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NextEra Energy Partners' (NEP) Q3 Earnings Surpass Estimates
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NextEra Energy Partners, LP (NEP - Free Report) delivered earnings of 76 cents per unit in the third quarter of 2020, beating the Zacks Consensus Estimate of 62 cents by 22.6%. In the year-ago quarter the firm reported a loss of $1.21 per unit.
Revenues
In the quarter under review, the firm’s revenues of $240 million missed the Zacks Consensus Estimate of $361.5 million by 33.6%. Also, the top line declined 5.1% on a year-over-year basis.
Highlights of the Release
In the September quarter, NextEra Energy Partners’ total adjusted operating expenses were $172 million, up 4.2% from the year-ago quarter’s $165 million.
In the same period, the partnership’s operating income summed $68 million, down 22.7% from $88 million in the year-ago quarter.
Remarkably, the utility completed its first two organic growth investment projects ahead of schedule and within budget. The repowering of the 175-megawatt Northern Colorado wind project and the backup compression capacity on the Texas Pipelines were placed in service during this quarter.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
NextEra Energy Partners had cash and cash equivalents worth $95 million as of Sep 30, 2020 compared with $128 million as of Dec 31, 2019. Long-term debt was $3,890 million as of Sep 30, 2020 compared with $4,132 million as of Dec 31, 2019.
Net cash provided by operating activities at the end of the first nine months of 2020 was $482 million, higher than $252 million at the end of the prior-year's comparable period.
During September, NextEra Energy Partners completed the successful conversion of $300 million of convertible debt into 5.7 million common units. This highlights the company's ability to se low-cost financing.
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.
Enphase Energy, Inc. (ENPH - Free Report) is scheduled to report third-quarter 2020 results on Oct 27. The Zacks Consensus Estimate for earnings is pegged at 24 cents per share.
Energy Transfer LP (ET - Free Report) is scheduled to report third-quarter 2020 results on Nov 4. The Zacks Consensus Estimate for earnings stands at 22 cents per unit.
Evergy Inc. (EVRG - Free Report) is scheduled to report third-quarter 2020 results on Nov 5. The Zacks Consensus Estimate for earnings is pegged at $1.65 per share.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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NextEra Energy Partners' (NEP) Q3 Earnings Surpass Estimates
NextEra Energy Partners, LP (NEP - Free Report) delivered earnings of 76 cents per unit in the third quarter of 2020, beating the Zacks Consensus Estimate of 62 cents by 22.6%. In the year-ago quarter the firm reported a loss of $1.21 per unit.
Revenues
In the quarter under review, the firm’s revenues of $240 million missed the Zacks Consensus Estimate of $361.5 million by 33.6%. Also, the top line declined 5.1% on a year-over-year basis.
Highlights of the Release
In the September quarter, NextEra Energy Partners’ total adjusted operating expenses were $172 million, up 4.2% from the year-ago quarter’s $165 million.
In the same period, the partnership’s operating income summed $68 million, down 22.7% from $88 million in the year-ago quarter.
Remarkably, the utility completed its first two organic growth investment projects ahead of schedule and within budget. The repowering of the 175-megawatt Northern Colorado wind project and the backup compression capacity on the Texas Pipelines were placed in service during this quarter.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
NextEra Energy Partners, LP price-consensus-eps-surprise-chart | NextEra Energy Partners, LP Quote
Financial Condition
NextEra Energy Partners had cash and cash equivalents worth $95 million as of Sep 30, 2020 compared with $128 million as of Dec 31, 2019.
Long-term debt was $3,890 million as of Sep 30, 2020 compared with $4,132 million as of Dec 31, 2019.
Net cash provided by operating activities at the end of the first nine months of 2020 was $482 million, higher than $252 million at the end of the prior-year's comparable period.
During September, NextEra Energy Partners completed the successful conversion of $300 million of convertible debt into 5.7 million common units. This highlights the company's ability to se low-cost financing.
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.
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
Enphase Energy, Inc. (ENPH - Free Report) is scheduled to report third-quarter 2020 results on Oct 27. The Zacks Consensus Estimate for earnings is pegged at 24 cents per share.
Energy Transfer LP (ET - Free Report) is scheduled to report third-quarter 2020 results on Nov 4. The Zacks Consensus Estimate for earnings stands at 22 cents per unit.
Evergy Inc. (EVRG - Free Report) is scheduled to report third-quarter 2020 results on Nov 5. The Zacks Consensus Estimate for earnings is pegged at $1.65 per share.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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