NEP - Earnings call transcript Q4 2024 | NextEra Energy Partners, LP

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Operator

Good day, and welcome to the XPLR Infrastructure Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations.

Mark Eidelman

Thank you, Patsy. Good morning, everyone, and thank you for joining our call. With me this morning are John Ketchum, Chairman of XPLR Infrastructure; Brian Bolster, Rebecca Kujawa; and Mark Hickson, members of XPLR Infrastructure's Board of Directors; and Alan Liu, President and Chief Executive Officer of XPLR Infrastructure.

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

effective You should trading on January New today's note on accompanying information. XIFR XX York refer slides the Please the effective under become Stock of to February became the that ticker the in X. to new on the for will change stock definitional contained and presentation name Exchange information Infrastructure XPLR

CEPFs will also call. With referring equity turn to that, convertible We financings be call to Brian. throughout I'll today's the over as portfolio

Brian Bolster

provide we and Thank these strategic of strategic will background following everyone. a Infrastructure announcing company. is the of will of review how at company. a repositioning outline morning, you, I then repositioning. the the explaining major first good that have Today, elements arrived XPLR Mark, detailed some changes I

with will Finally, XPLR's I will discuss priorities some implications and details regarding conclude path of Alan Liu the opportunities. related and forward.

outline. now to broad the Turning

retained will making change in its make is investing to an is investments, suspend operating utilize to XPLR cash important Rather instead CEPF period most equity unitholders. XPLR buyouts, the the issue First, distributions to indefinite than flow. for including

ultimately flow strategy cash focused its focuses from balance to acquiring sheet renewable be unitholders, our with than on growing investments exceeds be transitioning are on the the out action and extent will to our we cash by which flows whether buyout to funding investing be is of repowering, cash capital business. rather assets, issue to other have support we to seeking of constant unitholder return acquisitions against. In on believe investing funded making we cash will each unitholders, And primarily access measured which short, CEPF, investments profile, of ultimately ongoing committed to distribution, that growth today, output. required substantially a capacity capital a free markets the will will the value assets an remain be the attractive alternatives flow all equity today, our provide returning we cash a storage the cash its model eliminated need this that in paying an investment to accretion flow taking By XPLR wind of colocation returning investment to -- or and such, that of what to flows, Growth As at pursuing focused unitholders. opportunities to free equity.

self-fund to We to growth our and unitholders. have preserving path while option other opportunities, investment created the retaining a also sheet return and to balance capital organic

all team, the XPLR to all to broadly to opportunities, be in NextEra continue additional be of and place will and measured to Second, value, Alan create team, is by management capital both unitholder employees new asset ancillary looking against management This new whom of this putting approach, led implement are unitholders. through base at Liu, a will Energy. existing returning

entity to which the those I necessarily delivered few to not captures growth Other assets the an be will assets. the that energy with this out, company we of opportunities established given acquisitions name think the flows. these in acquisition currently the describe energy the context access a to changes. to give that in background, a its to and company, growth, but course, for a was transition then portfolio. Having of of vehicle new we supplier contracts, unitholder, is XXXX, entire XPLR's they on low were by operational long-term model the a cash basic new of acquire driven with implications Energy, broader an meant at XPLR that clean will for the how which close issuances. to of NextEra path of explore the to was a that elements and we unitholders. was and main allocation which it suite relationship interest acquisition change changes meaningful is through leverage financing now its hold assets main across Associated portfolio high expected of for its and capital cash changes some a a minutes bring will When continue spend risk benefit these with relationship to and to commitment every Through retain turn for relatively service their the primarily growth and appropriately function investment ruled pay opportunities. NextEra representation, some contracted this the clean Board will and annual expected in same The XPLR XPLR of to believe will equity team largest proportion be NextEra to would least years. Explicit need agreements changes provides flows, from some making, very of growing expertise the out we opportunities to benefits that will continued Energy existing Energy, with investment you let will me be adjacent existing

many worked. years, model this For

to distribution issue However, as grew, needed equity assets partnership per to thus distributions unit its the rate. growth acquire more support and more

