Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Q1 2012 Earnings Presentation
32 slides from Nextera Energy's earnings presentation, Apr 25, 2012
Slide 1: Earnings Conference Call First Quarter 2012
Earnings Conference Call First Quarter 2012 April 25, 2012
Slide 2: Cautionary Statements And Risk Factors; Non-GAAP Financial Information
Cautionary Statements And Risk Factors That May Affect Future Results Any statements made herein about future operating and/or financial results and/or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These f
Slide 3: Overview: Solid performance; on track to meet expectations
Overview: Solid performance; on track to meet expectations 2012 First Quarter Highlights • Solid financial results, consistent with expectations – FPL regulatory ROE approximately 11%; investment on track – Energy Resources roughly flat; challenging environment • Florida economy continues to improve
Slide 4: FPL produced solid earnings growth during the quarter
FPL produced solid earnings growth during the quarter due to investments that benefited customers Florida Power & Light Results – First Quarter Net Income EPS ($ MM) $239 $0.58 $205 $0.49 2011 2012 2011 2012 4
Slide 5: FPL's earnings per share grew approximately 9 cents quarter-over-quarter
FPL’s earnings per share grew approximately 9 cents quarter- over-quarter, driven primarily by continued investment in the business Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Invested(1) First $B Quarter $25.0 $23.8 FPL – 2011 EPS $0.49 $20.6 Drivers: $20.0 New inve
Slide 6: Florida Economy trends in employment and housing affordability
Trends in employment and housing affordability continue to be positive Florida Economy Florida Unemployment Rate(1) $B Tourism Taxable Sales(2) (12 month moving sum) 12% $68 11% 10% $66 9% $64 8% 7% $62 6% 5% $60 4% $58 3% 2% $56 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-07 Jan-08 Jan-09 Jan-10
Slide 7: FPL's volume metrics continue to improve slowly
FPL’s volume metrics continue to improve slowly Customer Characteristics – First Quarter 2012 Retail kWh Sales (1) Customer Growth(2) (Change vs. prior-year quarter) (Change vs. previous year) Customer Growth 0.6% 100 80 + Usage Due to Weather 0.6% # of 60 + Additional Leap Year Day 1.3% Customers (
Slide 8: FPL submitted its formal base rate filing on March 19th
FPL submitted its formal base rate filing on March 19th FPL Base Rate Request • Summary of request: – $516.5mm base revenue increase effective January 2, 2013 – $173.9mm step increase coinciding with COD of the Cape Canaveral modernization – Three major drivers: Cape Canaveral cost recovery Less sur
Slide 9: FPL's base rate increase partially offset by fuel reductions
FPL’s base rate increase is partially offset by reductions in the fuel portion of the bill FPL Base Rate Request: Bill Impact(1) Base Portion of Bill Total Bill $100 $100 $90 $90 $80 $80 $70 $70 $60 $60 $50 $50 $40 $40 $30 $30 $20 $20 $10 $10 $0 $0 (2) (2) 1,000 kWh Bill Low Usage 1,000 kWh Bill Low
Slide 10: Energy Resources' adjusted earnings declined two cents
Energy Resources’ adjusted earnings declined two cents quarter-over-quarter Energy Resources Results(1) – First Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $221 $0.53 $189 $182 $0.46 $0.44 $65 $0.16 2011 2012 2011 2012 2011 2012 2011 2012 10 (1) See Appendix for reconciliation
Slide 11: Energy Resources' adjusted EPS down $0.02 in the quarter
Energy Resources’ adjusted earnings per share were down $0.02 in the quarter Energy Resources First Quarter Adjusted EPS(1) Contribution Drivers $0.80 $0.07 ($0.11) $0.60 $0.07 $(0.02) $(0.03) $0.46 $0.44 $0.40 $0.20 $0.00 Q1 2011 New Gas Existing Customer Corporate Q1 2012 (3) Adjusted EPS Investme
Slide 12: Energy Resources progress developing record renewable backlog
Energy Resources continues to make good progress in developing its record backlog of renewable projects NextEra Energy Resources: Development Highlights • 177 MW of U.S. wind COD in Q1 • Acquired 40 MW of Canadian solar photovoltaic in Q1 • Good progress on development of backlog: – Expect approxima
Slide 13: NextEra Energy's adjusted EPS increased eight cents
NextEra Energy’s adjusted earnings per share increased eight cents quarter-over-quarter NextEra Energy EPS Summary(1) – First Quarter GAAP 2011 2012 Change FPL $0.49 $0.58 $0.09 Energy Resources $0.16 $0.53 $0.37 Corporate and Other ($0.01) $0.00 $0.01 Total $0.64 $1.11 $0.47 Adjusted 2011 2012 Chan
Slide 14: Adjusted Earnings Per Share Expectations
