Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Wolfe Research 2017 Power & Gas Leaders Conference
30 slides from Nextera Energy's conference presentation, Sep 26, 2017
Slide 1: Wolfe Research 2017 Power & Gas Leaders Conference
Wolfe Research 2017 Power & Gas Leaders Conference Jim Robo Chairman and CEO September 26, 2017
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
Slide 3: FPL mobilized an army of more than 27,000 in power restoration effort
FPL mobilized an army of more than 27,000 in one of the largest power restoration efforts in U.S. history Hurricane Irma Impact • Irma made two landfalls in Florida – Florida Keys at 2:00 am on 09/10 as a Category 4 storm – Marco Island at 3:35 am 09/10 as a Category 3 storm • Irma impacted FPL cust
Slide 4: Hurricane Irma vs. Hurricane Wilma
Hurricane Irma was a more than 50% stronger storm than hurricane Wilma, based on its damage potential Hurricane Irma vs. Hurricane Wilma Hurricane Irma Track Irma Wilma Year 2017 2005 Category Storm 4 3 Hurricane wind FL Landfall speed (74+ mph) Maximum 130-156 mph 120-150 mph Tropical storm Sustain
Slide 5: FPL achieved a 60% improvement in average outage days per customer
FPL achieved a 60% improvement in the average number of outage days per customer compared to Hurricane Wilma Hurricane Irma Recovery Irma Wilma % Improvement Average Days out per 2.13 5.37 60% customer Days to Restore 10 18 44% 50% of Customers 1 Day 5 Days 80% Restored 75% of Customers 3 Days 8 Day
Slide 6: NextEra Energy achieved strong financial results in the first half of 2017
NextEra Energy achieved strong financial results in the first half of 2017 NextEra Energy First Half 2017 Results Adjusted EPS(1) • NextEra Energy achieved year- over-year growth of ~11% in adjusted earnings per share – Growth in cash flow from operations of ~9% compared to 2016(2) $3.62 $3.26 • At
Slide 7: FPL – Areas of Focus
At FPL, we are focused on continuing to identify smart investment opportunities and improve our outstanding value proposition across the board FPL – Areas of Focus • Continue to execute on our Cost & Reliability best-in-class customer value Operational Cost(1) SAIDI(2) ($/Retail MWh) (Minutes) propo
Slide 8: Energy Resources' renewables development opportunities have never been stronger
Energy Resources’ renewables development opportunities have never been stronger Cost and Technology Improvements Best-in- Development Class Nuclear/Coal- Federal Tax Skills Construction to-Renewables Incentives Expertise Switching ~60 GW U.S. Cost of Customer Renewable Capital and Relationships Dema
Slide 9: Wind and solar expected to be competitive into the next decade
With continued technology improvements and cost declines, wind and solar are expected to be competitive into the next decade Wind and Solar Technology Levelized Cost of Levelized Cost of Electricity from Wind Electricity from Solar (Including Production Tax Credits) (Including Investment Tax Credits
Slide 10: Disruptive Industry Changes
We are well positioned to capitalize on and respond to potentially disruptive changes to our industry in the next decade Disruptive Industry Changes Potential Cost per kWh Post-2020(1) Shale (¢/kWh) Gas 3.5 - 5¢ 4 - 5¢ 3 - 4¢ 3 - 4¢ Big Data Renewables 2 - 3¢ /Storage Generation Wind Solar Gas Coal
Slide 11: We are well positioned to meet our financial expectations
We are well positioned to meet our financial expectations NextEra Energy Expectations Adjusted EPS Dividend Per Share Expectations(1) Expectations $7.85 - $8.45 $4.30 - $4.60 $6.19 $3.08 2016 2020E 2015 2018E 1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 11
Slide 12: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 13: NEP Financing Update
NEP’s ongoing financing optimization is expected to minimize the need for common equity NEP Financing Update • $550 MM Convertible Preferred Offering – 4.50% coupon – 15% conversion premium • $300 MM Convertible Debt/Capped Call Transaction – 1.5% coupon for 3 years – Initial conversion rate represe
Slide 14: NEP is on track to meet its growth expectations in 2017
NEP is on track to meet its growth expectations in 2017 NextEra Energy Partners Expectations(1) Adj. EBITDA Distributions per Unit(4) ($MM) Annual $875-$975 12%-15% Growth(5) $670-$760 $1.58-$1.62 $1.41 2016 YE 2017 YE Run-Rate (2) Run-Rate (3) Q4 2016 Q4 2017E Q4 2022E CAFD Guidance Tenor vs. High
Slide 15: Appendix
Appendix NExTera’ NexTera energy" ENERGY & PARTNERS 7, 15
Slide 16: NextEra Energy
NExTera’ ENERGY @
Slide 17: 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 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 2.34 $ 3.23 $ 3.27 $ 4.07 $ 3.97 $ 4.74 $ 4.59 $ 4.56 $ 4
Slide 18: Reconciliation of Adjusted Earnings to GAAP Net Income (Six Months 2017)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2017) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $
Slide 19: Reconciliation of Adjusted Earnings to GAAP Net Income (Six Months 2016)
Reconciliation of Adjusted Earnings to GAAP Net Income Attributable to NextEra Energy, Inc. (Six Months Ended June 30, 2016) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $
Slide 20: Reconciliation of GAAP Operating Cash Flow to Adjusted Operating Cash Flow
Reconciliation of NextEra Energy, Inc. GAAP Operating Cash Flow to Adjusted Operating Cash Flow Six Months Ended Six Months Ended (millions) June 30, 2016 June 30, 2017 Inc/(Dec) Grow th Cash flow s from operations $ 3,270 $ 3,165 $ (105) (3.2%) FPL clause recoveries (137) (10) Acquisition of Indian
Slide 21: Definitional information
Definitional information NextEra Energy, Inc. and NextEra Energy Resources, LLC. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the unrealized mark-to-market effect of non-qualifying hedges, net OTTI losses
Slide 22: 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 23: 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 and FPL's risk management tools associated with their hedging and trading pr
Slide 24: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 25: NEP on track to meet 2017 run-rate Adjusted EBITDA and CAFD expectations
NEP is on-track to meet its 2017 run-rate Adjusted EBITDA and CAFD expectations Expected Cash Available for Distribution(1) (December 31, 2017 Run Rate CAFD) $960-$1,060 ($15-$25) ($60-$70) $875-$975 ($290-$320) ($240-$280) $ MM ($30-$35) ($3-$8) $310-$340 (2) (3) (4) (5) 1) Project-Level Adjusted E
Slide 26: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA, CAFD, and project-level CAFD expectations. NEP’s adjusted EBITDA expectations represent projected (a) revenue less (b) fuel expense, less (c) project operating exp
Slide 27: 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 28: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) A change in the jurisdictional characterization of some of the Texas pipeline entities' assets, or a change in law or regulatory policy, could result in increased regulation of these assets, which could have a material adve
Slide 29: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The natural gas pipeline industry is highly competitive, and increased competitive pressure could adversely affect NEP's business; NEP may not be able to access sources of capital on commercially reasonable terms, which wou
Slide 30: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) Holders of NEP's common units currently cannot remove NEP GP without NEE’s consent; NEE’s interest in NEP GP and the control of NEP GP may be transferred to a third party without unitholder consent; The IDR fee may be assig
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