NEP - Earnings call 3 2023 | NextEra Energy Partners, LP

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Operator

Good day, and welcome to the NextEra Energy and NextEra Energy Partners LP Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Kristin Rose, Director of Investor Relations. Please go ahead.

Kristin Longenecker Rose

Thank you, Rach. Good morning, everyone, and thank you for joining our Third Quarter 2023 Combined Financial Results Conference Call for NextEra Energy and NextEra Energy Partners. whom as Executive Energy NextEra are NextEra of Company. Chairman, well & Vice of Energy; Chief Pimentel, Officer morning and Executive Hickson, and President Chief as NextEra of this President Energy, Financial of Kujawa, Officer Kirk of me John Mark of Executive Florida President Ketchum, Chief Light officers and and and Vice With Chief Rebecca Officer Energy; Crews, President Armando also Resources; NextEra NextEra Officer Power of Executive all are Energy Partners, president Executive overview Kirk will questions. provide our our an answer be of then team available your to executive will and results,

will forward-looking are incorrect expectations in release results of uncertainties. We based Actual today's assumptions statements which statements call our differ news comments key risks call and this on and We made conference from materially reports factors duty the www.nexteraenergy.com on if www.nexteraenergypartners.com. Factors with website, accounting undertake the and not forward-looking of filings making and our could references of current Securities or other our used earnings any during the this section our in non-GAAP be are forward-looking or to during includes assumptions, subject financial Commission, of can presentation update to be latest each because and and which presentation found the any any statements. Today's do Exchange in Risk also measures. to

information contained financial to and GAAP the the the to information measures reconciliations presentation refer should non-GAAP definitional measure. accompanying historical You in slides today's of for closest

to over Kirk. the that, With turn I will call

Terrell Crews

Thanks, Kristin, and morning. good

approximately and are value been results, one FPL reliability the regulatory and relentlessly has customers we FPL's constructive are most in quarter below what focused bills to continued we jurisdictions on the of running delivered share business national nation. the well average, efficiently. the to strong NextEra growing In adjusted outstanding third quarter, earnings in believe its deliver year-over-year. Energy XX.X% per the

renewables extended renewable strong energy during third the Resources in and quarter origination earnings leadership its Energy its quarter position best in storage adjusted with its and growth history.

visibility has XX NextEra backlog. growth gigawatt storage plan clear and Energy Resources' FPL's through renewables over Energy and capital

relationships, the the Energy to shareholders. capital With is capital continue significant advantages NextEra worldwide for both has and banking in sheets well to believe positioned access cost sector value we and deliver strongest of balance and long-term to

Now results. let's FPL's turn detailed to

third employed regulatory of quarter driver the FPL's per increased XXXX, was this approximately year-over-year. For of growth earnings The capital FPL's share performance year-over-year. of $X.XX XX.X% principal

FPL current growth to employed X% billion expenditures $X in X-year FPL's $X.X over billion. annual approximately capital FPL's XXXX funds term, between through investments capital year full We roughly to expect continue realize be average the capital quarter, XXXX. $X.X expect and were we for regulatory our to and rate billion agreement's which

months For reported ending regulatory XX.X%. FPL's approximately the September XXXX, ROE XX for be purposes will

During reversed roughly of third over we $X.X of leaving quarter, FPL reserve with the balance amortization, a billion. $XXX million

expect X-year investments continue $XX billion the billion. $XX capital Over to FPL between of to to agreement, current settlement we make

and value established we one best focused the the on of propositions well believe Our is customer enhancing capital investment plan industry. what in is

year-over-year third that X%. weather, continues of in comparable Florida positive which sales per remains X% one and the period usage the Key indicators quarter be year country. on fastest-growing approximately Florida impact due prior show had the customer to the of warmer a healthy states increased FPL's economy from retail to

X% weather-normalized roughly observed underlying As on retail in growth of a quarter result, basis. sales a FPL solid third

our reflects by existing gas and new resource. impacts driven increased per let's clean year-over-year, businesses includes share Energy customer from $X.XX to costs reduced of Now wind which which contribution weaker new borrowing the share reported while earnings declined Contributions adjusted This which costs increased XX% portfolio investments of infrastructure by share share, impact from earnings $X.XX our year-over-year All is to support growth investments. energy decline half Resources, per $X.XX turn approximately supply year-over-year. of respectively. per interest $X.XX per The new $X.XX share. other by trading $X.XX and higher and share, by per per comparative

Energy is a first Resources a in adding quarter. renewables X,XXX record have had the we time megawatts backlog, X the new gigawatts exceeded origination approximately of quarter and storage single to which

be believe for can terrific demand do this we a remind lumpy renewable quarter-to-quarter, is strong underlying you will Although that sign signings of new we generation.

