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NextEra Energy Partners (NEP) Q3 Earnings & Revenues Miss
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NextEra Energy Partners, LP (NEP - Free Report) reported earnings of 24 cents per unit for third-quarter 2021, lagging the Zacks Consensus Estimate of 64 cents by 62.5%. The figure also declined 68.4% from the year-ago earnings of 76 cents per unit.
Revenues
For the quarter under review, the firm’s revenues of $252 million missed the Zacks Consensus Estimate of $342 million by 26.4% but rose 5% from the year-ago figure of $240 million.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
In the September quarter, NextEra Energy Partners closed its previously announced acquisitions of nearly 400 megawatts (MW) of operating wind projects from a third party, and 590 net MW of geographically diverse wind and solar projects from NextEra Energy Resources.
The firm also announced an agreement to acquire nearly 100 MW of operating wind assets in California from a third party to further expand the renewable portfolio and enhance long-term growth visibility.
For the third quarter, the partnership’s operating income summed $64 million, down 5.9% from $68 million in the year-ago period.
Financial Condition
NextEra Energy Partners had cash and cash equivalents worth $133 million as of Sep 30, 2021 compared with $108 million on Dec 31, 2020.
Long-term debt was $3,961 million as of Sep 30, 2021 compared with $3,969 million on Dec 31, 2020.
Net cash provided by operating activities in the first nine months of 2021 was $492 million, higher than $482 million in the comparable period of last year.
Distribution Update
The firm announced a quarterly distribution of 68.5 cents per unit, payable on Nov 12 to unitholders of record as of Nov 4. This brings the annualized rate to $2.74 per unit, marking a 15% hike on an annualized basis from third-quarter 2020.
Guidance
For 2021, the firm reaffirmed its run rate for cash available for distribution guidance at the upper end of the previously projected $600-$680 million range. It also reinstated adjusted EBITDA expectation at the upper end of the previously anticipated band of $1.44-$1.62 billion.
From an annualized distribution rate of $2.46 per common unit in fourth-quarter 2020, the partnership expects 12-15% per year growth for limited partner distributions through 2024.
TotalEnergies SE (TTE - Free Report) is scheduled to announce third-quarter 2021 results on Oct 28. The Zacks Consensus Estimate for earnings per share is pegged at $1.50.
Ameresco, Inc. (AMRC - Free Report) is scheduled to announce third-quarter 2021 results on Nov 1. The Zacks Consensus Estimate for earnings per share is pegged at 34 cents.
Clearway Energy, Inc. (CWEN - Free Report) is scheduled to announce third-quarter 2021 results on Nov 4. The Zacks Consensus Estimate for earnings per share is pegged at 70 cents.
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NextEra Energy Partners (NEP) Q3 Earnings & Revenues Miss
NextEra Energy Partners, LP (NEP - Free Report) reported earnings of 24 cents per unit for third-quarter 2021, lagging the Zacks Consensus Estimate of 64 cents by 62.5%. The figure also declined 68.4% from the year-ago earnings of 76 cents per unit.
Revenues
For the quarter under review, the firm’s revenues of $252 million missed the Zacks Consensus Estimate of $342 million by 26.4% but rose 5% from the year-ago figure of $240 million.
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 September quarter, NextEra Energy Partners closed its previously announced acquisitions of nearly 400 megawatts (MW) of operating wind projects from a third party, and 590 net MW of geographically diverse wind and solar projects from NextEra Energy Resources.
The firm also announced an agreement to acquire nearly 100 MW of operating wind assets in California from a third party to further expand the renewable portfolio and enhance long-term growth visibility.
For the third quarter, the partnership’s operating income summed $64 million, down 5.9% from $68 million in the year-ago period.
Financial Condition
NextEra Energy Partners had cash and cash equivalents worth $133 million as of Sep 30, 2021 compared with $108 million on Dec 31, 2020.
Long-term debt was $3,961 million as of Sep 30, 2021 compared with $3,969 million on Dec 31, 2020.
Net cash provided by operating activities in the first nine months of 2021 was $492 million, higher than $482 million in the comparable period of last year.
Distribution Update
The firm announced a quarterly distribution of 68.5 cents per unit, payable on Nov 12 to unitholders of record as of Nov 4. This brings the annualized rate to $2.74 per unit, marking a 15% hike on an annualized basis from third-quarter 2020.
Guidance
For 2021, the firm reaffirmed its run rate for cash available for distribution guidance at the upper end of the previously projected $600-$680 million range. It also reinstated adjusted EBITDA expectation at the upper end of the previously anticipated band of $1.44-$1.62 billion.
From an annualized distribution rate of $2.46 per common unit in fourth-quarter 2020, the partnership expects 12-15% per year growth for limited partner distributions through 2024.
Zacks Rank
NextEra Energy Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
TotalEnergies SE (TTE - Free Report) is scheduled to announce third-quarter 2021 results on Oct 28. The Zacks Consensus Estimate for earnings per share is pegged at $1.50.
Ameresco, Inc. (AMRC - Free Report) is scheduled to announce third-quarter 2021 results on Nov 1. The Zacks Consensus Estimate for earnings per share is pegged at 34 cents.
Clearway Energy, Inc. (CWEN - Free Report) is scheduled to announce third-quarter 2021 results on Nov 4. The Zacks Consensus Estimate for earnings per share is pegged at 70 cents.