Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the NextEra Energy and NextEra Energy Partners Fourth Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator instructions] After today's presentation there will be an opportunity to ask questions. Please note that this event is being recorded.

I'd now like to turn the conference over to Jessica Geoffroy, Director of Investor Relations. ahead. go Please

Jessica Geoffroy

me Good Energy; Vice our Jason. conference and Partners, and you and Executive Partners. thank for Chairman, President Financial of John Thank Chief NextEra NextEra Executive President Officer Officer and Mark Power Chief Crews, Light Energy; Hickson, President quarter Chairman, morning Energy NextEra NextEra Executive and as of joining of of Executive Chief With Officer all & Energy NextEra Executive fourth Energy Silagy, and Company. Resources; of of earnings officers morning Energy, full-year and whom for are NextEra as Ketchum, NextEra you, Rebecca of also Officer and Chief everyone, President this Kirk Florida XXXX call Eric President Kujawa, are combined well Energy Vice

remarks some Kirk quarter then John for opening review the to and of a will and our fourth call results. over will provide full-year turn

team available executive then be your to will questions. Our answer

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

non-GAAP financial includes also references presentation Today's measures. to

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

began serving & X, XXXX Power on rates rate customers the and January Florida regulatory its under under XXXX. Light base of settlement Gulf reminder, Power agreement unified completed a As integration

segment within Energy. As is a result, & NextEra Power Gulf Power Florida a separate Light reporting and no longer

For operational segment restated metrics reporting one XXXX therefore and been other results for and beyond, XXXX comparative FPL financial purposes. has have and

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

John Ketchum

and everyone. you, Thank morning good Jessica,

Before I and results to I'd the our some a growth the our discussion of comments to turn financial review. like future on status of make prospects,

were filed As October a complaint of Florida we reminder, with finance and and Commission. related that violations reported federal articles state reviewing we raised in in Election the quarter last law media campaign allegations a Federal

substantially information us reasonably now of to available complete. is review Our

we finance information Florida the allegations, violations not believe based Regarding the in for our in media would articles. be alleged law Florida of any the campaign on possession, liable as that found FPL

FEC group relies the by media if an certain various commencing Act it process that FEC so. primarily administrative a to parties, by including complaint, civil allege of violations may was articles you special and to implication respect the investigation filed recall FEC process with With interest confidential, FPL. Federal The only a is that the votes on Campaign do by Election

whole million finance law contributions is campaign dismissal and not seeking the us. The forward. to taken to complaint be of than expect next and in is federal violations weeks few response of complaint believe total of less would that amount in our $X.X file the this move a do a to for do referenced plan allegations We as such material we appropriate not FEC complaint as it the

have past prices have year and the with never while over terrific full-year fourth both future been the last results like and XXXX two quarter With year decades, Partners have to now forward. businesses and to NextEra Energy financial natural an and better XXXX cost NextEra of that significantly improved growth us, likely Energy our Both over behind a discuss efficiency volatility prospects. positioned. I and continue gas would going in The increase renewables new had seen

legislation At industry it Reduction transformational the we renewables same or landmark and After often the into of Act, our passage was was time, IRA, our for entered law said fall. business. the Inflation last

we IRA, production phase and largely We investment few business federal months expected for solar Before of had tax credits tax years. two and -- qualified with credits. those a or incentives in expire incentives federal down challenge the always the wind to planning

and The uncertainty they years changed they Some extended, others behavior it behavior. our changed were not. were customer

time. much support the will the are in range that supply they broader Today, They USA, of the place period that cost incentivize creating of of new And a incentives They domestic American reduce renewables technologies. are longer a a clear. chain jobs. in for made renewable are further

believe long-term short, drive of NextEra we provides for Partners growth in our We customers unitholders. range continue IRA in way for visibility help our a and Energy believe the energy and clean solutions, low-cost NextEra value renewables a In a Energy will to shareholders environment, time. that, low-cost broad and for and long this predictable

So NextEra today, year I for that Partners are at I Energy additional financial extending expectations our and few minutes. both forward to expectations look share a on am more excited NextEra we details in sharing an to those Energy and

full-year long share its from XX% outstanding XXXX, per $X.XX, In of NextEra nearly earnings record of delivering continued adjusted track up XXXX. Energy execution,

we financial EPS and both As and the performance achieved FPL our range. operational expectations Energy Resources, strong of a of high-end result adjusted at

compound roughly is growth which adjusted the XX% past we all our for annual years, EPS have top shareholders, XX in companies. power highest delivered among of the Over XX

the challenging in XXXX, the NextEra a year nearly Energy outperformed S&P by XXX Index in financial markets. XX% despite

return, the S&P three, the and XX Index Utilities Energy five, S&P total XXX has In XX-year terms on and outperformed basis. Index a NextEra XXX of shareholder

companies S&P we XX total past shareholder tripled years, of the than Over the and outperformed the Index more Utilities nearly the return other of have XXX all in the index. average

shareholder the of index. same have companies in XX% return total we nearly the XXX, the average period, the while Over outperformed the of S&P tripling

forward. we long-term track of shareholders are creating value, FPL We long-term at intensely going on focused and delivering execution but remain committed both we Resources shareholder and proud growth our Energy of remain record for to

on our long XXXX executing a environment, $XX energy our even no and and uncertainty new balance more American delivering periods of resiliency of the strong have team's service disruption, and sheet we projects, and maintaining billion into demonstrating and credit supply in and macro in Overcoming was challenging history we while invested advantages. ratings. constructed of infrastructure, We challenges, a storage our exception. than and strength X,XXX of Despite expertise and competitive placed commitments, megawatts chain roughly renewables

our in XXXX some growth challenges, execution nearly in opportunities created created disruption proud adjusted XX%. EPS and delivering also near-term it While of of I'm extremely team's