roughly quarter these call. since account X,XXX XX taking gigawatts megawatts additions, now projects after our over into new totals of into placed service With backlog second our

also roughly following York megawatts XXX ago. NYSERDA from by New of projects backlog, our megawatts an in X,XXX removed weeks We including decision X adverse roughly

are to to XX our will renewable of due removed expectations through We XXXX. from ultimately move achieve development but track them challenges. removing The prevailing projects roughly forward, [ remaining these XX are optimistic now. on for Overall, we backlog remain to megawatts were gigawatts that ]

quarter's XXX repowers going of wind portfolio, of This Resources' which to in discuss within additions a XXX megawatts approximately megawatts includes share include NextEra to the backlog existing Energy I'm which repower few roughly Partners minutes. facilities, Energy

a years turbine in build, to XX refresh credits, performance a collectively a the tax equipment reminder, resulting production enhance in invest returns. As of the and XX% of new to roughly of we are repower, the of and attractive XX% new a cost able

additions previously the the gigawatt with believe storage of portfolio, operating well [indiscernible] the our Energy XXX we our capacity approximately positions combination to XX standalone solar Resources credit storage included portfolio able facilities. gigawatts and in are operating wind much needs and ability repower customers' to from to of standalone existing years. its roughly growing and of and repowered for has footprint existing of utilize we coming X wind be our The interconnection wind capacity. in existing tax renewables serve projects will storage us battery backlog megawatts roughly Also

share XXXX results. consolidated Other by quarter Adjusted third year-over-year. earnings $X.XX and our Corporate to now from Turning per decreased

expectations unchanged. Our long-term remain financial

year annual we financial expect From growth if adjusted continue adjusted a end disappointed to able be we flow in grow top deliver rate for our off we through XXXX. be our continue dividends each per in expectation from growth to our at XXXX that will to at at or range. share above roughly not average are And to compound expect EPS will year our near least results ranges or cash operating XXXX, the to XX% We annual XXXX, EPS XXXX XXXX base. per at of

expectations our always, caveats. subject are As our to

includes of from operations have funding debt. to roughly funding at Resources. Energy. plan we tax forward, our for cash to Sale we Going how in historically business both utilizing so to flow fund in a and Energy tax manner This serving done similar the a finance needs credits project half addition equity, new NextEra of source and as of for capital corporate is FPL

million This proceeds. capital dynamic XXXX billion Partners, to to sales and amount which recycling including met NextEra expect cash in next transfer reduced over $X $XXX in needs, approximately tax averaged this of via previously those to expect annual has XXXX. roughly to billion roughly and credits couple the to Energy grow has years historically NextEra billion Energy $X.X of in We $X.X

equity issuances future specifically. Let me address

balance Our remain our financial sheet to strategy. and discipline core

those the strength we sheet. and our for remains a investments our customers fund attractive find of balance we to expect ] shareholders, in investments way As [ that

metrics rating last billion roughly and exceed on of not the units. those years, As to a in of balance the issued average issue credit annually ratings. We expect XXXX X equity -- equity our for equity year-end credit over agencies we to expect do the our to current by $X.X the reminder, form specified support have our any of

positioned Resources XXXX, to the equity in with environment. needs, units believe From XXXX more which to we reliance the of the on no FPL volatility primarily for our first interest surplus would for offset to FPL, years. total no equity [ rates to satisfy manage through in Energy our be higher At customers. ] $X than have continued current interest and on dilution expect X benefit billion rate We rely the well total we needs equity mechanism are

provided agreement XX.X%, it current ROE rate the FPL's adjusted an addition, earn to for ROE In in higher already environment. a higher enabling to rate

to will through rates mechanism the of over the the XXXX. the able to expiration case the environment interest We agreement, surplus the Consistent for absorb rate [indiscernible] a new early remaining of the of current expect effective expects rate all use cumulative FPL in potentially current and effects FPL of with XXXX much that rate be period. file

interest we Other, For have Energy of hedges Corporate now and in billion place. rate and $XX.X Resources

changes allow of hedges, vary and have the a between from us we mitigate of years Capital While roughly add of tenor interest impact on and maturities $XX.X XXXX. rate X.XX%. XXXX Energy average rate billion weighted the the backlog debt as the and Swaps Holdings' and XX are Resources' amounts settle X to returns swaps of through

hedge us portion the project the level as allow expect funding and these $XX.X Specifically, a swaps debt renewables issue of maturities. our well billion to near-term on of as backlog ] [ to we

and average, all has point yield XXXX adjusted on sensitivity Energy's XXXX has, reductions others, curve implement $X.XX and approximately This in immediate including, perspective, in adjusted EPS this upward adjusted put XXXX and on which shift other course, NextEra an To our assumes expected $X.XX basis to sensitivity, in expectations. for XXXX, of impact our and of to impact XX capital efficiency of process essentially the initiatives, expected not opportunities. of EPS do normal equivalent EPS among cost is X% we no offsetting

benefiting swaps, materials for at for chain return in and equipment, and XX% our shape portfolio. good expected equity backlog Our The across is on and capabilities [ backlog balance for rate and of mid-teens over management ] storage. interest global are our to our plant supply the services procure wind solar ability scale and from is

