Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Edison Electric Institute Conference 2020
80 slides from Nextera Energy's conference presentation, November 2020
Slide 1: Edison Electric Institute Conference
Edison Electric Institute Conference November 2020
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 comprised of strong businesses supported by a common platform
NextEra Energy is comprised of strong businesses supported by a common platform • ~$143 B market capitalization(1) • ~55 GW in operation(2) • ~$126 B in total assets(3) • The largest electric utility in the United States by retail MWh sales • Provides electric service • The world leader in to over 4
Slide 4: NextEra Energy's strategic focus remains unchanged
NextEra Energy’s strategic focus remains unchanged NextEra Energy Strategic Focus • FPL and Gulf Power remain focused on delivering outstanding customer value – Value of FPL’s smart capital investments has never been more clear – Ongoing capital investment program at both companies remains on track
Slide 5: 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) $2.09 50% 119% 43% 120% 40% 100% 32% 30% 26% 80% $0.62 60% 48% 53% 20% 40% 10% 20% '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 0% 0% One Year Three Year
Slide 6: Growth strategy has led to real change in relative position
Over a sustained period of time, our growth strategy has led to real change in relative position Top 20 Global Utility Equity Market Capitalization(1) As of 6/1/2001 ($ MM) As of 10/31/2020 ($ MM) Rank Market Cap Rank Market Cap 1 $38,574 1 $143,424 NextEra Energy 2 $38,185 2 $80,933 3 $34,476 3 $74
Slide 7: Core strategy has focused on ESG impacts for more than 25 years
Our core strategy has focused on the importance of ESG impacts for more than 25 years • 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 be the mo
Slide 8: Our strategy has generated real value for all stakeholders
Our strategy has generated real value for all stakeholders ESG Highlights(1) Environment Customers • 47% better CO2 emissions rate than • 30% lower bills than the national average industry average • 63% better operating costs than industry • World’s leading wind, solar, and battery average storage p
Slide 9: Well positioned to continue our track record of growth
We are well positioned to continue our track record of growth Wholesale FPL FPL Gas & Service FPL Coal Under- Energy Utility Territory Retirements grounding Services Expansion FPL Hydrogen Battery FPL Solar FPL T&D FPL New Infrastructure Generation Storage Expect ~$60 B FPL of capital Capital Gulf G
Slide 10: Industry's disruptive factors will expand and accelerate
We expect the industry’s disruptive factors will further expand and accelerate over the coming years Disruptive Industry Changes Today Potential Cost per MWh Post-2023/2024(1) AI / ($/MWh) Machine Learning Near-Firm Wind $20 - $30 Big Data Renewables / Storage Near-Firm Solar $30 - $40 Natural Gas $
Slide 11: Florida Power & Light is one of the best utility franchises in the U.S.
Florida Power & Light is recognized as one of the best utility franchises in the U.S. Florida Power & Light Company • One of the largest electric utilities in the U.S. • Vertically integrated, retail rate-regulated • 5+ MM customer accounts • ~28 GW in operation • ~$12 B in operating revenues • ~$61
Slide 12: FPL has significant investment opportunities across its system
FPL has significant investment opportunities across its system that are expected to generate customer savings and further enhance reliability FPL 2019 – 2022 Capital Expenditures Projected Recovery Opportunity Status Investment(1) Mechanism Dania Beach Clean Energy Expected COD in 2022 ~$900 MM(2) B
Slide 13: Growth in regulatory capital employed to drive FPL net income growth
Growth in regulatory capital employed is expected to drive FPL’s net income growth through 2022 FPL Regulatory 2019-2022 Capital Employed(1) Capital Expenditures $B $50 $47.0 - $49.0 $40 $33.7 $23 B - $30 $25 B $20 $10 T&D Storm Hardening All Other T&D $0 Solar Other Generation Other, Including Nucl