During inflationary XXXX. what XXXX, is our proposition initiatives, the we we executed best while non-fuel America. Despite on FPL best-in-class strategic already successfully O&M value X.X% reduced per further in pressures, its cost versus megawatt-hour delivering approximately customer on by believe

continued variable generation reduce bills. the can solar component also investments in our that of We fuel customer our

placed XXX gigawatts years we We megawatts XXXX, two roughly and anticipate solar bringing during another megawatts agreement. within service into of current low-cost to our approximately of in solar the total commissioning of X,XXX roughly X.X cost-effective rate first our buildout XXXX solar

in customer lowest a X,XXX investments significant focus typical residential our on Florida benefit the customers and investor-owned kWh has part the what capital smart reliability average. the provide the exceptional being making the for years is relentless time electric has bills reliable and and was Our utility among in to the also national more of productivity kept of utilities than FPL nation. for recognized seventh below service as eight most XX% continued

balance year during responded to prices, Ian customers. a well of high to And sheet relief and Nicole. hurricanes in its bill Our high strong natural for gas used provide response exceptionally inflation and team its FPL

forward, many to committed service to reliable to Looking and we affordable, providing remain customers come. our for years clean,

more record also XX% XXXX, had earnings of versus demand the our than Energy delivering in new origination, growth adding States. prior to capitalize Resources year renewables, Resources clean United had megawatts the ongoing and With nearly to occurring energy renewables terrific economics year adjusted is that we continue for driving a across Energy X,XXX on as year. transition a the strong of backlog storage

our and and ahead. of strong into last additions the the a storage net lies gigawatts, now that service, growth over XX placed approximately of provides backlog With net the visibility record at stands year, significant projects in year-end renewables

combined than NextEra Energy. economy. at at clean for in and our gives strategy any incentives U.S. energy vision and strong growth we renewables, time and market to to continued IRA ourselves long-term the June, decarbonize certainty the In our the execution, flexibility low-cost backdrop out August, into outlook with in other and provide Last for plan long-term visibility more history. us Our our laid more helped confidence broader both the

expansion long-term assets through enable renewables, storage. repowering into decades, and two track value Over products our growth additional and optimize and shareholders storage markets renewables existing organic investments, our well creating for even we opportunities the by record fleet positioned are to next to new more and co-locating that continue of

At help FPL, bills hydrogen. energy by to by our low-cost of generation strategy of decades-long Florida our deploying and lower transforming is costs for we and customers eventually the fuel-switching, independence. not plan capital By fleet accretively low state continuing achieve storage solar, into help our will customers only but keeping also

$XX positive are $XXX the over already bills. refund on million savings term rate with our Our that production customer our to for projects. roughly credits solar a of We This solar those current on save estimate million rate have impacts customers completed one-time customers IRA the started base the seen of their expected bills agreement. month, XXXX tax

out mix FPL X% in of included April, megawatts of solar of our which Plan, building additional including the coming megawatts portfolio. through from year's X,XXX are X,XXX our early of to file XXXX. Site Last roughly With Ten-Year we today, generation solar low-cost XXXX, through plan solar its stages resource after only annual still At capacity new generation FPL's expects will present about plan XXXX. roughly solar

will natural capacity the against the By more solar We believe customers it was incorporating hedge solar benefits, year. gas than in valuable double a will prices year's we expect future. post-XXXX for new low-cost last IRA also what provide rising our this the plan in

the strategy gas often low-cost and, toward are commercial the comprehensive energy addition serve to decarbonization industrial At with both and enables combination solutions Energy broader across to complex Resources, utilities customers solutions. of in clean prices higher push our clean renewables, These economy and energy the natural comprehensive and

expected for Behind to of greater create are new all renewables, ultimately even can the demand projects, and renewables. renewable which include Meter hydrogen, fuels,

are their and a past. in emissions serve for a helps complex customized reduction money is company And that Customers customer them have we at Energy than believe way positioned long-term their no scale in energy bills better on we that solutions meet anything unlike to save looking partnerships Resources both needs seen goals. the with these

emissions. lower hydrogen potential particularly to cost-effectively solution role green excited the will help it and for industrial about commercial We and a as the play are customers

the and are identify and significant green the country land sites position. inventory hydrogen We algorithms tools leverage the building around and to and best our optimize interconnection

decades We early already a that some we materialize. are the developed hydrogen led of the to starting using industry markets way, our have are renewables skills capabilities see we have the we that participate in in and emerging clean and to over big efforts

Last to XXXX reach commercial of term included solar week, which Central in we to the hydrogen-related green a not approximately that expected in for in United our operations XXX have development States. in new is megawatts expected sheet we and backlog, support signed a facility generation, is