done current capital order including of to agreements cost have our price appropriate in commensurate we we As our with power market returns. purchase current maintain historically, conditions,

we projects, investment at addition, before lower significant to swaps we of on into rates our when to decision final our maintain were entered backlog capital that commit utilizing we time our rate are contracts interest expectations. the were return In

projects disciplined our and meet don't that We remain return financially expectations. pass on

materials, on agreement are trends of help we panels Going by offset for in prices the will rates solar pricing believe given impacts for forward, batteries, are lower and prices. the we which interest seeing competition we purchase and power encouraged higher increased declining globally equipment

resilient of all competitiveness demand you cost the generation. energy that relative well, will to factors alternative remain optimistic of We know continued renewable due including are the to forms

additions Importantly strong new quarter. our demand evidenced backlog this by remained as date, to substantial has to

turn Partners. let's Now to NextEra Energy

a financing by its low the acquiring contracted cash partnership assets distribution cost. acquisitions reminder, flows those vehicle and grows with high-quality that at financing long-term is As a

has partnership able this its convertible term to the financing financing and To Over low-cost financing low relied the their on have in equity on rely drive to a years, of yield, NextEra into coupon, primarily almost convert equity meet several help to required buy Energy that A began portfolio ] growth. time [ trading Partners to recent needs has been cash distribution financings years, time. this the year believe amount at same these the over next rates and to were we out the partnership's interest be issued coming the rising. over which significant doubling contributed due years, stream equity

of long rate equity increased, partnership's to partnership over distribution peers, the focused against difficult this term. of to cost in plan. made growth first the the order until growth that and is way Partners these capital Consequently, its executing to a XX% support the X%, to is LP rate partnership rate now it require In XXXX. does reducing objectives, best growth comparable transition the which a is interest NextEra on sustainable By in to meet the not expect Energy unitholders

to assets and successfully agreements plans into transition pipeline gas As gas this portfolio the year in a natural XXXX, Texas include pipeline sell and reminder, natural entering the Meade respectively.

to partnership is our equity STX equity million expectations, on small Doing through financings buyout a portfolio to in buyouts our Through to update that its and equity to Midstream, process XXXX. the fourth financing or pipelines fit sell and NEP leave have Holding portfolio continuing current the convertible expect $XXX quarter will the enable The the Genesis XXXX in so January. Texas the the pipeline equity would call of financial portfolio on the convertible an XXXX. address net with renewables partnership of associated roughly period before

well focused against is executing organic gigawatts as That at repowerings of its plan as X.X wind Energy favorable unitholders. yields. involves plan Partners assets of Energy from specifically third approximately or Resources growth, for projects parties growth NextEra acquiring on

unit not distributions Energy per an NextEra to acquisition target. Importantly, the growth in to X% does Partners in expect need XXXX meet

megawatts or of is of are yields XXX Directors, received Today, to expects which Board term. to The expected progress repower facilities roughly and repowerings the executing repowerings to support additional way the fund customer's represent be X we're project-specific NextEra near efficient to future partnership's wind to require in are we the approval with through either partnership targets. with tax gigawatt plans this growth Repowerings and attractive Overall, generate final announcing equity remain in Partners' opportunities debt. repowering CAFD approximately portfolio. pleased Energy on the of projected the focused XXXX, the wind which the an across

expected expectations. XXXX To minimize of for the changes costs growth billion resulting partnership in maturities refinancing executed the the into the factored our the to with support XXXX refinancing costs also $X.X are volatility interest and associated plan, hedge The roughly rates maturities. and

detailed results. Turning to the

and for $XXX $XXX third NextEra Energy was million million. EBITDA available cash was quarter Partners' distribution adjusted

projects, contracted net projects available acquired second and adjusted and the approximately from the distribution. for megawatts XXXX reflect contributions approximately primarily that new $XX cash this of closed new renewable of New of in XXX approximately million EBITDA X,XXX of net which year, in long-term million $XX contributed quarter projects of megawatts

The increased year-over-year. existing from million third by $X quarter approximately EBITDA contribution projects adjusted

projects. Third impacted of approximately distribution provided for benefit were EBITDA cash the adjusted quarter, for million cash and positively for driven lower impacts $XX this at quarter and by offsetting available of fee payments the PAYGO resource rights available distribution wind incentive results than lower distributions more suspension existing by

common $X.XX quarter or increase common annualized per unit. second per from per a quarterly of of annualized an an Yesterday, its $X.XXXX NextEra distribution distribution basis, declared which on unit unit reflects Board Partners' Energy X% common XXXX

base of distributions least a expectations rate growth in with per per annualized X% to of per common a growth being to current a From unit of to second at we unit through per LP $X.XX, an continue at see unit range distribution of our XXXX X% quarter year per X% target year reasonable XXXX.

annualized we per $X.XX distribution be for of expect XXXX, to common For quarter unit. XXXX fourth payable February is in the rate that XXXX

