NextEra Energy Partners (NEP) Q1 Earnings Beat Estimates

Zacks Equity Research

April 23, 2024 at 9:49 a.m.·3 min read

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP NEP recorded first-quarter 2024 operating earnings of 75 cents per unit, which surpassed the Zacks Consensus Estimate of 12 cents by 525%. In the year-ago quarter, the firm reported a loss of 17 cents per unit.

Revenues

The firm’s operating revenues of $257 million missed the Zacks Consensus Estimate of $346 million by 25.7%. The figure, however, increased 4.9% from $245 million registered in the prior-year period.

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

Total operating expenses were $278 million, down 0.7% from the year-ago quarter’s level of $280 million. This was due to lower operations and maintenance expenses, which totaled $123 million, down 15.8% from the prior-year quarter’s recorded figure of $146 million.

The firm reported an operating loss of $21 million compared with a loss of $35 million registered in the corresponding period of 2023.

Financial Condition

The firm had cash and cash equivalents of $245 million as of Mar 31, 2024, compared with $274 million as of Dec 31, 2023.

Long-term debt was $4.942 billion as of Mar 31, 2024, compared with $4.941 billion as of Dec 31, 2023.

Net cash provided by operating activities for the first three months of 2024 totaled $78 million compared with $82 million in the year-ago period.

Distribution Update

NEP declared a quarterly distribution of 89.25 cents per common unit to an annualized rate of $3.57 to its unit holders. This declaration reflects an annualized increase of 6% from its fourth-quarter 2023 distribution per common unit. It will be payable on May 15, 2024, to unit holders of record as of May 7, 2024.

Guidance

NextEra Energy Partners expects its run-rate for 2024 adjusted EBITDA to be in the $1.9-$2.1 billion range. It also anticipates CAFD to be in the band of $730-$820 million.

The firm continues to foresee 5-8% annual growth in limited partner distributions per unit, with a current target of 6% growth per year, as a reasonable range of expectations through at least 2026.

Zacks Rank

NEP 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

Energy Transfer ET is slated to report first-quarter results on May 8, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at 31 cents per unit.

The Zacks Consensus Estimate for first-quarter sales is pinned at $23.44 billion, implying a year-over-year increase of 23.4%.

ONEOK, Inc. OKE is slated to report first-quarter results on Apr 30, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.20 per share.

OKE’s long-term (three to five years) earnings growth rate is 3.28%. It delivered an average earnings surprise of 3.9% in the last four quarters.

Devon Energy DVN is scheduled to report first-quarter results on May 1, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.10 per share.

The Zacks Consensus Estimate for first-quarter sales is pinned at $3.6 billion. The company delivered an average earnings surprise of 3.3% in the last four quarters.

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Devon Energy Corporation (DVN) : Free Stock Analysis Report

ONEOK, Inc. (OKE) : Free Stock Analysis Report

Energy Transfer LP (ET) : Free Stock Analysis Report

NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report

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