JUNO BEACH, Fla., Jan. 8, 2020 /PRNewswire/ -- NextEra Energy, Inc.
(NYSE: NEE) and NextEra Energy Partners, LP (NYSE: NEP) today
announced that members of the senior management team, including
Rebecca Kujawa, executive vice
president, finance and chief financial officer of NextEra Energy,
and chief financial officer of NextEra Energy Partners, will
participate in various investor meetings throughout January. They
plan to discuss, among other things, long-term growth rate
expectations for NextEra Energy, including the company's previously
announced adjusted earnings per share expectations range of
$10.00 to $10.75 in 2022. Additionally, they plan to
discuss NextEra Energy Partners' long-term distribution per unit
growth rate expectations of 12% to 15% through at least 2024,
subject to the usual caveats.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE)
is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns two
electric companies in Florida:
Florida Power & Light Company,
which serves more than 5 million customer accounts in Florida and is the largest rate-regulated
electric utility in the United
States as measured by retail electricity produced and sold;
and Gulf Power Company, which serves more than 460,000 customers in
eight counties throughout northwest Florida. NextEra Energy also
owns a competitive energy business, NextEra Energy Resources, LLC,
which, together with its affiliated entities, is the world's
largest generator of renewable energy from the wind and sun and a
world leader in battery storage. Through its subsidiaries, NextEra
Energy generates clean, emissions-free electricity from eight
commercial nuclear power units in Florida, New
Hampshire, Iowa and
Wisconsin. A Fortune 200 company
and included in the S&P 100 index, NextEra Energy has been
recognized often by third parties for its efforts in
sustainability, corporate responsibility, ethics and compliance,
and diversity. NextEra Energy is ranked No. 1 in the electric and
gas utilities industry on Fortune's 2019 list of "World's Most
Admired Companies" and ranked among the top 25 on Fortune's 2018
list of companies that "Change the World." For more information
about NextEra Energy companies, visit these
websites: www.NextEraEnergy.com, www.FPL.com,
www.GulfPower.com, www.NextEraEnergyResources.com.
NextEra Energy Partners, LP
NextEra Energy Partners, LP (NYSE: NEP) is a growth-oriented
limited partnership formed by NextEra Energy, Inc. (NYSE: NEE).
NextEra Energy Partners acquires, manages and owns contracted clean
energy projects with stable, long-term cash flows. Headquartered in
Juno Beach, Florida, NextEra
Energy Partners owns interests in geographically diverse wind and
solar projects in the U.S. as well as natural gas infrastructure
assets in Texas and Pennsylvania. For more information about
NextEra Energy Partners, please visit:
www.NextEraEnergyPartners.com.
Cautionary Statements and Risk Factors That
May Affect Future Results for NextEra Energy, Inc.
This news release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
not statements of historical facts, but instead represent the
current expectations of NextEra Energy, Inc. (together with its
subsidiaries, NextEra Energy) regarding future operating results
and other future events, many of which, by their nature, are
inherently uncertain and outside of NextEra Energy's control.
