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NextEra Energy Partners (NEP) Lags Q4 Earnings Estimates

Zacks Equity Research

NextEra Energy Partners, LP NEP incurred fourth-quarter 2018 loss of 39 cents per unit against the Zacks Consensus Estimate of earnings of 48 cents. In the year-ago quarter, the partnership had reported loss of $1.67 per unit. For the full year, the partnership reported earnings of $2.91 per unit against loss of $1.18 in 2017.

Revenues

In the quarter under review, the partnership posted revenues of $155 million, missing the Zacks Consensus Estimate of $299.1 million by 48.2%. Moreover, the top line declined 21.3% on a year-over-year basis.

NextEra Energy Partners’ total operating revenues for 2018 was $771 million, down 4.5% from $ 807 million in the year ago quarter.

In the quarter under review, cash available for distribution (CAFD) was $44 million, down 42.8% from the prior-year quarter’s tally. The decline was caused by the sale of its Canadian portfolio.

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP Price, Consensus and EPS Surprise | NextEra Energy Partners, LP Quote

 

Quarterly Highlights

In the reported quarter, NextEra Energy Partners’ total adjusted operating expenses were $124 million, down 6% year over year.

The partnership delivered 15% growth in per unit distributions.

Financial Condition

NextEra Energy Partners had cash and cash equivalents of $147 million as of Dec 31, 2018 compared with $154 million as of Dec 31, 2017.

Long-term debt was $2,728 million as of Dec 31, 2018 compared with $4,218 million as of Dec 31, 2017.

Net cash from operating activities at the end of 2018 was $362 million, lower than $413 million in the year-ago quarter.

During 2018, the firm’s total capital expenditure was $25 million compared with $349 million a year ago.

Guidance

NextEra Energy Partners expects 12-15% annual growth in limited partner distributions through 2023. The partnership expects the annualized rate of the fourth-quarter 2019 distribution, which is payable in February 2020, in the range of $2.08-$2.14 per common unit.

The partnership continues to expect adjusted EBITDA of $1.2-$1.375 billion for 2019 and CAFD in the range of $410-$480 million.

Zacks Rank

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

Upcoming Releases — Oil & Energy Sector

Warrior Met Coal Inc. HCC has an Earnings ESP of +21.39%. The company sports a Zacks Rank #1 and is expected to report fourth-quarter 2018 earnings on Feb 21.

CNX Resources Corp. CNX has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is expected to release fourth-quarter 2018 results on Jan 31.

EnLink Midstream Partners, LP ENLK has an Earnings ESP of +10%. It carries a Zacks Rank #2 and is expected to report fourth-quarter 2018 earnings on Feb 19.

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