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

NextEra Energy (NYSE:NEE) Partners, LP (NYSE:NEP) 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.

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 (NYSE:FE) 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 (NYSE:D) 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. (NASDAQ:XEL) is scheduled to report second-quarter 2019 results on Aug 1. The Zacks Consensus Estimate for earnings is pegged at 53 cents.

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