Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (June 2024)
53 slides from Nextera Energy's investor presentation, June 2024
Slide 1: Europe Investor Presentation June 2024
Europe Investor Presentation June 2024 NextEra Energy NextEra Energy 1
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: NextEra Energy's model is unmatched, providing an attractive long-term value proposition
NextEra Energy’s model is unmatched, providing an attractive long-term value proposition for shareholders A power and technology convergence is reshaping demand for and 1 delivery of electricity in the U.S. We have unmatched scale, experience and technology that 2 differentiates us in meeting custom
Slide 4: NextEra Energy is powered by two industry-leading companies, strengthened by a common platform
NextEra Energy is powered by two industry-leading companies, strengthened by a common platform ~$253 B Enterprise Value1 ~69 GW in Operations2 Largest electric utility World leader in in the U.S. renewables and storage Renewables and Storage Power Delivery & Transmission Market Knowledge Fossil Gene
Slide 5: The power sector is at an inflection point
The power sector is at an inflection point Historical Going Forward U.S. 5-year load growth Flat power demand forecast jumps ~81% year over year1 ~3x renewables and storage growth in next Two-fold renewables Renewables growth growth: asset retirements 7 years vs. from asset retirements + load growth
Slide 6: U.S. power demand is expected to grow 38% over the next two decades
U.S. power demand is expected to grow 38% over the next two decades U.S. power demand, thousand TWh1 +38% ~4x increase in growth 5.3 ~4x increase in 4.8 power demand growth in the 4.4 next ~20 years +9% 4.0 vs. prior 3.8 3.8 3.8 3.8 ~20 years1 3.5 2000 2005 2010 2015 2020 2025 2030 2035 2040 Histori
Slide 7: Renewables are advantaged
Renewables are advantaged Estimated Costs of Firmed Generation Resources, 20301 $/MWh New Onshore Low Cost 25 - 50 Wind New Solar 40 - 60 Fast to Deploy New Natural Gas Combined Cycle 70 - 95 New Natural Gas Combined Cycle with 115 - 125 Carbon Capture2 2035 Small 115 - 140 Module Reactor Clean Stor
Slide 8: Alternative new-build generation sources are not as well positioned to meet growing power needs
Alternative new-build generation sources are not as well positioned to meet growing power needs New Gas Peaking Plant Capex $/kW ~80% increase ~$1,025 Natural gas price volatility ~$575 Natural gas pipeline constraints 20211 2028 2 EPA regulations uncertainty and broader regulatory risk New Gas Comb
Slide 9: Our unmatched scale, experience and technology enables predictable, superior returns
Our unmatched scale, experience and technology enables predictable, superior returns Transmission & Development Distribution Data & Analytics Supply Chain & EPC Best Origination & Team Financing Customer Relationships Portfolio Optimization Operations NextEra Energy 9
Slide 10: Our combined utility and renewables DNA creates unmatched competitive advantages
Our combined utility and renewables DNA creates unmatched competitive advantages We understand every Top 20 U.S. Renewables Operators by Capacity1 part of the energy value chain GW (2023) 34 We are focused on our customers We are low cost and top-decile operators 20 We deeply understand power and tr
Slide 11: We never stop improving with a record safety year in 2023 and record cost-savings effort in 2024
We never stop improving with a record safety year in 2023 and a record cost-savings effort in 2024 Safety Project Velocity OSHA Recordable Rate Cumulative Base O&M Savings No. of safety incidents Millions $2,819 100+ AI projects being 2.2 ~90% improvement in advanced safety performance 0.2 $29 2003
Slide 12: We have a long track record of delivering financial growth
We have a long track record of delivering financial growth 20-Year Performance Adjusted Earnings Per Share Dividends Per Share Operating Cash Flow $B 20-Year Total Shareholder Return1 1739% ~9% CAGR ~10% CAGR ~8% CAGR $1.87 $11.3 $3.17 543% 598% $0.62 $0.30 $2.3 2003 2023 2003 2023 2003 2023 NEE S&P
Slide 13: Our performance has provided a balance of predictability and growth
Our performance has provided a balance of predictability and growth 5-year 10-year 15-year 2018 - 2023 2013 - 2023 2008 - 2023 12.7% 12.5% 11.4% 2.2% 10.5% Annual Value 2.7% 8.8% 8.3% 8.1% 8.4% 3.1% Performance: 2.1% 2.0% 6.8% 3.2% 1.8% 3.5% Dividend Yield1 10.5% 9.8% 3.8% + 6.8% 8.3% 8.4% 6.3% Adj.