obligations there downward would distributing of equity dilution term. time, be that to XPLR issuing of fund issue pressure to going grew, rate. When distribution existing look maintain cash equity, what source and limited, CEPF new yieldcos significant we and the its issuing we has context dilution. had these issued, buyouts, by CEPF buyout utilizing a cash have for significant to new we instead discounting on more for public If available support equity forward. it this growth the results capital it in need private that better we within what significant that a substantial CEPF, as new to Therefore, to over proposition our to in longer a -- the value this and to the growing to buyout offered our XPLR to make and to become as thus re-examined support XXXX, economic market equity increased policy needs equity proved offered Over level the the adjustment creating to selling is Unfortunately, unitholders. equity help for clear As financing equity distribution our the equity capital believe unitholders in price. acquisitions. began was needs continued resulted It's unit

investments you're limited including opportunities multiple and all common to, a we in repowers and cash. but of form aware, unit colocated X, for either X, X, our growth buybacks. the opportunities, As of or unitholders, capital return distribution not the storage; have buyout other in of CEPF; to

to also sufficient refinance We sheet come capital maintain they need balance obligations due. flexibility efficiently as to

a to the several distribution full of unitholder path maximizing we the suspension For value. gives clearest us reasons, believe

not the our most it in one the out unitholders at buying unitholder buyout investment believe equity. CEPF double-digit flow best is attractive opportunities. We with finance cash of we of to believe of returns selected CEPF First, interest is

and storage value around retained investments that will believe unitholders. demand clean flows. to our assets colocated energy for wind expect will we cash like see investments Second, These be we generate for cash, from which attractive investments can incremental repowers create funded

Energy. expect to power, we given unprecedented our the through opportunities investment have with for NextEra demand relationship Third, other attractive many close

fund plan cash to time the model allows distribution an suspending attractive the does to pay distribution business potentially investment business a on rely issuances. In to yield equity and distribution, than fully to continuing a token that return value near-term able flow a potential flows a today distribution part be returning distribution and acquisition contemplate Similarly, will XPLR's opportunities. we why the economic the capital the over as on opportunities, maximizing not evaluate to we capital allocation assets. in us allocate rather to We back investment face our of of against unitholders. that a capital double-digit of of investments. That's out distribution from by the adopt vehicle, to believe out our or believe at ability that diverts today, suspending in not will focuses full to have of path. buyouts unitholders a paying prevent suspension markets one the Finally, the equity capital plan future, a valuable not investment the maintaining generated smaller the is retain the while as change XPLR's does By announced all XPLR cash opportunities of we allocation

returns organic at some our and buyout. attractive flows be selected cash or in years, to X of to the decision X use to sheet balance the The the return from XPLR to on invest to capacity buy growth of acquired based CEPF available next not means the the and CEPF will its of advance buyout combination plans Over cash that a flow the opportunities.

both. its limited plans clean colocating term, across other longer renewables we to continually re-initiate engage unit the portfolio. At return value time Over of distributions, over either against be distribution. or including and in opportunities will evaluate a but capital storage measured common potentially assets, through The including unitholders, buybacks the restoring these to XPLR point, to, buybacks on energy returning not eventually in investment some opportunities can

XX%-plus not However, available depend is investment of time. distribution on unit cash to flows. The future They predict to buybacks of expect now. payouts will a or right revert policy distributions timing available at impossible the to we do of the opportunities

at its multiple infrastructure senior positions infrastructure set held power, utilities think a are his remains investment allocation either management of is as for principle in to me track industry that, is an acquisitions, unitholders by dynamic value brings our record is unchanged. will will matters. With a and renewable that XPLR Alan capital capital committed needed assessing of on team NextEra with thinking and and to those unitholders XPLR's it Alan pursuing the opportunities and new or the new updated risk years context veteran unitholder disciplined has time. Alan proven repositioning maximizes to execute a Alan to to its other the Directors strategically over repositioning leadership management through and you strategic the close will financing in team We returning of helping a Director of on corporate investments the experience by in continue business. Sachs, raise, of electric ties I only capital energy NextEra Officer. and that promise a Energy and of companies, skills allocation Goldman Managing development committed to be range be diverse the management sectors. XXXX, responsible of comes companies more and on of which Prior policy, nearly private broad retain Chief be place, employees executing mergers, attractive returning at to all advised financial was serve on and XPLR will risk-adjusted excess partnership's will The XPLR XPLR's Liu, joining of and Energy. to call and discuss from and returns. In team strategic Alan turn to of Energy. complex will we in about fund management to led public across and XX Board that and with of And NextEra team the detail. whom putting NextEra investments XPLR where Energy. capital Alan capital will he Executive today over model, the all be in again, a to who keep will a