U.S. under in and a file energy to this hydrogen consumers, to clean the hubs the the in Southwest as networks local full these hydrogen participating hydrogen infrastructure development applications and accelerate is Resources to use funding producers, Energy Energy billion month, hubs Department program of the connective of create for of $X encouraged Earlier carrier. from its federal were of Southeast. Additionally,

to a clean hydrogen by the our recently a is producer Clean Linde, understanding. world's facility hydrogen to clean in project tons-per-day industrial be of build in with with In is we plan a FPL gases Center the solar In partnership support electrolysis-based Arizona signed liquid largest day largest and the company Southeast, in per plan States, the memorandum Gulf hydrogen Energy powered at whom tons the projects. XXX would our our that Southwest, XXX United

team produced hydrogen decarbonization used our and support this clean of West These end-markets. actively the would just a mobility The few pursuing. opportunities industrial of to are examples by clean facility be is Coast hydrogen

by on continue work opportunities scale various with number of excited to front solutions and the and us. of are We partners we in both hydrogen

of In other in investor XXXX. Energy Resources and and of announced June year, At sizing expectations, new the XX among near expiration conference we phase are expectations storage then-existing XX our the under those tax investment short gigawatts factors, development in roughly credits of renewables the last expiration down we a build planned spike the tax credits to production credits considered, immediate when prior. term. demand tax after law. years tax tax extended, demand credits Typically, Then, in dates, and are weakens see we in through

we and are the of extended through tax renewables see renewables. for though extending were that to Resources competitive It credits our backdrop of Even new demand that with market demand our against tremendous at is are the Energy we continued with IRA, combined XXXX. expectations cost today advantages unparalleled development strong continuing advantages

we We XXXX now will through XX,XXX new XXXX. XX,XXX and storage projects believe of that into megawatts approximately place service of the from to end renewables

compare four announced development new Energy four-year development our than the conference XX% our range higher Resources we at are you midpoint year. that previous to at If midpoint, investor approximately expectations last year expectations

XXXX and expectations Energy visibility low-end at clean FPL size NextEra than XXXX. our Energy current at XX extending more and energy renewables executing additional our through years an our just at would took To adjusted Resources, our development to pleased by we am significant new to portfolio, of Due are us put more which share long-term than and into context, these both into storage the opportunities through year to complete. expectations the growth incentives double growth numbers that announce per of earnings I operating the

to to XXXX, $X.XX and $X.XX, per and be our earnings share $X.XX we the of XXXX ranges For respectively. to adjusted expect in $X.XX

XXXX to to we to XXXX and grow adjusted This X% X% $X for For of EPS a $X.XX XXXX range. range for $X.XX off and expect to $X.XX XXXX. XXXX, equates to the

disappointed XXXX, balance XXXX, credit our while will not XXXX, end time strong at financial or of are and the near we share deliver maintaining the XXXX sheet per results at We be to expectations ranges if earnings top our each able ratings. same adjusted and of in

our usual operating expectations including As always, weather assume normal conditions. and our caveats,

of Partners, had terrific Energy Let unitholders. another me NextEra now while to turn which on commitments to delivering year execution, its

strength LP distributions by is Energy Energy which approximately portfolio by year-over-year adjusted For the XX% growth NextEra assets, its its portfolio. year-over-year and operating diversified of Partners in than of was in supported growth XXXX, outstanding delivered clean more Partners' energy grew per XXXX. This further highlighting unit NextEra XX% EBITDA,

in During the renewables megawatts Energy year, net NextEra X,XXX interests Energy Partners contracted of from Resources. acquired storage and approximately assets long-term

been to NextEra of Against at least Energy Our set backdrop and further confidence in from by NextEra the growth expect believe IRA. we Energy robust. third-parties that bolstered of Partners' Partners' incentives, we long has energy includes renewables for a opportunity decades to from clean runway be Resources continue two acquiring both Energy

Partners' opportunities NextEra Partners owned repowering NextEra gigawatts for XXXX. X.X evaluating investments roughly also expanded significantly, currently wind Energy growth Energy for by through assets are organic have and of we XXXX

advantage million. existing Energy the third-parties. to transferability of provisions, credits this allow tax on $XXX of NextEra transactions These execute take which of enable of leveraged approximately NextEra month intended the sale of new to Additionally, Energy earlier tax buyouts cost early Partners capital are equity advantages to its interests Partners for its portfolios two to for asset IRA's

With buyouts project unitholders of access credits, transfer tax Partners subsequent the of result cash flows that can and streams two fully cash the cash now Energy and from for flows flow transfer -- PTCs. NextEra

together, distribution buyouts Taken to attractive early unitholders. cash these deliver for Energy investor NextEra equity for yield Partners available expects an tax

long-term outlook, renewables Energy and combined capital, opportunities third-party with low-cost by to challenging provided provide markets Resources' and ability a Partners' visibility. organic M&A growth even environment, the with tailwinds IRA Energy growth in capital future significant raise and The NextEra us continued

financial result, a another are announce Energy that Partners expectations today NextEra by we to our for pleased we year. As are extending

combination other reasonable unit Energy proposition. kind Partners' unitholders versus in the and as XXXX. that at value distributions expectations see flexibility NextEra XX% to portfolio, clean of market and company least range growth believe best-in-class its investor per We We growth year the distribution any that uniquely a a Energy visibility per attractive XX% and NextEra of energy financing through Partners' offers of expectations per now unit are growth

in renewables Energy Energy positioned. across been summary, U.S. deployment growth storage NextEra to In the years our in for will that unitholders part And latter allow half come. shareholders and Partners many decade. in acceleration both we particularly due have to tremendous continue the us a and of of IRA, NextEra better anticipate and the advantages value delivering believe to the never competitive to substantial We

the turning Eric notified Energy, years with to Before call we led years. important talk this After his intention morning. has are Silagy organizational the he of me over Kirk, FPL, like I'd team announcing XX about to where retire has the for from NextEra XX to changes

improvement a and largest into been FPL for most his utility. been Eric has passionate and Nation's continuous reliable transformed under electric the has advocate leadership,

the year in average country. I fleet, customer Florida the most fuel-efficient team cleanest, he day decade, is firsthand in for and modernize to on efforts as Eric making FPL get lowest-cost country. His compassion feet. customers during generating Ian power that quickly than it hurricanes our the bills State the and putting and winning back saw last national by the best Over reliability first and dedication Last quickly service, commitment steered to has significantly FPL's are the the of the Nicole, the to its lower every of award and restore FPL's one led customers Eric's demonstrated

has family where tremendous growth, his years of all dedicated on to leaders, few Eric university his a life. service him chapter State generation and his across and Eric to to next thank of XX of His business. many state do our Over in the just want supporter has I for accomplishments. and this next name helped company, strengthen grow the of wish Florida service best also Florida's advocacy his foster to economic our the communities been we a the system

back welcome Pimentel NextEra President excited With Energy FPL's Armando we and CEO. departure are Eric's as to to

and As NextEra know, Armando Resources. FPL's President you CEO as served previously and Energy's NextEra of the CFO Energy and