Slide 14: FPL customer value focus
At FPL, we will continue to focus on the long-term strategy that has delivered our best-in-class customer value proposition FPL Customer Value Focus Operational Service Cost Effectiveness(1) Reliability(2) $/Retail MWh minutes ~$11.10 – ~55 ~5% ~50 $11.78 $11.75(4) ~10% Good Reduction Good Improveme
Slide 15: Commitment to the communities we serve
FPL and Gulf Power have an unwavering commitment to the communities we serve Customer Focused Pandemic Response Accelerated Our smart capital One-time credit bill relief credits investments help of up to of $200 MM create jobs, fuel recovery $200 per provide customer investment in local communities
Slide 16: Acquisition of Gulf Power expanded Florida footprint
The acquisition of Gulf Power expanded NextEra Energy’s Florida footprint and regulated operations Gulf Power • Acquisition closed 1/1/2019 • Located in Northwest Florida • Over 470,000 customers • ~2,400 MW of generation in operation – ~1,600 MW coal – ~700 MW natural gas – ~75 MW solar • $1.5 B in
Slide 17: Opportunities to improve Gulf Power customer value proposition
Significant opportunities exist to improve the Gulf Power customer value proposition 2019 Operational Cost Effectiveness(1) 1,000-kWh Residential Bill(2) $100 ~$142 Gulf Power 2018 Adjusted Regressed ~$132 = $29.38/MWh Top Quartile ~$115 Top Decile ~$96 Good $/Retail MWh FPL 2018 = Gulf Power 2019 $
Slide 18: Gulf Power bill increased while FPL's declined
Despite growing regulatory capital employed at roughly half the rate of FPL over the past 10 years, Gulf Power’s bill has increased significantly while FPL’s has declined 2008 vs. 2018 Historical Comparison Regulatory Capital Employed(1) 1,000-kWh Residential Bill(2) $33.7 B ~$137 ~$106 ~$106 ~$99 ~
Slide 19: Gulf Power 2019–2022 capital initiatives
We have identified several opportunities to improve the customer value proposition through smart capital investments Gulf Power 2019 – 2022 Capital Initiatives Opportunity Status Projected Recovery Investment(1) Mechanism North Florida Resiliency Development in process; target ~$550 MM Base rates Co
Slide 20: First year of ownership: execution at Gulf Power
In the first year of ownership, NextEra Energy successfully executed on its strategy at Gulf Power Gulf Power 2019 Execution Summary Operational Regulatory Cost Effectiveness(1) Capital Employed(2) $/Retail MWh ~$32 ~$3.3 B ~$3.0 B ~20% ~11% Good Reduction Increase ~$25 2018 2019 2018 2019 1) GAAP O
Slide 21: Gulf Power 2019 execution summary
Execution of our plans at Gulf Power generated significant value creation for our customers and our shareholders in 2019 Gulf Power 2019 Execution Summary Service OSHA Adjusted Reliability(1) Recordable Rate(2) Earnings (Minutes) ($ MM) ~101 ~1.74 $200 ~81 $160 ~1.15 Good ~20% Good ~35% 25% Improvem
Slide 22: Energy Resources is the leading North American clean energy company
Energy Resources is the leading North American clean energy company Energy Resources • World leader in electricity generated from the wind and sun • ~24 GW(1) of generation in operation Wind – ~16 GW wind Natural Gas Nuclear – ~3 GW solar Universal Solar – ~3 GW nuclear Storage – ~2 GW natural gas/o
Slide 23: Energy Resources' renewables development opportunities have never been stronger
We believe Energy Resources’ renewables development opportunities have never been stronger Low Cost Battery Battery Renewables Storage Storage Nuclear/Coal- Nuclear/Coal- Technology to-Renewables to-Renewables Improvements Buy Build Switching Switching Cheaper Cheaper ~80 GW Federal Tax Development
Slide 24: Energy Resources' competitive advantages and development program
Energy Resources’ competitive advantages position us to continue to capitalize on what we believe is the best renewables development environment in our history Energy Resources Development Program(1) (Signed Contracts as of October 21, 2020) 2019 – 2020 2019 – 2020 2021 – 2022 2021 – 2022 2019 – 202
