Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (June 2023)
47 slides from Nextera Energy's investor presentation, June 2023
Slide 1: June Investor Presentation
June 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 anchored by two strong businesses supported by a common platform 67 GW $151 B $165 B In Operation(1) Market TotalAssets(3) Capitalization(2) Clean Energy Generation Portfolio Integrated Supply Chain, Engineering and Construction Best-in-clas
Slide 4: NextEra Energy is well positioned for future growth given its focus on regulated investments
NextEra Energy is well positioned for future growth given its focus on regulated investments and contracted renewables NextEra Energy: Investment Proposition Capital Expenditures(1) Adjusted EBITDA(2) FPL NEER ~75% T&D & Renewables 12% 25% 4% ~30% 30% ~ 70% 84% 45% ~88% T&D & Renewables Settlement B
Slide 5: Long-term track record of delivering shareholder value
NextEra Energy has a long-term track record of delivering shareholder value 15-Year Adjusted Earnings Per Share Total Shareholder Return(1) $2.90 ~8.3% CAGR 669% ~480% Outperformance $0.88 541% vs. S&P 500 Utilities 379% S&P 500 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 255% 22
Slide 6: Clear strategy to extend our renewables leadership position
NextEra Energy has a clear strategy to extend our renewables leadership position NextEra Energy Decarbonization Strategy Decarbonize Decarbonize Invest Decarbonize the U.S. the U.S. in Ourselves Power Economy Transmission Sector (C&I) Lead by Replicate Our Leverage Our Build to Support Example Succe
Slide 7: Renewables provide customers the opportunity to avoid volatile natural gas and wholesale power prices
Renewables provide customers the opportunity to avoid volatile natural gas and wholesale power prices Market Prices for Renewables Alternatives(1) Forward Gas Prices Forward Power Prices 7x24 ($/MMBtu) 7x24 ($/MWh) $4.0 $45 5/31/2023 5/31/2023 $40 $3.5 ~29% ~40% increase in increase in forward gas f
Slide 8: Competitive position of renewables continues to improve
The competitive position of renewables continues to improve creating significant headroom versus other energy sources Prevailing Inflation Impacts on Levelized Costs(1) Impacts of Inflation on Levelized Costs(1) $/MWh Comparison in 2023(2) $3/MMbtu Gas $3/MMbtu Gas New Gas-Fired Unit(3) ~44% Existin
Slide 9: 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(1) 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 ~34 GW in oper
Slide 10: FPL's Areas of Focus
FPL remains focused on delivering outstanding customer value and deploying capital productively FPL’s Areas of Focus • Unyielding commitment to customer value proposition Superior – Low bills, high reliability and Customer Value excellent customer service • Efficiency to drive best-in-class operatio
Slide 11: Customer value proposition founded on low-cost position and best-in-class operations
Our customer value proposition is founded on a low-cost position and best-in-class operations FPL 1000-kWh Operational Cost Residential Bill(1) $100 Effectiveness(3) Adjusted Regressed ~27% Top Quartile Lower than Top Decile ~$187 national Good ~$166 average $/MWh Non-Fuel ~$136 O&M FPL 2022: Log/Lo
Slide 12: FPL investment opportunities embedded in its settlement agreement
FPL has significant investment opportunities embedded in its settlement agreement that provide tremendous visibility for the business FPL 2022 - 2025 Capital Expenditures Projected Recovery Opportunity Status Investment(1) Mechanism SoBRA (2024 and 2025) 24 sites projected to be ~$2.7 B Solar Base R
Slide 13: FPL's Real Zero plan presents a tremendous opportunity to invest
FPL’s Real Zero plan presents a tremendous opportunity to invest while also creating value for customers FPL’s Decarbonization Opportunity(1) • Solar plus storage is expected to provide several benefits to customers 2022 2045E – Lowest-cost generation option 3% 1% – Hedge against variable fuel costs
Slide 14: FPL has a clear blueprint for achieving its Real Zero goal
FPL has a clear blueprint for achieving its Real Zero carbon-emissions goal FPL Real Zero (1) Solar & Battery Storage + T&D Investment + Green Hydrogen 92 GW 50 GW 16 GW New solar New battery of green H2 capacity storage capacity(2) capacity Decarbonizing FPL is expected to have no incremental cost
Slide 15: 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 ~31 GW(2) of clean energy in Universal Solar operation Storage 23 GW wind Other Pip
Slide 16: Energy Resources remains focused on building renewables for various customer classes
Energy Resources remains focused on building renewables for various customer classes Energy Resources’ Key Focus 2020 - 2022 Signed PPAs(1) Customers Power Customers • Credibility in the regulatory approval process • Long-term renewables contracts and BOTs(2) 39% Commercial & Industrial Customers 50
Slide 17: Energy Resources is well positioned to extend its renewable leadership position
Energy Resources is well positioned to extend its renewable leadership position Competitive Advantages • Scale advantage enabling us to buy, build and operate cheaper – Superior supply chain relationships • Cost of capital advantages – Investment-grade balance sheet • Development expertise – >20-yea
Slide 18: Competitive advantages drive Energy Resources' significant market share
We believe competitive advantages drive Energy Resources’ significant market share GW 2019 - 2022 Renewables Signed Contracts(1) 30 25 Wind Solar Storage 20 ~38% ~16% ~29% share of share of share of 26.1 GW 70.8 GW 14.6 GW 15 market market market 10 5 0 Energy Resources Solar Wind Storage In 2022 al