Forward-looking statements in this news release include, among
others, statements concerning adjusted earnings per share
expectations and future operating performance, statements
concerning future dividends, and results of acquisitions. In some
cases, you can identify the forward-looking statements by words or
phrases such as "will," "may result," "expect," "anticipate,"
"believe," "intend," "plan," "seek," "potential," "projection,"
"forecast," "predict," "goals," "target," "outlook," "should,"
"would" or similar words or expressions. You should not place
undue reliance on these forward-looking statements, which are not a
guarantee of future performance. The future results of NextEra
Energy and its business and financial condition are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements, or may require it to limit or eliminate certain
operations. These risks and uncertainties include, but are not
limited to, the following: effects of extensive regulation of
NextEra Energy's business operations; inability of NextEra Energy
to recover in a timely manner any significant amount of costs, a
return on certain assets or a reasonable return on invested capital
through base rates, cost recovery clauses, other regulatory
mechanisms or otherwise; impact of political, regulatory and
economic factors on regulatory decisions important to NextEra
Energy; disallowance of cost recovery based on a finding of
imprudent use of derivative instruments; effect of any reductions
or modifications to, or elimination of, governmental incentives or
policies that support utility scale renewable energy projects or
the imposition of additional tax laws, policies or assessments on
renewable energy; impact of new or revised laws, regulations,
interpretations or ballot or regulatory initiatives on NextEra
Energy; capital expenditures, increased operating costs and various
liabilities attributable to environmental laws, regulations and
other standards applicable to NextEra Energy; effects on NextEra
Energy of federal or state laws or regulations mandating new or
additional limits on the production of greenhouse gas emissions;
exposure of NextEra Energy to significant and increasing compliance
costs and substantial monetary penalties and other sanctions as a
result of extensive federal regulation of its operations and
businesses; effect on NextEra Energy of changes in tax laws,
guidance or policies as well as in judgments and estimates used to
determine tax-related asset and liability amounts; impact on
NextEra Energy of adverse results of litigation; effect on NextEra
Energy of failure to proceed with projects under development or
inability to complete the construction of (or capital improvements
to) electric generation, transmission and distribution facilities,
gas infrastructure facilities or other facilities on schedule or
within budget; impact on development and operating activities of
NextEra Energy resulting from risks related to project siting,
financing, construction, permitting, governmental approvals and the
negotiation of project development agreements; risks involved in
the operation and maintenance of electric generation, transmission
and distribution facilities, gas infrastructure facilities, retail
gas distribution system in Florida
and other facilities; effect on NextEra Energy of a lack of growth
or slower growth in the number of customers or in customer usage;
impact on NextEra Energy of severe weather and other weather
conditions; threats of terrorism and catastrophic events that could
result from terrorism, cyber attacks or other attempts to disrupt
NextEra Energy's business or the businesses of third parties;
inability to obtain adequate insurance coverage for protection of
NextEra Energy against significant losses and risk that insurance
coverage does not provide protection against all significant
losses; a prolonged period of low gas and oil prices could impact
NextEra Energy's gas infrastructure business and cause NextEra
Energy to delay or cancel certain gas infrastructure projects and
could result in certain projects becoming impaired; risk of
increased operating costs resulting from unfavorable supply costs
necessary to provide full energy and capacity requirement services;
inability or failure to manage properly or hedge effectively the
commodity risk within its portfolio; effect of reductions in the
liquidity of energy markets on NextEra Energy's ability to manage
operational risks; effectiveness of NextEra Energy's risk
management tools associated with its hedging and trading procedures
to protect against significant losses, including the effect of
unforeseen price variances from historical behavior; impact of
unavailability or disruption of power transmission or commodity
transportation facilities on sale and delivery of power or natural
gas; exposure of NextEra Energy to credit and performance risk from
customers, hedging counterparties and vendors; failure of
counterparties to perform under derivative contracts or of
requirement for NextEra Energy to post margin cash collateral under
derivative contracts; failure or breach of NextEra Energy's
information technology systems; risks to NextEra Energy's retail
businesses from compromise of sensitive customer data; losses from
