Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Q1 2024 Earnings Presentation
40 slides from Nextera Energy's earnings presentation, Apr 23, 2024
Slide 1: Earnings Conference Call First Quarter 2024
Earnings Conference Call First Quarter 2024 April 23, 2024
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 delivered strong first quarter results
NextEra Energy delivered strong first quarter results growing adjusted earnings per share by ~8.3% year-over- year NextEra Energy Highlights • We believe NextEra Energy is well positioned to address the power demand growth expected through the end of the decade and beyond – Supported by our enterpri
Slide 4: FPL Results – First Quarter
FPL’s earnings per share increased 4 cents from the prior- year comparable quarter FPL Results – First Quarter Net Income EPS ($ MM) $1,172 $0.57 $1,070 $0.53 2023 2024 2023 2024 4
Slide 5: FPL EPS Contribution Drivers
FPL’s investments continue to focus on delivering reliable electricity while keeping bills low FPL EPS Contribution Drivers EPS Growth Regulatory Capital Employed(1) First $B Quarter $80.0 FPL – 2023 EPS $0.53 $70.0 $66.0 Drivers: $59.2 $60.0 New investments $0.05 $50.0 Other, including share diluti
Slide 6: FPL Development Highlights
FPL continues to identify smart capital investments to further improve the customer value proposition FPL Development Highlights • Commissioned ~1,640 MW of new cost-effective solar – Brings FPL’s total owned and operated solar portfolio to over 6,400 MW • 2024 Ten-Year Site Plan continues to indica
Slide 7: Florida Economy & Customer Characteristics
Florida’s economy remains healthy and FPL’s retail sales continue to see positive impacts from strong customer growth Florida Economy & Customer Characteristics Retail kWh Sales Customer Growth(1,2) (Change vs. prior-year) (Change vs. prior-year quarter) 120 UKU Vero Impact 103.5 First Impact 100 Qu
Slide 8: Energy Resources Results – First Quarter
Energy Resources’ adjusted earnings increased over 13% from the prior-year comparable quarter Energy Resources Results(1) – First Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $1,440 $0.72 $966 $0.47 $828 $0.40 $732 $0.36 2023 2024 2023 2024 2023 2024 2023 2024 8 1) Attributable
Slide 9: Energy Resources First Quarter Adjusted EPS Contribution Drivers
Energy Resources’ growth was driven by new additions to our renewables and storage portfolio Energy Resources First Quarter Adjusted EPS(1) Contribution Drivers $0.60 $0.04 ($0.01) ($0.12) $0.15 ($0.02) $0.50 $0.40 $0.40 $0.36 $0.30 $0.20 $0.10 $0.00 Q1 2023 New Existing Customer Gas Other Q1 2024 A
Slide 10: Energy Resources Development Program
Energy Resources had a strong quarter of new renewables and storage origination Energy Resources Development Program(1) • ~2,765 MW of new renewables and storage added to backlog – Includes ~1,545 MW of solar, ~1,025 MW of battery storage, ~145 MW of wind, and ~50 MW of wind repowering 2023 - 2024 2
Slide 11: NextEra Energy EPS Summary – First Quarter
NextEra Energy’s adjusted earnings per share increased ~8.3% versus the prior-year comparable quarter NextEra Energy EPS Summary – First Quarter GAAP 2023 2024 Change FPL $0.53 $0.57 $0.04 Energy Resources $0.72 $0.47 ($0.25) Corporate and Other ($0.21) $0.06 $0.27 Total $1.04 $1.10 $0.06 Adjusted 2
Slide 12: NextEra Energy's Financial Expectations
NextEra Energy remains well positioned to continue our strong adjusted earnings growth NextEra Energy’s Financial Expectations(1) • Expect 6 to 8% annual growth rate through 2026, off the 2024 $3.63 - adjusted EPS expectations $4.00 $3.45 - range $3.23 - $3.70 $3.43 • From 2021 to 2026 expect $3.17
Slide 13: NextEra Energy Partners Summary
NextEra Energy Partners is focused on executing against its transition plans NextEra Energy Partners Summary • Plan to address the near-term convertible equity portfolio financings (CEPF) is well-understood – Successfully completed the STX Midstream buyout in 2023 – Sufficient proceeds from the Texa
Slide 14: NextEra Energy Partners – First Quarter Drivers
NextEra Energy Partners’ adjusted EBITDA results driven in part by contributions from new projects NextEra Energy Partners – First Quarter Drivers(1) Adjusted EBITDA CAFD ($ MM) ($ MM) $600 $250 $500 $32 ($37) $39 ($44) $447 $24 $462 $200 $39 ($38) $164 $156 $7 ($28) $27 $400 $150 $300 $100 $200 $50
Slide 15: NextEra Energy Partners' Financial Expectations
NextEra Energy Partners is focused on realizing unitholder value and executing on its transition plans NextEra Energy Partners’ Financial Expectations(1) Adjusted EBITDA CAFD 12/31/24 Run Rate(2) $1,900 - $2,100 MM $730 - $820 MM Unit Distributions 2024 DPU(3) $3.73 annualized rate by year-end DPU G
Slide 16: Q&A Session
Qé&A Session NExTera’ NextTera energy’ ENERGY & PARTNERS Z% —
Slide 17: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z% —
Slide 18: NextEra Energy
NEXTe@ra ENERGY &%
Slide 19: Potential drivers of variability to adjusted EPS
