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NextEra Energy Partners (NEP) Posts Q2 Loss, Misses on Revenues

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NextEra Energy Partners, LP (NEP - Free Report) incurred a loss of 97 cents per unit for the second quarter of 2021. The Zacks Consensus Estimate was for earnings of 67 cents. The firm delivered earnings of 69 cents per unit in the year-ago quarter.

Revenues

In the quarter under review, the firm’s revenues of $253 million missed the Zacks Consensus Estimate of $328 million by 22.9% while the same matched the year-over-year figure.

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP price-consensus-eps-surprise-chart | NextEra Energy Partners, LP Quote

Highlights of the Release

In the June quarter, NextEra Energy Partners’ total net operating expenses were $183 million, up 11.6% from the year-ago quarter’s $164 million.

In the same period, the partnership’s operating income summed $70 million, down 21.3% from $89 million in the year-ago quarter.

In the reported quarter, the firm agreed to acquire a 590-megawatt portfolio of wind and solar projects from NextEra Energy Resources. It completed a few financing arrangements to fund the announced deals and enhance its financing flexibility.

Financial Condition

NextEra Energy Partners had cash and cash equivalents worth $113 million as of Jun 30, 2021 compared with $108 million as of Dec 31, 2020.

Long-term debt was $3,961 million as of Jun 30, 2021 compared with $3,376 million as of Dec 31, 2020.

Net cash provided by operating activities in the first six months of 2021 was $308 million, higher than $259 million in the comparable period of last year.

Distribution Update

The firm announced the quarterly distribution of 66.25 cents per unit, payable Aug 13 to its unitholders of record as of Aug 5. This brings the annualized rate to $2.65 per unit, marking a 15% hike on a yearly basis.

Guidance

For 2021, the firm reaffirmed its run rate for cash available for distribution (CAFD) guidance at the upper end of the previously projected $600-$680 million range. It also reinstated its adjusted EBITDA atthe upper end of its previously anticipated band of $1.44-$1.62 billion.

The partnership continues to expect 12-15% per year growth for limited partner distributions through 2024.

Zacks Rank

NextEra Energy Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Xcel Energy (XEL - Free Report) is scheduled to announce second-quarter 2021 results on Jul 29. The Zacks Consensus Estimate for earnings per share is pegged at 56 cents.

Pinnacle West Capital (PNW - Free Report) is scheduled to announce second-quarter 2021 results on Aug 5. The Zacks Consensus Estimate for earnings per share is pegged at $1.58.

NRG Energy, Inc. (NRG - Free Report) is scheduled to announce second-quarter 2021 results on Aug 5. The Zacks Consensus Estimate for earnings per share is pegged at $2.69.


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