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NextEra Energy Partners (NEP) Q4 Earnings Top, Revenues Miss

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NextEra Energy Partners, LP’s (NEP - Free Report) fourth-quarter 2019 earnings of 50 cents per unit, surpassed the Zacks Consensus Estimate of 44 cents by 13.6%. However, in the year-ago quarter, the partnership incurred a loss of 39 cents.

Revenues

In the quarter under review, the firm generated revenues worth $206 million, missing the Zacks Consensus Estimate of $327 million by 37%. However, the top line improved 32.9% on a year-over-year basis. This upside can be attributed to higher sales in the Renewable energy sales 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

 

Highlights of the Release

In the quarter under review, NextEra Energy Partners’ total adjusted operating expenses were $163 million, up 31.5% from the year-ago figure of $124 million

During the year, the partnership acquired more than 600 megawatts of new wind and solar projects as well as Meade Pipeline Co LLC.

Financial Condition

NextEra Energy Partners had cash and cash equivalents of $128 million as of Dec 31, 2019 compared with $147 million as of Dec 31, 2018.

Long-term debt was $4,132 million as of Dec 31, 2019 compared with $2,728 million as of Dec 31, 2018.

Net cash provided by operating activities for 2019 was $346 million, lower than $362 million provided in 2018.

Guidance

For 2020, the firm expects a run rate for cash available for distribution (CAFD) in the range of $505-$585 million (excluding all contributions from the Desert Sunlight projects).

The partnership continues to expect 12-15% per year growth for limited partner distributions through 2024. It expects the annualized rate of fourth-quarter 2020 distribution within $2.40 - $2.46 per common unit.

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

Xcel Energy Inc (XEL - Free Report) is scheduled to report fourth-quarter 2019 results on Jan 30, 2020. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share.

American Electric Power Company, Inc. (AEP - Free Report) is set to release fourth-quarter 2019 results on Feb 20, 2020. The Zacks Consensus Estimate for earnings is pegged at 59 cents per share.

CMS Energy Corp. (CMS - Free Report) is set to report fourth-quarter 2019 results on Jan 30, 2020. The Zacks Consensus Estimate for earnings stands at 69 cents per share.

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