Slide 25: Economics of renewables expand the opportunity set
The economics of renewables continue to rapidly expand the opportunity set MW Originated Per Four-Year Period 25,000 ~22,000 20,000 MW 15,000 10,000 ~8,500 5,000 ~4,800 0 2009 - 2012 2013 - 2016 2017 - 2020 Energy Resources is well positioned to take advantage of the accelerating disruption within t
Slide 26: Technology improvements have improved wind and solar economics
Technology improvements and capital cost declines have significantly improved wind and solar economics Wind & Solar Technology Levelized Cost of Levelized Cost of Electricity from Wind Electricity from Solar (Including Production Tax Credits) (Including Investment Tax Credits) $/MWh $/MWh $70 $160 $
Slide 27: Wind expected to be cheapest source of generation
Wind is expected to be the cheapest source of electric generation even after production tax credits phase down Expected Drivers of Future Wind Levelized Cost of Energy (LCOE) Reductions • Increased generation as a result of Unsubsidized Wind LCOE Roadmap(1) larger turbines $/MWh – Viability of large
Slide 28: Energy storage cost declines
Increased manufacturing capacity has resulted in energy storage cost declines and the ability to create low-cost near-firm wind and solar Energy Storage Costs Battery Pack 4-Hour Cost Relative to Capacity(1) Battery Storage Adder(2) $/kWh GWh $/MWh $1,400 350 $80 $71-$81 $70 $1,200 300 $60 $1,000 25
Slide 29: Solar expected to be cheapest source other than wind
Solar is expected to be the cheapest source of electric generation other than wind after investment tax credit steps down Expected Drivers of Future Solar Levelized Cost of Energy (LCOE) Reductions • Continued module cost declines Solar LCOE Roadmap(1) $/MWh • Continued balance of system (BoS) savin
Slide 30: Declines in battery costs enable low-cost near-firm renewables
Continued declines in battery costs are expected to result in the ability to generate near-firm wind and solar at low costs even after tax credits phase down Expected Drivers of Future Energy Storage Cost Reductions Storage Adder Roadmap(1) $/MWh • Continued battery pack cost declines and efficiency
Slide 31: Near-firm renewables expected to create long-term demand
Low cost, near-firm renewables are expected to create significant long-term demand Wind & Solar Market Potential(1) Average Annual Average Annual Wind Additions Market Solar Additions Growing ~15% annually on ~18 – 20 average GW/Year ~12 – 15 GW/Year ~10 GW/Year ~10 GW/Year 2019 - 2022 2023 - 2030 2
Slide 32: Many end-uses for hydrogen
The many end-uses for hydrogen make it a leading pathway to a zero-carbon future Power Sector Transport Industry Buildings Backup Remote Combined Power Generation Trucks Forklifts Ammonia Methanol heat and power Hydrogen Recip. Trains on non- Steel Hydrogen Buses electrified Refining Turbines Engine
Slide 33: Hydrogen provides a pathway to a zero-carbon future
Hydrogen provides a pathway to achieving a zero-carbon future in power as well as through the electrification of transportation and industrial sectors Hydrogen Opportunity(1) Potential 2050 Zero Carbon • NextEra Energy is an early 2019 Renewables Deployment mover in green hydrogen ~5-8x ~19-24x • Wi
Slide 34: Increased financial expectations and extended growth outlook
We recently increased the range of our financial expectations and extended our long-term growth outlook NextEra Energy’s Adjusted Earnings Per Share Expectations • Adjusted EPS ranges updated to reflect 4-for-1 stock split(3) $2.77 - $2.55 - $2.75 $2.97 • Increased adjusted earnings $2.40 - $2.18 -
Slide 35: NextEra Energy value proposition
NextEra Energy presents a compelling investment opportunity NextEra Energy Value Proposition Drill-down of S&P 500 Companies Annual Total Return Potential 353 Investment grade(1) ~10% - 12% ~7% 218 Market capitalization > $20 B 121 Adj. EPS CAGR > 8% past 5 years NEE (4) (2) Median S&P 500 48 ‘19 –
Slide 36: NextEra Energy Partners
NexTera energy’ PARTNERS 2
Slide 37: NextEra Energy Partners is a best-in-class clean energy company