volatility in the market values of derivative instruments and
limited liquidity in OTC markets; impact of negative publicity;
inability to maintain, negotiate or renegotiate acceptable
franchise agreements; occurrence of work strikes or stoppages and
increasing personnel costs; NextEra Energy's ability to
successfully identify, complete and integrate acquisitions,
including the effect of increased competition for acquisitions; the
inability to realize the anticipated benefits of the Gulf Power
Company acquisition; environmental, health and financial risks
associated with ownership and operation of nuclear generation
facilities; liability of NextEra Energy for significant
retrospective assessments and/or retrospective insurance premiums
in the event of an incident at certain nuclear generation
facilities; increased operating and capital expenditures and/or
reduced revenues at nuclear generation facilities resulting from
orders or new regulations of the Nuclear Regulatory Commission;
inability to operate any of NextEra Energy's owned nuclear
generation units through the end of their respective operating
licenses or through expected shutdown; effect of disruptions,
uncertainty or volatility in the credit and capital markets or
actions by third parties in connection with project-specific or
other financing arrangements on NextEra Energy's ability to fund
its liquidity and capital needs and meet its growth objectives;
inability to maintain current credit ratings; impairment of
liquidity from inability of credit providers to fund their credit
commitments or to maintain their current credit ratings; poor
market performance and other economic factors that could affect
NextEra Energy's defined benefit pension plan's funded status; poor
market performance and other risks to the asset values of nuclear
decommissioning funds; changes in market value and other risks to
certain of NextEra Energy's investments; effect of inability of
NextEra Energy subsidiaries to pay upstream dividends or repay
funds to NextEra Energy or of NextEra Energy's performance under
guarantees of subsidiary obligations on NextEra Energy's ability to
meet its financial obligations and to pay dividends on its common
stock; the fact that the amount and timing of dividends payable on
NextEra Energy's common stock, as well as the dividend policy
approved by NextEra Energy's board of directors from time to time,
and changes to that policy, are within the sole discretion of
NextEra Energy's board of directors and, if declared and paid,
dividends may be in amounts that are less than might be expected by
shareholders; NEP's inability to access sources of capital on
commercially reasonable terms could have an effect on its ability
to consummate future acquisitions and on the value of NextEra
Energy's limited partner interest in NextEra Energy Operating
Partners, LP; and effects of disruptions, uncertainty or volatility
in the credit and capital markets on the market price of NextEra
Energy's common stock. NextEra Energy discusses these and other
risks and uncertainties in its annual report on Form 10-K for the
year ended December 31, 2018 and
other SEC filings, and this news release should be read in
conjunction with such SEC filings made through the date of this
news release. The forward-looking statements made in this news
release are made only as of the date of this news release and
NextEra Energy undertakes no obligation to update any
forward-looking statements.
Cautionary Statements and Risk Factors That May Affect Future
Results for NextEra Energy Partners, LP
This news release contains "forward-looking statements" within
the meaning of the federal securities laws. Forward-looking
statements are not statements of historical facts, but instead
represent the current expectations of NextEra Energy Partners, LP
(together with its subsidiaries, NEP) regarding future operating
results and other future events, many of which, by their nature,
are inherently uncertain and outside of NEP's control.
Forward-looking statements in this news release include, among
others, statements concerning adjusted EBITDA, cash available for
distributions (CAFD) and unit distribution expectations, as well as
statements concerning NEP's future operating performance and
financing needs. In some cases, you can identify the
forward-looking statements by words or phrases such as "will," "may
result," "expect," "anticipate," "believe," "intend," "plan,"
"seek," "aim," "potential," "projection," "forecast," "predict,"
"goals," "target," "outlook," "should," "would" or similar words or
expressions. You should not place undue reliance on these
forward-looking statements, which are not a guarantee of future
performance. The future results of NEP and its business and
financial condition are subject to risks and uncertainties that
could cause NEP's actual results to differ materially from those
expressed or implied in the forward-looking statements. These risks
and uncertainties could require NEP to limit or eliminate certain
operations. These risks and uncertainties include, but are not
limited to, the following: NEP's portfolio includes renewable
energy projects that have a limited operating history. Such
