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Investor Presentation – Nextera Energy Inc.

Nextera Energy Inc. · Feb 28, 2014 · 49 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Presentation – Nextera Energy Inc. – slide 1
    February 2014 Investor Presentation
  2. Investor Presentation – Nextera Energy Inc. – slide 2
    Table of Contents NextEra Energy, Inc. Overview Slide 4 Florida Power & Light Slide 12 NextEra Energy Resources Slide 23 NextEra Energy Transmission Slide 29 NextEra Energy, Inc. Financial Review Slide 31 Appendix Slide 39…
  3. Investor Presentation – Nextera Energy Inc. – slide 3
    NextEra Energy is well-positioned for future growth NextEra Energy Investment Proposition Above-average and highly visible growth through 2016 Rate agreement through 2016 provides regulatory certainty at FPL Strong backlog at Energy…
  4. Investor Presentation – Nextera Energy Inc. – slide 4
    NextEra Energy is comprised of two strong businesses supported by a common platform 39.6 B market capitalization(1) 42,576 MW in operation 69 B in total assets One of the largest U.S. electric utilities U.S. leader in…
  5. Investor Presentation – Nextera Energy Inc. – slide 5
    NextEra Energy is built on a foundation of operational excellence and financial strength SAIDI: System Average (1) Interruption Duration Index Utility Credit Ratings(3) Minutes 40% 38% 150 FL Industry Average Good 125 35%…
  6. Investor Presentation – Nextera Energy Inc. – slide 6
    NextEra Energy has one of the cleanest emissions profiles among the nations top 50 power producers NextEra Energy 2012 Fuel Mix(1) SO2 Emissions Rates(2) (MWh) (Lbs/MWh) 9.0 Nuclear…
  7. Investor Presentation – Nextera Energy Inc. – slide 7
    In 2013, we continued our long-term record of delivering shareholder value Adjusted Earnings Per Share(1) Total Shareholder Return(2) 35% 32% 90% 84% 4.97 30% 28% 80% 4.57 4.304.39 70% 3.84 4.05 25% 57% 3.49 60% 3.04 20% 50%…
  8. Investor Presentation – Nextera Energy Inc. – slide 8
    Over an extended period of time, we have been successful in attaining our goal of outperforming our industry NextEra Energy Performance vs. Industry 10-Year CAGR Ending December 31, 2013 S&P 500 Utilities NextEra S&P 500 Index…
  9. Investor Presentation – Nextera Energy Inc. – slide 9
    At our investor conference in March, we identified potential capital spending of up to 23 B in 2013 to 2016; we have now firmed up 19 B of investment opportunities 2013 2016 Capital Expenditures(1) MM FPL 25,000 Includes cap ex…
  10. Investor Presentation – Nextera Energy Inc. – slide 10
    We are moving forward on 7 B of incremental investments Incremental Capital Opportunities 2013 to 2016 Opportunity Status Projected Cap Ex FPL Storm hardening Received PSC approval 400 MM Reliability investment Infrastructure…
  11. Investor Presentation – Nextera Energy Inc. – slide 11
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  12. Investor Presentation – Nextera Energy Inc. – slide 12
    Florida Power & Light is one of the best utility franchises in the U.S. Florida Power & Light(1) One of the largest U.S. electric utilities Vertically integrated, retail rate-regulated 4.7 MM customer accounts 24,273 MW in…
  13. Investor Presentation – Nextera Energy Inc. – slide 13
    We have made excellent progress on our backlog of major capital projects in 2013 FPLs Backlog of Major Capital Projects Modernization Projects Nuclear Uprates Cape Canaveral completed Successfully completed our ahead of schedule and…
  14. Investor Presentation – Nextera Energy Inc. – slide 14
    Floridas economy continues to improve Florida Economy Florida Unemployment Rate(1) Florida Building Permits(2) 12% 12,000 10% 10,000 8% 8,000 6% 6,000 4% 4,000 2% 2,000 0% 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12…
  15. Investor Presentation – Nextera Energy Inc. – slide 15
    FPLs O&M costs declined through 2005, but in recent years they have increased FPL Base O&M Costs in Real 2012 Dollars(1) 3.50 3.29 3.00 2.50 per 2.00 kWh 1.45 1.47 1.50 1.36 1.00 0.50 0.00 1988 2000 2005 2012 FPLs…
  16. Investor Presentation – Nextera Energy Inc. – slide 16