Slide 14: Florida Power & Light Company
Europe Investor Presentation June 2024 Florida Power & Light Company Florida Power & Light 14
Slide 15: As the nation's leading electric utility, FPL is well positioned to power Florida's economy
As the nation’s leading electric utility, FPL is well positioned to power Florida’s economy into the future Largest electric utility in the U.S. with ~5.9 MM customer accounts ~35 GW in operation1 Making smart capital investments for the benefit of customers Areas Served by FPL Natural Gas Nuclear D
Slide 16: Florida continues to experience substantial growth
Florida continues to experience substantial growth Florida GDP Forecast1 3rd largest2 and one of the Trillions fastest-growing states ~44% increase $1.8 $1.5 $1.6 trillion Florida GDP $1.3 14th largest economy in the world3 2023 2030 2040 4th best state to do business in 20234 1. S&P Global, May 202
Slide 17: Our customers benefit from the scale of the combined NextEra Energy platform
Our customers benefit from the scale of the combined NextEra Energy platform Typical 1,000 kWh Residential Customer Bill1 GOOD $193 Better pricing and terms on critical equipment $157 $121 Massive data resources that support generation and grid planning Better than top-decile operations National Sam
Slide 18: Our strategy has allowed us to deploy nearly $62 B of capital while maintaining low customer bills
Our strategy has allowed us to deploy nearly $62 B of capital while maintaining low customer bills Capital Employed Typical 1,000 kWh Residential Customer Bill Capital Employed1 Typical Customer Bill2 GOOD Billions GOOD $61.9 ~1.8% ~10.6% CAGR CAGR $121.19 $99.95 $22.7 2013 2014 2015 2016 2017 2018
Slide 19: FPL will continue to invest in assets that improve our customer value proposition
FPL will continue to invest in assets that improve our customer value proposition Projected Capital Expenditures, 2024-20271 Billions $8.8-$9.8 $8.0-$8.8 $8.0-$8.8 ~$34-$37 B 2024E 2025E 2026E-2027E Transmission & Distribution Annual Average Solar & Storage Other Generation Other (including Nuclear
Slide 20: We plan to invest ~$12 B in solar from 2024-2027
We plan to invest ~$12 B in solar from 2024-2027 as it continues to be the most cost-effective generation resource for customers Generation Mix Operating Solar Sites1 MWh 6% 1% 20% 38% 42% 2023 2033E2 73% 1% 19% Areas Served by FPL Natural Gas Nuclear Solar & Storage Purchased Power Operating Solar
Slide 21: Our projected solar and storage build is aligned with the targets from the 2022 Investor Conference
Our projected solar and storage build is aligned with the targets we outlined at the 2022 Investor Conference Cumulative Solar and Storage Additions1 Clean Energy Milestones2 GW ~8 GW ~100 GW 100% 30 83% 62% 52% 36% 5 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2025 2030 2035 20
Slide 22: FPL's 25 MW green hydrogen pilot reflects our culture of innovation
FPL's 25 MW green hydrogen pilot reflects our culture of innovation FPL’s hydrogen hub has been operating since December 2023 Solar energy from adjacent Cavendish Solar is powering five electrolyzers to produce and store hydrogen onsite Hydrogen replaces a portion of the natural gas used at the near
Slide 23: Our growth reinforces the virtuous cycle, enhancing our best-in-class customer value proposition
Our growth reinforces the virtuous cycle, enhancing our best-in-class customer value proposition Regulatory Capital Employed1 Billions Superior Customer ~9% Value CAGR $83.0-$86.0 Strong Virtuous Customer Financial Circle Satisfaction Position $49.3 Constructive Regulatory Environment 2021 2027E 1.
