Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (February 2023)
52 slides from Nextera Energy's investor presentation, February 2023
Slide 1: February/March Investor Presentation
February/March 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 an industry-leading clean energy company
NextEra Energy is an industry-leading clean energy company 65 GW $145 B $159 B In Operation(1) Market TotalAssets(3) Capitalization(2) Clean Energy Generation Portfolio Integrated Supply Chain, Engineering and Construction The largest electric The world leader in utility in the United electricity ge
Slide 4: NextEra Energy has a long-term track record of delivering value to shareholders
NextEra Energy has a long-term track record of delivering value to shareholders Adjusted Earnings Per Share Total Shareholder Return(1) $2.90 ~8.3% CAGR 669% ~480% Outperformance $0.88 541% vs. S&P 500 Utilities 379% S&P 500 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 255% 226% D
Slide 5: Historical track record and growth prospects offer an attractive value proposition
Considering our historical track record and growth prospects, NextEra Energy offers an attractive value proposition Adjusted EPS CAGR 2012 - 2022 Total Shareholder Return 2012 - 2022 Top 10 Power Companies(1) Top 10 Power Companies(1,2) 9.8% 528% 7.4% 6.4% Average Average excluding 261% excluding 5.
Slide 6: In 2022, NextEra Energy had one of its best execution years ever
In 2022, NextEra Energy had one of its best execution years ever, continuing its long track record of outstanding operational and financial performance 2022 NextEra Energy Highlights 15.3% ~8,000 MW Record ~14% adjusted ROE at record year of savings adjusted EPS NextEra Energy wind, solar and from 2
Slide 7: A clear vision and strategy to extend our leadership in the clean energy transition
NextEra Energy has a clear vision and a clear strategy to extend our leadership in the U.S. clean energy transition which we believe will reduce costs for our customers NextEra Energy Decarbonization Strategy Lead Lead Lead Decarbonization Decarbonization Transmission Decarbonize of the U.S. Buildou
Slide 8: Clean energy transition accelerated by multiple renewable demand drivers
The clean energy transition occurring across the U.S. is being accelerated by multiple renewable demand drivers that support our decarbonization strategy Demand Drivers for New Renewables Economic Sustainability Regulatory Renewables Volatile Oil Cost of and Corporate Federal and Lowest Cost and Nat
Slide 9: Attractive renewables economics driving transformation of the U.S. generation fleet
Attractive renewables economics are expected to continue driving a transformation of the U.S. generation fleet Estimated Costs of Generation Resources Late-2020s(1) ($/MWh) Near-Firm Wind Near-Firm Wind(2) $14 - $21 Near-Firm Solar Near-Firm Solar(2) $17 - $24 Existing Natural Gas Existing Natural G
Slide 10: Renewables let customers avoid volatile natural gas and wholesale power prices
Renewables provide customers the opportunity to avoid volatile natural gas and wholesale power prices and instead lock-in low-cost energy supply for decades Market Prices for Renewables Alternatives(1) Forward Gas Prices Forward Power Prices 7x24 ($/MMBtu) 7x24 ($/MWh) $5 $50 1/31/2023 1/31/2023 $4
Slide 11: Competitive position of renewables improves as the Inflation Reduction Act offsets inflation
The competitive position of renewables continues to improve as the impacts of the Inflation Reduction Act have more than offset the inflation observed over the last two years Prevailing Inflation Impacts on Levelized Costs(1) Impacts of Inflation on Levelized Costs(1) $/MWh Comparison in 2023(2) $3/
Slide 12: Florida Power & Light is recognized as one of the best and most innovative electric providers
Florida Power & Light is recognized as one of the best and most innovative electric providers in the U.S. Florida Power & Light Company 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 ~33 GW in operati
Slide 13: FPL's blueprint for achieving its Real Zero carbon emissions goal
FPL’s blueprint for achieving its Real Zero carbon emissions goal involves strategic actions to drive customer value, including enhanced reliability and resiliency FPL’s Decarbonization Opportunity(1) Solar & Battery Storage + T&D Investment + Green Hydrogen 92 GW 50 GW 16 GW New solar New battery o
Slide 14: FPL's Areas of Focus
At FPL, we remain focused on identifying smart capital investments to further improve our outstanding customer value proposition FPL’s Areas of Focus • Unyielding commitment to low bills, Operational Cost Effectiveness(1) high reliability and excellent $100 Adjusted Regressed customer service Top Qu
Slide 15: FPL has significant investment opportunities embedded in its settlement agreement
