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NextEra Energy Partners (NEP) Q2 Earnings Miss Estimates

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NextEra Energy Partners, LP (NEP - Free Report) recorded second-quarter 2024 operating earnings of 66 cents per unit, which missed the Zacks Consensus Estimate of 70 cents by 5.7%. The bottom line increased 24.5% from 53 cents in the year-ago quarter.

Revenues

The firm’s operating revenues of $360 million missed the Zacks Consensus Estimate of $367 million by 1.9%. The figure, however, increased 22.9% from $293 million registered in the prior-year period.

 

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

Total operating expenses were $294 million, up 10.1% from the year-ago quarter’s level of $267 million. This was due to higher operations and maintenance expenses, which totaled $139 million, up 13% from the prior-year quarter’s recorded figure of $123 million.

The firm reported an operating income of $66 million compared with $26 million in the corresponding period of 2023.

Financial Condition

The firm had cash and cash equivalents of $281 million as of Jun 30, 2024, compared with $274 million as of Dec 31, 2023.

Long-term debt totaled $4.92 billion as of Jun 30, 2024, compared with $4.94 billion as of Dec 31, 2023.

Net cash provided by operating activities for the first six months of 2024 totaled $309 million compared with $296 million in the year-ago period.

Distribution Update

NEP declared a quarterly distribution of 90.5 cents per common unit to an annualized rate of $3.62 to its unit holders. This declaration reflects an annualized increase of nearly 6% from the year-earlier figure. The distribution will be payable on Aug 14, 2024, to unitholders of record as of Aug 6, 2024.

Guidance

NextEra Energy Partners continues to expect its run-rate for 2024 adjusted EBITDA to be in the $1.9-$2.1 billion range. It also anticipates CAFD to be in the band of $730-$820 million.

The firm continues to foresee 5-8% annual growth in limited partner distributions per unit, with a current target of 6% growth per year, as a reasonable range of expectations through at least 2026.

Zacks Rank

NEP 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

ONEOK, Inc. (OKE - Free Report) is slated to report second-quarter results on Aug 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.18 per share.

OKE’s long-term (three to five years) earnings growth rate is 3.78%. The Zacks Consensus Estimate for sales is pinned at $5.52 billion.

Devon Energy (DVN - Free Report) is scheduled to report second-quarter results on Aug 6, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.29 per share.

DVN’s long-term earnings growth rate is 7.22%. The company delivered an average earnings surprise of 3.4% in the last four quarters.

Energy Transfer (ET - Free Report) is slated to report second-quarter results on Aug 7, after market close. The Zacks Consensus Estimate for earnings is pegged at 36 cents per unit.

The Zacks Consensus Estimate for sales is pinned at $24.64 billion, implying a year-over-year increase of 34.5%.

 

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