Back to top

Image: Bigstock

NextEra Energy Partners (NEP) Posts Q2 Loss, Lags on Revenues

Read MoreHide Full Article

NextEra Energy Partners, LP (NEP - Free Report) incurred second-quarter 2019 loss of 49 cents per unit, against the Zacks Consensus Estimate of earnings of 48 cents. In the year-ago quarter, the partnership delivered earnings of $1.42 per unit.

Revenues

In the quarter under review, the partnership generated revenues worth $219 million that missed the Zacks Consensus Estimate of $292 million by 26.8%. Moreover, the top line declined 2.7% on a year-over-year basis. The downside was caused by lower sales in the Texas pipelines service revenues segment.

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

 

Quarterly Highlights

In the quarter, NextEra Energy Partners’ total adjusted operating expenses were $152 million.

The partnership raised distributions by nearly 15% on a year-over-year basis.

In June, the partnership completed the acquisition of 611 megawatts of wind and solar projects from a subsidiary of NextEra Energy Resources, LLC.

Interest expenses rose to $207 million from $21 million in the year-ago quarter.

Financial Condition

NextEra Energy Partners had cash and cash equivalents of $163 million as of Jun 30, 2019 compared with $147 million as of Dec 31, 2018.

Long-term debt was $3,676 million as of Jun 30 compared with $2,728 million as of Dec 31, 2018.

Net cash provided by operating activities at the end of the first six months of 2019 was $130 million, lower than $183 million in the first six months of 2018.

Guidance

NextEra Energy Partners has extended expectations of annual growth. It expects 12-15% annual growth in limited partner distributions through 2024. The partnership continues to expect 2019 distribution growth at 15%.

The partnership expects adjusted EBITDA in the band of $1.2-$1.375 billion for 2019 and CAFD in the range of $485-$555 million that includes all contributions from PG&E-related projects.

Zacks Rank

NextEra Energy Partners currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Release

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2019 operating earnings of 61 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 1.67%.

Upcoming Releases

Dominion Energy (D - Free Report) is scheduled to release second-quarter 2019 results on Jul 31. The Zacks Consensus Estimate for earnings is pegged at 79 cents.

Xcel Energy Inc. (XEL - Free Report) is scheduled to report second-quarter 2019 results on Aug 1. The Zacks Consensus Estimate for earnings is pegged at 53 cents.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Published in