Nextera Energy Inc (NEE)

Business Description

NextEra Energy, Inc. (NEE) is a leading clean energy company based in Juno Beach, Florida, primarily operating through Florida Power & Light Company (FPL) and NextEra Energy Resources, LLC (NEER) . FPL is the largest electric utility in the United States, delivering clean, affordable, and reliable electricity to approximately 5.9 million customer accounts in Florida, serving over 12 million people . NEER is recognized as the world's largest generator of renewable energy from wind and solar sources and is a leader in battery storage . The company focuses on providing clean energy solutions and operates both rate-regulated and competitive energy businesses .

Florida Power & Light Company (FPL) - Provides clean, affordable, and reliable electricity to millions of customers in Florida, operating as a rate-regulated utility business.
NextEra Energy Resources, LLC (NEER) - Generates renewable energy from wind and solar sources and leads in battery storage, operating competitive energy and rate-regulated transmission businesses.
Corporate and Other - Includes various corporate-level activities and other business operations contributing to the overall revenue.

Key Metrics

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Questions to Ask Management

Given the challenges you mentioned in addressing the remaining convertible equity portfolio financings due in 2027 and beyond , could you provide more details on the specific alternatives you are evaluating to manage these obligations without impacting NEP's growth trajectory?
While you've highlighted plans to invest approximately $1.9 billion through 2027 in competitive transmission projects , transmission development often faces regulatory and execution risks; how are you mitigating these risks, and what impact could potential delays or cost overruns have on your expected returns and growth targets?
Considering the draft hydrogen guidance that requires hourly matching, which increases costs and may limit project feasibility , how confident are you in the viability of your hydrogen initiatives, and what are your contingency plans if the regulatory framework remains unchanged?
Wind origination has been lower compared to solar and storage, with higher interconnection costs affecting certain projects ; what specific strategies are you implementing to bolster wind additions to meet your 2025 and 2026 targets, and how do you plan to overcome these challenges?
With plans to repower approximately 985 megawatts of wind projects through 2026 , repowering requires significant capital investment; how do you intend to fund these repowering projects without straining your balance sheet, especially considering the upcoming convertible equity portfolio financings that need to be addressed?

Program Details	Program 1
Approval Date	May 2017
End Date/Duration	N/A
Total additional amount	180 million shares
Remaining authorization amount	180 million shares
Details	Adjusted after a four-for-one stock split effective October 26, 2020

Debt Maturity Schedule

Year	Amount Due (in millions)	Debt Type	Interest Rate	% of Total Debt
2025	$6,925	Revolving credit facilities, Bilateral revolving credit facilities for FPL and NEECH	Variable	9.4% = (6,925 / 73,657) * 100
2026	$6,500	Variable debentures, Floating rate debentures, Fixed debentures	4.90% - 5.55%	8.8% = (6,500 / 73,657) * 100
2027	$4,400	Exchangeable senior notes, Bilateral revolving credit facilities for NEECH	3.00%	6.0% = (4,400 / 73,657) * 100
2028	$4,900	Fixed debentures	1.90% - 4.90%	6.7% = (4,900 / 73,657) * 100
2029	$5,700	First mortgage bonds, Debentures related to equity units, Fixed debentures	2.75% - 5.15%	7.7% = (5,700 / 73,657) * 100
2030	$2,250	Fixed debentures	2.25% - 5.00%	3.1% = (2,250 / 73,657) * 100
2031	$744	Canadian dollar-denominated debentures	4.85%	1.0% = (744 / 73,657) * 100
2032	$2,440	Fixed debentures	2.44% - 5.00%	3.3% = (2,440 / 73,657) * 100
2033	$5,050	Fixed debentures	5.05%	6.9% = (5,050 / 73,657) * 100
2034	$5,250	Fixed debentures	5.25%	7.1% = (5,250 / 73,657) * 100
2054	$4,900	First mortgage bonds, Junior subordinated debentures	5.55% - 6.75%	6.7% = (4,900 / 73,657) * 100
2055	$363	Senior secured limited-recourse notes	5.93%	0.5% = (363 / 73,657) * 100
2062	$4,300	Fixed debentures	4.30%	5.8% = (4,300 / 73,657) * 100
2077	$2,000	Junior subordinated debentures	N/A	2.7% = (2,000 / 73,657) * 100
2082	$5,250	Junior subordinated debentures	N/A	7.1% = (5,250 / 73,657) * 100

Auditor

Name	Start Date	End Date	Reason for Change
Deloitte & Touche LLP	1950	Present	Current auditor

Latest news

Recent developments and announcements about NEE.

Financial Reporting

Earnings Call

Jan 24, 2025, 5:41 PM

NextEra Energy (NEE) recently released its earnings call transcript, providing key insights into its financial performance, forward guidance, and strategic initiatives. Below is a summary of the main points:

Financial Performance

2024 Adjusted Earnings Per Share (EPS): NEE reported full-year adjusted EPS of $3.43, an 8% increase from 2023, reaching the high end of its expectations.
Growth in Operating Cash Flow: Operating cash flow grew by more than 17% in 2024, exceeding adjusted earnings growth.
FPL Performance: Florida Power & Light (FPL), a subsidiary of NEE, achieved a $0.12 increase in adjusted EPS compared to 2023, driven by a 10% growth in regulatory capital employed.