FPL has significant investment opportunities embedded in its settlement agreement that are expected to generate customer savings and further enhance reliability FPL 2022 - 2025 Capital Expenditures Projected Recovery Opportunity Status Investment(1) Mechanism SoBRA (2024 and 2025) Twenty-four sites
Slide 16: Energy Resources is the leading North American clean energy company
Energy Resources is the leading North American 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 ~30 GW(2) of clean energy in Universal Solar operation Storage 22 GW wind Other Pip
Slide 17: Energy Resources Competitive Differentiators
We believe Energy Resources’ competitive advantages position us to be the clean energy solutions provider of choice for a wide variety of customers Energy Resources Competitive Differentiators Advanced analytics i that enable superior site identification and design Scale of project pipeline and inte
Slide 18: Demand for renewables has never been stronger and Energy Resources is well-positioned
We believe demand for renewables has never been stronger and Energy Resources is well-positioned to continue growing its portfolio Superior Renewables Development Growth Renewables Portfolio Growth(1) U.S. Renewables and GW 25 Storage Growth(2) 20 ~13% CAGR 15 10 5 2023 - 2026 2027 - 2030 0 2003 200
Slide 19: Energy Resources Development Program
Energy Resources remains focused on capitalizing on decarbonization and executing on our industry-leading development program of new renewables and storage Energy Resources Development Program(1) (Signed Contracts and Expectations as of January 25, 2023) 2023 - 2024 2023 - 2024 2025 - 2026 2025 - 20
Slide 20: Energy Resources' renewable capacity expected to exceed any U.S. company's total installed capacity by 2026
Energy Resources’ total renewable generation capacity is expected to exceed the total installed capacity for ALL generation types of any company in the U.S. by 2026 2022 Total U.S. Installed Capacity by Company(1) (ALL Generation Types, GW) 69 Energy Resources Renewable Capacity 57 FPL Total Install
Slide 21: Decarbonization could create a ~$4 trillion renewables and storage opportunity
Decarbonization of the entire U.S. economy could create a ~$4 trillion renewables and storage investment opportunity through 2050 2050 Decarbonized U.S. Economy: Growth in Renewables and Storage Opportunity(1) ~$4 T ~33x ~7,000 GW Excess energy converted to hydrogen to ~$2 T decarbonize other ~17x s
Slide 22: Commercial and industrial customers need comprehensive clean energy solutions
Commercial and industrial customers need comprehensive clean energy solutions to help reduce their energy costs and carbon footprint Commercial and Industrial Customers Customer Operations Goal Integrated Clean Energy Solution 1 Analyze • Understand energy usage Lower • Evaluate energy costs Energy
Slide 23: Integrated Clean Energy Solution
Energy Resources is better positioned than anyone in the industry to leverage its teams, tools, data and decades of experience to design comprehensive clean energy solutions Integrated Clean Energy Solution Decarbonize Decarbonize Electricity Usage Business Operations Scope 2 Scope 1 Reduce Firming
Slide 24: Green hydrogen will play an essential role in future decarbonization
We believe green hydrogen will play an essential role in future decarbonization and are already observing the massive tailwind it could provide for new renewables demand Growing Green Hydrogen Opportunity Recent Announced Opportunities Applications • 140 tons-per-day (TPD) clean • Ammonia production
Slide 25: NextEra Energy Transmission is an industry leader in competitive transmission
NextEra Energy Transmission is an industry leader in competitive transmission and has a strong track record of success across the U.S. NextEra Energy Transmission Highlights Recent Highlights Near-Term Growth Prospects • Transmission business • Decarbonization is creating grew net income ~20% tremen
Slide 26: NextEra Energy's Financial Expectations
NextEra Energy is well positioned to continue our strong adjusted EPS and dividends per share growth NextEra Energy’s Financial Expectations(1) • Recently extended 6 - 8% annual growth rate through 2026, off the 2024 adjusted EPS expectations range $3.63 - $4.00 • From 2021 to 2026 expect $3.45 - $3
Slide 27: Strong balance sheet and banking relationships allow efficient financing
We believe our strong balance sheet and banking relationships allow us to finance efficiently in both stable economic environments and during periods of disruption NextEra Energy Ratings(1) Utility Credit Ratings(2) S&P Moody’s Fitch 60% NextEra Energy Issuer Credit Rating A- Baa1 A- 50% Florida Pow
Slide 28: 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) 382 Investment grade(1) >9% ~8% ~6% 106 Market capitalization > $60 B 43 Adj. EPS CAGR > 8% past 15 years(2) NEE Median Median S&P 500 UTY 25 ‘22 –