Alan Liu

morning, Thank you, good everyone. Brian, and

third and largest diverse discuss generation in United and XPLR's producer Infrastructure I owning assets repositioning I in it's energy today. of and solar largest wind of States, important power set overview the provide a totaling one operating of assets the the gigawatts to and high-quality investment operation producers the brief highlights. is greater XX Before of in key feel detail, a XPLR independent

provides storage with in that and XX and weighted of high power portfolio cash XX of across life existing a have of the with The flows customers XX is projecting by project portfolio located including This most future number we technologies to rating enabled markets a BBB. solar states, which through contract years average generates credit means contracts opportunities its growth, credit of long-term assets average diversified quality. Geographically, load level and significant portfolio opportunities, is investment other across remaining with with have including visibility recontracting, Our cash think the that long-term an flows. are different our assets. repowering we generation customers wind,

to have opportunities As XPLR will its we X believe have reviewed flow, value drive which the universe unitholders. cash we to for priorities, identified we deploy of available

first The funding priority options selected buyout cash of the CEPF. is

of double-digit buyout produce believe provide of CEPF ownership to to attractive We us will into expect we well assets opportunities the selected returns, allowing the retain future.

We friction costs simplify flexibility. expect also investments payments, capital and restrictions equity these such of outlining detail control will as limit by all after our specifics allocation the more provide expect I change our finished buyouts. on strategic address to these will of buyout CEPF want do buyouts these of the eliminating can structure issuance to to which make-whole But I capital we priorities. need new reiterate, of I not

provide that to we would period unitholders. assets, increased beyond projects our flows value including forward the of The wind meet the repowering create asset, value over return for are repowering life targets. the double-digit cash on second assets contract in priority our expected Wind of move current the which enhance that is and investing existing

in investment colocated through opportunity existing assets Another storage. our is

Given average development the an the the cannot A assets on site current move site average wind demand of the approximately is time, a means -- for market interconnect most on of a power, for position. Without battery. is colocated interconnect, XX% produces dynamics energy forward. one an project interconnection available important of and typical which time, the other XX% the

as opportunity gigawatt interconnection valuable could solutions to times need increases capacity battery today. We have especially with continue used and be capacity is storage with portfolio for a demand. multi-gigawatt interconnection to the a unutilized XPLR's that approximately growing asset, This expand power behind XX for renewable colocate

generate growth we is to differentiated are returns principle term, XPLR investment differentiated be for a Power longer place opportunities guiding next find power. a where the fundamental in increase can X-folds opportunities opportunity our market We is for other industries of investment strategy Over plan find in evaluate The to logical areas believe adjacent to the years will and energy unitholders. clean demand our we demand has the to assets. accretive that driving XX forecasted may low XxXX where with demand adding XX. U.S. rate expected increase new from center growth versus approximately to alone to is We XPLR XXXX. the XX% compound XXX electricity at believe hours demand XXXX is of of data terawatt approximately prior a demand substantially, annual well and long-term become secular capitalize -- new demand in its through assets relationship opportunities Energy. its through through its on to NextEra own expected shift may power available largest positioned this also unitholder, that close

our X repowers, years, in of and assets, buyout Over of announced approximately the of the approximately next selected includes new CEPF financing billion that require $X.X previously investments billion debt. debt will including existing $X.X

of fourth as of X unitholders, focus In return funding to new plan expand third initial well as our we these allocation cash the priorities, addition growth opportunities to capital to and to our priorities.

highest capital other We and capital to to goal measure each allocating comparison a the of in opportunities relative with opportunity. unitholders returning to returning will growth to

as While project and existing capital company our we debt. debt plan, refinancing we debt, are of part including raising are new also holding debt