NextEra Energy Partners is a best-in-class clean energy company NextEra Energy Partners’ Portfolio(1) • Stable cash flows supported by: – Long-term contracts with credit- worthy counterparties – Geographic and asset diversity • ~5,330 MW of renewables – ~4,575 MW wind – ~750 MW solar • ~4.3(2) Bcf t
Slide 38: NEP's 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 Diversified ~5.3 GW Ability to Rating(4) Expected TTM(5) Payout Ratio 15-Yr Portfolio with Renewables Capacity opportunisticall
Slide 39: NEP growth strategy
NEP continues to focus on investing in long-term contracted clean energy assets with strong creditworthy counterparties and attractive cash flows Growth Strategy Wind Long-Term Organic Wind Solar Contract Growth Clean Strong Energy Operations Technology Attractive Battery Acquisitions Asset to Stora
Slide 40: Acquisitions from Energy Resources provide visibility to growth
Acquisitions from Energy Resources provide clear visibility to continued growth at NEP Energy Resources’ Renewable Portfolio Since NEP’s IPO(1) GW ~28 GW - ~4 GW 32 GW 30 ~14 GW 25 20 ~9 GW ~5 GW 15 10 ~10 GW 5 0 NEER's MW Placed in MW Sold to NEP Current Additional Current Portfolio Renewables Serv
Slide 41: NEP positioned to benefit from wind and solar growth
NEP is well positioned to benefit from the significant wind and solar growth that is expected over the coming years NEP & Long-Term Renewables Demand U.S. Renewable Energy Capacity through 2030 U.S. Renewables Penetration ~500 GW ~40% ~15% CAGR in MWh generation ~200 GW ~100 GW 9% ~28 GW – 32 GW ~5
Slide 42: NEP acquisition of ~1,100-MW portfolio and convertible equity financing
NEP announced the acquisition of interests in a ~1,100-MW portfolio of renewables projects and a new convertible equity portfolio financing Transaction Summary • NEP is acquiring a 40% interest in ~1,000-MW renewables portfolio and 100% interest in 100-MW solar-plus-storage project – ~19 year remain
Slide 43: Transaction summary (continued)
NEP announced the acquisition of interests in a ~1,100-MW portfolio of renewables projects and a new convertible equity portfolio financing Transaction Summary (continued) • As a result of the transaction, increased year-end 2020 run rate Adjusted EBITDA expectations range to $1.300 B – $1.480 B • I
Slide 44: NEP to purchase interests in ~1,100-MW portfolio
NEP agreed to purchase interests in a ~1,100-MW portfolio of long-term contracted renewables projects from Energy Resources for ~$320 MM(1) NEP Portfolio Additions(2) Remaining Project Technology MW(3) COD PPA Years Blue Summit III Wind 200 2019 14 Taylor Creek Solar 75 2020 20 Harmony Solar 75 2020
Slide 45: Longest-dated, lowest-cost convertible equity portfolio financing
The financing is the longest-dated and lowest-cost convertible equity portfolio financing to date Enhanced 10-Year CEPF Structure Commitment Largest CEPF equity Size ~$1.1 B partnership yet Draw Timing Can occur over multiple years Enhances flexibility and and in partial amounts provides liquidity P
Slide 46: Transaction strengthens NEP's balance sheet
This transaction significantly strengthens NEP’s balance sheet and further enhances its post-transaction potential financing capacity up to ~$2.4 B Transaction Benefits NEP Financing Capacity(1) ($MM) • Post-transaction, NEP expected to have ~$1.15 B of capacity ~$900 ~$2,400 under its revolving cre
Slide 47: CEPF financing flexibility
CEPFs provide a significant amount of flexibility in managing the buyout which retains option value for NEP unitholders CEPF Financing Flexibility – Potential Options Base Case Alternative 1 Alternative 2 Alternative 3 Time Re-lever Choose Issue whether to NEP buyout unlevered around assets to buyou
Slide 48: NEP positioned to deliver on growth objectives
NEP remains well positioned to deliver on its growth objectives NextEra Energy Partners Adjusted EBITDA and CAFD Expectations Adjusted EBITDA CAFD 12/31/20 Run Rate(1) $1,300 – $1,480 MM $560 – $640 MM 12/31/21 Run Rate(2) $1,440 – $1,620 MM $600 – $680 MM Unit Distributions 2020(3) $2.40 - $2.46 an