    Project Momentum has provided a line of sight to achieve our goal of keeping nominal base O&M expenses flat in 2016 FPL Productivity Improvements Moving forward with several initiatives with significant O&M cost savings in the…
  17. Investor Presentation – Nextera Energy Inc. – slide 17
    In March we laid out 4 B to 5 B in incremental capital expenditures that we continue to develop Incremental Capital Expenditures Through 2016 Incremental storm hardening Infrastructure / reliability investment Generation upgrades…
  18. Investor Presentation – Nextera Energy Inc. – slide 18
    FPL filed a plan with the PSC to invest in storm hardening and reliability opportunities Incremental Storm Hardening Investment FPL filed plans with the PSC to continue investing in strengthening the grid against storms and help keep…
  19. Investor Presentation – Nextera Energy Inc. – slide 19
    The Florida Public Service Commission has approved FPLs natural gas pipeline proposal Natural Gas Pipeline Investments Best economic solution for customers Sabal Trail Transmission (Spectra Energy): 465 miles to Central Florida Hub…
  20. Investor Presentation – Nextera Energy Inc. – slide 20
    Achieving improved environmental standards may require replacement of FPLs fleet of existing gas turbine peakers Generation Upgrades Upgrading FPLs peaking capacity with more efficient, advanced combustion turbines (CTs) Will perform…
  21. Investor Presentation – Nextera Energy Inc. – slide 21
    FPLs incremental capital investments will be recovered either via existing base rates or separate recovery mechanisms Recovery Mechanisms for FPL Capital Expenditures Capital Expenditures Recovery Mechanism Base infrastructure (T&D,…
  22. Investor Presentation – Nextera Energy Inc. – slide 22
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  23. Investor Presentation – Nextera Energy Inc. – slide 23
    Energy Resources risk profile continues to improve as the business mix shifts to more long-term contracted assets Energy Resources Adjusted EBITDA(1) 100% 11% 15% 14% 75% 26% 22% 40% 50% 59% 64% 25% 49% 0% 2009 2012 2014…
  24. Investor Presentation – Nextera Energy Inc. – slide 24
    Our generation portfolio consists of over 11,000 MW of contracted assets, which are primarily wind and nuclear Energy Resources: Contracted Assets(1) Technology MW Wind 8,366 Nuclear 1,621 Solar 472 Natural Gas 1,003 Total:…
  25. Investor Presentation – Nextera Energy Inc. – slide 25
    Our March 2013 Investor Conference backlog of signed long- term PPAs for wind and solar projects translates into roughly 3.6 B of capital investment through 2016 March 2013 Investor Estimated Cap Ex(2) for Wind and Conference…
  26. Investor Presentation – Nextera Energy Inc. – slide 26
    Energy Resources has strong renewable energy prospects beyond the 2013 Investor Conference backlog Renewable Energy Development Opportunities(1) Wind Solar 2013 2015 U.S. wind Incremental U.S. solar development program development…
  27. Investor Presentation – Nextera Energy Inc. – slide 27
    The resulting business mix continues to shift toward long-term contracted assets through 2016 Energy Resources Adjusted EBITDA(1) 100% 11% 14% 15% 75% 22% 19% 40% 50% 64% 66% 25% 49% 0% 2009 2014 2016 LongTerm Contracted…
  28. Investor Presentation – Nextera Energy Inc. – slide 28
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  29. Investor Presentation – Nextera Energy Inc. – slide 29
    The overall market for new transmission projects is aligned regionally, with increasing opportunities to compete Competitive Transmission Opportunity Set Current operations include: Lone Star Transmission: 330-mile portion of the…
  30. Investor Presentation – Nextera Energy Inc. – slide 30
    FINANCIAL REVIEW 31
  31. Investor Presentation – Nextera Energy Inc. – slide 31
    Balance sheet strength and credit play an important role in our strategy NextEra Energy 2014 Credit Metric Targets(1) Moodys Baa Range NEE Target CFO Pre-WC/Debt 13% - 22% 20% Debt Capitalization 45% - 55% 50% Fitch A Range NEE…
  32. Investor Presentation – Nextera Energy Inc. – slide 32
    Cash flow available to support credit in 2014 is expected to be strong 2014 Expected Cash Flow Analysis ( billions) NEE Capital Holdings FPL Consolidated (1) Adjusted EBITDA 2.3 - 2.6 4.1 - 4.3 Plus: Monetization of Tax Benefits…
  33. Investor Presentation – Nextera Energy Inc. – slide 33
