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NextEra Energy Reports Second Quarter 2015 Financials

Share Print Bookmark    |    Monday,August 03,2015

NextEra Energy Partners, LP reported 2015 second-quarter net income attributable to NextEra Energy Partners of $4 million. NextEra Energy Partners also reported 2015 second-quarter adjusted EBITDA of $102 million. For the second quarter of 2015, cash available for distribution (CAFD) was $50 million.

NextEra Energy Partners' management uses adjusted EBITDA and CAFD, which are non-GAAP financial measures, internally for financial planning, for analysis of performance and for reporting of results to the board of directors of its general partner. NextEra Energy Partners also uses these measures when communicating its financial results and earnings outlook to analysts and investors. The attachments to this news release include a reconciliation of historical adjusted EBITDA and CAFD to net income, which is the most directly comparable GAAP measure.

Jim Robo, chairman and chief executive officer, said: "NextEra Energy Partners is now on track to exceed the near-term growth expectations we had previously shared as a result of strong execution on our growth plan. During the second quarter, we expanded the partnership's renewables portfolio by completing the acquisition of four wind generating facilities from our sponsor, NextEra Energy Resources, supporting growth in second-quarter distributions. In addition, I am very pleased to announce that the partnership has entered into an agreement to acquire a portfolio of seven natural gas pipelines in Texas, consisting of high-quality, long-term contracted assets with a 16-year average contract life. The acquisition is expected to provide attractive yields to our investors and complements the partnership's existing renewables portfolio by reducing the impact of resource variability on NextEra Energy Partners' total portfolio. In addition, the transaction establishes NextEra Energy Partners' presence in the long-term contracted natural gas pipeline space, providing a platform for future growth."

Closes on Approximately $109 Million Private Placement of Common Units

Also during the quarter, NextEra Energy Partners completed the sale of a total of 2,594,948 common units representing limited partnership interests in NextEra Energy Partners in a private placement to certain eligible purchasers for an aggregate purchase price of approximately $109 million, or $41.87 per common unit, the closing price of NextEra Energy Partners' common units on May 6, 2015. NextEra Energy Partners used the net proceeds from the private placement of common units, proceeds from a previously announced $313 million term loan and cash on hand to fund the purchase price of the 664 MW of operating renewable power generation assets acquired from NextEra Energy Resources.

Increases Quarterly Distribution

Today, the board of directors of the general partner of NextEra Energy Partners declared a quarterly distribution of $0.2350 per common unit (corresponding to an annualized rate of $0.94 per common unit) to the unitholders of NextEra Energy Partners. The distribution increased $0.12 per common unit on an annualized basis from the first quarter of 2015. The distribution will be payable on Aug. 14, 2015, to unitholders of record as of Aug. 11, 2015.

Outlook

For the full year 2015, NextEra Energy Partners now expects the portfolio to grow to support a distribution level at an annualized rate of $1.23 per unit by the end of 2015. NextEra Energy Partners' 2015 expectations remain unchanged for adjusted EBITDA of $400 million to $440 million and CAFD of $100 million to $120 million. After 2015, the partnership expects 12 to 15 percent per year growth in limited-partner distributions for at least the next five years. NextEra Energy Partners expects 2016 adjusted EBITDA of $710 million to $760 million and 2016 CAFD of $250 million to $280 million. These expectations are net of expected IDR fees of $30 million to $40 million for 2016, as these fees are expected to be treated as an operating expense.