Slide 49: NextEra Energy Partners value proposition
NextEra Energy Partners presents a compelling investment opportunity NextEra Energy Partners Value Proposition Drill-down of S&P 1000 Companies & NEP Total Return Potential ~4% 16% - 19% 639 Debt / EBITDA(1) < 5.25x 12% - 15% 77 Dividend yield > 3% 12 DPS growth > 60% past 4 years 2 ‘18 – ‘22E DPS C
Slide 50: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z 50
Slide 51: NEXT@Cra
NEXT@Cra ENERGY &%
Slide 52: No company has done more to reduce carbon emissions
We believe that no company in any industry has done more to reduce carbon emissions and to confront climate change Clean Energy Business Percentage of Adjusted Earnings by Source(1) 67% of Adjusted 14% Earnings from generation is from 30% zero-carbon sources 75% Non- Fossil Sources 17% 26% of Adjust
Slide 53: One of the lowest emissions profiles of any utility
We have one of the lowest emissions profiles of any utility in North America Reducing Our Carbon Emissions(1) Average CO2 Emissions Rate: NEE vs. U.S. Electric Power Sector 52% reduction in 1500 CO2 emissions rate(2) 1300 1100 CO2 20% reduction in Lbs/ absolute CO2 tons 900 emitted(2) MWh 700 47% be
Slide 54: FPL modernization of generation fleet
In 2001, FPL began the modernization of its generation fleet, which is now one of the cleanest and most efficient in the country FPL Clean Energy Generation • Executing one of the world’s largest solar expansions – FPL 30x30 plan to install 30 million solar panels in Florida by 2030 – Solar Together
Slide 55: Energy Resources' renewable backlog vs. other companies
Energy Resources’ renewable backlog is now larger than the operating wind and solar portfolios of all but two other companies in the world Energy Resources Renewable Portfolio(1) (GW) 25 20 19.6 18.8 18.4 15.0 15 13.4 12.1 10.8 10.4 10 9.8 9.5 9.3 9.1 8.6 5 0 (2) Operating A B Backlog C D E F G H I
Slide 56: Best-in-class customer value proposition
We provide our customers a best-in-class value proposition of low bills, high reliability, clean energy solutions and excellent customer service Supporting Our Customers Low Bills(1) High Reliability(2) Typical 1000 kWh Monthly Bill SAIDI ~$137 ~131 ~$96 30% 62% lower ~51 better FPL National Average
Slide 57: Diverse, highly skilled team
We are focused on attracting and retaining a diverse, highly skilled team that can drive innovative solutions for the benefit of customers and shareholders Diverse and Inclusive Teams • Diversity and Inclusion (D&I) D&I Metrics – Executive D&I council Women Minorities – Corporate D&I council 25% 26%
Slide 58: Commitment to safety
Our commitment to safety is a hallmark of our operating culture and a reflection of our focus on execution Commitment to Safety 2.5 2.2 ~82% improvement in safety 2.0 performance since 2003 1.5 OSHA_ Recordable Rate(1) 1.0 0.5 0.4 0.0 2003 2005 2007 2009 2011 2013 2015 2017 2019 2020 YTD (2) 1) OSHA
Slide 59: Supporting local communities
We recognize the importance of building relationships and supporting local communities where we live and work Supporting Our Communities >$1.6 B in ~$90 B state and >$18 MM capital local taxes charitable invested and fees giving in since 2010 paid in 2019 2019 >$25 MM in FPL Office of Tribal energy
Slide 60: Sustainability governance
Our approach to sustainability engages all levels of the company from the board of directors to our employees Sustainability Governance Board of Directors and Board Committees • Oversight of the execution of our strategy including issues which could impact the long-term sustainability of our company
Slide 61: Corporate governance and oversight
Our track record of delivering strong financial and operational performance begins with sound corporate governance and oversight Governance Highlights Board Composition(1) Governance Best Practices • 12 of 13 directors are independent • Special meeting threshold of 20% • Independent lead director •
Slide 62: NextEra Energy's credit metrics
