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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 2023 operating loss of 35 cents per unit, which missed the Zacks Consensus Estimate of earnings of 3 cents. In the year-ago quarter, the firm reported earnings of 31 cents per unit.
Revenues
The firm’s operating revenues of $232 million missed the Zacks Consensus Estimate of $360 million by 35.6%. The figure, however, increased 13.7% from $204 million registered in the prior-year period.
The company reported full-year 2023 revenues of $1,078 million, up 11.2% from the previous year’s figure of $969 million.
NextEra Energy Partners, LP Price, Consensus and EPS Surprise
Total operating expenses were $285 million, up 8.4% from the year-ago quarter’s level of $263 million. This was due to an increase in depreciation and amortization and taxes other than income taxes.
Operating and maintenance expenses totaled $130 million, down 9.1% from the prior-year quarter’s recorded figure of $143 million.
The firm reported an operating loss of $53 million compared with a loss of $58 million registered in the corresponding period of 2022.
Financial Condition
The firm had cash and cash equivalents of $274 million as of Dec 31, 2023, compared with $226 million as of Dec 31, 2022.
Long-term debt was $4,941 million as of Dec 31, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities for 2023 totaled $731 million compared with $776 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 88 cents per common unit to an annualized rate of $3.52 to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 6% from that recorded in the third quarter of 2023. It will be payable on Feb 14, 2024, to unit holders of record as of Feb 6, 2024.
Guidance
NextEra Energy Partners expects its run-rate for 2024 adjusted EBITDA to be in the $1.9-$2.1 billion range and CAFD in the band of $730-$820 million.
The firm continues to foresee 5-8% annual growth 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.
Energy Transfer (ET - Free Report) is slated to report fourth-quarter results on Feb 14, after market close. The Zacks Consensus Estimate for earnings is pegged at 29 cents per unit.
The Zacks Consensus Estimate for sales is pinned at $23.6 billion, implying a year-over-year increase of 15%.
ONEOK, Inc. (OKE - Free Report) is slated to report fourth-quarter results on Feb 26, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.16 per share, implying a year-over-year increase of 7.4%.
OKE’s long-term (three to five years) earnings growth rate is 7.64%. It delivered an average earnings surprise of 6% in the last four quarters.
Devon Energy (DVN - Free Report) is scheduled to report fourth-quarter results on Feb 27, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share.
DVN’s long-term earnings growth rate is 51.35%. The company delivered an average earnings surprise of 1.6% in the last four quarters.
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NextEra Energy Partners (NEP) Q4 Earnings & Sales Lag Estimates
NextEra Energy Partners, LP (NEP - Free Report) recorded fourth-quarter 2023 operating loss of 35 cents per unit, which missed the Zacks Consensus Estimate of earnings of 3 cents. In the year-ago quarter, the firm reported earnings of 31 cents per unit.
Revenues
The firm’s operating revenues of $232 million missed the Zacks Consensus Estimate of $360 million by 35.6%. The figure, however, increased 13.7% from $204 million registered in the prior-year period.
The company reported full-year 2023 revenues of $1,078 million, up 11.2% from the previous year’s figure of $969 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
Total operating expenses were $285 million, up 8.4% from the year-ago quarter’s level of $263 million. This was due to an increase in depreciation and amortization and taxes other than income taxes.
Operating and maintenance expenses totaled $130 million, down 9.1% from the prior-year quarter’s recorded figure of $143 million.
The firm reported an operating loss of $53 million compared with a loss of $58 million registered in the corresponding period of 2022.
Financial Condition
The firm had cash and cash equivalents of $274 million as of Dec 31, 2023, compared with $226 million as of Dec 31, 2022.
Long-term debt was $4,941 million as of Dec 31, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities for 2023 totaled $731 million compared with $776 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 88 cents per common unit to an annualized rate of $3.52 to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 6% from that recorded in the third quarter of 2023. It will be payable on Feb 14, 2024, to unit holders of record as of Feb 6, 2024.
Guidance
NextEra Energy Partners expects its run-rate for 2024 adjusted EBITDA to be in the $1.9-$2.1 billion range and CAFD in the band of $730-$820 million.
The firm continues to foresee 5-8% annual growth 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 #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Energy Transfer (ET - Free Report) is slated to report fourth-quarter results on Feb 14, after market close. The Zacks Consensus Estimate for earnings is pegged at 29 cents per unit.
The Zacks Consensus Estimate for sales is pinned at $23.6 billion, implying a year-over-year increase of 15%.
ONEOK, Inc. (OKE - Free Report) is slated to report fourth-quarter results on Feb 26, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.16 per share, implying a year-over-year increase of 7.4%.
OKE’s long-term (three to five years) earnings growth rate is 7.64%. It delivered an average earnings surprise of 6% in the last four quarters.
Devon Energy (DVN - Free Report) is scheduled to report fourth-quarter results on Feb 27, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share.
DVN’s long-term earnings growth rate is 51.35%. The company delivered an average earnings surprise of 1.6% in the last four quarters.