Florida-based clean energy assets owner NextEra Energy Partners LP (NYSE:NEP) on Friday reported third-quarter (Q3) financial results in line with the expectations of its management and introduced 2023 year-end run-rate expectations for certain metrics.
The growth-oriented limited partnership, which was formed by NextEra Energy Inc (NYSE:NEE) to acquire, manage and own wind, solar and energy storage facilities as well as natural gas infrastructure in the US, posted adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 377 million (EUR 380.3m) and cash available for distribution (CAFD) of USD 185 million for the July-September period in 2022, up by about 13% and 17% on the year, respectively. Chairman and CEO John Ketchum referred to this as a strong financial performance.
The company also presented its year-end 2023 run-rate expectations for an adjusted EBITDA range of USD 2.22 billion-2.42 billion and a CAFD range of USD 770 million-860 million. It pointed out that the midpoints of these new ranges show estimated growth for adjusted EBITDA and CAFD of around 23% and 12%, respectively, from the midpoints of the projections for 2022.
“We continue to believe 12% to 15% growth per year in limited partner distributions per unit is a reasonable range of expectations through at least 2025 and that NextEra Energy Partners offers a compelling investor value proposition,” Ketchum stated. These estimates were made from a base of the partnership’s fourth-quarter (Q4) 2021 distribution per common unit at an annualised rate of USD 2.83. NEP sees the annualised rate of the Q4 2022 distribution payable in February 2023 to range from USD 3.17 to USD 3.25 per common unit.
In the meantime, NEP is keeping its year-end 2022 run-rate adjusted EBITDA and CAFD projections in the respective ranges of USD 1.785 billion-1.985 billion and USD 685 million-775 million. This reflects calendar year 2023 contributions from the forecasted portfolio at the end of 2022, the company noted.
Also on Friday, NEP’s board of directors declared a quarterly distribution of USD 0.7875 per common unit, payable on November 14, 2022, to unitholders of record as of November 4, 2022. This represents a year-on-year growth of 15%.
(USD 1 = EUR 1.009)
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Image by: NextEra Energy Resources LLC.
