Q2 2024 Nextera Energy Inc and Nextera Energy Partners LP Earnings Call Transcript
Key Points
- NextEra Energy Inc (NEE) delivered strong second-quarter results with adjusted earnings per share increasing more than 9% year over year.
- FPL's regulatory capital employed has grown at a 12% compound annual growth rate since the beginning of 2022, surpassing the initially anticipated 9%.
- Energy Resources added over 3,000 megawatts of new renewables and storage projects to the backlog this quarter, marking the second-best origination quarter ever.
- NextEra Energy Inc (NEE) expects to continue demonstrating the benefits and protections that the reserve amortization mechanism provides customers when they file their rate case next year.
- The company has a 300-gigawatt pipeline, half of which is in the interconnection queue process or is already interconnection ready, positioning it well to meet growing power demand.
- FPL's reserve amortization mechanism has been utilized faster than expected due to accelerated growth, leading to a remaining balance of $586 million.
- Contributions from the gas infrastructure business decreased by $0.07 per share due to higher depletion expense, non-recurring items, and the sale of Texas pipelines.
- The partnership's payout ratio is expected to be in the mid to high 90s through 2026, indicating a high level of cash distribution relative to earnings.
- NextEra Energy Partners does not need growth equity until 2027, which may limit immediate expansion opportunities.
- The company faces challenges in managing supply chain risks and ensuring adequate security to provide incentives for performance, especially in the context of tariffs and AD/CVD risks.
Good day, and welcome to the NextEra Energy and NextEra Energy Partners LP second-quarter 2024 earnings conference call. (Operator Instructions)
Please note this event is being recorded. I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead.
Thank you, Danielle. Good morning, everyone, and thank you for joining our second-quarter 2024 combined financial results conference call for NextEra Energy and NextEra Energy Partners.
With me this morning are John Ketchum, Chairman, President, and Chief Executive Officer of NextEra Energy; Brian Bolster, Executive Vice President and Chief Financial Officer of NextEra Energy; Rebecca Kujawa, President and Chief Executive Officer of NextEra Energy Resources; Mark Hickson, Executive Vice President of NextEra Energy, all of whom are officers of NextEra Energy Partners, as well as Armando Pimentel, President and Chief Executive Officer of Florida Power & Light Company.
John will start with opening
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