NextEra Energy Partners LP (NYSE:NEP)
$ 18.26 -0.26 (-1.4%) Market Cap: 1.71 Bil Enterprise Value: 6.62 Bil PE Ratio: 8.38 PB Ratio: 0.50 GF Score: 64/100

Q3 2024 Nextera Energy Inc and Nextera Energy Partners LP Earnings Call Transcript

Oct 23, 2024 / 01:00PM GMT
Release Date Price: $21.01 (-16.26%)

Key Points

Positve
  • NextEra Energy Partners LP (NEP) reported a 10% year-over-year increase in adjusted earnings per share for the third quarter, indicating strong financial performance.
  • The company added approximately 3 gigawatts to its renewables and storage backlog for the second consecutive quarter, bringing the total to approximately 11 gigawatts over the past year.
  • NEP announced new framework agreements with two Fortune 50 companies for potential development of up to 10.5 gigawatts of renewables and storage projects by 2030.
  • The company has a robust pipeline of projects, with a total backlog of over 24 gigawatts, providing visibility into future growth.
  • NEP's wind repowering target has increased to approximately 1.9 gigawatts through 2026, up from the previous target of 1.3 gigawatts, indicating expanded organic growth opportunities.
Negative
  • The company faced significant challenges due to Hurricanes Helene and Milton, which caused power outages for millions of customers and required substantial restoration efforts.
  • NEP's third quarter adjusted EBITDA and cash available for distribution declined by approximately $35 million and $92 million, respectively, from the same period last year.
  • The divestiture of the Texas pipeline portfolio negatively impacted NEP's financial results for the quarter.
  • The company is facing increased costs associated with storm recovery, with an estimated $1.2 billion in restoration costs to be recovered from customers.
  • NEP is undergoing a strategic review of its yield curve model and distribution policy, creating uncertainty about future capital allocation and distribution growth targets.
Operator

Good day, and welcome to the NextEra Energy, Inc. and NextEra Energy Partners LP third quarter 2024 earnings call. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Mark Edelman, Director of Investor Relations. Please go ahead.

Mark Edelman
Nextera Energy Inc - Director, IR

Thank you, Dave. Good morning, everyone, and thank you for joining our third 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; and Mark Hickson, Executive Vice President of NextEra Energy, all of whom are also 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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