Xplr Infrastructure, Lp · NYSE:XIFR
Xplr Infrastructure, Lp — NextEra Energy Partners — Merger or Acquisition (September 2019)
16 slides from Xplr Infrastructure, Lp's merger presentation, Sep 30, 2019
Slide 1: NextEra Energy Partners Reaches Agreement to Acquire Meade Pipeline Co.
NextEra Energy Partners Reaches Agreement to Acquire Meade Pipeline Co. September 30, 2019
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
Slide 3: NextEra Energy Partners announces an agreement to acquire Meade Pipeline Co. (Meade)
NextEra Energy Partners announces an agreement to acquire Meade Pipeline Co. (Meade) Transaction Overview • Meade owns ~40% interest in Central Penn Line, a FERC regulated intrastate natural gas pipeline in Pennsylvania – Provides the Marcellus producing region access to large demand centers in the
Slide 4: Meade owns a 39.2% interest in the Central Penn Line, a 1.7 Bcf/day pipeline
Meade owns a 39.2% interest in the Central Penn Line, a 1.7 Bcf/day pipeline that transports low-cost Marcellus natural gas to Mid-Atlantic demand centers Meade Pipeline Overview • Jointly owned by Transcontinental Asset Location Gas Pipe Line Company (Transco) – Transco operates the pipeline as a s
Slide 5: The ~$1.37 B total transaction value includes an initial consideration of $1.28 B
The ~$1.37 B total transaction value includes an initial consideration of $1.28 B(1) plus future capital contributions of ~$90 MM related to an expansion opportunity Financing Details • Initial purchase price expected to be financed with: – ~$820 MM in partially amortizing project finance debt Inclu
Slide 6: Meade acquisition, Genesis debt purchase and repowerings expected to result in significant CAFD growth
The Meade acquisition, combined with the Genesis debt purchase and our previously announced wind repowerings, are expected to result in significant CAFD growth Year-End 2019 Run Rate CAFD Drivers ($ MM) New Run Rate Expectations Range $55 - $65 ($65 - $75) $60 - $66 $560 - $640 ($52 - $56) $25 - $30
Slide 7: NEP does not expect to need further asset acquisitions until 2021
Following the transaction, NEP does not expect to need any further asset acquisitions until 2021 to achieve its targeted distribution growth expectations Adjusted EBITDA and CAFD Expectations Adjusted CAFD(4) CAFD EBITDA(3) (Including (Excluding Desert PG&E-Related) Sunlight CAFD) 12/31/19 Run Rate(
Slide 8: Q&A Session
Q&A Session NexTera energy” PARTNERS 7
Slide 9: Appendix
Appendix NexTera energy” PARTNERS 7
Slide 10: The announced acquisition will be financed in part by a ~$170 MM convertible equity portfolio financing
The announced acquisition will be financed in part by a ~$170 MM convertible equity portfolio financing (CEPF) Convertible Equity Portfolio Financing Comparison(1) 2018 1H 2019 2H 2019 Proceeds $750 MM $900 MM ~$170 MM Less than 1% Less than 1% Annual “Coupon” ~2.5% for three years over a six year p
Slide 11: Convertible Equity Portfolio Financing Summary Terms
Convertible Equity Portfolio Financing Summary Terms(1) Key Terms Summary Funding Amount: BlackRock commitment of $168 MM; expected net proceeds prior to offering expenses of approximately $161 MM Issuer: Newly-formed private HoldCo managed and operated by affiliates of NEP Units: BlackRock to purch
Slide 12: Expected Cash Available for Distribution
Expected Cash Available for Distribution(1) (December 31, 2019 Run Rate CAFD; $ MM) $1,350-$1,525 ($20-$30) ($90-$100) $1,225-$1,400 ($175-$225) ($420-$500) ($40-$45) ($5-$15) $560-$640 ($52-$56) $505-$585 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated Dese
Slide 13: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA and CAFD expectations. NEP’s adjusted EBITDA expectations represent projected (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
Slide 14: 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 15: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP does not own all of the land on which the projects in its portfolio are located and its use and enjoyment of the property may be adversely affected to the extent that there are any lienholders or land rights holders tha
Slide 16: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's financial condition and ability to make distributions to its unitholders, as well as its ability to grow distributions in the future, is highly dependent on NEER’s performance of its obligations to return all or a por
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