For $X.X they company company refinance coming holding debt XXXX, of mature and 'XX. we XXXX, the those to 'XX the maturities plan through billion holding in at when due

convertible have debt. approximately issuances. consistent We derisk plan issuing the do of our not in rate equity, of to billion hedges place those impact interest view dilutive $X.X reissue with we planned on to But

CEPF the refinancing and Again, are portfolios the buyouts. balance on having plan, buyouts, laying of select opportunities it, based received activities, provide the committed we have maturities. you pursue here of affirmation are a plan fund capital lines, to other place. repowers other and believe with the We available in distribution can equity. Having to more and it facilitate want without number liquidity these their to incremental the we allowing company CEPF sell today. need the XPLR an assets We recently including to cash X extend of on we we has details following given growth overview agencies Today, Along X intend strength a the from opportunities X to buyout the ratings holding suspension, out to intend our we of issue to sheet to buyouts. ensuring sufficient to each these I our us of CEPFs

We we in in presentation. in in on CEPF each have CEPFs we provided of expect and for plan approximately the million to and to these XXXX. At $XXX XXXX, But end plans we $XXX based the $XXX CEPFs with XXXX, specific X only million in for have X cash, outstanding. summary XXXX assumptions, buyout million remaining will invest

from X buyout collaboratively the XXXX in worked the investor create smaller billion XXXX. approximately also all through buyouts flow. option fund remaining the restructure to due issue into to that require have to to We our In a CEPFs not This which we of to does in in us payments X address summary, distributed these to believe pathway with the CEPF, payment allows have gears $X of cash results. financial timeframe we us equity. Switching

was year adjusted range. the our close approximately For XXXX, the midpoint EBITDA billion, of very $X.XX full our rate expectations run to

For we quarter adjusted the in of impacted be the the currently conditions be of among pipeline operating expect may year-over-year, the our flat other we expect XXXX, although of timing that expected fourth assuming investment weather XXXX. Meade caveats, sale and EBITDA by results normal roughly to

impact to quarter the The of decline deliver calendar in XXXX, $X.XX adjusted Meade of due in expected investment the pipeline of For the is to year $XXX million we the fourth $X.XX EBITDA EBITDA of XXXX. adjusted billion approximately sale expect portfolio of billion. to the

for indefinitely. an cash XPLR no With to before entity its distribution available Cash flow suspending cash flow meaningful changing growth. expectations repositioning, distribution metric its free is longer the is for

specific for financial You our can definitions. the reference disclosures

allocation believe producers independent free power be help before growth opportunities, capital As allocation will a we decisions. with more cash flow to meaningful our cash with including and appropriate metric flow free multiple guide capital other companies,

million partial buyouts, represents our is before XXXX baseline the for appropriate more and other growth that year impacts $XXX have a will CEPF flow expected a transition for holdco cash Meade we of Given sale financing, investment free XXXX believe which pipeline metric.

expect free to to we of We million through the and before expect end consistent decade. the it $XXX flow in cash million relatively of range XXXX, be the in growth remain to $XXX

expect As which before discussed will to cash optionality the flow CEPF benefit buyout us unitholders. earlier, on will our cumulative of exceed free we provide our we remaining expect growth allocate capital options,

the drivers our a provided between free higher XXXX distribution are debt. fourth rate paydown cash run the for with growth free costs. XXXX impact provided the of flow detailed from expected the XXXX cash and growth, to flow before Higher to the expectations. get refinancing walk of financing expected before of costs have sale free cash of midpoint X growth X our buyout available converts the calendar quarter and expectations low-cost back cash other We and before debt After adding Meade pipeline expectations CEPF and XXXX in main XXXX coupon estimated flow financing include to

opportunities to enables is these opportunity prices. flow distribution buyouts unit it relative of as summary, higher XPLR and unitholders plan to believe believe and at our basis financing we executing are in investing for is suspending best equity unitholders. issuing CEPF the are In that value-maximizing We not equity. off a contemplate available function pursue we that costs, cash does to a on expected investment a on decline current per cash While to better flow issuing meaningfully

arise, colocated strength as Next, repowerings as we opportunities opportunistically going storage that across well and address in growth sufficient our are investment our sheet portfolio while opportunities, to balance to other maintaining invest maturities. including battery