Slide 24: NextEra Energy Resources
Europe Investor Presentation June 2024 NextEra Energy Resources NextEra Energy Resources 24
Slide 25: NextEra Energy Resources is the leading North American clean energy company
NextEra Energy Resources is the leading North American clean energy company ~34 GW1 of generation and storage in operation 19% Solar 7% Nuclear Wind 60% 8% Battery 4% Natural Gas 2% Other States with Project(s) in Operation Wind World leader in wind, solar and storage Natural Gas Nuclear Universal S
Slide 26: After decades of flat demand, load growth has materialized quickly across many parts of the U.S. economy
After decades of flat demand, load growth has materialized quickly and across many parts of the U.S. economy Manufacturing Oil & Gas Data Centers Annual U.S. Manufacturing Permian Basin Load Construction Spend1 Demand for Oil & Gas2 U.S. Data Center Demand3 Billions GW GW $250 20 60 18 $200 ~4X Proj
Slide 27: Success in the future will require delivering physical solutions to specific locations
Success in the future will require delivering physical solutions to specific locations to serve growing load Historically Today and in the Future Renewables growth driven by economic Projects are required to be in replacement and state mandates specific locations at the right time Resources were add
Slide 28: Renewables and storage are positioned for growth due to lower costs and speed to market
Renewables and storage are positioned for growth due to their lower costs and speed to market advantages Estimated Costs of Firmed Generation Renewables & storage represent ~90% of Resources, 20301 active interconnection queue positions3 $/MWh New Onshore 25 - 50 Least cost Wind energy and capacity
Slide 29: We are the #1 originator for U.S. power and commercial & industrial customers
We are the #1 originator for U.S. power and commercial & industrial customers NextEra Energy Resources’ 2020-2023 Signed PPAs 20% market share in 3 renewables and storage origination1 ~40% 3 25+ years serving power customers ~60% 15 years serving 3 commercial & industrial customers Power Commercial
Slide 30: We are one of the largest providers of renewables and storage solutions to technology customers
We are one of the largest providers of renewables and storage solutions to technology customers 6+ GW Best Positioned to Serve Technology Customers of Renewables and Storage with Technology Customers1 We have significant site inventory – 300 GW2 pipeline 3 >3 GW in operating portfolio We have a trac
Slide 31: Our portfolio is diverse and long-term contracted
Our portfolio is diverse and long-term contracted Operating Portfolio, Including Backlog: Geographically Diverse3 51 GW1 and 482 Projects 1% 3% 4% CAISO/WECC 6% SPP 33% 194 PPA Customers MISO 17% ERCOT ISO NE/NYISO A-/A3 Counterparty Credit SERC PJM 20% 16% FRCC 15 Years Average Remaining PPA2 1. En
Slide 32: We believe we have the opportunity to develop 36.5 to 46.5 GW of new renewables and storage through 2027
We believe we have the opportunity to develop 36.5 to 46.5 GW of new renewables and storage through 2027 NextEra Energy Resources Development Program1,2 Backlog as of April 23, 2024; GW 2024 - 2025 2024 - 2025 2026 – 2027 2026 – 2027 2024 – 2027 Backlog Expectations Backlog Expectations Expectations
Slide 33: We expect to invest $65 to $70 B over the next four years
We expect to invest $65 to $70 B over the next four years, primarily driven by new renewables and storage investment NextEra Energy Resources Capital Expenditures 2024-20271 Billions $20.0 - $21.5 $16.0 - $17.5 $14.0 - $15.0 $15.0 - $16.0 2024E 2025E 2026E 2027E Renewables & Storage Transmission Gas
Slide 34: Adjusted earnings are expected to grow at a ~13% CAGR from 2023 to 2027
Adjusted earnings are expected to grow at a ~13% CAGR from 2023 to 2027 NextEra Energy Resources Adjusted Earnings Walk1 Billions $0.1 – $0.2 ($0.1) – ($0.2) ($0.1) – $0.1 $2.1 – $2.4 ($0.2) – ($0.3) $4.3 – $4.6 $2.8 ($0.2) – ($0.3) 2023 PTC Roll-Off Renewable Energy Transmission Gas Infrastructure
Slide 35: Financial Outlook
Europe Investor Presentation June 2024 Financial Outlook NextEra Energy 35
Slide 36: Our diversified and balanced funding plan is centered around stable cash flows
Our diversified and balanced funding plan is centered around stable cash flows supplemented by access to well-understood markets NextEra Energy Funding Plan 2024-20271 Billions ~$5 - $6 ~($20) ~$5 - $7 ~$44 - $48 ~$97 - $107 ~$40 - $44 ~$53 - $58 ~($30) – ($36) 2024-2027 Cash From Debt Corporate Tax
