Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Barclays Energy-Power Conference 2022
34 slides from Nextera Energy's conference presentation, Sep 7, 2022
Slide 1: Barclays Energy-Power Conference
Barclays Energy-Power Conference Kirk Crews Executive VP and CFO, 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 These presentations include forward-looking statements within the meaning of the federal securities laws. The forward-looking statements included herein are based, in part, upon federal and state tax laws in place prior to the ena
Slide 3: NextEra Energy is an industry-leading clean energy company
NextEra Energy is an industry-leading clean energy company 62 GW $167 B $152 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: We have a 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 Total Shareholder Return(1) $2.55 ~8.4% CAGR 976% $0.76 ~620% Outperformance vs. S&P 500 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Dividends Per Share 357% $1.54 274% 264% 244% 242%
Slide 5: Clear vision and strategy to extend leadership in U.S. clean energy transition
We have a clear vision and clear strategy to extend our leadership in the U.S. clean energy transition NextEra Energy Decarbonization Strategy Decarbonize Decarbonize Decarbonize Ourselves U.S. Electric U.S. Economy Sector Lead by Example Replicate Our Leverage Our Leading Success Platform Achieve R
Slide 6: We believe we have the industry's leading growth prospects
We believe we have the industry’s leading growth prospects FPL FPL FPL FPL T&D Under- Battery Energy Infrastructure grounding FPL Solar Storage Services Wholesale FPL Green Solar Fleet Generation Hydrogen & Service Together Hydrogen Territory Electrification Modernization Expansion Expect ~$85-$95 B
Slide 7: 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 High Oil Cost of and Corporate Federal and High Power and Natural RPS(2) Pric
Slide 8: Inflation Reduction Act expands tax incentives for clean energy
The Inflation Reduction Act (“IRA”) significantly expands tax incentives for clean energy, which we believe will further stimulate renewables development in the U.S. Growth Opportunities with IRA IRA Provisions Potential Growth Opportunity for NextEra Energy • Wind and solar credits extended • Incre
Slide 9: FPL – Areas of Focus
At FPL, we remain focused on identifying smart capital investments to further improve our outstanding customer value proposition FPL – Areas of Focus • Unyielding commitment to Regulatory Capital Employed(1) customer value proposition $69 B - $71 B – Low bills ~9% $49 B CAGR – High reliability – Exc
Slide 10: FPL's blueprint for achieving its Real Zero carbon emissions goal
FPL’s blueprint for achieving its Real ZeroTM 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
Slide 11: Energy Resources' competitive advantages
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 12: ~$4 trillion renewables and storage investment opportunity through 2050
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 13: Energy Resources Development Program
Energy Resources remains focused on capitalizing on the push towards decarbonization to continue expanding our industry-leading renewables and storage portfolio Energy Resources Development Program(1) (Signed Contracts and Expectations as of July 22, 2022) 2022 - 2023 2022 - 2023 2024 - 2025 2024 -
Slide 14: NextEra Energy's Financial Expectations
We remain well-positioned to continue our strong adjusted EPS and dividends per share growth NextEra Energy’s Financial Expectations(1) • After two previously announced increases, reflects ~10% compound annual $3.45 - growth from 2021 to the high- $3.23 - $3.70 end of the 2025 adjusted EPS $2.98 - $
Slide 15: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 16: NextEra Energy Partners' Portfolio
NextEra Energy Partners is a best-in-class clean energy company with a market capitalization of over $15 B(1) NextEra Energy Partners’ Portfolio(2) ~6,640 MW of wind ~1,530 MW of solar ~90 MW paired storage ~4.3 Bcf total natural Wind gas pipeline capacity(3) Solar Storage Pipeline Stable cash flows
Slide 17: NextEra Energy Partners' Competitive Advantages
Energy Resources’ operating and development platform provides significant benefits to LP unitholders NextEra Energy Partners’ Competitive Advantages • Benefits from Energy Resources’ best-in-class O&M Scale advantage and development expertise AI / Data Development – Supports organic growth Analytics
Slide 18: NextEra Energy Partners' three avenues for growth
NextEra Energy Partners has three avenues to deliver on its growth objectives NextEra Energy Partners Growth Opportunities NEER Portfolio Available to NEP ~35 GW - Acquisitions ~17 GW 52 GW from Energy Resources ~18 GW ~17 GW Third-Party Organic Acquisitions Growth Energy Current Additional Current
Slide 19: NextEra Energy Partners' Financial Expectations
NextEra Energy Partners remains well-positioned to deliver on its long-term growth objectives NextEra Energy Partners’ Financial Expectations Annualized LP DPU(1) YE 2022 Portfolio Run-Rate(3) ($ MM) $4.45 - $1,785 - $1,985 $4.95 $3.98 - $4.30 $3.55 - $3.74 $3.17 - $3.25 $2.83 $685 - $775 2021 2022E
Slide 20: Appendix
Appendix NexTera’ Nexvera energy’ ENERGY @ PARTNERS Z 20 —
Slide 21: NextEra Energy
NEXTCra’ ENERGY &
Slide 22: 2022 Inflation Reduction Act – Key Provisions
The recently passed Inflation Reduction Act significantly expands tax incentives for clean energy, which we believe will further stimulate renewables development in the U.S. 2022 Inflation Reduction Act (“IRA”) – Key Provisions(1) • Extends 100% PTC through at minimum, the later of: Wind and Solar 1
Slide 23: 2022 Inflation Reduction Act – Key Provisions (tax credit transferability)
Along with expanded and new tax incentives, the IRA introduces new tax provisions, specifically the ability to transfer tax credits to third parties 2022 Inflation Reduction Act (“IRA”) – Key Provisions(1) • 10-year $3/kg PTC, indexed for inflation(2) Clean Hydrogen • Preserves wind and solar PTC on
Slide 24: IRA introduces a 15% corporate minimum tax
The IRA also introduces a corporate minimum tax(1) of 15% on pre-tax book income Corporate Minimum Tax (“CMT”) Summary • Introduces a CMT for tax years Considerations after 2022 equal to 15% of pre- tax book income (PTBI) ✓ Can deduct accelerated • PTBI gets adjusted to reflect depreciation (MACRS)
Slide 25: Corporate Minimum Tax Summary (Continued)
Under IRA, companies will need to pay taxes at the greater of regular tax and the corporate minimum tax Corporate Minimum Tax (“CMT”) Summary (Continued) Regular Tax CMT Starting Point? Taxable income Pre-tax book income Deduct Tax Yes, can use MACRS Yes, can use MACRS Depreciation? (or Bonus if eli
Slide 26: Reconciliation of EPS to Adjusted EPS
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share(1) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(2) 2017(2) 2018 2019 2020 2021 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 0.58 $ 0.81 $ 0.82 $ 1.
Slide 27: 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 28: 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 29: 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 30: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 31: 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 32: 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 33: 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 34: 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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