projects may not perform as expected; NEP's ability to make cash
distributions to its unitholders is affected by wind and solar
conditions at its renewable energy projects; NEP's business,
financial condition, results of operations and prospects can be
materially adversely affected by weather conditions, including, but
not limited to, the impact of severe weather; Operation and
maintenance of renewable energy projects involve significant risks
that could result in unplanned power outages, reduced output,
personal injury or loss of life; Natural gas gathering and
transmission activities involve numerous risks that may result in
accidents or otherwise affect the Texas pipelines' operations; NEP depends on
certain of the renewable energy projects and pipelines in its
portfolio for a substantial portion of its anticipated cash flows;
NEP is pursuing the expansion of natural gas pipelines in its
portfolio that will require up-front capital expenditures and
expose NEP to project development risks; NEP's ability to maximize
the productivity of the Texas
pipeline business and to complete potential pipeline expansion
projects is dependent on the continued availability of natural gas
production in the Texas pipelines'
areas of operation; Terrorist acts, cyber-attacks or other similar
events could impact NEP's projects, pipelines or surrounding areas
and adversely affect its business; The ability of NEP to obtain
insurance and the terms of any available insurance coverage could
be materially adversely affected by international, national, state
or local events and company-specific events, as well as the
financial condition of insurers. NEP's insurance coverage does not
insure against all potential risks and it may become subject to
higher insurance premiums; Warranties provided by the suppliers of
equipment for NEP's projects may be limited by the ability of a
supplier to satisfy its warranty obligations, or by the terms of
the warranty, so the warranties may be insufficient to compensate
NEP for its losses; Supplier concentration at certain of NEP's
projects may expose it to significant credit or performance risks;
NEP relies on interconnection, transmission and other pipeline
facilities of third parties to deliver energy from its renewable
energy projects and to transport natural gas to and from the
Texas pipelines. If these
facilities become unavailable, NEP's projects and pipelines may not
be able to operate or deliver energy or may become partially or
fully unavailable to transport natural gas; NEP's business is
subject to liabilities and operating restrictions arising from
environmental, health and safety laws and regulations, compliance
with which may require significant capital expenditures, increase
NEP's cost of operations and affect or limit its business plans;
NEP's renewable energy projects may be adversely affected by
legislative changes or a failure to comply with applicable energy
regulations; A change in the jurisdictional characterization of
some of the Texas pipeline
entities' assets, or a change in law or regulatory policy, could
result in increased regulation of these assets, which could have a
material adverse effect on NEP's business, financial condition,
results of operations and ability to make cash distributions to its
unitholders; NEP may incur significant costs and liabilities as a
result of pipeline integrity management program testing and any
necessary pipeline repair or preventative or remedial measures; The
Texas pipelines' operations could
incur significant costs if the Pipeline and Hazardous Materials
Safety Administration or the Railroad Commission of Texas adopts more stringent regulations;
Petroleos Mexicanos (Pemex) may claim certain immunities under the
Foreign Sovereign Immunities Act and Mexican law, and the
Texas pipeline entities' ability
to sue or recover from Pemex for breach of contract may be limited
and may be exacerbated if there is a deterioration in the economic
relationship between the U.S. and Mexico; NEP does not own all of the land on
which the projects in its portfolio are located and its use and
enjoyment of the property may be adversely affected to the extent
that there are any lienholders or land rights holders that have
rights that are superior to NEP's rights or the U.S. Bureau of Land
Management suspends its federal rights-of-way grants; NEP is
subject to risks associated with litigation or administrative
proceedings that could materially impact its operations, including,
but not limited to, proceedings related to projects it acquires in
the future; NEP's cross-border operations require NEP to comply
with anti-corruption laws and regulations of the U.S. government
and non-U.S. jurisdictions; NEP is subject to risks associated with
its ownership or acquisition of projects or pipelines that remain
under construction, which could result in its inability to complete
construction projects on time or at all, and make projects too
expensive to complete or cause the return on an investment to be
less than expected; NEP relies on a limited number of customers and
is exposed to the risk that they may be unwilling or unable to
fulfill their contractual obligations to NEP or that they otherwise
terminate their agreements with NEP; PG&E, which contributes a