Slide 29: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 30: NextEra Energy Partners' Portfolio
NextEra Energy Partners is a best-in-class clean energy company with a market capitalization of over $12 B(1) NextEra Energy Partners’ Portfolio(2) ~7,570 MW of wind ~1,530 MW of solar ~240 MW paired storage States with Project(s) in Operation ~4.3 Bcf total natural gas pipeline capacity(3) Wind Sol
Slide 31: NextEra Energy Partners' Growth Advantages
NextEra Energy Partners unitholders benefit from Energy Resources’ operating and development platform coupled with the transformational impact of the IRA NextEra Energy Partners’ Growth Advantages NEP CAFD(1) Growth Avenues • Benefits from Energy Resources’ best-in-class O&M Acquisitions Third-party
Slide 32: Energy Resources' Renewable Portfolio
Energy Resources has a very large renewable portfolio that offers clear growth visibility to NextEra Energy Partners Energy Resources’ Renewable Portfolio Available to NextEra Energy Partners ~36 GW - ~23 GW 59 GW ~17 GW ~19 GW Energy Resources' Current Renewables Additional Potential Current Portfo
Slide 33: Disciplined approach to third-party M&A
NextEra Energy Partners takes a disciplined approach to evaluating third-party M&A and plans to focus on clean energy assets while retaining balance sheet strength Third-Party M&A at NextEra Energy Partners • NextEra Energy Partners remains focused on growth from renewables ~300 GW(1) – Acquired ~49
Slide 34: Storage co-location and repowering optionality
NextEra Energy Partners’ large and diverse existing wind and solar portfolio has repowering and storage co-location optionality Organic Growth Storage Co-Location Repowerings • Large operating portfolio • Proven ability to successfully represents a significant execute repowerings opportunity set to
Slide 35: Liquidity and Financial Flexibility
NextEra Energy Partners’ is well-positioned for future growth with ample liquidity, significant interest rate protection and diverse financing sources Liquidity and Financial Flexibility Sources of Capital • Revolving credit facility of IPO - 2016 2017 - 2022 ~$2.5 B • Final funding of ~$180 MM from
Slide 36: NextEra Energy Partners' Financial Expectations
NextEra Energy Partners is well-positioned to deliver on its best-in-class long-term growth objectives NextEra Energy Partners’ Financial Expectations Annualized LP DPU(1) Year-End Portfolio Run-Rates ($ MM) $5.11 - $5.68 $2,220 - $4.57 - $2,420 $4.94 $4.08 - $1,785 - $4.30 $1,985 $3.64 - $3.74 $3.2
Slide 37: NextEra Energy Partners' Value Proposition
NextEra Energy Partners presents a compelling investment opportunity with total return potential of 16% to 20% per year through at least 2026 NextEra Energy Partners’ Value Proposition Drill-down of S&P 1000 Companies Illustrative Investor Total & NextEra Energy Partners Return Potential ~1% 16% - 2
Slide 38: Appendix
Appendix NexTera’ Nexvera energy’ ENERGY PARTNERS
Slide 39: NextEra Energy
NEXTCra’ ENERGY &
Slide 40: 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(1) 2023 FFO/Debt 13% - 23% 20% 20.8% >20% Debt/EBITDA 3.5x - 4.5x 4.2x <4.5x Baa Downgrade Actual Target Moody’s Range Threshold 2022(1) 2023 CFO Pre-WC/Debt 13% - 22% 17
Slide 41: 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) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(2) 2017(2) 2018 2019 2020 2021 2022 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 0.82 $ 1.02 $ 0.99 $ 1.18 $
Slide 42: 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 43: 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 44: 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 45: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 46: 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 47: Expected Cash Available for Distribution (2022 Run-Rate)
NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2022 Run-Rate CAFD; $ MM) $1,975 - $2,175 ($25 - $35) ($157) $1,785 - $1,985 ($270 - $330) ($755 - $855) ($40 - $45) ($5 - $15) $685 - $775 Project-Level Corporate IDR Fees Adjusted Debt Service(2) Pre-Tax Non-Cash Ma
Slide 48: Expected Cash Available for Distribution (2023 Run-Rate)
NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2023 Run-Rate CAFD; $ MM) $2,417 - $2,617 ($35 - $45) ($157) $2,220 - $2,420 ($350 - $400) ($1,020 - $1,120) ($40 - $50) ($10 - $20) $770 - $860 Project-Level Corporate IDR Fees Adjusted Debt Service(2) Pre-Tax Non-Ca
Slide 49: 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 50: 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 51: 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 52: 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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