NextEra from forecasted for billion of for distributions be range $X.X in and billion Energy XXXX, $XXX million, portfolio at to contributions December cash to Partners $XXX expects rate and its EBITDA XX, respectively. adjusted the available run $X.X million to

forecasted As run projections a year-end year-end at XXXX XXXX from reminder, portfolio rate reflect year calendar XXXX. contributions

been the related distributions flow adjusted expectations. The pipeline run excluded rate EBITDA Texas these cash from for financial and with associated portfolio have

expectations our to always, caveat. are As subject our

Energy the not NextEra it's through this Partners While the navigates environment, current portfolio. of value important to lose of underlying sight

We the wind seventh states, XX partnership NextEra producer in high-quality of counterparty of average renewables average deliver is projects be that world investors, questions to want serving successful from credit and owns the from partnership term. BBB+ long been sun renewable assets to has remain Energy no cash renewable electricity the via NextEra contract the with life over own rating an partnership with we've be of back of the XX years. gigawatts receiving address Partners with an attractive separately, the optimistic We largest and Energy can some existing XX Energy the plans Partners. buy the an to operation. The NextEra in flows customers remaining over vehicle XX to contracts in

turn call that, John. the With over I'll to

John Ketchum

Thanks, Kirk.

do. to been address of Partners. It's and have briefly NextEra we a me work lot Let a difficult Energy year,

forward on the to As portfolio quarter shared, on the Kirk our and transition providing Pipeline before we on or sales against earnings fourth Texas plans executing are focused update call. process look an

least growth on of towards focused delivering a through good LP announced the are that start are we at and today objective. XXXX, also achieving repowerings X% distribution We

solid push largest expectations. excellent one FPL, NextEra the financial better. we results even is operating deliver and the nation's Resources, to Energy, At utility our be electric Both both and making in This well, are foundations our the the development leader world's Energy continue performed another very by to and rooted are progress validated have against and renewables. businesses complement other in NextEra each

In remarks you we from Over heard our of met addressed with in welcomed of those now presentation questions lines, our and growth, and we materials in have many recent the want the weeks, response, built your completed you our reiterate investors of and many today we Energy Along solid the NextEra to our review strategy our having just fundamentals is I Board outstanding future prospects Directors. have. which process for on annual feedback. with

metrics one what lower the lowest remains the is the the industry's regulatory of we customer FPL is FPL one believe of most bill utilities cost fastest-growing utility in that large while best States, among has, country's with of maintaining in the O&M XX% performance across environments. emissions constructive top national lowest one key structure, than roughly and profiles operational far, United nation. states average. It of in cleanest the the achieving located by any is the the nonfuel a

the distribution in the economy, country. hurricanes its for impacts benefit keep utility focus years for to Over operating relentless the the low costs, the quality for saved undergrounding operating cylinders. a the help receives customers customers world We peninsula probability billion has reliability, highest year, running alone. Year despite and $XX gigawatts believe hurricanes. our withstand on have It last lower the plans efficiency, after fuel is all of XX facing solar FPL XX years, next and while XXth its system of on costs a largest on cost add over accolades which to of is in the FPL to historically top nearly in the now high XX approximately and bills Florida regulated

mix and to generating by expected roughly U.S. we XXXX. XX% At as of stands XX% getting double, penetration started. reaching Resources, are is over currently just the part Energy Renewable at

share benefit leader to renewables stands electrification. shift XX% energy U.S. origination, world with unstoppable Energy an market towards significantly in renewable the Resources from approximately the in As

a roughly renewables and we growth. gigawatts development storage for future well positioned matter with roughly of gigawatts renewables of gigawatt Experience are portfolio, over scale and XXX XXX of years and and XX a XX experience, interconnection pipeline positions, queue of operating projects

environment you an us even In us more advantages that and capital enables this addition to sheets know sector to in to one a scale finance build competitive macro our believe the ourselves in to balance advantage. cost We of all and of returns. with our with provides of our differentiate attractive at strongest renewables well, complex cheaper all to access ability

Energy and complete the world In short, renewable built in better the most we business ever positioned than energy is decarbonization has economy. lead competitive Resources of U.S. the and believe the to

long-term have our We energy strength, our X energy our committed clean improvement spent our that of by extend to the my powered building we solutions. I serving last people, a culture to appreciation as and today team platform innovation providing decades clean and and a shareholders. value want greatest our for smart world-class customers to continuous drives remain

you, your Thank we questions. and welcome now

Operator

first Instructions] with question from Fleishman comes Steven [Operator Our Wolfe Research.

Steven Fleishman

of couple a just questions. So

on $X to think I do Could Or of there the you're more effectively that First, what on more? billion backward XX% to the slide math, to Is kind equity nuance I just using is that? kind billion that's get $X.X and about content. creating it? if the of to And just talk debt that you transferability to FFO of the a calculation. tax

John Ketchum

Steve, John. that on that. -- is take This Yes. slide I'll

$X example the is We -- are billion.