producer existing is XPLR we the be optimally the will our measured take cash flow unitholders. value generating We provides XPLR this potentially producers. future. buybacks consistent with potential high-quality the strategy of long-term a level form an on the believe long-term XPLR investments of to This enable time, independent with XPLR's like flow potential our contracts that independent best theoretical allocation trading capital All XXXX view, against common unitholders before visibility and strong will capital flows. The to in allocation and of portfolio capital expect by cash and to the for return chart our the and of the cash growth distribution. In to we of assets levels value on disciplined companies unit XX the repositioning illustrates existing unlock in flows expectations deployed cash range today returning Slide free range re-initiation project allocate diverse based focus prices flow attractive capital to either on power cash of position a range. customers of proposition in unit offers these Over high or unitholders. believe power

uniquely power, value we portfolio we capital quality compelling energy close Energy renewable predict that, create cannot remarks. actual do diversified the of represents that unitholders for our and a to opportunity XPLR for prices, prepared unit through we a position relationship firmly us And demand but with for due the will projects allocation. That course, open large opportunities questions. line our our investment believe Of to of long-term concludes unprecedented the with NextEra to for disciplined approach

Operator

first Pourreza comes from Guggenheim Instructions] with [Operator question The today Partners. Shar

Shahriar Pourreza

me, So really one quick just please. a for

PTC? driven about Just of thinking the is guidance much kind how of on growth, the as ITC and the free cash by before flow that we're

Alan Liu

Alan. Shar, it's

we've So in to presentation, tax of the you given XXXX. the the appendix credits up

we've I consistent remarks, is, the is about decade. our free before way it in the relatively the the think through said prepared cash flow growth So as of end

with of that's you So what today. to share we're willing kind

Operator

Julien question The next comes with Jefferies. from Dumoulin-Smith

Julien Dumoulin-Smith

the little [ of about for a out there how rate out then how think convenience, growing? And So about under rate? run Congrats, that Alan. can do there's run think do about bit assets pleasure. terms run rate. growth a talking time? think EBITDA up gross in about about imagine you that down I you net ] are laying that what you run How you say, CapEx rate to and probably little i.e., the how gross think It's the think that about you the over bit, follow-up as a Maybe about you the here? you as from just you're guys is But talk you and CEPF? of, some takes, puts selling and do

Alan Liu

Yes.

So right? forward I cash on allocate not run the going what I mind on rate behalf is what's about at due -- flow is change actual our that a And to is, can of significant our unitholders. the capital to think laid -- is in in I think go-forward issue we're that consistent. the a project here is level are matters produce going my stated, the cash it we let's decision way look we we're primarily talk relatively basis, out going we've so movements structure. The as What not flows project structure plan to where you equity. have our capital to to

So million you've through of $XXX We're we higher the of free think cash the can interest XXXX, $XXX But to behalf million that is we value. company drive at gotten into million that I of capital a all XXXX, free flow your expense. to allocate cash we're you've $XXX metric, unitholder after $XXX flow way growth decisions at million. got right? most arrive of kind of allocation That important on to this

Brian Bolster

on to you during about. EBITDA that effectively change so one And can question step that and think the repowerings, you I flat it's page talking a to we've then the And Julien, regard -- so is right? EBITDA down. will flat. that. be on on The Meade, EBITDA, the with effectively shown period we're see

effectively I the need spending asset, is life we're of that you extending the the to -- but So think assets. capital,

We're it. NPV. years we're But that So what the of in is we've IRRs. you're creating creating seeing that more asset multiple added attractive life to meaningful

Julien Dumoulin-Smith

as and going again there there and terms think other structures? traditional debt And interest lower just of in how are 'XX Any forward? you're heuristics of would mean, structures more coupon about just way you any do about kind holdco or or interest the think I thinking what at you about the use kind converts you're how targeting refinancing expense, environment? about you Got you think expense incremental about of to it. then -- beyond thinking

Brian Bolster

Yes.

like debt we're We'll I a and focused the convert. think obviously lot to want right now, price the the the a see of it sell doing we on comes so our due, of 'XX where straight 'XX equity and we're of don't we next maturities we set but because through refinancing are in timeframe. when value

why we put number we feel about cash So that in of today. the you very confident front that's flow