Forward Guidance

EPS Growth Expectations: NEE reaffirmed its long-term financial expectations, aiming for adjusted EPS growth at or near the top end of its range for 2025-2027.
Dividend Growth: The company plans to grow dividends per share by approximately 10% annually through at least 2026.
Capital Investments: NEE expects to invest $120 billion over the next four years, focusing on renewables, storage, and grid infrastructure .

Strategic Initiatives

Renewables and Storage: NEE added over 12 gigawatts of new renewables and storage projects to its backlog in 2024, a record year for origination. The backlog now exceeds 25 gigawatts .
Natural Gas Collaboration: NEE announced a framework agreement with GE Renova to develop natural gas-fired generation solutions, aiming to pair these with renewables for integrated energy solutions.
Nuclear Developments: The company is exploring the recommissioning of the Duane Arnold nuclear plant, with potential operations resuming by the end of 2028. Small modular reactors (SMRs) are also being evaluated as a longer-term option .

Market Conditions and Analyst Questions

Interest Rate Management: NEE has $28.5 billion in interest rate hedges, minimizing the impact of rate fluctuations on its financials.
Customer Demand: Strong demand for renewables and storage persists, driven by utilities, municipalities, and commercial customers seeking low-cost, reliable energy solutions .
Challenges in Gas and Nuclear: Gas-fired generation faces cost and timeline challenges, with significant contributions expected only after 2030. Nuclear remains a longer-term solution due to development and permitting complexities .

Key Analyst Topics

Renewables Policy Impact: Analysts inquired about potential policy changes affecting renewables. Management emphasized that customer demand remains robust, with no significant concerns about project delays.
Gas and Turbine Costs: Analysts raised questions about the rising costs of gas turbines and EPC labor. Management acknowledged these challenges but highlighted its strategic positioning to address them.

This earnings call underscores NEE's strong financial performance, strategic focus on renewables and storage, and proactive measures to address market challenges, positioning it as a leader in the energy transition.

Sources: , , , , , , , ,

Earnings Report

Jan 24, 2025, 12:46 PM

NextEra Energy (NEE) Releases Fourth-Quarter and Full-Year 2024 Financial Results

NextEra Energy, Inc. (NYSE: NEE) has announced its financial results for the fourth quarter and full year of 2024. Below are the key highlights:

Fourth-Quarter 2024 Results

Net Income (GAAP Basis): $1.203 billion, or $0.58 per share, compared to $1.210 billion, or $0.59 per share, in Q4 2023.
Adjusted Earnings: $1.095 billion, or $0.53 per share, compared to $1.067 billion, or $0.52 per share, in Q4 2023.

Full-Year 2024 Results

Net Income (GAAP Basis): $6.946 billion, or $3.37 per share, compared to $7.310 billion, or $3.60 per share, in 2023.
Adjusted Earnings: $7.063 billion, or $3.43 per share, reflecting an 8.2% year-over-year growth in adjusted earnings per share.

Operational Highlights

Renewables and Storage: NextEra Energy Resources added over 12 gigawatts (GW) of new renewables and storage projects to its backlog in 2024, achieving a record year for origination. The company also placed 8.7 GW of new projects into service.
Florida Power & Light (FPL): FPL grew its regulatory capital employed by approximately 10% year-over-year and commissioned 2.2 GW of new solar capacity. FPL continues to maintain customer bills nearly 40% below the national average while delivering top-decile reliability.

Significant Trends

Earnings Growth: NextEra Energy has delivered compound annual growth in adjusted earnings per share of more than 10% since 2021, the highest among the top-10 power companies in the U.S..
Customer Savings: FPL's investments in low-cost solar and battery storage have saved customers nearly $16 billion since 2001, with non-fuel operational costs per customer being 50% better than the second-best utility in its peer group.

Outlook

2025 Adjusted EPS Guidance: $3.45 to $3.70.
2026 and 2027 Adjusted EPS Guidance: $3.63 to $4.00 and $3.85 to $4.32, respectively.
Dividend Growth: The company expects to grow dividends per share at a roughly 10% annual rate through at least 2026.

CEO Statement

John Ketchum, Chairman, President, and CEO, stated:

"NextEra Energy had an excellent year of execution in 2024, growing full-year adjusted earnings per share by more than 8% over 2023 and once again achieving the top end of our adjusted earnings per share expectations range. With experience in every part of the energy value chain and a track record of delivering for our customers and shareholders, we believe NextEra Energy is well positioned to capitalize on the opportunity set that lies ahead and the increased power demand that is happening now in the U.S.".

Conference Call Details

NextEra Energy will host a conference call to discuss these results at 9 a.m. ET on January 24, 2025. A replay will be available for 90 days on the company's website.