significant portion of NEP's revenues, has filed a voluntary
petition for reorganization under Chapter 11 of the U.S. Bankruptcy
Code. Any rejection by PG&E of a material portion of NEP's PPAs
with it or any material reduction in the prices NEP charges
PG&E under those PPAs that occurs in connection with PG&E's
Chapter 11 proceedings, or any events of default under the
financing agreements of NEP's solar facilities that provide power
and renewable energy credits to PG&E under these PPAs as a
result of PG&E's reorganization activities, could have a
material adverse effect on NEP's results of operations, financial
condition or business; NEP may not be able to extend, renew or
replace expiring or terminated power purchase agreements (PPA) and
natural gas transportation agreements at favorable rates or on a
long-term basis; If the energy production by or availability of
NEP's renewable energy projects is less than expected, they may not
be able to satisfy minimum production or availability obligations
under their PPAs; NEP's growth strategy depends on locating and
acquiring interests in additional projects consistent with its
business strategy at favorable prices; NextEra Energy Operating
Partners' (NEP OpCo) partnership agreement requires that it
distribute its available cash, which could limit NEP's ability to
grow and make acquisitions; Lower prices for other fuel sources may
reduce the demand for wind and solar energy; Reductions in demand
for natural gas in the United
States or Mexico and low
market prices of natural gas could materially adversely affect the
Texas pipelines' operations and
cash flows; Government laws, regulations and policies providing
incentives and subsidies for clean energy could be changed, reduced
or eliminated at any time and such changes may negatively impact
NEP's growth strategy; NEP's growth strategy depends on the
acquisition of projects developed by NextEra Energy, Inc. (NEE) and
third parties, which face risks related to project siting,
financing, construction, permitting, the environment, governmental
approvals and the negotiation of project development agreements;
Acquisitions of existing clean energy projects involve numerous
risks; Renewable energy procurement is subject to U.S. state
regulations, with relatively irregular, infrequent and often
competitive procurement windows; NEP may continue to acquire other
sources of clean energy and may expand to include other types of
assets. Any further acquisition of non-renewable energy projects
may present unforeseen challenges and result in a competitive
disadvantage relative to NEP's more-established competitors; NEP
faces substantial competition primarily from regulated utilities,
developers, independent power producers, pension funds and private
equity funds for opportunities in North
America; The natural gas pipeline industry is highly
competitive, and increased competitive pressure could adversely
affect NEP's business; NEP may not be able to access sources of
capital on commercially reasonable terms, which would have a
material adverse effect on its ability to consummate future
acquisitions; Restrictions in NEP and its subsidiaries' financing
agreements could adversely affect NEP's business, financial
condition, results of operations and ability to make cash
distributions to its unitholders; NEP's cash distributions to its
unitholders may be reduced as a result of restrictions on NEP's
subsidiaries' cash distributions to NEP under the terms of their
indebtedness; NEP's subsidiaries' substantial amount of
indebtedness may adversely affect NEP's ability to operate its
business, and its failure to comply with the terms of its
subsidiaries' indebtedness could have a material adverse effect on
NEP's financial condition; NEP is exposed to risks inherent in its
use of interest rate swaps; NEE exercises significant influence
over NEP; Under the cash sweep and credit support agreement, NEP
receives credit support from NEE and its affiliates. NEP's
subsidiaries may default under contracts or become subject to cash
sweeps if credit support is terminated, if NEE or its affiliates
fail to honor their obligations under credit support arrangements,
or if NEE or another credit support provider ceases to satisfy
creditworthiness requirements, and NEP will be required in certain
circumstances to reimburse NEE for draws that are made on credit
support; NextEra Energy Resources, LLC (NEER) or one of its
affiliates is permitted to borrow funds received by NEP's
subsidiaries and is obligated to return these funds only as needed
to cover project costs and distributions or as demanded by NEP
OpCo. NEP's financial condition and ability to make distributions
to its unitholders, as well as its ability to grow distributions in
the future, is highly dependent on NEER's performance of its
obligations to return all or a portion of these funds; NEP may not
be able to consummate future acquisitions; NEER's right of first
refusal may adversely affect NEP's ability to consummate future
sales or to obtain favorable sale terms; NextEra Energy Partners
GP, Inc. (NEP GP) and its affiliates may have conflicts of interest
with NEP and have limited duties to NEP and its unitholders; NEP GP