NextEra Energy’s credit metrics remain on track Credit Metrics A- Downgrade Actual Target S&P Range Threshold 2019(1) 2020 FFO/Debt 13%-23% 21% 22.8% >21% Debt/EBITDA 3.5x-4.5x 3.6x <4.5x Baa Downgrade Actual Target Moody’s Range Threshold 2019(1) 2020 CFO Pre-WC/Debt 13%-22% 17% 19.9% >17% CFO-Div/
Slide 63: Contracted Wind and Solar Development Program
Contracted Wind and Solar Development Program(1) Wind Location MW Solar Location MW Solar Location MW 2019: 2019: 2021-2022 (cont.): Emmons-Logan ND 216 Quitman GA 150 Excelsior NY 280 Crowned Ridge I SD 200 Shaw Creek SC 75 Trelina NY 80 Blue Summit III TX 201 Dougherty GA 120 Watkins Glen NY 50 Sh
Slide 64: Energy Storage Development Program
Energy Storage Development Program(1) Project Location MW Duration Project Location MW Duration 2019: Post – 2022: Montauk NY 3 8.0 Proxima CA 5 4.0 Minuteman MA 5 2.0 Sonoran AZ 250 4.0 Total 2019: 8 Storey AZ 88 3.0 CT DEEP CT 3 2.0 2020: Skeleton Creek OK 200 4.0 Crow Creek CA 20 3.0 Rush Springs
Slide 65: Reconciliation of GAAP Net Income to Adjusted Earnings
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 2019) Florida Power Gulf Energy Corporate & NextEra Energy, (millions) & Light Power Resources Other Inc. Net Income (Loss) Attributable to NextEra Energy, Inc. $ 2,334 $ 180
Slide 66: Reconciliation of EPS to Adjusted EPS
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share(1) (2) (2) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 0.62 $ 0.58 $ 0.81 $ 0.82
Slide 67: 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 68: 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 69: Cautionary Statement (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 and FPL's risk management tools associated with their hedging and trading pr
Slide 70: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 71: CEPF sources and uses
The ~$1.1 B CEPF is expected to fund the acquisition and recapitalize NEP’s balance sheet, while also providing financing capacity to support future growth Sources and Uses Sources ($MM) Uses ($MM) From Existing NEP Assets $750(1) 2020 Acquisitions ~$320(2) & 2020 Acquisitions (Draw #1) NEP Assets:
Slide 72: NEP year-end CAFD run-rate walk
NextEra Energy Partners Year-End CAFD Run-Rate Walk ($MM) $700 $24 – $29 ($11 – $16) $5 – $10 ($15 – $20) $15 – $20 ($18 – $23) $600 $560 – $640 $560 – $640 $500 Portfolio acquisition Recapitalization of NEP drives CAFD accretion floating debt offsets accretion; $400 essentially substitutes converti
Slide 73: Convertible Equity Portfolio Financing Summary Terms
Convertible Equity Portfolio Financing Summary Terms Key Terms Summary Funding Amount: Kohlberg Kravis Roberts & Co (“KKR”) commitment of $1,095.1 MM Draw Timing: Funds to be drawn in two separate closings, the first expected on or about December 18, 2020, the other by June 2021 Issuer: Genesis Sola
Slide 74: NEP's credit metrics
NEP’s credit metrics remain on track Credit Metrics BB Downgrade Actual Target S&P(1) Range Threshold 2019(4) YE 2020(4) HoldCo Debt/EBITDA 4.0x - 5.0x 5.0x 5.1x 4.0x - 5.0x Ba1 Downgrade Actual Target Moody's(2) Range Threshold 2019(4) YE 2020 (4) Total Consolidated Debt/EBITDA <7.0x >7.0x 6.1x 4.5
Slide 75: Expected Cash Available for Distribution (2020 run rate)
Expected Cash Available for Distribution(1) (December 31, 2020 Run Rate CAFD; $ MM) $1,440-$1,620 ($20-$30) ($110-$120) $1,300-$1,480 ($185-$235) ($485-$565) ($40-$45) ($5-$15) $560-$640 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated (2) (4) Adjusted EBITDA
Slide 76: Expected Cash Available for Distribution (2021 run rate)
Expected Cash Available for Distribution(1) (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 (2) Adjusted EBITDA Exp
Slide 77: 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 78: 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 79: Cautionary Statement (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 80: Cautionary Statement (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
NextEra Energy — Edison Electric Institute Conference 2020 on 6ix