Armando with I Floridian, worked delivering lifelong I've and relentlessly our who customers. performance and leader our am He leadership, will is outstanding is colleague track a also be closely that its proven a under record will friend a long FPL that years, As to customers. of many good serving for on continue confident focused Armando's

Let who remarks. the call Eric me some over personal to turn will now make

Eric Silagy

than Energy. portfolio modernize in fleet recognized and results electricity want generation industry to to that NextEra Thank to I utility and been a other We any shareholders great of that more and John. has employees. clean, relied I unprecedented building an FPL generate joined our our been knew America. has low-cost fuel-efficient decision it a our by in needed a was you, foreign what we our couldn't we long-term that our for for we them bill. XXXX, more have money company's be and on for saved the FPL saying fuel I honor would on years. work it performance delivered start privilege customers proud Today, has to billion When a customers vision over This last the customers, Energy as cumulative their our $XX and XX save NextEra in oil

reduced led costs a of efforts utility, approach grid. and That's $XX totally a to hurricane ourselves kids' innovative different the and than families ways education, pay and new came way on to vacation a for family technology customers' their as These billion to other operating reliability, them And run our it their for that of more improved restorations. a finding or company pay to thinking never by pockets expenses. out began take helped

billions FPL of way companies. dollars. new of most of we thinking cleanest, few one saved restoration a just this examples America's led most transformed times, energy of has into affordable the and reliable are State have which These Florida how Ultimately, faster to of

inflationary number now to the difficult, and of a hurricanes that two me challenging right few. over is Goodbye last is year saying including has organization the of of chain pressures, my While and I great a always time of FPL. just distractions, for supply reins significant career The one most to to been given hand name such a know the

role committed year led to for of is mark Energy XXth point team became When In I going that I stay year, and FPL my least I've NextEra him John more for will tenure beyond years, the would which NextEra last of most CEO's. will satisfied I one April at I anniversary on now that in well at which CEO have commitment. the with XX my Energy

before years to. sure all commit rate two as We more proceeding, I all-consuming our have setting of fully wasn't is could of an next that and which you process just execution know I that

So, of take into next transition I for leadership years. the ensure take and of new a management busy consistent FPL heading to for to to best feel place it's helm the now very couple

and for more of FPL thank retirees their my and distinction hard of work, It our has the communities every FPL I themselves challenged always They our team, and and served single dedication to putting always our career the XX,XXX our and have been lead with honor first. greatest for cannot enough our thousands better for nearly employees customers their day. state get to

is and extremely to the team state. entire the so it proud biased, little FPL am continue and to accomplished, In our John, I best team exceptional customers, deliver is the all the my I'm endeavors. utility value to Armando future what opinion, of to and in wish and world. their shareholders the well FPL both I best positioned has a in

Kirk now details. over let turn for to me call more And the

Kirk Crews

and you, morning Thank Eric, everyone. good

Let's beginning FPL. now detailed to turn results, with the

up million, quarter $X.XX fourth per the of of FPL reported XXXX, share For share, $X.XX net or per $XXX year-over-year. income

increased full-year of share, income billion, capital employed the approximately or share $X.XX for XXXX. per FPL XX.X% of For per increase XXXX. by reported versus net $X.XX XXXX, $X.X an Regulatory

four-year the of quarter, were bringing We expenditures billion. capital rate $X.X continue of regulatory in total to full-year capital a FPL's annual agreement. roughly to its to in X% FPL's fourth approximately $X.X expect be average current billion term investments our employed capital roughly over growth the

favorable weather communities that continue support income to that pre-tax charitable net FPL's quarter, we as the will impacted of approximately allow contribution $XX fourth foundations us million factors, serve. well to an the by For to was a including as number

growth customer supported For cost to $XXX effective of income year-over-year XXXX, continue benefit capital by aided favorable net to and FPL's the for was increased the of ability nearly smart million our growth, weather, deploy full-year management customers. that

for XX.XX% twelve December reported be ROE XX, to months for is regulatory FPL's ended expected the XXXX. purposes

the amortization, year-end balance FPL $X.XX leaving During quarter, a reserve with we XXXX fourth of did use billion. any not

Our program is overall capital at FPL well. progressing

continue met We advance largest and objectives FPL one to deployment of in solar the expansions successfully solar our nation's XXXX. at

Beyond on its schedule hydrogen pilot the Center Clean commercial on it Okeechobee projected Energy as solar, at remains construction our operation green this continues towards year. to advance later date

proposed plan, period Earlier the week, XX-month with our approximately balance proposed strong beginning filed in its spread FPL to costs FPL in Florida billion $X.X sheet Public utilize a incremental this XXXX. fuel fuel these XXXX unrecovered its Commission XXXX. over April Service costs Under to plan recover of incurred

is reflection third XXXX prices benefit Additionally, FPL's of challenging compared XXXX the made cost for FPL's natural projections billion recovery to recent benefit environments customer-centric a in gas customers offsetting this drop FPL's projected based in customers. navigate proposal this by would of proposed original the XXXX. to on by further of plan quarter believe fuel the We $X the strategy year approximately

hour of national April average costs XXXX remain costs XX-month customer Taking in starting that impacts we recovered will Separately, FPL that would approximately in storm the for potential a incurred billion projected of the as FPL's storms. $X.X recovery proposals the both bill also Florida utilities. FPL's together, and proposal, average kilowatt XXXX April Under XXXX. of simultaneous could below bills period is recovery anticipate X,XXX to well related the future from result seeking charges investor-owned residential projected to typical reduce customer of the storm be over

