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NextEra Energy Partners' (NEP) Q3 Earnings Beat, Revenues Lag
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NextEra Energy Partners, LP (NEP - Free Report) recorded third-quarter 2022 operating earnings per unit of 93 cents, which surpassed the Zacks Consensus Estimate of 63 cents by 47.6%. The bottom line improved by 287.5% from the year-ago quarter’s 24 cents per unit.
Revenues
For the third quarter of 2022, the firm’s operating revenues of $302 million missed the Zacks Consensus Estimate of $415 million by 23.4%. However, revenues improved by 19.8% year over year due to contributions from the new projects.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
NextEra Energy Partners’ total operating expenses in the third quarter were $261 million, up 38.8% from the year-ago quarter’s $188 million, due to an increase in operating and maintenance expenses by 39.1%.
For the third quarter, the partnership’s operating income summed at $49 million, down 23.4% from $64 million in the year-ago period.
During the quarter, the firm completed the acquisition of a nearly 230-megawatt, 4-hour battery storage project from NextEra Energy Resources, which further expanded its renewable operation.
Financial Condition
NextEra Energy Partners had cash and cash equivalents worth $225 million as of Sep 30, 2022 compared with $147 million on Dec 31, 2021.
Long-term debt was $4,774 million as of Sep 30, 2022 compared with $5,294 million on Dec 31, 2021.
Net cash provided by operating activities in the first nine months of 2022 was $611 million, 24.2% higher than $492 million in the year-ago period.
Distribution Update
The board of directors of NEP announced a quarterly distribution of 78.25 cents per unit. The new annualized rate is $3.15 per common unit. The cash distribution per common unit increased by nearly 15% on an annualized basis from the third quarter of 2021. The distribution will be payable on Nov 14, 2022 to unitholders of record as of Nov 4, 2022.
Guidance
NextEra Energy Partners reiterated 2022 EBITDA in the range of $1.785-$1.985 billion and CAFD in the $685-$775 million range.
NextEra Energy Partners continues to expect the annualized rate of the fourth-quarter 2022 distribution to be in the range of $3.17-$3.25 per common unit, which is payable in February 2023. The new rate is in sync with NEP’s expectation of 12-15% per-year growth in limited partner distributions through at least 2025, subject to the approval of the board of directors.
NextEra Energy Partners initiated 2023 adjusted EBITDA in a range of $2.22 billion to $2.42 billion and CAFD in a range of $770 million to $860 million.
Ameresco (AMRC - Free Report) is scheduled to announce third-quarter 2022 results on Nov 1, after market close. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 47 cents.
Ameresco’s long-term earnings growth is projected at 25.9%. The Zacks Consensus Estimate for AMRC’s 2022 EPS indicates year-over-year growth of 26.5%.
Ormat Technologies (ORA - Free Report) is scheduled to announce third-quarter 2022 results on Nov 2, after market close. The Zacks Consensus Estimate for third-quarter EPS is pegged at 25 cents.
Ormat Technologies’ long-term earnings growth is projected at 11%. ORA delivered an average earnings surprise of 17.6% in the last four reported quarters.
Gevo Inc. (GEVO - Free Report) is scheduled to announce third-quarter 2022 results on Nov 8. The Zacks Consensus Estimate for the third quarter is pegged at a loss of 6 cents.
Gevo reported an average earnings surprise of 25% in the last reported quarter. The Zacks Consensus Estimate for TTE’s 2022 EPS indicates year-over-year growth of 16.7%.
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NextEra Energy Partners' (NEP) Q3 Earnings Beat, Revenues Lag
NextEra Energy Partners, LP (NEP - Free Report) recorded third-quarter 2022 operating earnings per unit of 93 cents, which surpassed the Zacks Consensus Estimate of 63 cents by 47.6%. The bottom line improved by 287.5% from the year-ago quarter’s 24 cents per unit.
Revenues
For the third quarter of 2022, the firm’s operating revenues of $302 million missed the Zacks Consensus Estimate of $415 million by 23.4%. However, revenues improved by 19.8% 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-eps-surprise-chart | NextEra Energy Partners, LP Quote
Highlights of the Release
NextEra Energy Partners’ total operating expenses in the third quarter were $261 million, up 38.8% from the year-ago quarter’s $188 million, due to an increase in operating and maintenance expenses by 39.1%.
For the third quarter, the partnership’s operating income summed at $49 million, down 23.4% from $64 million in the year-ago period.
During the quarter, the firm completed the acquisition of a nearly 230-megawatt, 4-hour battery storage project from NextEra Energy Resources, which further expanded its renewable operation.
Financial Condition
NextEra Energy Partners had cash and cash equivalents worth $225 million as of Sep 30, 2022 compared with $147 million on Dec 31, 2021.
Long-term debt was $4,774 million as of Sep 30, 2022 compared with $5,294 million on Dec 31, 2021.
Net cash provided by operating activities in the first nine months of 2022 was $611 million, 24.2% higher than $492 million in the year-ago period.
Distribution Update
The board of directors of NEP announced a quarterly distribution of 78.25 cents per unit. The new annualized rate is $3.15 per common unit. The cash distribution per common unit increased by nearly 15% on an annualized basis from the third quarter of 2021. The distribution will be payable on Nov 14, 2022 to unitholders of record as of Nov 4, 2022.
Guidance
NextEra Energy Partners reiterated 2022 EBITDA in the range of $1.785-$1.985 billion and CAFD in the $685-$775 million range.
NextEra Energy Partners continues to expect the annualized rate of the fourth-quarter 2022 distribution to be in the range of $3.17-$3.25 per common unit, which is payable in February 2023. The new rate is in sync with NEP’s expectation of 12-15% per-year growth in limited partner distributions through at least 2025, subject to the approval of the board of directors.
NextEra Energy Partners initiated 2023 adjusted EBITDA in a range of $2.22 billion to $2.42 billion and CAFD in a range of $770 million to $860 million.
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
Ameresco (AMRC - Free Report) is scheduled to announce third-quarter 2022 results on Nov 1, after market close. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 47 cents.
Ameresco’s long-term earnings growth is projected at 25.9%. The Zacks Consensus Estimate for AMRC’s 2022 EPS indicates year-over-year growth of 26.5%.
Ormat Technologies (ORA - Free Report) is scheduled to announce third-quarter 2022 results on Nov 2, after market close. The Zacks Consensus Estimate for third-quarter EPS is pegged at 25 cents.
Ormat Technologies’ long-term earnings growth is projected at 11%. ORA delivered an average earnings surprise of 17.6% in the last four reported quarters.
Gevo Inc. (GEVO - Free Report) is scheduled to announce third-quarter 2022 results on Nov 8. The Zacks Consensus Estimate for the third quarter is pegged at a loss of 6 cents.
Gevo reported an average earnings surprise of 25% in the last reported quarter. The Zacks Consensus Estimate for TTE’s 2022 EPS indicates year-over-year growth of 16.7%.