XX% divide by billion. nets the about that you $X billion, debt, FFO you take to You $X.X

that receive that equity a cash $X you You $X transfer. content billion billion gets billion you the have $X.X the to and of on of

Steven Fleishman

Got it.

a funding that from as corporate million would your transferability to $X.X numbers plan Okay. you That's key out show in would -- going billion. debt the part you part up your lay about the issuances. And be talked in that a and $XXX to when key seem

that in tax be Now equity matched about Or equity project? be against the would that. think tax piece that it's not and might do kind shows we since of anymore, up? where it How

John Ketchum

issuances. rest in is actually receive. content that benefits the of cash flow from you it's there's the to also think corporate debt your show going up way that The including sources, some the And operations. Yes. I That's it about then cash equity

Steven Fleishman

it. Got

Okay. And is swaps the helpful. pretty so then -- on tenor question the rate one Helpful. the interest other long, which seems of

going $X Just you basically percent how say, you're swaps the -- is a much when rate kind of if billion the project interest that of we limit think forward, to risk of there's be -- swap let's much projects, might using project how that, project, of of using against? a how debt

John Ketchum

Yes. The way Steve, XX%. is it, to about think

have rough you the math, would against then so So the backlog or think take about and $XX.X balance that billion $XX.X if near-term it billion, our going on when the about we maturities the have against includes our includes interest right? think just I roughly So some exposure you But rate corporate of you going project backlog, that debt that we debt, everything, given all. through the XXXX. on issuance, it sensitivity the on

Steven Fleishman

renewables And maybe going slowdown what And color just one color Maybe helpful. been quarter little That's the just there's environment. just you're more move I is Okay. seeing? more you're up? be be environment And there could that would higher overall of a the really what next just talk environment you on question Or seeing on of capital to helpful. on because -- because a then just the general more cost slowing that on comes color overall view renewables is to a growth. just

John Ketchum

you to the one reasons Yes, can I thing it would the going more Rebecca. over more Steve, is renewable see scale moving turn increasingly players, is business why. I'm and But towards say to and

One enter to balance of hedges sheet we of rate actually that interest have the kind enter them ability to into. the is can a into

of, And market aware the capital can't balance point make to we today's you I seeing In we compete talk advantage you're let scale, that scale, a a market. the we have smaller But really about super of do success. strong the cost that developers big A- really, she's at that in you're we parent a important ultimate And puts that, an competitive then build competitive the operate at significant and at you really Rebecca over that's at that of disadvantage. over buy scale. And seeing advantage. against. where other more me our an it is we having sheet advantages big want with all to environment, turn all to is part If last with the rate a what

Rebecca Kujawa

are would that the want for across to see, Obviously, specifically also signings a first gigawatts, Kirk which this of that we've us. gigawatts date is [indiscernible] quarter. time and It's that it we in record with strong great returns across we of thrilled those of been Steve, these type think findings represents agreements and that mix posted customer technologies. of the X and highlighted mix is of I into a all portfolio, signed technologies, X.X the a entered terms a the the we so over for and you good mix

to fourth weighted see additions into and really that think But of what a 'XX actually we of and projects little we're a which pipeline first we're Our more slightly lot backlog about our in more 'XX. disproportionate 'XX I going is seeing the in far excited in to the XXXX, to quarter, it. backlog strong and terms a overall are in bit

And strong our to execute. are and on the seeing understand it's I'll really development after to really customers positive our some today. going John's over of but get drawn weariness really couple to the think accordingly, continue seeing comments, I'm the pipeline that built. exciting increasingly I years, bring They successfully what for matters. So that it address to that to what signs we're ability us echo for And the resources pipeline. And projects all ground, we're bear and are last building, we're to very we and that

Operator

Partners. from Guggenheim comes Pourreza with question next Our Shar

Shahriar Pourreza

guess these a And the issue the of on an thesis the you're is on the bit there comprehensive in delays obviously Pipeline sale, ask NEP. And of out having John, Just you are any little any of maybe a offloading embedded or reason Texas guess, expectations I why are process? more anticipating light theory of that quickly I market updates or touching terms in for challenges conditions? there the a assets. there's kind I

maybe a your little color So if of in more I'd to give love can disclosures. you full anticipation bit

John Ketchum

Sure. you. Thank Yes.

our saying, start obviously, is said forward. me X% remarks, pipes, growing at on by NEP position prepared succeed in putting going Let our focus to as selling and in these a we

So counterparties at done. same little along challenging lines, diligently are the macroeconomic environment. sales is looking are process. a to that look, for those a before it we're the continuing we're making, and of advance further bit sometime we We're this with quarter disciplined. move terms more unitholders, call update, a that But very things progress time, continue on to either to maximizes continue of to the be for we value the in very to And a pipes. get And to are of forward work going and These having working in or we look on that forward. And terms valuable fourth we where transaction are.