    We have an agreement to issue 1 B of common equity to support our growth objectives from 2013 through 2016 Financing Strategy: 2013 - 2016 At FPL: Maintain consistent balance sheet 60% regulatory equity ratio Focus on long-dated…
  34. Investor Presentation – Nextera Energy Inc. – slide 34
    Market risk will be mitigated by our significantly hedged position over the next several years Energy Resources Equivalent Gross Margin Contracted or Hedged(1) 100% 99% 100% 100% 100% 96% 94% 91% 82% 80% 60% 40% 20% 0%…
  35. Investor Presentation – Nextera Energy Inc. – slide 35
    NextEra Energys business mix is expected to continue to shift towards more regulated and long-term contracted Adjusted EBITDA(2) from Adjusted Earnings from Regulated and Long-Term Regulated Businesses(1) Contracted Operations 100%…
  36. Investor Presentation – Nextera Energy Inc. – slide 36
    NextEra Energys current dividend policy reflects its expected increase in the proportionate contribution from its rate-regulated businesses and long-term contracted assets Dividend Per Share(1) Growth Dividend Policy Implemented…
  37. Investor Presentation – Nextera Energy Inc. – slide 37
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  38. Investor Presentation – Nextera Energy Inc. – slide 38
    Appendix 39
  39. Investor Presentation – Nextera Energy Inc. – slide 39
    Reconciliation of Base O&M Cents per kWh to GAAP O&M Cents per kWh 1988 2000 2005 2012 ( in millions) Base O&M (A) 1,131 984 1,199 1,500 Clause 32 77 99 269 Other 0 1 9 4 GAAP O&M (B) 1,163 1,062 1,307 1,773 Retail delivered kWhs…
  40. Investor Presentation – Nextera Energy Inc. – slide 40
    2014 Expected Cash Flow Analysis Debt Detail (1) YE 2012 Expected 2014 Notes ( MM) ( B) FPL Senior Debt and Bank Loans 8,290 8.4 - 8.6 Debt excluded from Expected Cash Flow Analysis slide Storm-recovery bonds and other 492 Secured…
  41. Investor Presentation – Nextera Energy Inc. – slide 41
    NextEra Energy Resources Projected 2014 Portfolio Financial Information (as of December 6, 2013) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range…
  42. Investor Presentation – Nextera Energy Inc. – slide 42
    Reconciliation of Energy Resources Equivalent EBITDA to NEECH Adjusted EBITDA ( millions) 2014 NEER Equivalent EBITDA(1) 3,250 Midpoint from Projected 2014 Portfolio Information slide 42 in Appendix Less: Tax credits (430)…
  43. Investor Presentation – Nextera Energy Inc. – slide 43
    NextEra Energy Resources Portfolio Additions(1) (2) March 2013 Investor Conference Backlog Incremental Opportunities Incl. in 9/30/13 Incl. in 9/30/13 U.S. Wind: MW COD Form 10-Q(3) U.S. Wind: MW COD Form 10-Q(3) Tuscola Bay II(4)…
  44. Investor Presentation – Nextera Energy Inc. – slide 44
    Potential drivers of variability to consolidated adjusted EPS 2014 Potential Sources of Variability(1) Florida Power & Light Wholesale (primarily volume) 0.02 Timing of investment 0.02 NextEra Energy Resources Natural gas prices (…
  45. Investor Presentation – Nextera Energy Inc. – slide 45
    NextEra Energy, Inc. Reconciliation of Adjusted Earnings Per Share to Earnings Per Share 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Earnings Per Share (assuming dilution) 2.53 2.48 2.34 3.23 3.27 4.07 3.97 4.74 4.59 4.56…
  46. Investor Presentation – Nextera Energy Inc. – slide 46
    NextEra Energy, Inc. Reconciliation of Adjusted Earnings to Net Income ( millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Net Income 903 896 901 1,281 1,312 1,639 1,615 1,957 1,923 1,911 1,908 Adjustments, net of…
  47. Investor Presentation – Nextera Energy Inc. – slide 47
    Reconciliation of 2011 Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA) to Net Income (Full-Year Ended December 31, 2011) GAAP Adjustments Adjusted (1) Net income 1,923 (86) 1,837 Add back…
  48. Investor Presentation – Nextera Energy Inc. – slide 48
    Definitional information NextEra Energy Resources, LLC. Adjusted EBITDA (Slides 24, 28, 36) Adjusted EBITDA includes Energy Resources consolidated investments as well as its share of equity method investments. Adjusted EBITDA for each…
  49. Investor Presentation – Nextera Energy Inc. – slide 49
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