NextEra Energy Partners (NEP) Posts Q3 Loss, Revenues Up Y/Y

NextEra Energy (NYSE:NEE) Partners, LP (NYSE:NEP) incurred third-quarter 2019 loss of $1.21 per unit, against the Zacks Consensus Estimate of earnings of 62 cents. In the year-ago quarter, the partnership delivered earnings of 58 cents.

Revenues

In the quarter under review, the partnership generated revenues worth $253 million that missed the Zacks Consensus Estimate of $355 million by 28.7%. However, the top line increased 42.1% on a year-over-year basis. The upside can be attributed to higher sales in the Renewable energy sales segment.

Quarterly Highlights

In the quarter, NextEra Energy Partners’ total adjusted operating expenses were $165 million compared with the year-ago quarter’s figure of $119 million.

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

In the said quarter, the partnership announced a definitive agreement to acquire Meade Pipeline Co LLC.

The partnership incurred interest expenses of $372 million against an income of $31 million in the year-ago quarter. In relation to acquisition of the outstanding Genesis operating company notes, the partnership issued $500 million of seven-year senior unsecured notes at a yield of 3.875% in September.

Financial Condition

NextEra Energy Partners had cash and cash equivalents of $195 million as of Sep 30, 2019 compared with $147 million as of Dec 31, 2018.

Long-term debt was $3,719 million as of Sep 30, 2019 compared with $2,728 million as of Dec 31, 2018.

Net cash provided by operating activities at the end of the first nine months of 2019 was $252 million, lower than $269 million in the year-ago period.

Guidance

NextEra Energy Partners continues to expect 12-15% annual growth in limited partner distributions through 2024. Excluding all contributions from the Desert Sunlight 250 and 300 projects, NextEra Energy Partners expects CAFD in the range of $505-$585 million. The partnership expects adjusted EBITDA in the band of $1.225-$1.4 billion for 2019.

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

Xcel Energy Inc (NASDAQ:XEL) is scheduled to report third-quarter 2019 results on Oct 24. The Zacks Consensus Estimate for earnings is pegged at $1.05 per share.

American Electric Power Company, Inc (NYSE:AEP) is set to release third-quarter 2019 results on Oct 24. The Zacks Consensus Estimate for earnings is pegged at $1.31 per share.

CMS Energy Corporation (NYSE:CMS) is set to report third-quarter 2019 results on Oct 24. The Zacks Consensus Estimate for earnings is pegged at 71 cents per share.

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