Julien Dumoulin-Smith

then direction, net, if as think is rate again, I think about also that's a about different get it I a here, et flat. reconstructing in Awesome. net can And repowering in you portfolio contemplated run conversation. cetera, the your

You're selling here. assets

Are the relative the rate as So not EBITDA EBITDA to costs read rate pushes your run down positive presumably, that your over conversation. being time? of or other run there offsets CEPF should we inclusive

Brian Bolster

Right.

where time. decade. We're assets and following Alan just through conversation the mentioned, we to at flow look you of And I about for sell we the given is the from the then I'm talk are when cash as to we've for which rate we we the forward. think Julien, if eliminate think say the going down that's -- except to right as think that presented, XXXX of assets. So shown step a effectively range about run EBITDA you things. in we've if that I'll effectively the guess, going the a question, you end the perspective, going we over the flat. And off said just of a couple CEPFs, of That's we One EBITDA page is, flat, we're

to I but your answers So make directly. it hitting hopefully, question, we're sure that want

Operator

question comes with William next UBS. from The Grippin

William Grippin

when on the color one a quantum one plan little how and expected bit on exactly perhaps make Just timing to quick for more those growth investments me. or investments? sort color Could us give of of little could a more get you your bit you we

Alan Liu

Yes.

right, how we've be planned appendix, out But then So 'XX current really say, most source about you going think you kind the CapEx is plan. think the of or... would 'XX it think that The here of of laid the XXXX to some today uses what we've -- it to question your answer is laid in in and expenditures. I I Does have a it. should in the of in out XXXX. timeframe -- that's

William Grippin

that I how do then cash end guess right? I the through free -- and decade, in sort the about the of of guiding of think well, to context flat

Alan Liu

Sorry.

I way have first our guidance think the contemplate plenty access guidance does this X CEPF that, projects. it about complete beyond The opportunities anything that not priorities, at in the that. obviously, beyond the near-term, but the of should as So repowering our point. which we're growth priorities, we and is, think and on there's today think focused does cash we buyouts X is we not incorporate Obviously, to beyond flows, you the

Operator

The question comes Willard from Grainger Mizuho. next with

Willard Grainger

point there thinking expectation or $X.X EBITDA of EBITDA the the from Just CapEx you Is it? to that billion bridge clarity. -- offset of asset about you that will billion sales. a growth be from the in $X.X we how expect is any should Do decline

Brian Bolster

cash X is, I think Alan adding we're way next the to repowers laid to two, about the of on spending meaningful we're over repowers, And going And where going would as life but so I prompt then on your the way you money selected money going flow, should asset. out. is extending CEPFs, spend repowers. things, right? to the the to think the One money think not about we're is is -- which buyout

NPV and meaningful And so IRR. we're meaningful adding

why range and we've that cash the are we them investments. about talked talked assets the adding IRR about, which are we've the extending life years, many but and of we flow holding That's NPV. is the being so we're positive spending And capital EBITDA

Willard Grainger

just there of or the lot level Got a we equity think just combination about that? equity a of and be new project down tax as it. And be of should in that from the is form funding the the about we will refinancing or holdco How a holdco of debt of of should CapEx, that pushed thinking kind debt? the

Alan Liu

plan, financing laid be be in Slide detail next project years. to project the it's tax in think going But combination of I I financing of the out at majority the equity. appendix the that the of level would we and expectations will Obviously, the XX you where we've point X think our for level. to plan a actually financing

Operator

with The Scotiabank. comes Weisel Andrew next question from

Andrew Weisel

Appreciate digest. run clarify, you've talked the cash all this figures. guidance the and figures? December flow year growth Is A these Are rate details before more to to here. Are change? figures. free about a calendar In the My question, full those first XX just past, EBITDA lot guidance traditional numbers?

Alan Liu

is That correct.

