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NextEra Energy Partners' (NEP) Q2 Earnings Surpass Estimates

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NextEra Energy Partners, LP (NEP - Free Report) delivered earnings of 69 cents per unit in the second quarter of 2020, beating the Zacks Consensus Estimate of 50 cents by 38%. Moreover, this outperformance reversed the year-ago quarter’s loss of 49 cents per unit.

Revenues   

In the quarter under review, the firm’s revenues of $253 million missed the Zacks Consensus Estimate of $333 million by 24%. However, the top line improved 15.5% on a year-over-year basis.

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

In the June quarter, NextEra Energy Partners’ total adjusted operating expenses were $164 million, up 7.9% from the year-ago quarter’s $152 million.

In the same period, the partnership’s operating income summed $89 million, up 32.8% from $67 million in the year-ago quarter.

The firm now expects to achieve long-term distribution growth objectives without any additional acquisition until 2022. Notably, it declared a quarterly distribution of 57.75 cents per unit payable Aug 14 to its unitholders of record as of Aug 6. This makes the annualized distribution of $2.31 per common unit rise nearly 15% on an annualized basis.

Financial Condition

NextEra Energy Partners had cash and cash equivalents worth $96 million as of Jun 30, 2020 compared with $128 million as of Dec 31, 2019.

Long-term debt was $4,182 million as of Jun 30, 2020 compared with $4,132 million as of Dec 31, 2019.

Net cash provided by operating activities at the end of the first half of 2020 was $259 million, higher than $130 million at the end of first-half 2019.

Guidance

For 2020, the firm reaffirmed the run rate for cash available for distribution (CAFD) in the range of $560-$640 million.

The partnership continues to expect 12-15% per year growth for limited partner distributions through 2024. It expects the annualized rate of 2020 distribution in the band of $2.40-$2.46 per common unit.

Zacks Rank

NextEra Energy Partners currently carries a Zacks Rank #5 (Strong Sell).

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

Upcoming Releases

Enphase Energy, Inc. (ENPH - Free Report) is scheduled to report second-quarter 2020 results on Aug 4. The Zacks Consensus Estimate for earnings is pegged at 14 cents per share.

Evergy Inc. (EVRG - Free Report) is scheduled to report second-quarter 2020 results on Aug 5. The Zacks Consensus Estimate for earnings is pegged at 70 cents per share.

Energy Transfer LP (ET - Free Report) is scheduled to report second-quarter 2020 results on Aug 5. The Zacks Consensus Estimate for earnings stands at 26 cents per unit.

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