NAVIGATION

April 20, 2018

Press Release

NextEra Energy, Inc. and NextEra Energy Partners, LP Second Quarter 2017 Release

| 7/27/2017
  • NextEra Energy delivers strong second-quarter financial and operational results
  • Florida Power & Light Company's continued investments in the business result in more than 10 percent growth in regulatory capital employed, further advancing its outstanding customer value proposition
  • NextEra Energy Resources adds 631 megawatts to its contracted renewables backlog and commissions two natural gas pipelines

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) reported second-quarter 2017 net income attributable to NextEra Energy on a GAAP basis of $793 million, or $1.68 per share, compared to $540 million, or $1.16 per share, in the second quarter of 2016. On an adjusted basis, NextEra Energy's second-quarter 2017 earnings were $881 million, or $1.86 per share, compared to $777 million, or $1.67 per share, in the second quarter of 2016.

Adjusted earnings for these periods exclude the effects of non-qualifying hedges, the net effect of other than temporary impairments (OTTI) on certain investments, operating results from the Spain solar project and merger-related expenses. Adjusted earnings also exclude the 2016 impact from the gain on the sale of the Texas natural gas generation facilities.

NextEra Energy's management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, analysis of performance, reporting of results to the board of directors and as an input in determining performance-based compensation under the company's employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its financial results and earnings outlook to analysts and investors. NextEra Energy's management believes that adjusted earnings provide a more meaningful representation of NextEra Energy's fundamental earnings power. A reconciliation of historical adjusted earnings to net income attributable to NextEra Energy, which is the most directly comparable GAAP measure, is included in the attachments to this news release.

"NextEra Energy achieved strong second-quarter results, while continuing to deliver on our overall objectives for 2017," said Jim Robo, chairman and chief executive officer of NextEra Energy. "NextEra Energy's second-quarter adjusted earnings per share increased more than 11 percent, primarily driven by new investments at both FPL and NextEra Energy Resources. During the quarter, FPL executed on its innovative and cost-effective approach of advancing affordable, reliable clean energy infrastructure across Florida. In line with this strategy, construction is underway on eight 74.5-megawatt solar energy centers across FPL's service territory, and construction remains on track at our state-of-the-art, natural gas-fueled Okeechobee Clean Energy Center. FPL also is moving forward with plans to modernize the Lauderdale Plant in Dania Beach by building a highly fuel-efficient energy center at the site. By continuing to execute on major capital initiatives to deliver on our outstanding customer value proposition, FPL grew regulatory capital employed by more than 10 percent versus the comparable period. At NextEra Energy Resources, we are well-positioned to capitalize on one of the best environments for renewables development in our history and remain encouraged by the improvement in costs, efficiencies and advancements in battery storage toward providing customers with firm renewable power. The Energy Resources team built on the origination success with which we started the year, signing more than 631 megawatts of additional wind and solar power purchase agreements and adding an additional 200 megawatts to our repowering backlog. Overall, we believe we have one of the best organic growth opportunity sets in our industry, and, as I've said previously, we will be disappointed if we are not able to deliver financial results at or near the top of our 6 to 8 percent adjusted earnings per share growth range through 2020."

Florida Power & Light Company

NextEra Energy's principal rate-regulated electric utility subsidiary, Florida Power & Light Company (FPL), reported second-quarter 2017 net income of $526 million, or $1.12 per share, compared to $448 million, or $0.96 per share, for the prior-year quarter.

FPL's contribution to adjusted earnings per share growth over the prior-year comparable quarter was primarily driven by continued investment in the business to further advance its long-term focus on delivering outstanding customer value, best-in-class reliability and typical residential customer bills that are significantly lower than the national and Florida averages. For the second quarter of 2017, FPL's average number of customers increased by approximately 64,000, or 1.3 percent, from the prior-year comparable period.

FPL's major capital initiatives remain on track, including leading one of the largest solar expansions ever in the eastern United States. Construction is underway at eight 74.5-megawatt (MW) solar energy centers across FPL's service territory. Once complete, the eight solar energy centers will produce nearly 600 MW of combined solar capacity – enough to power approximately 120,000 homes. Furthermore, FPL has secured land for more than 4 gigawatts of solar expansion and is developing an additional 1,600 MW of new solar generating capacity planned for beyond 2018. All of the solar energy centers are expected to be built cost-effectively, resulting in millions of dollars in net lifetime savings for FPL customers. Construction on the approximately 1,750-MW Okeechobee Clean Energy Center remains on schedule and under budget. The project, expected to begin operation in mid-2019, will be one of the cleanest, most efficient plants of its kind in the world.