As calendar different stated, how is much the the and most decisions different basis a fund in sources what think we we we year cash matters capital have that to do intend available to allocation each go-forward make. on

Andrew Weisel

to and you just saying moment what $X.X Brian, great. billion 'XX correctly, that should And flow then Okay, free maintain the CapEx $X.X were if through I that to primarily a 'XX, to elaborate the of and for cash the stable should on be repowerings XXXX guiding end understand ago; growth the of EBITDA over before that basically secondly, you're to growth billion decade.

level in or to my order should we CapEx mean, that? maintain is, each we of I about that year think question So how I do a out level think... growth model similar

Brian Bolster

Again, of I life extend as the putting would about to assets. repowers the money assets the said, way the you we're into is, think that

the So flow on 'XX years an of it added of the cash NPV life because 'XX. focus in extended the we've money we're going where our to and -- we've business assets. basis, That's to

As mentioned colocated storage. at look we we other opportunities,

of a flow Obviously, will come that with its and be incremental different kind could that CapEx. cash NPV. own So

very at we'll extend we'll flow attractive a timeframe. IRR. which the So cash to look the as near-term we and 'XX invest 'XX, is And in the we Alan get when other the is other of out life then assets, look 'XX opportunities -- said, assets, the at think

Andrew Weisel

Okay.

no and be of EBITDA until CapEx no of growth we cash flow flattish, Is hear we way about otherwise, terms modeling, simplest kind the free should hear until and this in distribution. think otherwise? So should the we that

Brian Bolster

of about point Obviously, correct. just we the as the -- mentioned I presentation, we That's is Meade sale in to the pipeline drop investment. out, the expected want EBITDA talked there in from obviously

should you that factor So as well. in

Andrew Weisel

should Very the Correct. after XXXX. I clear said changes. near-term have on

if one, I my Then great. may. Okay, last

we You here? to team. Alan coming other new into coming management faces picture on maybe changes the mentioned on some again. elaborate you the might additional what see Congratulations Can

Alan Liu

Yes.

I'm talented within have new leader are -- Really with we been NextEra I with. announcement be Geoffroy. today, a think excited a a super Jessica that Jessica has individual number a on also we CFO, to this for this of going journey years.

a Officer. today, us going and to heard the So is XPLR is she between named isn't other Executive changing. as be well at relationship With NextEra. the team NextEra as really talented And Energy you obviously,

NextEra have work to support with team. continued the opportunities obviously, and So we

Brian Bolster

remember you Head a Jessica, Andrew, is IR. she former of might

with that So in interacted may you her have capacity.

Operator

comes question with Michael next The Research. Wolfe from Sullivan

Michael Sullivan

signing couple what the I credit rating you give on agencies of like next look sense think effectively years? you of a just off Can us plan. the metrics over mentioned the

Alan Liu

Yes.

the with obviously, consistent I us. levels credit from our the FFO ratings. an with agencies to we've perspective that rate metrics previewed all with that are are of think, of expected our kind And X this plan the consistent be

think expectation. the that's I kind of that

Brian Bolster

Yes.

I seen So they'll their you'll think later press get -- if this morning. releases, haven't out you coming be

slightly each affirmed a of they've way going different and through So them has of expectations calculation. the their

conversation taking at agency, were that rather to part you'll affirmed see can their where we for announcement. agency where I you the this than before and relative them guidance. think reports, important within but they they've sit is this be look guidance So where they able the their to are But by

Michael Sullivan

helpful. And Okay. Very Meade sale. then on the just

process off the to has close the expect in quarter? fourth to confirm, kicked And you officially? So do yet it

Brian Bolster

with I quarter I consistent don't the but fourth the of comment process want this more the year. on timing broadly, think is to

Michael Sullivan

from Okay. leverage And prior on disclosures? any that to change asset is how much

Alan Liu

change. No

Operator

from Cho comes Christine Barclays. with The next question

Christine Cho

I one. as upon be don't have these of uplift PPAs in that that that ones signed original ago rate. the for would some especially of is about rate, PPA have opportunity just just years to but XX you've touched PPA you were the NPV positive the think kind some you this, it some And adder? extend the know there there renegotiate repowering, of talked terms. sort given the But could any being I I

Brian Bolster

as Sure. to PPA. an I there's part always renegotiate conversations, of listen, the mean, option these

PPA where relative And so was where struck it prices are. obviously current to depends on the

repowerings. those look these opportunities context So the we at all of in

Operator

question-and-answer today. attending our today's concludes presentation. Thank our for call concludes conference session This and you

disconnect. now may You

NextEra Energy Partners (NEP) 28 Jan 252024 Q4 Earnings call transcript