Shahriar Pourreza

anticipate do Got sale offset the to And -- Pipeline fully the sort it. in just then 'XX? of you repowering Meade

Rebecca Kujawa

Shar, it's Rebecca. take I'll that one.

and assets. part will longer-term be extensive repowers, super of the growth continuing nice repowers we're to NEP, about projects pursue it excited complement acquire to of renewable pipeline with as So such within these an a to plan

nice So a the but doesn't meet it part certainly it. plan, of entire is growth

As we a make talked to this about X.X have the progress And see first near total in order that obviously, May, we in in the that. on forward step of gigawatts is term. we

portfolio. other still repower So as the done assets with we the not There's opportunities some in we're attractive CAFD noted. steps also to to but finish, yields,

Shahriar Pourreza

for then And me. just Got it. Perfect. lastly

the cash. on uses and of sources Just

I enhanced think we the appreciate really there. disclosures all

of incremental sheet become the the obviously, balance to a offset I $X bit the asset levers of more guess, any the I guess or given anticipate conditions reason Just, market around rethink billion the to payout potentially billion capital-intensive capital you nature the business, the do $X equity and flexing sales of if challenged? any metrics.

John Ketchum

obviously, thank very, are Listen, Shar. We're we well. efficiency and very focused, always, on focused And costs. you, very as Yes. very, as capital productivity on

our levers is success shareholder we cost annual had our with those are familiar are points for that the the of I in focus very think we us. always that those but company, certainly have. So across base run processes And X reduction we've

about think what And been billion about billion look I I can NEP, look, do years, KKR I of mean Apollo not recycling. projects, disappointed we a transaction. been mean when not historically parties. and we've transaction, in of of selling NEP, asset as the the the over And only recycling think able but X equity reminder, X to but billion only if the and last the do, $X renewable third through the $X successful asset I'd $X or very you in parties. only OTPP we've be third pretty transaction, to

good very forward it. and executing about out against plan sources look feel we that to our we've So laid

Shahriar Pourreza

Congrats.

Operator

with Our next question comes Morgan from David Arcaro Stanley.

David Arcaro

just if driven -- higher was mentioned sustainable returns renewables the prices, higher if dynamics you to wondering it's storage XX% you've past. I given in in PPA that's seeing than market -- over and And think the here? do about of given those level indicated demand I assuming markets? you're And the in by return PPA in returns impacts that's for you wind, Wondering competitive of pricing, any terms that how think higher whether

Rebecca Kujawa

that. take Dave, I'll

environment. always as we've know, backdrop characterized you a for As renewables competitive the

a team proud with the ability to ultimately supply very has over strength and projects our an importantly, to we that I'm most the our highlighted, team, projects our advantages time. has of -- the of well period ability the across with team John work to environment. So build it's think folks ever-changing I how certainly over executed that with operate these the partner investment a competitive of this work time, and long chain,

reflects contributes building, of operating financing to expect ability we returns. to I current So both adjust think which that. cost what time. are believe And of I'd that you our to it is really also over us able successfully to the appropriate achieve do, And maintain to projects that we say and all

technology, future, of mind Steve's think, I of you that are the dates, think X.X terms gigawatts. I cetera. fully question, data I report locations, of a can't predict obviously, that of tell ago sign, really In demand, demand. can we underlying a good and highlighted illustrated I the And It is today our foundation et minute fantastic X points is a but to as from top

-- and [indiscernible], pleased. position to is this So 'XX change, can a the we're realizing I'm things that a timeframe. particularly for business, pipeline fourth really but 'XX in development continue to believe in obviously, And looking I at strong the good also quarter, that

see of based form renewables know be well, think all backdrop and capacity And what for I increasing and of So we least value to electrification, cost is on generation. today, our generation founded increasing which demand of across things sector on the a very you the exciting. that continuing it's

best would I expect to what the positioned that. argue is would So you -- company I well like an hope the would against environment execute

David Arcaro

of source a the you Great. transfers tax also interest and in years? That's And How the of pricing when next was you're credit curious important demand realizing terms of few becomes I that seeing more is And on from Could market? credits counterparties? you're on flow market. as really you're that transferring it cash helpful. touch over what what deep these level

John Ketchum

I'll that question. Dave, Yes, take

tax speak, us. And First relationships NextEra 'XX I our is of together balance sheet. outstanding and U.S. treasury a started and the would with to market demand have out as and we much extremely building plan. having The working had really have transfers the we've department early. department. of that are our tax strong an 'XX And tax against behind have And pretty 'XX already the taxpayers our we tax XX one transfer top execution and terrific robust fact already group we argue is for the helps we're things of credit all, that reached on

able in an provide stand they We important And tax our able off know is transfer really the these the credit lot the developers pricing they've underwrite program. a parent. because never of heard I get companies. really, things we terms feel credit. speak, XX can't. That go underwrite that, can that against where are. we don't we're And great sleeves we behind -- our indemnity being don't the preferred and have small because from we so It credit to And to of vest, They really the compete A- who it. to to an you able taxpayers, that tax transfer. They if do. rating to so they what of And top know credit about of know do really to They NextEra.