In addition, the company is moving through the regulatory process on a number of initiatives aimed at strengthening the value proposition for customers. Earlier this month, FPL completed the first step with the Florida Public Service Commission (PSC) in the comprehensive review and permitting process for the planned modernization of the Lauderdale Plant in Dania Beach. The approximately 1,200-MW Dania Beach Clean Energy Center will be highly efficient and fueled by clean-burning natural gas. The project is expected to begin operation by mid-2022 and produce more than $350 million in projected net savings for FPL customers over its operational life.

FPL also filed a petition with the PSC for approval to shut down the St. Johns River Power Park, a roughly 1,300-MW coal-fired power plant jointly owned by FPL and JEA. If approved, the plant's early retirement will represent the third coal power plant the company has announced in two years that it will phase out and it is expected to save FPL customers $183 million, as well as prevent millions of tons of carbon dioxide emissions annually.

NextEra Energy Resources

NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a second-quarter 2017 contribution to net income attributable to NextEra Energy on a GAAP basis of $301 million, or $0.64 per share, compared to $234 million, or $0.50 per share, in the prior-year comparable quarter. On an adjusted basis, NextEra Energy Resources' earnings for the second-quarter of 2017 were $351 million, or $0.74 per share, compared to $313 million, or $0.67 per share, for the second quarter of 2016.

NextEra Energy Resources' contribution to second-quarter 2017 adjusted earnings per share increased $0.07, or approximately 10 percent, compared to the prior-year quarter. The business' results were primarily driven by contributions from new investments, reflecting continued growth in the contracted renewables portfolio and gas pipeline development projects. Partially offsetting the positive results were a decline in contributions from existing generation assets and gas infrastructure, as well as higher interest expense.

During the second quarter, the NextEra Energy Resources team continued to execute on its backlog and pursue additional opportunities for contracted renewables development. Over the past few months, the team added 631 MW of additional renewables projects to its backlog, including approximately 193 MW of new wind projects and roughly 438 MW of new solar projects. NextEra Energy Resources commissioned an additional 213 MW of wind repowering projects and successfully negotiated its first power purchase agreement amendment for a repowering project, adding an additional 200 MW to its repowering backlog, which now totals around 1,800 MW. Including repowering projects, the company expects to bring a total of approximately 10,100 MW to 16,500 MW of renewables into service from 2017 through 2020.

The Sabal Trail Transmission and Florida Southeast Connection natural gas pipelines began commercial operation during the second quarter. In addition, the Mountain Valley Pipeline joint venture continues to progress through the permitting process with the Federal Energy Regulatory Commission.

Corporate and Other

On a GAAP basis, Corporate and Other earnings increased $0.22 per share in the second quarter of 2017, compared to the prior-year comparable period. On an adjusted basis, Corporate and Other earnings decreased $0.04 per share in the second quarter of 2017, compared to the prior-year comparable period.

Outlook

NextEra Energy continues to expect adjusted earnings per share to be in the range of $6.35 to $6.85 for 2017. For 2018, the company expects adjusted earnings per share to be in the range of $6.80 to $7.30 and in the range of $7.85 to $8.45 for 2020, implying a compound annual growth rate off a 2016 base of 6 to 8 percent.

NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effect of non-qualifying hedges, as well as net OTTI losses on securities held in NextEra Energy Resources' nuclear decommissioning funds, none of which can be determined at this time. Adjusted earnings expectations also exclude the operating results from the Spain solar project, merger-related expenses, net gains associated with NextEra Energy Partners, LP's deconsolidation beginning in 2018 and the gain on the sale of the fiber-optic telecommunications business in 2017. In addition, adjusted earnings expectations assume, among other things: normal weather and operating conditions; continued recovery of the national and the Florida economy; supportive commodity markets; current forward curves; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; market demand for pipeline capacity; access to capital at reasonable cost and terms; no divestitures other than to NextEra Energy Partners or acquisitions; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.

NextEra Energy, Inc.

NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $16.2 billion, approximately 45,900 megawatts of generating capacity, which includes megawatts associated with noncontrolling interests related to NextEra Energy Partners, LP (NYSE: NEP), and approximately 14,700 employees in 30 states and Canada as of year-end 2016. Headquartered in Juno Beach, Florida, NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves approximately 4.9 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. A Fortune 200 company and included in the S&P 100 index, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been ranked No. 1 in the electric and gas utilities industry in Fortune's 2017 list of "World's Most Admired Companies." For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

Tags: Energy & Utilities

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