Florida economy The strong. remains

Florida's years, roughly XX% a from the continues compound growth same X% At Florida XXXX. the at GDP the rate. XX in is the roughly Florida's is Over of at nation. last which fastest to The approximately up rates of time, grow population annual trillion, one has grown GDP $X.X

rate to labor faster the year, the Florida's sector than roughly Over participation the XXX,XXX force new improve jobs, rest continues created a and has of past at private country. rate Florida

rate new have new building leading Florida in by building we outpaced permits residential have indicator X%. a growth nation's the the growth average Although seen three-month accounts, stabilize, service of quarterly permits, roughly

of the retail XX% measures have in the index an in improvement sales a versus including in confidence Florida's X% decline prior-year, economy roughly Other meaningfully improved mortgage Florida and delinquencies.

the average by During were the customer strong, prior-year comparison. prior-year driven quarter quarter. was up growth retail XX,XXX comparable FPL's period, the weather quarter, sales X.X% a FPL's from fourth increasing nearly versus by favorable primarily

retail by For growth. X% driven on increased the primarily customer basis, XXXX, prior-year from FPL's strong sales continued a weather-normalized

Energy GAAP the earnings per $X.XX $X.XX million, fourth per or XXXX net $XXX Resources income quarter of Adjusted reported quarter for share. $XXX fourth share. were million, or

$X.XX $X.XX the excluded driver from the and full-year which For of of results. between share. reported Energy Resources adjusted adjusted difference hedges, and primary Resources $X.XX earnings, earnings or GAAP or earnings Energy was is of full-year, the approximately $XXX share, of nonqualifying adjusted million, earnings billion, per on per The GAAP effect the mark-to-market

per storage Energy to increased by new by contribution $X.XX investments Contributions Resources' continued full-year due adjusted share from and our $X.XX growth increased in renewables versus portfolio. earnings share XXXX. per

to circumvention claims investigate delays the of completion to decision Department's pushed effectively out XXXX. we certain projects the in that which development of previously anticipated highlighted, in previously we renewables, Commerce led the As

be As a of will investments Energy result, stronger completed. these contributions much new adjusted from be new Resources' contributions when anticipate that XXXX, negatively were share in impacted expect many earnings projects we will per XXXX. delayed We investments from in

XXXX, our supply margins and absence customer businesses impacts. in higher the Storm versus business primarily due trading to Winter $X.XX of customer-facing by and results increased Uri Our

reflecting other business. net impacts results debt higher growth Our driven by existing clean energy year-over-year. year-over-year, $X.XX decreased balances assets share also by per increased $X.XX primarily by results in the All

Additional slide. Energy shown are Resources the of at our results details full-year on XXXX accompanying

best battery John solar ever XXX and origination, mentioned, wind, of of XXX call, we Energy X,XXX and year signing X,XXX approximately storage originated and Resources last of battery renewables delivered have including megawatts megawatts As approximately projects. of megawatts storage. of for the megawatts megawatts new XXX Since projects, our renewables approximately storage

demand perhaps importantly, lower-cost high by to among all of Our our origination but, energy customers not like on energy for that only to solar-plus-storage. reflects XXXX solutions wind, customer switching renewable generation achieve their forms solar, goals allow clean continued energy costs more performance in help classes save and

are the in driven tremendous we low-cost success the strong a result as our and expectations continued strong our XXXX demand renewables market origination in through by part for Today, XXXX, extending of progress development IRA. renewables

revised leadership across in provides acceleration expectations development confidence stands. where renewables far our high and of ongoing on and Energy country. at program additional slide new program development Energy position The our of accompanying expectations now the are penetration expected the Our four-year our Resources' reflect continued largest history Resources details and by level our in the

As over our the for integrated have demonstrated the chain to has supply of chain industry challenges disruption yet manufacture over faced suppliers a and engineering past wafers their our been working construction execute you resiliency supply for year to and continuing by we significant with teams our year know, outside and customers, China. and and

laws. on panels cells anti-dumping Southeast anti-dumping We that duty year preliminary believe outside of the manufactured and solar duties are Commerce countervailing not Asia clarified circumventing circumvention produced using and of last late in Department's and determination countervailing wafers China

by waiver the confident period. two-year the are with we panels that consistent these can end We guidelines of source

to support panels. we the Finally, solar of production advance discussions continue domestic to

for results consolidated the to now Energy. Turning NextEra

the billion, quarter or net of fourth $X.XX $X.XX to was Energy attributable per share. income For XXXX, GAAP NextEra

$X.XX adjusted billion, share, $X adjusted quarter and per Energy's NextEra XXXX earnings approximately EPS respectively. were fourth or

attributable income billion net earnings NextEra $X.XX GAAP billion, share. per $X.XX was XXXX, or share. or full-year were Adjusted to per the $X.XX Energy $X.XX For

earnings For full-year flat for the prior-year. compared Corporate Other the adjusted the to were & segment, roughly

investors top and XXXX, remains billion NextEra our As and among U.S. Energy billion important financing in across which tax we in mentioned, year, capital the recycling more in our sales the than Capital recycled we sectors. again we of financings. John $XX all an asset invested more capital part than will of expect businesses place this equity strategy through $X

grew despite highlighted, flow we restoration hurricanes fuel cash than costs XXXX, as operating our incurring year-over-year, generate for for businesses cash our costs in significant flow more and and being FPL underlying Additionally, have and Ian often Nicole. X% under-recovered

