Energy Resources Renewables and Storage NextEra Energy Renewables and Storage Portfolio Origination (GW) ~2X ~81 GW 2021-2023 Avg. ~8 GW ~10.8 ~38 GW ~9.0 ~8.0 ~7.4 1 1 1 2 2021 202
Slide 8: FPL's earnings per share increased 5 cents
FPL’s earnings per share increased 5 cents from the prior-year comparable quarter FPL Results – Third Quarter Net Income EPS ($ MM) $1,293 $0.63 $1,183 $0.58 2023 2024 2023 2024 NextEra Energy 8
Slide 9: FPL focuses on smart capital investments that keep bills low
FPL continues to focus on making smart capital investments that keep bills low while delivering reliable electricity FPL EPS Contribution Drivers EPS Growth Regulatory Capital Employed1 ($ B) Third ~9.5% Quarter Growth $68.9 FPL – 2023 EPS $0.58 $62.9 Drivers: New investments $0.04 Other, including
Slide 10: Florida's economy remains healthy and FPL retail sales see customer growth
Florida’s economy remains healthy, and FPL’s retail sales continue to see positive impacts from strong customer growth Florida Economy & Customer Characteristics Retail kWh Sales (Change vs. prior-year) Customer Growth1,2 (Change vs. prior-year quarter; 000s) Third Quarter Vero 124.1 140 Impact Cust
Slide 11: NextEra Energy Resources adjusted earnings increased ~11.0%
NextEra Energy Resources’ adjusted earnings increased approximately 11.0% from the prior-year comparable quarter NextEra Energy Resources Results1 – Third Quarter GAAP Adjusted Net Income (Loss) EPS Net Income EPS ($ MM) ($ MM) $1,223 $0.59 $0.47 $979 $882 $0.43 ($230) ($0.11) 2023 2024 2023 2024 20
Slide 12: Energy Resources growth driven by new renewables and storage additions
NextEra Energy Resources’ growth was driven by new additions to our renewables and storage portfolio NextEra Energy Resources Third Quarter Adjusted EPS1 Contribution Drivers $0.15 $0.01 ($0.10) $0.01 ($0.03) $0.47 $0.43 Q3 2023 New Gas Customer NextEra Energy Other Q3 2024 Adjusted EPS Investment I
Slide 13: Energy Resources had a strong quarter of new origination
NextEra Energy Resources had a strong quarter of new renewables and storage origination NextEra Energy Resources Development Program1 ~3.0 GW of new renewables 2024 - 2025 2024 - 2025 2026 - 2027 2026 - 2027 2024 - 2027 and storage added to backlog COD & Backlog Expectations Backlog Expectations Exp
Slide 14: NextEra Energy adjusted EPS increased ~10%
NextEra Energy’s adjusted earnings per share increased ~10% versus the prior-year comparable quarter NextEra Energy EPS Summary – Third Quarter GAAP 2023 2024 Change FPL $0.58 $0.63 $0.05 NextEra Energy Resources ($0.11) $0.59 $0.70 Corporate and Other $0.13 ($0.32) ($0.45) Total $0.60 $0.90 $0.30 A
Slide 15: Well positioned to continue strong adjusted EPS growth
NextEra Energy remains well positioned to continue our strong adjusted earnings per share growth NextEra Energy’s Financial Expectations1 6% - 8% off 2024 adjusted EPS range $3.85 - $3.63 - $4.32 • Expect 6 to 8% annual growth rate through $3.45 - $4.00 $3.23 - $3.70 2027, off the 2024 adjusted EPS
Slide 16: NextEra Energy Partners grew distributions per unit by nearly 6%
NextEra Energy Partners grew distributions per unit by nearly 6% versus the prior- year comparable quarter NextEra Energy Partners Summary NEP Board declared a quarterly distribution of $0.9175 per common unit Announcing plans to repower an additional ~225 MW of wind facilities, bringing total backl
Slide 17: NEP adjusted EBITDA and CAFD declined year over year
NextEra Energy Partners' adjusted EBITDA and CAFD results declined year over year, predominantly driven by the $1.8 B divestiture of the Texas pipelines NextEra Energy Partners – Third Quarter Drivers1 Adjusted EBITDA CAFD ($ MM) ($ MM) $488 $16 ($49) $247 ($15) ($1) $453 ($46) ($31) $155 ($32) Inte