Rebecca Kujawa

point broader And it's the and great particularly energy. I'd a working our on the to think love that business to of some add were one I because that complement customers renewable actually C&I with buy to

procuring proposition, economics, most tax in I that but ones us. the projects. renewable John energy think really active also value the investment that the in like highlighted, And in they are like the enabling are value as the customers are of buying and the interested credits Some proposition. most renewable in Certainly, from supporting really market

opportunities a really the of a see interest really deep a of we lot across So market, cross-selling portfolio. and

Operator

next question of Julien from Dumoulin-Smith comes with America. Our Bank

Julien Dumoulin-Smith

regulatory back think projects you're robust billion? tax do the to billion you by matter? credit the last a start how tax billion in market? a into equity anyway to bit, you does and if to think equity of range, much $XX do how tax composition credit going it contemplated ultimately, will? does that some about on a is commitments? equity perspective you the billion play tax How Obviously, do it that transferability. much $XX tax how impacts about transferability? from talking you How And about Just about question much How the TE to the $XX of think of existing the $XX And your

John Ketchum

Yes. I'll that, and Julien. go take ahead

split, can at look First around. move you of project things all, our equity, tax when finance

just hypothetically it Let's XX-XX. about as of think kind

issues, we regulatory out, able I equity. our I think to decent to might think think, be you think, resolved. pointed ability about be We very are And to going feel about. place good to that a -- get access starting I tax the that

provide were unintended banks I at on worry of do a involved about And there We'll those administration, end the other of our consequence think these gets like the receive pockets to III. deck about And fixed. well. And off and trying with get with, focused very we on too about unintended do. to it the financing, structures don't transferability, the worst-case to The XX you've the we've the be us, corporate some so them equity much. And some relationships which dealing At is talking folks there's find will parties, think think, that thing folks top think always Basel in able I tax was they day, consequences been an allocation that to about and we good folks certainly administration spent talking issues. this or I thinks equity. can't morning, resolution the the I III issue significant as as any those we'll gap. no scenario, already around then for Fed. the it. But I I can around just with have spoke had step this Basel reason be tax And time discussions fill

So long to story about financing feel going short, ability source we forward. our equity tax terrific

Julien Dumoulin-Smith

it. Got

piece. So technically $XX right, is smooth not obviously, conversation, a understand it's billion, the the that billion transferability if part $XX of to but I

John Ketchum

Julian, say the... you again, that Can

Julien Dumoulin-Smith

Yes. as in credit it that the finance you $XX $XX question included The going transferability, fluid stands, not forward. how to transferability, technically of it's billion a but billion,

John Ketchum

in yes. number. in shows transfers. shows that in The the equity not Yes, for dollars then flow transferability credit we're tax from content cash that's that it Yes, the from tax that -- I'm is receiving Again, corporate. let's cash in terms line. the issuance flow debt up at But corp up and created operations the operations of really sorry. look

Julien Dumoulin-Smith

if How of Yes. instance, it's your roll rate of baseline here. again, you kind interest do with in you a more Is open rate into commentary. the kind you through that and XXXX? to guys notable, of can, kind here quickly, about as considering you additional if as question the and here. of longer Thank a I of you the sort roll dated to impact And takes on for for that, sort do specifically, the think of How carried period, puts interest there roll-off 'XX usual you way think will? you headwind? the quantify the hedges period reaffirmed about the that sensitivities it you, as and as think just then disclosures I

John Ketchum

Yes, yes.

of points I'll So is a One that you've couple the make. sensitivity. seen

'XX, 'XX 'XX. $X.XX and So to 'XX $X $X.XX to impact in in

With into XX-year of the hedges average about have project amortizing there. those rolled then we have financings entered the We've X- where to we protection sits. And FPL very points, about project about into, think with those them of have XX-year feel XXX good XX-year we debt talked benefit Those you use that that we swaps. the that that hedges. the basis coupon tenors, basically the are that get financings then

another roll the And that our there's interest mentioned that rate think that portfolio safeguard about swaps in billion those due. as we today finance have, protect and $XX.X of when $X that aren't you they so existing becomes billion and project we even

existing is short, story very in locked $XX.X the we against interest billion our rate and the have between the hedged, all fact long that So our already good exposure. feel that about portfolio we backlog,

Operator

with Davenport comes Goldman Sachs. question from Carly next Our

Carly Davenport

I proceeds? assets a billion Are only appreciate renewables embedded there just monetizing? Energy in any of the consider kind incremental that And follow-up that in asset in element plan you'd disclosure sales. Are Resources there. on funding non-core $X the and the the other

John Ketchum

Yes.

top too, But not non-core. the that opportunistic, that. last value renewables plan. when I we'll able There look the recycling other come mind. had be over more are being I years The we're So a the parties where be If of always several of available sure, of remember, third to situations than look part mean, assets assets we it, announced then FCG that potentially we of example there recently large is transaction And recycle capital about think to core a capital are are renewables. history but Carly, good We've that just a it's we'll do, for opportunities. for a through could company.