and its affiliates and the directors and officers of NEP are not
restricted in their ability to compete with NEP, whose business is
subject to certain restrictions; NEP may only terminate the
Management Services Agreement among, NEP, NextEra Energy Management
Partners, LP (NEE Management), NEP OpCo and NextEra Energy
Operating Partners GP, LLC (NEP OpCo GP) under certain specified
conditions; If the agreements with NEE Management or NEER are
terminated, NEP may be unable to contract with a substitute service
provider on similar terms; NEP's arrangements with NEE limit NEE's
potential liability, and NEP has agreed to indemnify NEE against
claims that it may face in connection with such arrangements, which
may lead NEE to assume greater risks when making decisions relating
to NEP than it otherwise would if acting solely for its own
account; NEP's ability to make distributions to its unitholders
depends on the ability of NEP OpCo to make cash distributions to
its limited partners; If NEP incurs material tax liabilities, NEP's
distributions to its unitholders may be reduced, without any
corresponding reduction in the amount of the IDR fee; Holders of
NEP's units may be subject to voting restrictions; NEP's
partnership agreement replaces the fiduciary duties that NEP GP and
NEP's directors and officers might have to holders of its common
units with contractual standards governing their duties; NEP's
partnership agreement restricts the remedies available to holders
of NEP's common units for actions taken by NEP's directors or NEP
GP that might otherwise constitute breaches of fiduciary duties;
Certain of NEP's actions require the consent of NEP GP; Holders of
NEP's common units and preferred units currently cannot remove NEP
GP without NEE's consent; NEE's interest in NEP GP and the control
of NEP GP may be transferred to a third party without unitholder
consent; The IDR fee may be assigned to a third party without
unitholder consent; NEP may issue additional units without
unitholder approval, which would dilute unitholder interests;
Reimbursements and fees owed to NEP GP and its affiliates for
services provided to NEP or on NEP's behalf will reduce cash
distributions from NEP OpCo and from NEP to NEP's unitholders, and
there are no limits on the amount that NEP OpCo may be required to
pay; Discretion in establishing cash reserves by NEP OpCo GP may
reduce the amount of cash distributions to unitholders; NEP OpCo
can borrow money to pay distributions, which would reduce the
amount of credit available to operate NEP's business; Increases in
interest rates could adversely impact the price of NEP's common
units, NEP's ability to issue equity or incur debt for acquisitions
or other purposes and NEP's ability to make cash distributions to
its unitholders; The price of NEP's common units may fluctuate
significantly and unitholders could lose all or part of their
investment; The liability of holders of NEP's units, which
represent limited partnership interests in NEP, may not be limited
if a court finds that unitholder action constitutes control of
NEP's business; Unitholders may have liability to repay
distributions that were wrongfully distributed to them; Provisions
in NEP's partnership agreement may discourage or delay an
acquisition of NEP that NEP unitholders may consider favorable,
which could decrease the value of NEP's common units, and could
make it more difficult for NEP unitholders to change the board of
directors; The board of directors, a majority of which may be
affiliated with NEE, decides whether to retain separate counsel,
accountants or others to perform services for NEP; The New York
Stock Exchange does not require a publicly traded limited
partnership like NEP to comply with certain of its corporate
governance requirements; The issuance of preferred units or other
securities convertible into common units may affect the market
price for NEP's common units, will dilute common unitholders'
ownership in NEP and may decrease the amount of cash available for
distribution for each common unit; The preferred units have rights,
preferences and privileges that are not held by, and will be
preferential to the rights of, holders of the common units; NEP's
future tax liability may be greater than expected if NEP does not
generate net operating losses (NOLs) sufficient to offset taxable
income or if tax authorities challenge certain of NEP's tax
positions; NEP's ability to use NOLs to offset future income may be
limited; NEP will not have complete control over NEP's tax
decisions; A valuation allowance may be required for NEP's deferred
tax assets; Distributions to unitholders may be taxable as
dividends; NEP discusses these and other risks and uncertainties in
its annual report on Form 10-K for the year ended December 31, 2018 and other SEC filings, and this
news release should be read in conjunction with such SEC filings
made through the date of this news release. The forward-looking
statements made in this news release are made only as of the date
of this news release and NEP undertakes no obligation to update any
forward-looking statements.
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SOURCE NextEra Energy, Inc. and NextEra Energy Partners, LP