XXXX in down generation, paid we a of nearly this maturities. billion As cash result proactively $X strong

billion manage rate future we exposure on with ended year rate interest the debt Finally, issuances. of interest swaps $XX to

account interest current As is taken expectations. financial our environment the a reminder, into rate in

are per accompanying expectations are and for expectations for share new in of As XXXX. slide. XXXX through earnings adjusted we today included John our expectations discussed, reaffirming the introducing our financial XXXX Details

or We cash growth expect are top our we able deliver or above results that be financial in annual XXXX, of operating our be disappointed to not EPS at at annual flow growth we will adjusted end will compound to if these ranges. XXXX range. near From rate average the

dividends per also per expect through to We a at roughly our base. continue year XXXX, least share grow XX% off at XXXX to

always, our normal our expectations As assume usual and including conditions. weather caveats, operating

Partners. quarter me results to Energy versus the year-over-year. new EBITDA primarily adjusted turn approximately was to prior-year financial comparable now growth EBITDA Adjusted for XX% quarter NextEra due the Fourth million, Let asset detailed $XXX up additions. was

was Fourth available $XX distribution million. for cash quarter

the in first fourth As the operating a are interest quarter typically expenses of versus year. project the higher NextEra Energy three quarters Partners' reminder, and debt on expense

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line That that concludes and prepared questions. for we remarks our with will open the

Operator

you. Thank

Instructions]. the now [Operator begin question-and-answer We will session.

ahead. Fleishman Our from question first Wolfe Steve from Please comes Research. go

Steve Fleishman

hi. morning. Yes, Good

management couple a just on questions the changes. So

connection with you that's if secondly, any just on you'd bring appear to kind successions Could internally retirement. So of Eric's investigation often in not? correct don't somebody And or thoughts just between -- confirm then these the I you making be up. guess

the internally but bringing kind back on Thanks. well, someone just we know thoughts maybe up? So bringing of who Armando as opposed to

John Ketchum

Steve. thanks, Yes,

prices the think about remarks. took and lot give making The question prepared Eric, Eric natural you hurricanes the to when of the distractions year and connection, look notice. a things, gas and supply will we I And the with it I me. your those that me year. a had and I stay challenges he with inflation end all his to and think at I the of when on Eric the the Eric, But on that on succeed allegations that company. connection. first with we're conversation. had gave overcome not satisfied you of media a a chosen First one-year year a through at obviously Eric on and and that it toll first would was all challenges. in high commitment Jim, Eric XXXX that went his was a said, all, retirement about commitment chain talk to

way look a would've to little it. wanted hope Eric, the I Eric And is it it's, it's would've at earlier than do

deep bench at And at FPL. your we a A I'm second to have going very question so deep over FPL. very now. bench

could lot move Eric's have a folks We of we role. terrific that into

the We're in have as Chapel, back Officer We to Chief of well. promoted he individual Christopher bringing as particular, part Armando one is transition. being Operating

get the been job a And think a will I Armando. will respect good who years. customer to XX along, And has regulatory in great for outstanding running I needs financial And me. to team. just rate on he, of bringing a an of he But friend and side the -- a more has on future and ready the do I make think Christopher Christopher experience of for the service. bit case. just been us had Armando terrific have side, operations roughly on He with CEO the then working I fortune lot to getting for FPL. little with Armando work the

in And think bright future chance think to I on have of will of tremendous a get company. a the combination a they him execute that our And very near Christopher future. job with do and is you behalf very working the together powerful together has will FPL. And team, him with meet working all a I to to Christopher very, and of Armando to know

and a in Some to that our have should some had that I be the of investors. familiar past, chance name of you think

Steve Fleishman

Yes, definitely. Thanks.

John Ketchum

I want to to Steve, Eric as few Yes. And words say just well. to a

Eric Silagy

let Steve, little Look… bit. jump in me a here

Steve Fleishman

Yes.

Eric Silagy

easy, of perfect Because never I'm decisions and sure there's time. you can appreciate no these kind ever are

been John a for years. going had at gave in year, years. set, his I years, that been had but Hay job Didn't that XX transition I'd for a XX be commitment real predecessor here leadership my year. This hard least job been said Chair last years. a timeline Jim XX the will any in had in with XX I've job Lew As have be the John for XXth for his year. into my And in been for of before

the go of job And and I have as a multi-year ahead ready another approach. type we're kind forward in to I is to, to rate that's that this getting of look cycle. plan you case mean,

go to through means really so committing And XXXX. forward I'm longer

John factors So play. the in on of of come a XXXX. challenges all into touched lot

XX-hour the very how the strong job. a about do but I'm good lot proud day forward team leadership easy, And but a operational I that that it's managed, position is it it's moving it's a in. But of feel putting decision really, to them. -- challenges when right are and handled is it. company team, really ever there think the time we doing successfully of With a that's in and strongest its financial been I not

Steve Fleishman

getting people. been color. Thanks. main that appreciate question That's from I the Well, Right. we've

color other wind big for me, increase -- more expectation things other that excuse seems more it or like the of 'XX? on through the on just the of driving? four years, wind give just just one main the or in driver there's higher backlog, the you leading expectations credits next Could a backlog. thing extension the wind on So to what's the Is