Adjusted Earnings Per Share Expectations 2012 $4.35 - $4.65 2014 $5.05 - $5.65 NextEra Energy’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and net other than temporary impairment lo
Slide 15: Achievement of 2012 key objectives sets stage for growth through 2014
Achievement of NextEra Energy’s 2012 key objectives sets the stage for growth through 2014 Critical Success Factors for 2012 • At FPL: – Continue to deliver outstanding customer value – Continue execution on major capital projects – Achieve satisfactory outcome of base rate case • At Energy Resource
Slide 16: NEXT@Cra’
NEXT@Cra’ ENERGY &
Slide 17: Q&A Session
17 Q&A Session NEXTera’ ENERGY 2
Slide 18: NEXT@Cra’
NEXT@Cra’ ENERGY &
Slide 19: Appendix
19 Appendix NEXTera’ ENERGY 2
Slide 20: 2012 Portfolio Financial Information
2012 Portfolio Financial Information (as of March 15, 2012) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted 4 Wind 6,860 21.6 $1,3
Slide 21: Energy Resources' assets largely contracted or hedged for 2012
Energy Resources’ existing assets are largely contracted or hedged for 2012 2012 Equivalent Gross Margin Contributions(1) 2012 Portfolio Sensitivities 6% New Investments(5) • $1/MMBtu change in natural gas ≈ 3-4 cents in 11% Other (2) adjusted EPS(3) 54% 29% Contracted Merchant Assets • 1% change in
Slide 22: 2013 Portfolio Financial Information
2013 Portfolio Financial Information (as of March 15, 2012) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted 4 Wind 6,860 21.9 $1,3
Slide 23: Energy Resources' assets largely contracted or hedged for 2013
Energy Resources’ existing assets are largely contracted or hedged for 2013 2013 Equivalent Gross Margin Contributions(1) 2013 Portfolio Sensitivities 15% New Investments(5) • $1/MMBtu change in natural gas ≈ 5-6 cents in 10% 49% Other(2) Contracted adjusted EPS(3) Assets (96% hedged) 26% Merchant •
Slide 24: Wind Resource Performance
Wind Resource Performance Gross(1) MWh Production: Actual vs. Long Term Expected Average (Fifteen month trend ended March 31, 2012(2) ) 2011 2012 1ST QTR 2nd QTR 3rd QTR 4th QTR YTD 1ST QTR 3 Location MW Jan Feb Mar % MW % MW % MW % % MW Jan Feb Mar % Midwest 2,715 76% 110% 81% 88% 2,715 98% 2,865 8
Slide 25: NextEra Energy Resources – Wind Portfolio Locations
NextEra Energy Resources – Wind Portfolio Locations(1) March 31, 2012 Mount Copper 54mw Mount Miller 54mw Ghost Pine 81.6mw Ashtabula II 120mw Baldwin 102.4mw Oliver County I&II Midwest 2,865 MW 50.6mw / 48mw West 2,472 MW Wilton I&II Langdon I&II 49.5mw / 49.5mw 118.5mw / 40.5mw Pubnico Point 30.6m
Slide 26: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) Asset/(Liability) Balance as of 12/31/11 $436.8 Amounts Realized During 1st Quarter (24.2) Primary Drivers: Revenue Hedges – Gas Change in Forward Prices (all positions) 60.8 & Power Prices $180.8 Subtotal – Income Statement 36.6
Slide 27: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) 1st Quarter Asset / Deals Asset / (Liability) Change in Executed Total (Liability) Balance Amounts Forward During Unrealized Balance Description 12/31/11 Realized Prices Period (2) MTM 3/31/12 Natural gas related positions $ 515.
Slide 28: Non-Qualifying Hedges – Summary of Forward Maturity
Non-Qualifying Hedges(1) – Summary of Forward Maturity ($ millions, after-tax) Gain / (Loss) (2) Asset / (Liability) Balance Total Description 3/31/12 2012 2013 2014 2015 2016 - 2032 2012 - 2032 Natural gas related positions $ 636.0 $ (122.3) $ (127.6) $ (107.7) $ (83.1) $ (195.3) $ (636.0) Spark sp
Slide 29: Reconciliation of Adjusted Earnings to GAAP Net Income (Q1 2012)
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended March 31, 2012) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 239 $ 221 $ 1 $ 461 Adjustments, net of income taxes: Net unrealized
Slide 30: Reconciliation of Adjusted Earnings to GAAP Net Income (Q1 2011)
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended March 31, 2011) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 205 $ 65 $ (2) $ 268 Adjustments, net of income taxes: Net unrealize
Slide 31: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements 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, b
Slide 32: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements and Risk Factors That May Affect Future Results risks to NextEra Energy and FPL's retail businesses of compromise of sensitive customer data; risks to NextEra Energy and FPL of volatility in the market values of derivative instruments and limited liquidity in OTC markets; impac