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NextEra Energy Partners (NEP) Posts Q4 Loss, Misses on Sales

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NextEra Energy Partners, LP NEP reported a loss of 12 cents per unit for fourth-quarter 2021 versus the Zacks Consensus Estimate of earnings of 45 cents. The firm reported earnings of 85 cents per unit in the year-ago period.

Revenues

For the quarter under review, the firm’s revenues of $232 million missed the Zacks Consensus Estimate of $354 million by 34.4%. Revenues improved 9.4% year over year due to contribution from new projects.

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP Price, Consensus and EPS Surprise
NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP price-consensus-eps-surprise-chart | NextEra Energy Partners, LP Quote

Highlights of the Release

In the fourth quarter, NextEra Energy Partners closed the initial funding of its lowest-cost convertible equity portfolio financing to date. The 10-year, roughly $820 million convertible equity portfolio financing was used to partially fund the acquisition of a 50% interest in a renewables portfolio, consisting of approximately 2,520 megawatts (MW) of newly constructed or in-construction renewable projects and 115 MW of integrated battery storage.

In 2021, NextEra Energy Partners acquired interests in nearly 1,900 MW of long-term contracted renewables and storage assets from NextEra Energy Resources. NextEra Energy Partners also successfully completed two acquisitions of renewable energy assets from third parties, adding nearly 500 MW of operating wind projects.

For the fourth quarter, the partnership’s operating income summed $23 million, down 50% from $46 million in the year-ago period.

Financial Condition

NextEra Energy Partners had cash and cash equivalents worth $147 million as of Dec 31, 2021 compared with $108 million on Dec 31, 2020.

Long-term debt was $5,294 million as of Dec 31, 2021 compared with $3,376 million in the corresponding period of 2020.

Net cash provided by operating activities in 2021 was $677 million, 1.8% higher than $665 million in the comparable period of last year.

Distribution Update

The board of directors of NextEra Energy Partners announced a quarterly distribution of 70.75 cents per unit. The new annualized rate is $2.83 per common unit. Cash distribution per common unit increased nearly 15% on an annualized basis from the fourth quarter of 2020. The distribution will be payable on Feb 14, 2022, to unitholders of record as of Feb 4, 2022.

Guidance

NextEra Energy Partners expects 2022 EBITDA in the range of $1.775-$1.975 billion and cash available for distribution within $675-$765 million.

NextEra Energy Partners expects the annualized rate of fourth-quarter 2022 distribution, which is payable in February 2023, in the range of $3.17-$3.25 per common unit compared with the current rate of $2.83. The new rate is in sync with NextEra Energy Partners’ expectation of 12-15% per year growth in limited partner distributions through at least 2024, subject to the approval of the board of directors.

Zacks Rank

NextEra Energy Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

TotalEnergies SE TTE is scheduled to announce fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for earnings per share is pegged at $1.95.

TotalEnergies’ long-term (three to five years) earnings growth is projected at 20.7%. The Zacks Consensus Estimate for TTE’s 2022 earnings per share indicates year-over-year growth of 13.6%.

Bloom Energy Corporation BE is scheduled to announce fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate is pegged at a loss per share of 5 cents.

Bloom Energy’s long-term earnings growth is projected at 25%. The Zacks Consensus Estimate for BE’s 2022 earnings per share indicates year-over-year growth of 81.5%.

Equinor EQNR is expected to report fourth-quarter 2021 results soon. The Zacks Consensus Estimate for earnings per share is pegged at $1.22.

Equinor’s long-term earnings growth is projected at 49.4%. The Zacks Consensus Estimate for EQNR’s 2022 earnings per share indicates year-over-year growth of 17%.


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