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NextEra Energy Partners (NEP) Q4 Earnings & Sales Lag Estimates
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NextEra Energy Partners, LP (NEP - Free Report) recorded fourth-quarter 2022 operating earnings per unit of 40 cents, which missed the Zacks Consensus Estimate of 52 cents by 30%. The bottom line improved from the year-ago quarter’s loss of 12 cents per unit.
For 2022, adjusted earnings per unit were $5.62, up 217.5% from $1.77 per unit in the year-ago period.
Revenues
For the fourth quarter of 2022, the firm’s operating revenues of $266 million missed the Zacks Consensus Estimate of $313 million by 17.7%. However, revenues improved 14.6% from the year-ago quarter due to contributions from new projects. For 2022, total revenues were $1,211 million, up 22.3% year over year.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
NextEra Energy Partners’ total operating expenses in the fourth quarter were $285 million, up 36.3% from the year-ago quarter’s $209 million due to an 31.6% increase in operating and maintenance expenses.
The company reported an operating loss of $18 million for the quarter against an operating income of $23 million in the year-ago period.
Financial Condition
NextEra Energy Partners had cash and cash equivalents worth $235 million as of Dec 31, 2022, compared with $147 million as of Dec 31, 2021.
Long-term debt was $5,250 million as of Dec 31, 2022, compared with $5,294 million as of Dec 31, 2021.
Net cash provided by operating activities in 2022 was $776 million, 14.6% higher than $677 million in 2021.
Distribution Update
NextEra Energy Partners declared a quarterly distribution of 81.25 per common unit to an annualized rate of $3.25 per common unit to its unit holders. With the declaration, the distribution per common unit has grown approximately 15% on an annualized basis from the fourth quarter of 2021. The distribution will be payable on Feb 14, 2023, to unit holders of record as of Feb 6, 2023.
Guidance
NextEra Energy Partners’ run-rate expectations for adjusted EBITDA and CAFD on Dec 31, 2023, remain unchanged. It expects 2023 adjusted EBITDA of $2.22-$2.42 billion and CAFD of $770-$860 million.
NextEra Energy Partners sees 12-15% growth per year in limited partner distributions per unit, a reasonable range of expectations through at least 2026, which is an additional year beyond prior expectations. It expects the annualized rate of the fourth-quarter 2023 distribution, payable in Feb 2024, to be $3.64-$3.74 per common unit.
CNX Resources (CNX - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Jan 26, 2023, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 58 cents per share, implying a year-over-year increase of 87.1%.
Chevron (CVX - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Jan 27, 2023, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.16 per share, indicating a year-over-year increase of 62.5%.
California Resources (CRC - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Feb 23, 2023, after market close. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.21 per share, implying a year-over-year increase of 3.76%.
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NextEra Energy Partners (NEP) Q4 Earnings & Sales Lag Estimates
NextEra Energy Partners, LP (NEP - Free Report) recorded fourth-quarter 2022 operating earnings per unit of 40 cents, which missed the Zacks Consensus Estimate of 52 cents by 30%. The bottom line improved from the year-ago quarter’s loss of 12 cents per unit.
For 2022, adjusted earnings per unit were $5.62, up 217.5% from $1.77 per unit in the year-ago period.
Revenues
For the fourth quarter of 2022, the firm’s operating revenues of $266 million missed the Zacks Consensus Estimate of $313 million by 17.7%. However, revenues improved 14.6% from the year-ago quarter due to contributions from new projects. For 2022, total revenues were $1,211 million, up 22.3% year over year.
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 fourth quarter were $285 million, up 36.3% from the year-ago quarter’s $209 million due to an 31.6% increase in operating and maintenance expenses.
The company reported an operating loss of $18 million for the quarter against an operating income of $23 million in the year-ago period.
Financial Condition
NextEra Energy Partners had cash and cash equivalents worth $235 million as of Dec 31, 2022, compared with $147 million as of Dec 31, 2021.
Long-term debt was $5,250 million as of Dec 31, 2022, compared with $5,294 million as of Dec 31, 2021.
Net cash provided by operating activities in 2022 was $776 million, 14.6% higher than $677 million in 2021.
Distribution Update
NextEra Energy Partners declared a quarterly distribution of 81.25 per common unit to an annualized rate of $3.25 per common unit to its unit holders. With the declaration, the distribution per common unit has grown approximately 15% on an annualized basis from the fourth quarter of 2021. The distribution will be payable on Feb 14, 2023, to unit holders of record as of Feb 6, 2023.
Guidance
NextEra Energy Partners’ run-rate expectations for adjusted EBITDA and CAFD on Dec 31, 2023, remain unchanged. It expects 2023 adjusted EBITDA of $2.22-$2.42 billion and CAFD of $770-$860 million.
NextEra Energy Partners sees 12-15% growth per year in limited partner distributions per unit, a reasonable range of expectations through at least 2026, which is an additional year beyond prior expectations. It expects the annualized rate of the fourth-quarter 2023 distribution, payable in Feb 2024, to be $3.64-$3.74 per common unit.
Zacks Rank
NextEra Energy Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
CNX Resources (CNX - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Jan 26, 2023, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 58 cents per share, implying a year-over-year increase of 87.1%.
Chevron (CVX - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Jan 27, 2023, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.16 per share, indicating a year-over-year increase of 62.5%.
California Resources (CRC - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Feb 23, 2023, after market close. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.21 per share, implying a year-over-year increase of 3.76%.