Slide 37: Regulated and contracted assets represent ~90% of adjusted EBITDA expectations
Regulated and contracted assets represent ~90% of NextEra Energy’s adjusted EBITDA expectations Regulated Adjusted EBITDA1,2 Adjusted EBITDA from Regulated1,2 and Long-Term Contracted Operations Strong and stable cash flows support long-term visibility ~10% <30% Constructive regulatory environment i
Slide 38: Operating cash flow accounts for ~99% of forecasted invested capital net of tax equity
Operating cash flow accounts for ~99% of forecasted invested capital net of tax equity and project finance NextEra Energy Invested Capital Walk 2024-20271 Billions ~$97 - $107 ~($44) - ($48) 99% ~$53 - $59 ~$53 - $58 2024-2027 Tax Equity & Project Finance Net Corporate Capex 2024-2027 Cash From Oper
Slide 39: Our equity unit issuance expectation represents a small and manageable percentage of market share
Driven by strong cash flow growth, our equity unit issuance expectation represents a small and manageable percentage of our market share Over 50% of our capex is being met by our operating cash flow2 Equity Issuances as % of Market Cap1 3.0% Tax equity and project 2.6% 2.6% finance supplements 2.5%
Slide 40: NextEra Energy's credit metrics are much stronger than the industry average
NextEra Energy’s credit metrics are much stronger than the industry average NextEra Energy ranking amongst 32 S&P 500 Utilities2: FFO-to-Debt CFO Pre-Working FFO Leverage GOOD GOOD Capital-to-Debt GOOD #1 Adj. FFO/Debt 4.9x 18.4% 18.7% 4.3x 14.3% #2 Debt/Adj. EBITDA 13.2% #1 Equity Ratio NextEra Ene
Slide 41: Our diverse banking relationships enable priority allocation and better terms
Our diverse banking relationships built over decades enable priority allocation and better terms to support our capital needs Large and Diversified Bank Group Robust Liquidity & Access to Capital1 Project Finance Over 85 banks $65 B Corporate Credit Credit and Tax Tax Equity Across 20 countries Equi
Slide 42: NextEra Energy has a differentiated track record
NextEra Energy has a differentiated track record Drill-down of S&P 500 companies 2013-2023 CAGR 392 Quality Investment grade1 ~14% 88 Scale Market capitalization > $100 B ~10% ~7.5% 42 Growth Adj. EPS CAGR > 8% past 20 years2 26 Performance ‘23 – ‘26E Annual Total Return3 > 10% 8 Return ‘23 – ‘25E D
Slide 43: We expect to continue our long track record of creating value for shareholders
We expect to continue our long track record of creating value for shareholders Adjusted earnings per share expectations1,2 Dividend per share1,2 Operating cash flow expectations1 $/share $/share Billions At or above adjusted 6% - 8% ~10% EPS growth rate 3.85 - 4.32 15 - 16 3.63 - 4.00 3.45 - 3.70 3.
Slide 44: NextEra Energy Partners
Europe Investor Presentation June 2024 NextEra Energy Partners NextEra Energy Partners 44
Slide 45: NextEra Energy Partners is focused on realizing unitholder value and executing on its transition plans
NextEra Energy Partners is focused on realizing unitholder value and executing on its transition plans NextEra Energy Partners’ Financial Expectations1 Adjusted EBITDA CAFD 12/31/2024 Run rate2 $1,900 - $2,100 MM $730 - $820 MM Unit Distribution 2024 DPU3 $3.73 annualized rate by year-end DPU Growth
Slide 46: Appendix
Europe Investor Presentation June 2024 Appendix NextEra Energy 46
Slide 47: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(2) 2017(2) 2018 2019 2020 2021 2022 2023 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $0.63 $
Slide 48: 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 49: 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 50: Cautionary Statement And Risk Factors (continued)
Cautionary Statement And Risk Factors That May Affect Future Results (continued) 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
Slide 51: Cautionary Statement And Risk Factors (continued)
Cautionary Statement And Risk Factors That May Affect Future Results (continued) 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 expectation
Slide 52: Cautionary Statement And Risk Factors (continued)
Cautionary Statement And Risk Factors That May Affect Future Results (continued) NEP or its pipeline investment may not be able to extend, renew or replace expiring or terminated power purchase agreements (PPAs), natural gas transportation agreements or other customer contracts at favorable rates or
Slide 53: Cautionary Statement And Risk Factors (continued)
Cautionary Statement And Risk Factors That May Affect Future Results (continued) 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 unitholder