Rebecca Kujawa

It's in end windows now, adding the wind XXX% through but plus, chime it exactly end looking following the last through change decade provisions, beyond IRA now timeframe and just now that. expectation, extensions what into we the highlighted about this Good what decades IRA. on credit is for a production likely and we've been well the is the talking well of it's With the of specifically Rebecca incentives exceptional now have I'll decade Steve. for that. this it in of and and months through through tax And couple morning, of John Kirk fully. obviously It visibility, big

We're the you the all. thereafter. John through of a see it's production engagement renewables starting and highlighted create and remarks to renewables by supported of tax introduction substantial of on have products related And all on backdrop green the And hydrogen about to hydrogen demand effects talked credit. positive and follow positive what around strong also also from I his to in about hydrogen incentives

busy more So products our can't what's hydrogen about. we're is the that conversations ahead. And types having excited talking development solar that's and of team before, we've the be we never and about wind had storage for

Steve Fleishman

much. very you Thank Great.

Rebecca Kujawa

Steve. Thanks,

Operator

comes question next ahead. go from Our America/Merrill Julien from Dumoulin-Smith Please Bank of Lynch.

Julien Dumoulin-Smith

Hey, I Armando, Feels on bit good back morning admit. changes some a here, XXXX congrats, little just the of follow-up must here, career. back. steward came related your welcome just quick. super and like to team, in Maybe Eric when on to Maury that

a is had here? alluded to rate bit and allude final to then of that what year here, as at all the protracted. of that upwards terms that this being X-K in full taking case of that First FEC process And related the Armando off you you committing to process the the per the impacted guys you this by is is underway balance pending internal process cycle the to timing little

John Ketchum

and me This Julien. go those, let is take Yes, ahead John.

Armando, all he's with CEO -- coming our Armando's FPL. Armando's of first So committed. on committed, back of and President as

-- to belief, Eric a a best an again, team that good in just being me lot the team. organization. job fortune terrific building, able as And built just and said, I is there's a the and lead it's strength did I easily And of outstanding and say Armando's that. of say he there. let a has in own So industry, inheriting just would team my

fortune too, And Operating existing combined other role, think there. And good said thing Christopher I on I'll have have already two that we I quite as Officer a making as we smooth strength Chapel, Eric, May, both the FPL all going which chance are taking that, right over piece. mention a And ensure punch transition, the role. that a is the of have the to we're with that. that's on the part into help do and Chief and Eric that that to at the to having great the that of that staying one, will with for up, Armando Eric will through That's bench first moving sure of middle transitioned on a transition very step for job relationships Christopher,

about The second piece talked internal timing. process you and the

First of just substantially me cover complete. all, one mean, it I we let are more time.

a investigation. liable On finance that would we be side, FPL based comments, federal on campaign on violation as not my of our the do believe Florida I found said

in that no A process, There the more now. States say a with expect Commission I interest authority. few certainly now. today, with The is. with FEC. the the understands it regard civil proceeding me just FEC formal second, FEC, complaint. Federal environment what claims an just That's a where would filed the political even citizen, a to the can has Election everybody process, right the file a legal given citizen we Anybody claim in United the any or FEC right enforcement file exactly can being special uptick but we're And proceeding with words about any are group FEC filed in so complaint. is let And

allegations We that claim and a of to The for a that's to not whether solely they should to like further. there is media up. FEC dismissal. XX on will that decide a months claim this or type believe motion file XX reason take FEC will should take And this reports the investigate not think based we the is a

details the scenarios, in if those up million. don't complaint, they $X.X different scenarios, If add exceed contributions you read all those, you the complaint five the

a at a FEC whole, complaint as that we when as allegations, FEC so, business. And material the look taken I not as on the our impact do and believe whole have a a would the as federal we said process whole,

Julien Dumoulin-Smith

pace quickly, then the to just call, update originations comment Got it. the from third respect down super the the a X.X period"? that little putting in feedback with quarter about think How made in I'm what bit and the if the overall cognizant bit of slides. last little customer orders, 'XX. I versus in the And is this "now materializing Can about subsequent a the you call in trends? you about expectations seems do Obviously, just here, the just can, since you through quarterly comments

John Ketchum

me that, take Julien. Yes, let

look is they I signed mentioned in in example. the to renewable organization thing a the term part opportunities XXX at we for even we say lot Central has strong didn't are count, is sheet And opportunities. When right we lot that of as hydrogen going demand first the I of interest the megawatt U.S. as the remarks fuel development the a The the significant. right on now, a ever. that facility I would hydrogen renewables for for facility green my around now that's have of

market is of lot extremely just a strong. We're across seeing demand C&I the The board.

the perspective, put it in color to just uptick revised for high XX time, mean, total FPL's that's provides long see I And think XX little with that over that gigawatts oh gosh, why mean, a gigs fleet that's I XX period, end, four-year XX% had, of a Gigs, so my on XX we that the expectations, set been year four those last the gigawatts, the so I context. hopefully a you think generation you is I development have on a and company following to

Julien Dumoulin-Smith

Thank you Yes, absolutely. guys.

Operator

Partners. The comes next from Please ahead. question Pourreza from Guggenheim Shahriar go

Constantine Lednev

best Good in Eric here and that. on team. steps. and next appreciate the a great wanted Shar for Constantine Certainly, the morning, congrats to just wish quarter, It's actually

Eric Silagy

Thanks, Shar.

