Xplr Infrastructure, Lp · NYSE:XIFR

Xplr Infrastructure, Lp — NextEra Energy Partners — Investor Presentation (May 2023)

28 slides from Xplr Infrastructure, Lp's investor presentation, May 8, 2023

  1. Slide 1: NextEra Energy Partners Update

    NextEra Energy Partners Update May 8, 2023 1

  2. 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

  3. Slide 3: NEP has a unique opportunity to become the leading 100% pure-play renewables company

    NextEra Energy Partners has a unique opportunity to become the leading 100% pure-play renewables company NextEra Energy Partners’ Energy Transition Plan Current Portfolio NEP’s Vision • Grown the renewables portfolio by roughly 9 times Capitalize from ~1 GW to ~9 GW on Clean • Currently 7th largest

  4. Slide 4: NEP has consistently grown Adjusted EBITDA, CAFD and LP distributions per unit since the IPO

    NextEra Energy Partners has consistently grown its Adjusted EBITDA, CAFD and LP distributions per unit since the IPO NextEra Energy Partners Growth Since IPO Adjusted EBITDA and CAFD(1) Annualized LP DPU Growth ($ MM) $3.37 $1,650 ~350% Increase ~308% and ~403% Increase, $634 respectively $404 $0.75

  5. Slide 5: NEP has terrific growth visibility with three ways to deliver on its growth objectives

    NextEra Energy Partners has terrific growth visibility with three ways to deliver on its growth objectives NextEra Energy Partners Growth Opportunities Energy Resources’ Renewable Portfolio Acquisitions Available to NextEra Energy Partners(1) from Energy ~38 GW - ~20 GW 58 GW Resources ~18 GW ~19 GW

  6. Slide 6: Simplification and recapitalization plan for a 100% renewable energy strategy

    Our simplification and recapitalization plan allows NextEra Energy Partners to singularly focus on a 100% renewable energy strategy Key Steps of Plan Sell Gas • Sell natural gas pipeline assets Pipelines and Buy Out • Buy out STX Midstream, 2019 NEP CEPFs Pipelines and NEP Renewables II CEPFs Elimin

  7. Slide 7: Plan would simplify capital structure by eliminating three near-term CEPFs

    NextEra Energy Partners’ plan would significantly simplify the capital structure by eliminating three near-term CEPFs Impact of Plan – Convertible Equity Financing Buyouts(1) ($ MM) Today Future ~$895 ~$418 ~$294 ~$294 ~$202 $0 $0 $0 2023 2024 2025 2026 2023 2024 2025 2026 Genesis Holdings Genesis H

  8. Slide 8: Plan uses available cash from suspended IDRs to replace CAFD from pipeline sale

    NextEra Energy Partners’ plan uses available cash from suspended IDRs to largely replace CAFD from sale of natural gas pipeline assets Impact of Plan – IDR Suspension • NextEra Energy and NextEra NEP Benefits Energy Partners agreed to suspend IDR fees through 2026 ✓ Avoid additional asset drops to a

  9. Slide 9: Impact of Plan – Renewable Energy Content

    Upon execution of the plan, NextEra Energy Partners would transition to a best-in-class 100% pure-play renewable energy investment opportunity Impact of Plan – Renewable Energy Content Today(1) Future Natural Gas Pipelines 20% 100% Renewable Assets Renewable Assets 80% 1) Weighted on expected calend

  10. Slide 10: Benefits of Transition Plan

    Executing on this plan will position NextEra Energy Partners to capitalize on the clean energy transition Benefits of Transition Plan 100% Market Renewable Leading Pure-Play Growth Rate Real Zero in 2025 Limited Simplified Need to Capital Access Structure Equity Market 10

  11. Slide 11: NextEra Energy Partners' Financial Expectations

    We continue to see 12-15% LP distribution growth through 2026, although in the current capital markets environment, expect to grow at or near the bottom end of that range NextEra Energy Partners’ Financial Expectations Annualized LP DPU(1) Year-End Portfolio Run-Rate(3) ($ MM) $5.11 - $2,220 - $2,42

  12. Slide 12: NextEra Energy's Financial Expectations

    At NextEra Energy, we will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectations ranges through 2026 NextEra Energy’s Financial Expectations(1) • Expect 6 to 8% annual growth rate through 2026, off the 2024 adjusted EPS expectations r

  13. Slide 13: Appendix

    Appendix NExTera’ NeExTera energy” ENERGY 2 PARTNERS

  14. Slide 14: NextEra Energy

    NExTera’ ENERGY @

  15. Slide 15: NextEra Energy Credit Metrics

    NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics A- Downgrade Actual Target S&P Range Threshold 2022 2023 FFO/Debt 13% - 23% 18% 19.2% >18% Baa Downgrade Actual Target Moody’s Range Threshold 2022 2023 CFO Pre-WC/Debt 13% - 22% 17% 18.4% >17% CFO-Div/Debt 9% - 17% 12.1%

  16. Slide 16: 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(1) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(2) 2017(2) 2018 2019 2020 2021 2022 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 0.82 $ 1.02 $ 0.99 $ 1.18 $

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: Cautionary Statement And Risk Factors That May Affect Future Results (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

  20. Slide 20: NextEra Energy Partners

    NExTera energy’ PARTNERS La

  21. Slide 21: Reconciliation of Net Income to Adjusted EBITDA and CAFD (2022)

    Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) 2022 Net Income $ 1,121 Add back: Depreciation and amortization 430 Interest expense (853) Income taxes 171 Tax credits 775 Amortization of intangible assets/liabilities - PPAs - net 143 Non-control

  22. Slide 22: Reconciliation of Net Income to Adjusted EBITDA and CAFD (2015)

    Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) 2015 Net income $ 80 Add back: Depreciation and amortization 141 Interest expense 117 Income taxes 21 Tax credits 86 Benefits associated with differential membership interests (15) Adjustment for pr

  23. Slide 23: NextEra Energy Partners Credit Metrics

    NextEra Energy Partners’ credit metrics remain on track NextEra Energy Partners Credit Metrics BB Downgrade Actual Target S&P(1) Range Threshold 2022(4) YE 2023 FFO/Debt 12% - 20% 12% 19.6% >15% HoldCo Debt/EBITDA 5.0x - 6.0x 6.0x 4.5x <6.0x Ba1 Downgrade Actual Target Moody's (2) Range Threshold 20

  24. Slide 24: NextEra Energy Partners' Expected Cash Available for Distribution

    NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2023 Run-Rate CAFD; $ MM) $2,260 - $2,460 ($35 - $45) $2,220 - $2,420 $0 ($350 - $400) ($1,020 - $1,120) ($40 - $50) ($10 - $20) $770 - $860 Project-Level Corporate IDR Fees Adjusted Debt Service(2) Pre-Tax Non-Cash M

  25. Slide 25: 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

  26. Slide 26: 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

  27. Slide 27: Cautionary Statement And Risk Factors That May Affect Future Results (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

  28. Slide 28: Cautionary Statement And Risk Factors That May Affect Future Results (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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