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NextEra Energy Partners' (NEP) Q2 Earnings & Sales Miss Estimates
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NextEra Energy Partners, LP (NEP - Free Report) recorded second-quarter 2023 operating earnings of 53 cents per unit, which missed the Zacks Consensus Estimate of 72 cents by 26.4%. The bottom line also declined 79.7% from $2.61 recorded in the year-ago quarter.
Revenues
The firm’s operating revenues of $350 million in the reported quarter missed the Zacks Consensus Estimate of $393 million by 10.9%. The figure also declined 3.3% from $362 million registered in the prior-year period.
Renewable energy reported sales of $293 million, down 3% year over year. The Zacks Consensus Estimate for the same was pegged at $334.2 million.
Texas pipelines service revenues totaled $57 million, down 5% from the year-ago quarter’s figure. The Zacks Consensus Estimate for the same was pinned at $57.1 million.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
NextEra Energy Partners’ total operating expenses amounted to $286 million, up 11.7% from the year-ago quarter’s $256 million. This was due to a 28.6% increase in depreciation and amortization.
Our model projected total operating expenses at $292.1 million for the second quarter.
Operating and maintenance expenses totaled $131 million, down 3.7% from the prior-year quarter’s recorded figure of $136 million.
The firm reported an operating income of $64 million, down 51.9% from $133 million in the corresponding period of 2022.
In the second quarter, NextEra Energy Partners shared plans to sell natural gas pipeline assets to become the top pure-play investment opportunity in 100% renewable energy.
Financial Condition
The company had cash and cash equivalents of $587 million as of Jun 30, 2023, compared with $235 million as of Dec 31, 2022.
Long-term debt was $5,918 million as of Jun 30, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities in the first six months of 2023 totaled $296 million compared with $409 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 85.4 cents per common unit to an annualized rate of $3.42 per common unit to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 12% from that recorded in the second quarter of 2022. It will be payable on Aug 14, 2023, to unit holders of record as of Aug 4, 2023.
Guidance
NextEra Energy Partners continues to expect run-rate for adjusted EBITDA of $2.22-$2.42 billion and CAFD of $770-$860 million as of Dec 31, 2023.
The firm continues its projection of 12-15% growth per year in limited partner distributions per unit, a reasonable range of expectation through at least 2026. It anticipates the annualized rate of fourth-quarter 2023 distribution to be in the range of $3.64-$3.74 per common unit, payable February 2024.
Evergy, Inc. (EVRG - Free Report) is scheduled to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share.
EVRG’s long-term (three to five years) earnings growth rate is 5.22%. The company delivered an average earnings surprise of 16.02% in the last four quarters.
ONEOK, Inc. (OKE - Free Report) is slated to report second-quarter results on Aug 7, after market close. The Zacks Consensus Estimate for earnings is pegged at 99 cents per share, implying a year-over-year increase of 7.6%.
OKE’s long-term earnings growth rate is 6.26%. It delivered an average earnings surprise of 7.92% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is slated to report second-quarter results on Aug 7, after market close. The Zacks Consensus Estimate for earnings is pegged at 73 cents per share, implying a year-over-year improvement of 65.9%.
WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.6% in the last four quarters.
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NextEra Energy Partners' (NEP) Q2 Earnings & Sales Miss Estimates
NextEra Energy Partners, LP (NEP - Free Report) recorded second-quarter 2023 operating earnings of 53 cents per unit, which missed the Zacks Consensus Estimate of 72 cents by 26.4%. The bottom line also declined 79.7% from $2.61 recorded in the year-ago quarter.
Revenues
The firm’s operating revenues of $350 million in the reported quarter missed the Zacks Consensus Estimate of $393 million by 10.9%. The figure also declined 3.3% from $362 million registered in the prior-year period.
Renewable energy reported sales of $293 million, down 3% year over year. The Zacks Consensus Estimate for the same was pegged at $334.2 million.
Texas pipelines service revenues totaled $57 million, down 5% from the year-ago quarter’s figure. The Zacks Consensus Estimate for the same was pinned at $57.1 million.
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 amounted to $286 million, up 11.7% from the year-ago quarter’s $256 million. This was due to a 28.6% increase in depreciation and amortization.
Our model projected total operating expenses at $292.1 million for the second quarter.
Operating and maintenance expenses totaled $131 million, down 3.7% from the prior-year quarter’s recorded figure of $136 million.
The firm reported an operating income of $64 million, down 51.9% from $133 million in the corresponding period of 2022.
In the second quarter, NextEra Energy Partners shared plans to sell natural gas pipeline assets to become the top pure-play investment opportunity in 100% renewable energy.
Financial Condition
The company had cash and cash equivalents of $587 million as of Jun 30, 2023, compared with $235 million as of Dec 31, 2022.
Long-term debt was $5,918 million as of Jun 30, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities in the first six months of 2023 totaled $296 million compared with $409 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 85.4 cents per common unit to an annualized rate of $3.42 per common unit to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 12% from that recorded in the second quarter of 2022. It will be payable on Aug 14, 2023, to unit holders of record as of Aug 4, 2023.
Guidance
NextEra Energy Partners continues to expect run-rate for adjusted EBITDA of $2.22-$2.42 billion and CAFD of $770-$860 million as of Dec 31, 2023.
The firm continues its projection of 12-15% growth per year in limited partner distributions per unit, a reasonable range of expectation through at least 2026. It anticipates the annualized rate of fourth-quarter 2023 distribution to be in the range of $3.64-$3.74 per common unit, payable February 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
Evergy, Inc. (EVRG - Free Report) is scheduled to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share.
EVRG’s long-term (three to five years) earnings growth rate is 5.22%. The company delivered an average earnings surprise of 16.02% in the last four quarters.
ONEOK, Inc. (OKE - Free Report) is slated to report second-quarter results on Aug 7, after market close. The Zacks Consensus Estimate for earnings is pegged at 99 cents per share, implying a year-over-year increase of 7.6%.
OKE’s long-term earnings growth rate is 6.26%. It delivered an average earnings surprise of 7.92% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is slated to report second-quarter results on Aug 7, after market close. The Zacks Consensus Estimate for earnings is pegged at 73 cents per share, implying a year-over-year improvement of 65.9%.
WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.6% in the last four quarters.