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NextEra Energy Partners' (NEP) Q3 Earnings Beat Estimates
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NextEra Energy Partners, LP (NEP - Free Report) recorded third-quarter 2023 operating earnings of 57 cents per unit, which surpassed the Zacks Consensus Estimate of 48 cents by 18.8%. The bottom line, however, declined 38.7% from 93 cents recorded in the year-ago quarter.
Revenues
The firm’s operating revenues of $367 million missed the Zacks Consensus Estimate of $417 million by 12%. The figure, however, increased 21.5% from $302 million registered in the prior-year period.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
Total operating expenses were $294 million, up 12.6% from the year-ago quarter’s $261 million. This was due to an increase in depreciation and amortization and taxes other than income taxes. Our model projected total operating expenses of $291.8 million for the third quarter.
Operating and maintenance expenses totaled $128 million, down 16.3% from the prior-year quarter’s recorded figure of $153 million.
The firm reported an operating income of $73 million, up 49% from $49 million registered in the corresponding period of 2022.
Financial Condition
The firm had cash and cash equivalents of $332 million as of Sep 30, 2023, compared with $235 million as of Dec 31, 2022.
Long-term debt was $5,139 million as of Sep 30, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities in the first nine months of 2023 totaled $552 million compared with $611 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 86.75 cents per common unit to an annualized rate of $3.47 to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 6% from that recorded in the second quarter of 2023. It will be payable on Nov 14, 2023, to unit holders of record as of Nov 6, 2023.
Guidance
NextEra Energy Partners decreased its run-rate for 2023 adjusted EBITDA to $1.9-$2.1 billion from the previously guided range of $2.22-$2.42 billion. The firm also lowered its CAFD range to $730-$820 million from the previously projected range of $770-$860 million.
The firm continues to see 5-8% growth per year in limited partner distributions per unit, with a current target of 6% growth per year, as a reasonable range of expectations through at least 2026.
Zacks Rank
NEP currently carries a Zacks Rank #5 (Strong Sell).
ONEOK, Inc. (OKE - Free Report) is slated to report third-quarter results on Oct 31, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share, implying a year-over-year increase of 8.3%.
OKE’s long-term (three to five years) earnings growth rate is 6.93%. It delivered an average earnings surprise of 6.5% in the last four quarters.
Devon Energy (DVN - Free Report) is scheduled to report third-quarter results on Nov 7, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.53 per share.
DVN’s long-term earnings growth rate is 51.35%. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is slated to report third-quarter results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, implying a year-over-year improvement of 55.8%.
WHD’s long-term earnings growth rate is 9.38%. It delivered an average earnings surprise of 13.5% in the last four quarters.
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NextEra Energy Partners' (NEP) Q3 Earnings Beat Estimates
NextEra Energy Partners, LP (NEP - Free Report) recorded third-quarter 2023 operating earnings of 57 cents per unit, which surpassed the Zacks Consensus Estimate of 48 cents by 18.8%. The bottom line, however, declined 38.7% from 93 cents recorded in the year-ago quarter.
Revenues
The firm’s operating revenues of $367 million missed the Zacks Consensus Estimate of $417 million by 12%. The figure, however, increased 21.5% from $302 million registered in the prior-year period.
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
Total operating expenses were $294 million, up 12.6% from the year-ago quarter’s $261 million. This was due to an increase in depreciation and amortization and taxes other than income taxes. Our model projected total operating expenses of $291.8 million for the third quarter.
Operating and maintenance expenses totaled $128 million, down 16.3% from the prior-year quarter’s recorded figure of $153 million.
The firm reported an operating income of $73 million, up 49% from $49 million registered in the corresponding period of 2022.
Financial Condition
The firm had cash and cash equivalents of $332 million as of Sep 30, 2023, compared with $235 million as of Dec 31, 2022.
Long-term debt was $5,139 million as of Sep 30, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities in the first nine months of 2023 totaled $552 million compared with $611 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 86.75 cents per common unit to an annualized rate of $3.47 to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 6% from that recorded in the second quarter of 2023. It will be payable on Nov 14, 2023, to unit holders of record as of Nov 6, 2023.
Guidance
NextEra Energy Partners decreased its run-rate for 2023 adjusted EBITDA to $1.9-$2.1 billion from the previously guided range of $2.22-$2.42 billion. The firm also lowered its CAFD range to $730-$820 million from the previously projected range of $770-$860 million.
The firm continues to see 5-8% growth per year in limited partner distributions per unit, with a current target of 6% growth per year, as a reasonable range of expectations through at least 2026.
Zacks Rank
NEP 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 third-quarter results on Oct 31, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share, implying a year-over-year increase of 8.3%.
OKE’s long-term (three to five years) earnings growth rate is 6.93%. It delivered an average earnings surprise of 6.5% in the last four quarters.
Devon Energy (DVN - Free Report) is scheduled to report third-quarter results on Nov 7, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.53 per share.
DVN’s long-term earnings growth rate is 51.35%. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is slated to report third-quarter results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, implying a year-over-year improvement of 55.8%.
WHD’s long-term earnings growth rate is 9.38%. It delivered an average earnings surprise of 13.5% in the last four quarters.