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NextEra Energy Partners (NEP) Posts Q3 Loss, Revenues Up Y/Y

Zacks Equity Research

NextEra Energy Partners, LP NEP incurred third-quarter 2019 loss of $1.21 per unit, against the Zacks Consensus Estimate of earnings of 62 cents. In the year-ago quarter, the partnership delivered earnings of 58 cents.

Revenues

In the quarter under review, the partnership generated revenues worth $253 million that missed the Zacks Consensus Estimate of $355 million by 28.7%. However, the top line increased 42.1% on a year-over-year basis. The upside can be attributed to higher sales in the Renewable energy sales segment.

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

 

Quarterly Highlights

In the quarter, NextEra Energy Partners’ total adjusted operating expenses were $165 million compared with the year-ago quarter’s figure of $119 million.

The partnership raised distributions by nearly 15% on a year-over-year basis.

In the said quarter, the partnership announced a definitive agreement to acquire Meade Pipeline Co LLC.

The partnership incurred interest expenses of $372 million against an income of $31 million in the year-ago quarter. In relation to acquisition of the outstanding Genesis operating company notes, the partnership issued $500 million of seven-year senior unsecured notes at a yield of 3.875% in September.

Financial Condition

NextEra Energy Partners had cash and cash equivalents of $195 million as of Sep 30, 2019 compared with $147 million as of Dec 31, 2018.

Long-term debt was $3,719 million as of Sep 30, 2019 compared with $2,728 million as of Dec 31, 2018.

Net cash provided by operating activities at the end of the first nine months of 2019 was $252 million, lower than $269 million in the year-ago period.

Guidance

NextEra Energy Partners continues to expect 12-15% annual growth in limited partner distributions through 2024. Excluding all contributions from the Desert Sunlight 250 and 300 projects, NextEra Energy Partners expects CAFD in the range of $505-$585 million. The partnership expects adjusted EBITDA in the band of $1.225-$1.4 billion for 2019.

Zacks Rank

NextEra Energy Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Xcel Energy Inc XEL is scheduled to report third-quarter 2019 results on Oct 24. The Zacks Consensus Estimate for earnings is pegged at $1.05 per share.

American Electric Power Company, Inc AEP is set to release third-quarter 2019 results on Oct 24. The Zacks Consensus Estimate for earnings is pegged at $1.31 per share.

CMS Energy Corporation CMS is set to report third-quarter 2019 results on Oct 24. The Zacks Consensus Estimate for earnings is pegged at 71 cents per share.

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