Potential drivers of variability to consolidated NextEra Energy adjusted EPS 2024 Potential Sources of Variability(1) FPL • Timing of investment ± $0.01 - $0.02 NextEra Energy Resources • Wind resource(2) (± 1% deviation) ± $0.01 - $0.015 • Interest rates (± 50 bps shift in yield curve) ± $0.00 • As
Slide 20: NextEra Energy Credit Metrics
NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics A- Downgrade Actual Target S&P Range Threshold 2023(1) 2024 FFO/Debt 13% - 23% 18% 18.7% >18% Baa Downgrade Actual Target Moody’s Range Threshold 2023(1) 2024 CFO Pre-WC/Debt 13% - 22% 17% 18.7% >17% CFO-Div/Debt 9% - 17%
Slide 21: Energy Resources Projected 2024 Portfolio Financial Information
NextEra Energy Resources Projected 2024 Portfolio Financial Information (includes NEER’s share of NEP assets) 1) See Appendix for definition of Adjusted EBITDA by Asset Category 2) Includes pre-tax gross-up of investment tax credits, convertible investment tax credits, production tax credits earned
Slide 22: Energy Resources Wind Production Index
Energy Resources Wind Production Index(1,2) 2023 2024 1ST QTR 2ND QTR 3RD QTR 4TH QTR 1ST QTR Location MW Jan Feb Mar QTR MW QTR MW QTR MW QTR YE MW Jan Feb Mar QTR Midwest 5,304 82% 117% 104% 100% 5,504 92% 5,504 83% 5,504 97% 94% 5,788 82% 98% 109% 96% West 5,409 98% 114% 103% 105% 5,409 94% 5,409
Slide 23: Energy Resources Renewables Development Program
Energy Resources Renewables Development Program(1,2) Wind 2023-2024 2025-2026 Northeast 111 0 Southeast 0 0 Midwest 1,230 1,544 Texas 1,556 858 West 1,361 42 Total 4,258 2,444 Solar 2023-2024 2025-2026 Northeast 353 36 Southeast 1,547 3,386 Midwest 1,952 1,574 Texas 479 1,660 West 1,695 810 Total 6,
Slide 24: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges(1) - Summary of Activity ($ millions, after-tax) Primary Drivers: Asset/(Liability) Balance as of 12/31/23 ($1,313) Gas Infrastructure Amounts Realized During 1st Quarter (26) Hedges ($77) Change in Forward Prices (all positions) 357 Electricity related positions (27) Subtotal
Slide 25: Non-Qualifying Hedges - Summary of Activity
Non-Qualifying Hedges(1) - Summary of Activity ($ millions) 1st Quarter Asset / Asset / (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance Description 12/31/23 Realized Prices (Loss) 3/31/24 NEE Pretax amounts at share Electricity related positions $ (784) $ 113 $ (27
Slide 26: Non-Qualifying Hedges - Summary of Forward Maturity
Non-Qualifying Hedges(1,2) - Summary of Forward Maturity ($ millions) Gain / (Loss) Asset / (Liability) Balance Total Description 3/31/24 2024 2025 2026 2027 2028 - 2050 2024 - 2050 Pretax amounts at share Electricity related positions $ (698) $ 111 $ 178 $ 107 $ 67 $ 235 $ 698 Gas Infrastructure re
Slide 27: Reconciliation of GAAP Net Income to Adjusted Earnings (Q1 2024)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended March 31, 2024) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 1,172 $ 966 $ 1
Slide 28: Reconciliation of GAAP Net Income to Adjusted Earnings (Q1 2023)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended March 31, 2023) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 1,070 $ 1,440 $
Slide 29: 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
Slide 30: 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 31: 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 32: NextEra Energy Partners
NeExTera energy’ PARTNERS Z
Slide 33: Reconciliation of Net Income to Adjusted EBITDA and CAFD
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) Q1 2024 Q1 2023 Net Income (Loss) $ 35 $ (151) Add back: Depreciation and amortization 136 123 Interest expense 13 206 Income taxes (13) (36) Tax credits 264 255 Amortization of intangible as
Slide 34: NextEra Energy Partners Wind Production Index
NextEra Energy Partners Wind Production Index(1,2) 2023 2024 1ST QTR 2ND QTR 3RD QTR 4TH QTR 1ST QTR Location MW Jan Feb Mar QTR MW QTR MW QTR MW QTR YE MW Jan Feb Mar QTR Midwest 1,811 83% 116% 103% 100% 1,970 92% 1,970 80% 1,970 91% 91% 1,970 82% 97% 107% 95% West 1,705 98% 105% 97% 100% 2,038 99%
Slide 35: 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 2023(4) 2024 FFO/Debt 12% - 20% 12% 14.6% >15% HoldCo Debt/EBITDA 5.0x - 6.0x 6.0x 5.8x <6.0x Ba1 Downgrade Actual Target Moody's (2) Range Threshold 2023(
Slide 36: NextEra Energy Partners' Expected Cash Available for Distribution
NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2024 Run-Rate CAFD; $ MM) $1,930 - $1,900 - $2,130 ($25 - $35) ($0 - $0) $2,100 ($260 - $320) ($780 - $980) ($35 - $45) ($5 - $15) $730 - $820 Project-Level Corporate IDR Fees Adjusted Debt Service (2) Tax Non-Cash Ma
Slide 37: 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, equity issuances and other expectations assume, among other things, normal weather and
Slide 38: 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 39: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP or its pipeline investment may not be able to extend, renew or replace expiring or terminated power purchase agreements (PPAs), natural gas transportation agreements or other customer contracts at favorable rates or on
Slide 40: 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