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NextEra Energy Partners (NEP) Q1 Earnings Beat & Revenues Lag

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NextEra Energy Partners, LP NEP recorded first-quarter 2022 operating earnings per unit of $1.72, which surpassed the Zacks Consensus Estimate of 42 cents by 304%. However, the bottom line declined by 35.3% from the year-ago quarter’s tally of $2.66 per unit.

Revenues

For the first quarter of 2022, the firm’s operating revenues of $281 million missed the Zacks Consensus Estimate of $311 million by 9.6%. Revenues improved by 14.2% year over year due to contributions from the new projects.

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

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

NextEra Energy Partners’ total operating expenses in the first quarter were $247 million, up 47% from the year-ago quarter’s $168 million, due to an increase in the operating and maintenance expenses by 40%.

For the first quarter, the partnership’s operating income summed $34 million, down 56% from $78 million in the year-ago period.

Net interest expenses were $284 million, down 43.7% from the year-ago quarter’s reading of $504 million.

Financial Condition

NextEra Energy Partners had cash and cash equivalents worth $168 million as of Mar 31, 2022 compared with $147 million on Dec 31, 2021.

Long-term debt was $5,378 million as of Mar 31, 2022 compared with $5,294 million on Dec 31, 2021.

Net cash provided by operating activities in the first quarter of 2022 was $120 million, 15.4% higher than $104 million in the year-ago period.

Recent Developments

In April, NEP completed the sale of Monument Pipeline, LP —a nearly 156-mile, 16-inch pipeline that transports natural gas in Texas — to a third party for a total consideration of nearly $203 million. NextEra Energy Partners expects to redeploy transaction proceeds to acquire higher-yielding renewable energy assets.

NextEra Energy Partners recently announced that it entered into an agreement with NextEra Energy Resources to acquire an approximately 67% interest for nearly $191 million in the 230-megawatt, four-hour battery storage facility in California, which is fully contracted with an investment-grade counterparty for 15 years.

The acquisition is expected to close later this year upon the project reaching its commercial operations date and contribute to NextEra Energy Partners' projected adjusted EBITDA in the range of $30-$35 million and cash available for distribution (CAFD) in the band of $13-$18 million in 2022.

Distribution Update

The board of directors of NEP announced a quarterly distribution of 73.25 cents per unit. The new annualized rate is $2.93 per common unit. Cash distribution per common unit increased by nearly 15% on an annualized basis from the first quarter of 2021. The distribution will be payable on May 12, 2022 to unit holders of record as of May 5, 2022.

Guidance

NextEra Energy Partners reiterated 2022 EBITDA in the range of $1.775-$1.975 billion and CAFD within the $675-$765 million range.

Zacks Rank

NextEra Energy Partners currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

TotalEnergies SE TTE is scheduled to announce first-quarter 2022 results on Apr 28 before market open. The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at $2.79.

TotalEnergies’ long-term (three to five years) earnings growth is projected at 6.6%. The Zacks Consensus Estimate for TTE’s 2022 EPS indicates year-over-year growth of 60.3%.

Ameresco AMRC is scheduled to announce first-quarter 2022 results on May 2 after market close. The Zacks Consensus Estimate for first-quarter EPS is pegged at 31 cents.

Ameresco’s long-term (three to five years) earnings growth is projected at 26%. The Zacks Consensus Estimate for AMRC’s 2022 EPS indicates year-over-year growth of 26.5%.

Ormat Technologies ORA is scheduled to announce first-quarter 2022 results on May 2 after market close. The Zacks Consensus Estimate for first-quarter EPS is pegged at 32 cents.

Ormat Technologies’ long-term (three to five years) earnings growth is projected at 16%. The Zacks Consensus Estimate for ORA’s 2023 EPS indicates year-over-year growth of 48.1%.


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