Slide 18: NEP evaluating options for convertible equity portfolio financing and cost of capital
NextEra Energy Partners is continuing to evaluate all options to address the remaining convertible equity portfolio financing buyouts and its overall cost of capital NextEra Energy Partners’ Financial Expectations1 Adjusted EBITDA 12/31/24 Run Rate2 $1,900 - $2,100 MM NextEra Energy Partners plans t
Slide 19: Q&A Session
Q&A Session NeExTera NexTera energy” ENERGY PARTNERS
Slide 20: Appendix
Appendix NeExTera NexTera energy” ENERGY PARTNERS
Slide 21: NextEra Energy
NEXTera’ ENERGYZ&
Slide 22: Potential drivers of variability to adjusted EPS
Potential drivers of variability to consolidated NextEra Energy adjusted EPS Balance of 2024 Potential Sources of Variability1 FPL Timing of investment ± $0.00 - $0.01 NextEra Energy Resources Wind resource2 (± 1% deviation) ± $0.00 - $0.005 Interest rates (± 50 bps shift in yield curve) ± $0.00 Ass
Slide 23: NextEra Energy credit metrics remain on track
NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics1 S&P A- Range Downgrade Threshold Actual 2023 Target 2024 FFO/Debt 13% - 23% 18% 18.4% >18% Moody’s Baa Range Downgrade Threshold Actual 2023 Target 2024 CFO Pre-WC/Debt 13% - 22% 17% 18.7% >17% CFO-Div/Debt 9% - 17% 12.3%
Slide 24: Energy Resources Projected 2024 Portfolio Financial Information
NextEra Energy Resources Projected 2024 Portfolio Financial Information (includes NEER’s share of NEP assets; $MM) Value of pre-tax tax Adjusted 3 4 Pre-Tax Remaining 1 credits included in Debt Service Other 5 6 EBITDA Cash Flows Contract Life adjusted EBITDA2 New Clean Energy Assets7 $1,000 - $1,30
Slide 25: NextEra Energy Resources Wind Production Index
NextEra Energy Resources Wind Production Index1,2 2023 2024 3RD QTR 4TH QTR 1ST QTR 2ND QTR 3RD QTR Location MW Jul Aug Sep QTR MW QTR YE MW QTR MW QTR MW Jul Aug Sep QTR YTD Midwest 5,504 74% 95% 81% 83% 5,504 97% 94% 5,788 96% 5,788 108% 5,788 77% 98% 99% 92% 99% West 5,409 99% 100% 93% 97% 5,774
Slide 26: Energy Resources Renewables Development Program
NextEra Energy Resources Renewables Development Program1,2 Wind (GW) Solar (GW) Storage (GW) Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Northeast 0.0 0.0 Northeast 0.4 0.3 Northeast 0.0 0.0 Southeast 0.0 0.0 Southeast 2.5 2.4 Southeast 0.0 0.0 Midwes
Slide 27: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges1 - Summary of Activity ($ millions, after-tax) Primary Drivers: Asset/(Liability) Balance as of 6/30/242 ($1,235) Interest Rate Hedges ($911) Amounts Realized During 3rd Quarter (35) Electricity Related Positions 295 Change in Forward Prices (all positions) (293) Gas Infrastruc
Slide 28: Non-Qualifying Hedges - Summary of Third Quarter Activity
Non-Qualifying Hedges1 - Summary of Third Quarter Activity ($ millions) 3rd Quarter Asset / Asset / (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance (2) Description 6/30/24 Realized Prices (Loss) 9/30/24 Pretax amounts at share Electricity related positions $ (875)
Slide 29: Non-Qualifying Hedges - Summary of Year-to-Date Activity
Non-Qualifying Hedges1 - Summary of Year-to-Date Activity ($ millions) Year to Date Asset/ Asset/ (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance Description 12/31/23 Realized Prices (Loss) 9/30/24 Pretax amounts at share Electricity related positions $ (784) $ 164
Slide 30: Non-Qualifying Hedges - Summary of Forward Maturity
Non-Qualifying Hedges1,2 - Summary of Forward Maturity ($ millions) Gain / (Loss) Asset / (Liability) Balance Total Description 9/30/24 2024 4th Qtr 2025 2026 2027 2028 - 2050 2024 - 2050 Pretax amounts at share Electricity related positions $ (600) $ 69 $ 213 $ 113 $ 78 $ 127 $ 600 Gas Infrastructu
Slide 31: Reconciliation of GAAP Net Income to Adjusted Earnings (Q3 2024)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended September 30, 2024) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 1,293 $ 1,223