Carly Davenport

it. Got

across It the a as technologies, versus just wind, to But that helpful. dispersion also to a just Rebecca, to That's being And about been XQ the this solar additions like little weighted of bit backlog you storage? split you of the up Great. you solar can fact relative the different about and 'XX talk and alluded step there's also the seems more in the to I then wind. think across think 'XX longer up to Okay. be shaping timeframe dated. quarter the pipeline is kind cadence timing

how that on would you piece evolving going thoughts any forward helpful. just see So be

Rebecca Kujawa

'XX, 'XX 'XX and comment, XXXX, much of just and Thanks, fact in first I that given weighting more 'XX. part with for timeframe, was before that had bit what Yes, much a the anomalous 'XX, quarter running of today see and we're definitely a and the is It's Carly. to I that pipeline your it said the the support with little I very into this it's great what think 'XX terms for consistent weighted question. in of I

some obviously, the and are a Midwest, of ability where across technology, renewables set the just And C&I for and we firming the not the actually, product. of prepared utility California capacity in storage incorporate really of it's right shaping had broader -- pleased for highlighted see not terms our into terms In storage. the to to adoption the but Kirk valuing remarks, really but customers very we're not signings strong surprise, maybe probably starting in as see the value markets, and, word, to the how of

So top mind. in my that's really

that the wind to think tax going phase a side, credits we and industry XXXX. a the bit dynamics down of -- after the little thought I we seeing that shaped result still we're On were originally as up of

saw still then a attractive. amount the demand. still been economics pull of geographies the incredibly wind solar is improved has And standpoint, We demand. little I obviously, So that's of think see PTC from for significant where positive And affecting of being which forward a a extended for significantly lot super we industry relative a the bit.

demand And long-term I I feel so wind. for demand also long-term about good about projects. good feel for repowering really And

share opportunities to today. year renewable to look it's great about less the gigawatts there's repowering as over that. Obviously, initiative its the of little extension a repower start we from lots now we talked IR the across projects, had tens than XXX we well. But with of of Obviously, a bit entire megawatts following

us. the opportunities excited So in really across the of about have front that overall, board, we

Operator

from Our next Weisel comes question Andrew with Scotiabank.

Andrew Weisel

equipment Can chains, of or equipment for gears. switch you your chains? availability curious, like supply transformers a for and about status bit supply latest mean on level as well I both the thoughts grid solar as talk

John Ketchum

Yes, me let Andrew. Sure. take that,

just really Circumvention, of improved are clarity presidential lot be has a chain, We with X what what things of can answered, provided around Rebecca had first been the done, lot right? and asked the which supply as proclamation. mentioned. issues, and So a all, can't with

there. very shape good in So

country. our importation suppliers are Second forced patrol working and was sure labor with and into panels for cleared that their the making to constructively customs border get

And able all for most our the so part, of do that. to been have solar suppliers

very are good shape we so there. in And

I level think just mentioned, very equipment, grid grid on I you had actually long we're including gone level -- on the grid shape issues We power, that in transformers. good on.

lot lock that to quantities able big up given large terms equipment our and And significant to for transition in that building in our in the equipment or are benefits the of equipment grid ability to it this in of of that inventory a as places the renewables owner a have transmission where offer have think the equipment. level the I very our particular, on are up we really on buy or the we customers leverage solution. And a make and have our available we've in lines this looked trying sure short supply we -- in for that given plan and inventory. we we're in forward one short our scale if that also have, so manufacturing and equipment And a

of our advantage way So competitive true think renewable is the it's business for a that. I

Andrew Weisel

Great.

clarify, do inventories? equipment? Like this NEER is Or you to FPL? those buying separate Just keep

John Ketchum

are Both it. need both Both because are.

Andrew Weisel

potential settlement. PSC of quick Court expectations bring Supreme this Okay. Great. approval I you their share for timing almost the And and the outcomes? your if Can rate one may. maybe Florida but just case I'm apologizing around the on State follow-up, details up, the process of to asked some

Armando Pimentel

Andrew, it's Armando.

the Court Supreme Commission. the Service agreement You're Public back remanded that the to settlement right

soon, that details back to timeline of to they that the process did back the to last Service would process, to going the say, Commission Court be reopen and with Public the next record. the Duke remanded we'll the is Court likely the Court Public view not where able a Service receiving. That Service Commission by is next went year the Commission was the with Supreme the that the is to both to early additional I Public be reopened, Public back case through year Commission Court. sure satisfactory very quarter and forward Court the view Supreme that the the our a conclusion expect year, that send Service send looking the made Our be Supreme take in up don't together to to it and position their be record We be materials put that Supreme first with similar that would in that Supreme would up to and

So we the we're as the having Duke and process on first case Commission next Public that same think resubmit to look was, Service we that again, quarter year.

Operator

question-and-answer the you session, presentation. and concluded. conference now for This concludes Thank also our attending today's has

You may all now disconnect.

NextEra Energy Partners (NEP) 24 Oct 232023 Q3 Earnings call transcript