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NextEra Energy Partners (NEP) Posts Loss in Q1, Revenues Lag

Zacks Equity Research

NextEra Energy Partners, LP NEP incurred first-quarter 2019 loss of 38 cents per unit, against the Zacks Consensus Estimate of earnings of 52 cents. In the year-ago quarter, the partnership delivered earnings of $1.22 per unit.

Revenues

In the quarter, the partnership generated revenues of $177 million that missed the Zacks Consensus Estimate of $316 million by 44%. Moreover, the top line declined 16.5% on a year-over-year basis. The downside was caused by lower sales in the Renewable Energy segment.

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 quarter, NextEra Energy Partners’ total adjusted operating expenses were $143 million, up 19.2% year over year.

The partnership declared a quarterly distribution of 48.25 cents per common unit, up 15% from prior-year quarter’s figure.

Financial Condition

NextEra Energy Partners had cash and cash equivalents of $127 million as of Mar 31, 2019 compared with $147 million as of Dec 31, 2018.

Long-term debt was $2,719 million as of Dec 31, 2018 compared with $2,728 million as of Dec 31, 2018.

Net cash from operating activities at the end of the first quarter was $19 million, lower than $53 million in the year-ago quarter.

At the end of the quarter, the firm’s total capital expenditure was $3 million compared with $4 million in the year-ago quarter.

Guidance

NextEra Energy Partners continues to expect 12-15% annual growth in limited partner distributions through 2023. The partnership continues to expect 2019 distribution growth at 15%.

The partnership continues to expect adjusted EBITDA of $1.2-$1.375 billion for 2019 and CAFD in the range of $485-$555 million that includes all contributions from PG&E-related projects.

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

American Electric Power AEP is scheduled to announce first-quarter 2019 results on Apr 25. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.10.

NextEra Energy, Inc. NEE is scheduled to announce first-quarter 2019 results on Apr 23. The Zacks Consensus Estimate for earnings is pegged at $2.01.

Dominion Energy Inc. D is scheduled to announce first-quarter 2019 results on May 3. The Zacks Consensus Estimate for earnings is pegged at $1.18.

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