Slide 32: Reconciliation of GAAP Net Income to Adjusted Earnings (Q3 2023)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended September 30, 2023) Energy Corporate & NextEra (millions, except per share amounts) FPL Resources Other Energy, Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 1,183 $ (230)
Slide 33: Reconciliation of EPS to Adjusted EPS (Twelve Months 2023)
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share (Twelve Months Ended December 31, 2023) NextEra Energy, Inc. Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 3.60 Adjustments - pretax: Net gains associated with non
Slide 34: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations NextEra Energy Resources, LLC. NextEra Energy Resources, LLC. (including subsidiaries as applicable) Adjusted EBITDA Adjusted EBITDA by Asset Category This presentation refers to adjusted earnings per share Adjusted EBITDA
Slide 35: 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 results to differ materially from those expressed Energy; effects on NextEra Energy of federal or electric generation, storage, transmission and statements” within the meaning of the safe
Slide 36: 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 NextEra Energy's ability to successfully identify, credit ratings; poor market performance and Energy’s limited partner interest in NextEra markets on NextEra Energy's ability
Slide 37: NextEra Energy Partners
NeExTera energy’ PARTNERS 2
Slide 38: Reconciliation of Net Income (Loss) to Adjusted EBITDA and CAFD
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) Q3 2024 Q3 2023 Net Income (Loss) ($83) $132 Add back: Depreciation and amortization 138 136 Interest expense 165 (24) Income taxes 30 28 Tax credits 222 212 Amortization of intangible assets
Slide 39: NextEra Energy Partners Wind Production Index
NextEra Energy Partners Wind Production Index1,2 2023 2024 3RD QTR 4TH QTR 1ST QTR 2ND QTR 3RD QTR Location MW Jul Aug Sep QTR MW QTR YE MW QTR MW QTR MW Jul Aug Sep QTR YTD Midwest 1,970 71% 90% 79% 80% 1,970 91% 91% 1,970 95% 1,970 106% 1,970 77% 99% 99% 92% 98% West 2,038 103% 99% 100% 101% 2,038
Slide 40: NextEra Energy Partners credit metrics remain on track
NextEra Energy Partners’ credit metrics remain on track NextEra Energy Partners’ Credit Metrics S&P1 BB Range Downgrade Threshold Actual 20234 Target 2024 FFO/Debt 12% - 20% 12% 14.6% >15% HoldCo Debt/EBITDA 5.0x - 6.0x 6.0x 5.8x <6.0x Moody’s2 Ba1 Range Downgrade Threshold Actual 20234 Target 2024
Slide 41: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA Expectations This presentation refers to adjusted NEP’s adjusted EBITDA expectations CAFD is defined as cash available NextEra Energy Partners does not EBITDA. Adjusted EBITDA represent projected (a) revenue less for distribution
Slide 42: 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 forward-looking statements. These risks and areas and adversely affect its business; the regulations; NEP does not own all of the land on statements” within the meaning of the federal unc
Slide 43: Cautionary Statement And Risk Factors (Cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (Cont.) transportation agreements or other customer established competitors; certain agreements subsidiaries' indebtedness or refinance, extend unitholders, as well as its ability to grow contracts at favorable rates or on a long-t
Slide 44: Cautionary Statement And Risk Factors (Cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (Cont.) distributions to its unitholders depends on the NEP unitholders may consider favorable; NEE’s distribution for each common unit, will impact the ability of NEP OpCo to make cash distributions to interest in NEP GP and the c