Yahoo Finance NextEra Energy Partners LP (NEP) Q1 2024 Earnings Call Transcript Highlights: Strong Growth and ...
Adjusted Earnings Per Share (EPS): Increased by 8.3% year-over-year.
Regulatory Capital Employed Growth: Approximately 11.5% year-over-year.
Capital Expenditures: Approximately $2.3 billion for the quarter.
Reported Return on Equity (ROE): Approximately 11.8% for regulatory purposes.
Reserve Amortization: Utilized approximately $572 million, leaving a balance of roughly $651 million.
Customer Bill Reduction: Expected to be roughly $14 lower in May than the start of the year.
New Solar Capacity: 1,640 megawatts placed into service this quarter.
Total Solar Portfolio: Over 6,400 megawatts, largest utility-owned in the country.
New Renewables and Storage Origination: Added approximately 2,765 megawatts to the backlog.
Adjusted Earnings Growth (Energy Resources): Approximately 13.1% year-over-year.
New Projects: Contributed approximately $32 million of adjusted EBITDA and $7 million of cash available for distribution.
Quarterly Distribution (NextEra Energy Partners): $0.892 per common unit or $3.57 per common unit on an annualized basis.
Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you discuss how you're positioned to handle potential trade actions related to solar panels, such as another AD/CVD case or changes to the bifacial panel tariff? A: John W. Ketchum, President, CEO & Chairman of NextEra Energy, Inc., explained that any potential trade actions would be manageable due to several factors. These include no expected delivery stoppages, strong contractual protections, a diversified supplier base, and significant growth in the U.S. domestic solar panel industry. He also mentioned that U.S. tariffs would be prospective, not retroactive, minimizing impact.
Q: How should we expect the data center demand to influence your operations moving forward? Will there be more long-term partnerships or larger scale agreements? A: John W. Ketchum highlighted the significant demand from data centers and NextEra's strong positioning to meet this demand due to their understanding of data center needs, flexibility, and speed to market. He anticipates a 15% CAGR in data center demand through the end of the decade and sees renewables as the primary solution for meeting this demand.
Q: Given the ongoing pressure from capital markets, are there any plans to simplify NEP's capital structure for long-term growth? A: John W. Ketchum mentioned that discussions about private capital raises as a potential solution are ongoing. However, he indicated that there might not be significant updates on this at the upcoming Analyst Day.
Q: Can you comment on the FEC process and its outcomes concerning FP&L? A: John W. Ketchum confirmed that the FEC has voted to close the matter regarding FP&L, indicating that this issue is now behind them and there are no further actions expected.
Q: How do you view the backlog growth, particularly the strength in solar and storage additions versus wind? Are there implications for your financial guidance? A: Rebecca J. Kujawa, President & CEO of NextEra Energy Resources, LLC, reassured that they are comfortable with their development expectations and financial outlook. She noted that changes in technology mix are expected and managed within their strategic planning.
Q: With the strong growth in electricity demand, particularly from data centers, how quickly can NextEra ramp up renewable generation to meet this demand? A: Rebecca J. Kujawa acknowledged the challenge of ramping up generation to meet the swiftly growing demand but expressed confidence in NextEra's preparedness and competitive advantages, which position them well to meet customer needs effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