Constantine Lednev

details end quick some cadence growth anything backend noted on renewables, for maybe the the and the maybe and a of and having impacts reach prior targets just IRA to those on on loaded, push and the you've demand -- follow-up Julien's as Maybe pull question, there? to the front loaded, the 'XX of just specifically of

Rebecca Kujawa

It's Yes, hi, Constantine. Rebecca.

last that you 'XX the we're about, materials, some then best development Kirk clarity couple by the increase that of around to solar and for in think the it seen 'XX XX obviously the and the of the lot going through. went to momentum, supply that technology 'XX, significant months place really Slide and the expectations the disruption all in we've and And It's there's also ranges chain side. over is and and significant things 'XX. point on 'XX a a into for talking I 'XX of resolution slide out lays the

is highlighted side. and the exceptionally as so origination well it momentum John So on remains development strong building the and

burgeoning and businesses in So commercial about of we really the side. green see opportunities as And course, that see I'm traditional as excited hydrogen and industrial everything well then our we related sector. the products the that on

Constantine Lednev

is have Excellent. kind the opportunities, And on any from you repowering? make repowering a of I storage related type wind solar into starting on know plan. thoughts to of kind note and the of upside do it on that

Just curious on other the side.

Rebecca Kujawa

we Yes, we're we're complex. can projects storage side, and of this there's, repower looking timing. on this be we to year this time be at helpful that there's through go from context. for it But also well both there battery the think is over well some in point, others as some certainly they opportunities giving as treasury looking more on will us as solar a guidance bit And little as as

of and every seen team, opportunities looking at opportunities plus really repowering. more our day as side five on be the get projects, we've I value portfolio wind we're enhance years But mature our XX today expand to before. years generation more our you existing portfolio, as horizon existing obviously the side, to So solar talked for then ever I've to the the than see on will

integrated because opportunities, load hydrogen includes of increase includes citing includes And hydrogen it variety add adding course around that differently of the at also to investments some exciting portfolio. of we're to across battery a assets. electrolysis even the those transmission system produce it existing That the to able markets value operation transmission green of storage, about equipment in making of the the be existing repowering, opportunities thinking to

of looking incentives. tons so we've of the had much around certainty forward and opportunities So we there's before think clarity because more the ever than

Constantine Lednev

I'll Excellent, back queue. jump running late, in we're the a bit much. thanks little Yes, so so

Rebecca Kujawa

Thanks.

Operator

next from Please Arcaro Sorry, from the go Morgan ahead. David Stanley. question comes

David Arcaro

your this on projects? so year's how thanks plan the latest comment you with question. development panel been was there's for risks my just whether taking see wondering experience UFLPA I law Hi, much on and you any executing for supply solar impacting if could to has access that

Kirk Crews

This Hi, Kirk, I'll Sure. that. Dave. take is

they quarter worked had call challenging spoke, highlighted supply X,XXX think that ability that put speaks you was navigate service admirable around a We was and earnings the were able XXXX, that So disruption into with job. challenges shared we you And the certainly the the been did their team I our at year, the through despite earnings really and time a to call. I third last that And that that detained of still trying disruption. work today had had ports. ports as which we that year the challenging was to certainly and on in chain on highlighted, megawatts. but believe as really integrated part to to panels And the we

the call seen released. had being we there, And some around some what as is positive quarter detained in -- I detained, mentioned, previously of quarter the We've third challenges since that panels third improvement. the we've that the highlighted been with panels of seen the some

as I so positive And would it movement. describe

see We movement. some each continue positive to day

continuing team where compared But is continuing to So were our perspective, to monitoring third seeing deliver in of closely. that for suppliers our that our I we with we're to in cautiously it can we The working optimistic We're progress to it's monitor and customers. we're are continue it. at actively we think to like from we watching quarter it. manage and terms continuing least feel the something

David Arcaro

like demand end on from terms at of renewables is the color. wondering hydrogen of renewables to the to demand influencing impact Okay, for back that in starting starting development program, kind renewables the in of that the green plan And great. yet, outlook on hydrogen weave have XXXX, point? an if green on was you Thanks expected are in I

Rebecca Kujawa

starting It's that we certainly It's something for we're all. in are we something, I laid much you very what it's to show conversations out and from obviously the it is you when we the standpoint, practical can tell expectations Rebecca. development that up considered setting a today the looking in be in a right to XXXX. together. included for to number there folks point, term COD project At put think signed recent at we including would expected megawatt working development of the are that opportunities sheet weeks ourselves hard that XXX this I a and

We're been key them, to well among terrific But talked with Linde projects opportunities the about it this market. we've in really a as folks, forward about. but is very the talking and we technology of really now call, promise partner about that excited as active to others put forward bring

But it's really coming to reality.

supply law. going ultimate for for as and ultimately 'XX the the But think a see of into exciting for development earlier of into is working is just as the a we now opportunities what really starting opportunity customers shape as as the decade products. number through I equipment really months products on everything and other provisions were have there's I ramp-up well related as will passed more hour some to these hydrogen ultimately take probably establishing the to after see where green electrolyzers side the well significant end the related of of ramp-up

David Arcaro

Okay, great. much. so That sense. Thanks makes

Operator

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

may now You disconnect.

Jessica Geoffroy	Head of Investor Relations
John Ketchum	Chairman, President and Chief Executive Officer
Kirk Crews	Executive Vice President, Finance and Chief Financial Officer
Rebecca Kujawa	President and Chief Executive Officer, NextEra Energy Resources
Mark Hickson	EVP, Corporate Development, Strategy, Quality and Integration
Eric Silagy	Chairman, President and Chief Executive Officer, Florida Power & Light Company
Steve Fleishman	Wolfe Research
Julien Dumoulin-Smith	Bank of America/Merrill Lynch
Constantine Lednev	Guggenheim Partners
David Arcaro	Morgan Stanley

NextEra Energy (NEE) 25 Jan 232022 Q4 Earnings call transcript