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NextEra Energy Partners' (NEP) Q1 Earnings & Sales Lag Estimates

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NextEra Energy Partners, LP (NEP - Free Report) recorded a first-quarter 2023 operating loss per unit of 17 cents, which missed the Zacks Consensus Estimate of earnings of 31 cents by 154.84%.

Revenues

For the above-mentioned quarter, the firm’s operating revenues of $301 million missed the Zacks Consensus Estimate of $365 million by 17.6%. However, the figure improved 7.1% from the $281 million recorded in the year-ago quarter.

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 were $298 million, up 20.6% from the year-ago quarter’s $247 million. This was due to a 19.4% increase in operating and maintenance expenses.

The firm reported an operating income of $3 million, down 91.2% from the prior-year quarter’s recorded figure of $34 million.

Financial Condition

NextEra Energy Partners had cash and cash equivalents of $238 million as of Mar 31, 2023, compared with $235 million as of Dec 31, 2022.

Long-term debt was $5,295 million as of Mar 31, 2023, compared with $5,250 million as of Dec 31, 2022.

Net cash provided by operating activities was $82 million compared with $120 million reported in the year-ago quarter.

Distribution Update

NEP declared a quarterly distribution of 84.25 cents per common unit to an annualized rate of $3.37 per common unit to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 15% from the first quarter of 2022. It will be payable on May 15, 2023, to unit holders of record as of May 5, 2023.

Guidance

NextEra Energy Partners expects run-rate for adjusted EBITDA of $2.22-$2.42 billion and CAFD of $770-$860 million as of Dec 31, 2023.

The company projects 12-15% growth per year in limited partner distributions per unit, a reasonable range of expectations through at least 2026. It expects the annualized rate of fourth-quarter 2023 distribution to be $3.64-$3.74 per common unit, payable  February 2024.

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

ONEOK, Inc. (OKE - Free Report) is slated to report first-quarter results on May 2, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.15 per share, implying a year-over-year increase of 147.13%.

OKE’s long-term (three to five years) earnings growth is pegged at 7.61%. The Zacks Consensus Estimate for OKE’s 2023 earnings per share (EPS) is $5.26, implying a year-over-year improvement of 36.98%.

Clearway Energy, Inc. (CWEN - Free Report) is slated to report first-quarter results on May 4, before market open. The bottom-line estimate for CWEN’s adjusted loss per share is pegged at 12 cents, implying a year-over-year improvement of 57.14%.

CWEN’s long-term earnings growth is pegged at 10%. The consensus estimate for 2023 EPS is pinned at $1.84, indicating a year-over-year improvement of 149.3%.

Evergy, Inc. (EVRG - Free Report) is scheduled to report first-quarter results on May 5, before market open. The consensus mark for earnings stands at 61 cents per share, indicating a year-over-year increase of 5.17%.

EVRG’s long-term earnings growth is pegged at 5.2%. The company delivered an average earnings surprise of 16.05% in the last four quarters.

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