Slide 19: Energy Resources industry-leading renewables development program
Energy Resources is focused on executing its industry- leading renewables development program Energy Resources Development Program(1) (Development Expectations as of April 25, 2023) 2023 - 2024 2023 - 2024 2025 - 2026 2025 - 2026 2023 - 2026 COD Expectations COD Expectations Expectations Wind 4,040
Slide 20: Energy Resources' renewable capacity expected to exceed any U.S. company's total 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 Up to Energy Resources Renewable Capacity ~41 GW 57 Incr
Slide 21: U.S. clean energy transition presents near-term and long-term opportunity
The U.S. clean energy transition presents both a near-term and long-term opportunity for new renewables and storage U.S. Renewables and Storage Opportunity Near-Term(1) Long-Term(2) 2023 - 2026 2027 - 2030 2021 - 2050 (Full Economy Decarbonization) ~180 GW ~250 GW ~7,000 GW U.S. renewables U.S. rene
Slide 22: Green hydrogen as a significant driver of renewables demand post-2026
We believe green hydrogen has the potential to be a significant driver of renewables demand post-2026 Green Hydrogen Opportunity Energy Resources’ Hydrogen Advantages Green Hydrogen Applications Decades of Extensive • Agriculture renewables land and development interconnect • Refineries expertise po
Slide 23: NextEra Energy Transmission industry leader with strong track record
Our regulated business at NextEra Energy Transmission is an industry leader and has a strong track record of success across the U.S. NextEra Energy Transmission Highlights Recent Highlights Potential Pipeline • ~$400 MM in transmission and Opportunity Type Projects CapEx substation upgrades recently
Slide 24: 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 $3.63 - $4.00 range $3.45 - $3.23 - $3.70 • From 2021 to
Slide 25: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 26: NextEra Energy Partners is a best-in-class clean energy company
NextEra Energy Partners is a best-in-class clean energy company with a market capitalization of ~$12 B(1) NextEra Energy Partners’ Portfolio(2) ~7,560 MW of wind ~1,530 MW of solar ~240 MW paired storage States with Project(s) in ~4.3 Bcf total natural Operation Wind gas pipeline capacity(3) Solar S
Slide 27: Simplification and recapitalization plan for 100% renewable strategy
NextEra Energy Partners is executing a simplification and recapitalization plan to allow it to singularly focus on a 100% renewable energy strategy Simplification Plan Key Steps Benefits 1. Sell gas pipeline assets and buy out three near-term convertible equity portfolio financings (CEPF)(1) 100% Ma
Slide 28: Impact of Plan – Renewable Energy Content
Upon execution of the plan, NextEra Energy Partners would transition to a best-in-class 100% pure-play renewable energy investment opportunity Impact of Plan – Renewable Energy Content Today(1) Future Natural Gas Pipelines 20% 100% Renewable Assets Renewable Assets 80% With this plan, NextEra Energy
Slide 29: NextEra Energy Partners' competitive advantages
We believe NextEra Energy Partners’ competitive advantages enhance its growth runway and drive long-term unitholder value Competitive Advantages • Benefits from Energy Resources’ Scale best-in-class O&M and advantage development expertise AI / Data Development – Proprietary algorithms to manage Anal
Slide 30: Investing in long-term contracted clean energy assets
NextEra Energy Partners invests in long-term contracted clean energy assets with attractive cash flows NextEra Energy Partners Asset Suitability Attractive Characteristics of Assets: Potential New Development at Long-Term Contracts Existing Portfolio Energy Resources Stable Cash Flows Green Other Ba
Slide 31: Three ways to deliver on growth objectives
NextEra Energy Partners has terrific visibility with three ways to deliver on its growth objectives and execute on its 100% renewables strategy NextEra Energy Partners’ Growth Opportunities Acquisitions Organic Third-Party from Energy Growth Acquisitions Resources Access to ~1.3 GW of ~300 GW(1) ~38
Slide 32: Well-positioned to execute transition plan and simplify capital structure
NextEra Energy Partners is well-positioned to execute on its transition plan and simplify its capital structure Liquidity and Financial Flexibility • Significant financing capacity Sources of Capital Going Forward • Revolving credit facility of ~$2.5 B High-Yield Convertible Common • NextEra Energy
Slide 33: NextEra Energy Partners' Financial Expectations
We continue to see 12-15% LP distribution growth through 2026, although in the current capital markets environment, expect to grow at or near the bottom end of that range NextEra Energy Partners’ Financial Expectations Annualized LP DPU(1) Year-End Portfolio Run-Rate(3) ($ MM) $5.11 - $2,220 - $2,42
Slide 34: Appendix
Appendix NexTera’ Nexvera energy’ ENERGY PARTNERS
Slide 35: NextEra Energy
NEXTCra’ ENERGY &
Slide 36: NextEra Energy's credit metrics remain on track
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 37: 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 38: 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 39: 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 40: 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 41: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 42: NextEra Energy Partners' credit metrics remain on track
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 43: 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 44: 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 45: 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 46: 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 47: 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