A double-digit yield is often a big red flag signaling that a cut is forthcoming. NextEra Energy Partners' (NEP 0.12%) dividend currently yields more than 14%. That's 10 times higher than the S&P 500's dividend yield. While a dividend yield in the double digits might seem alluring, it usually signals that the market doesn't believe that the payout's current level is sustainable. I agree with the market that this renewable energy dividend stock will eventually cut its big-time payout. Here's why I predict a ...

Financial Data and Key Metrics Changes - NextEra Energy reported a strong increase of more than 9% year-over-year in adjusted earnings per share, which rose by 9.4% in the first half of the year [9][34] - FPL's earnings per share increased by $0.03 year-over-year, driven by a regulatory capital employed growth of approximately 10.7% [40] - Adjusted EBITDA for NextEra Energy Partners was $560 million, with cash available for distribution at $220 million [53] Business Line Data and Key Metrics Changes - FPL's capital expenditures for the quarter were approximately $2.1 billion, with full-year expectations between $8 billion and $8.8 billion [34] - Energy Resources added over 3,000 megawatts of new renewables and storage projects to its backlog, totaling approximately 22.6 gigawatts [27][37] - Contributions from new investments in Energy Resources increased by $0.12 per share year-over-year, primarily due to growth in the renewables portfolio [42] Market Data and Key Metrics Changes - FPL's retail sales increased by 3.7% year-over-year, attributed to warmer weather, with a weather-normalized growth of approximately 1.1% [41] - The demand for new renewables is projected to triple over the next seven years, driven by a significant increase in power demand across multiple sectors [24][30] - Wind resources for Q2 2024 were approximately 104% of the long-term average, compared to 88% in Q2 2023 [36][54] Company Strategy and Development Direction - The company aims to deliver low-cost clean energy and storage for customers both inside and outside Florida, while building new transmission where required [32] - NextEra Energy is focused on capital recycling around its renewable assets and is exploring partnerships in transmission and gas infrastructure [90] - The strategic focus includes leveraging competitive advantages in renewable energy and storage to meet growing customer demands [25][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting financial expectations and delivering results at or near the top of adjusted EPS ranges through 2027 [50] - The company is well-positioned to capitalize on the growing demand for renewables and storage, particularly in light of the shift towards artificial intelligence and electrification [28][30] - Management highlighted the importance of maintaining a strong relationship with suppliers to mitigate risks associated with supply chain disruptions [81] Other Important Information - NextEra Energy Partners declared a quarterly distribution of $0.95 per common unit, reflecting a 6% increase from the previous year [51] - The partnership has approximately $2.7 billion of liquidity after recent debt repayments [52] - The company expects to grow dividends per share at roughly 10% per year through at least 2026 [50] Q&A Session Summary Question: Update on reserve amortization and earned ROE - Management noted that population growth in Florida has driven increased usage, with regulatory capital employed growing from an expected 9% to around 12% [63][64] Question: Details on the Blackstone financing - The portfolio sold to Blackstone was 1.6 gigawatts of renewable assets, indicating strong demand for NextEra's assets [68][70] Question: Turbine performance and issues - Management emphasized their strong operational partnership with GE, stating that any turbine issues have been well managed [72] Question: NEP's options and timing - Management is exploring various alternatives for NEP, with no immediate need for growth equity until 2027 [75][76] Question: Supply chain challenges - Management expressed confidence in their supply chain strategy, stating that they have effectively transferred risks to suppliers [81][84] Question: Asset recycling strategy - Management is optimistic about capital recycling options, particularly in renewables and transmission [88][90] Question: Trends in PPA pricing - Management noted a positive dynamic in the market, with stable pricing helping to reduce risks [108][109] Question: Hyperscaler deals and Google relationship - Management confirmed ongoing contracts with Google to support data center demand, focusing on wind, solar, and battery storage [118][120]

Revenues The firm continues to foresee 5-8% annual growth in limited partner distributions per unit, with a current target of 6% growth per year, as a reasonable range of expectations through at least 2026. NEP declared a quarterly distribution of 90.5 cents per common unit to an annualized rate of $3.62 to its unit holders. This declaration reflects an annualized increase of nearly 6% from the year-earlier figure. The distribution will be payable on Aug 14, 2024, to unitholders of record as of Aug 6, 2024. ...

TABLE OF CONTENTS PART II – OTHER INFORMATION 3 Contract Risks • NEP relies on a limited number of customers and is exposed to the risk that they may be unwilling or unable to fulfill their contractual obligations to NEP or that they otherwise terminate their agreements with NEP. • NEP or its pipeline investment may not be able to extend, renew or replace expiring or terminated PPAs, natural gas transportation agreements or other customer contracts at favorable rates or on a long-term basis. • If the energy ...

NextEra Energy Partners (NEP) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.71%. A quarter ago, it was expected that this limited partnership for clean-energy projects would post earnings of $0.12 per share when it actually produced earnings of $0.75, delivering a surprise of 52 ...

Exhibit 99 NextEra Energy Partners, LP Media Line: 561-694-4442 July 24, 2024 FOR IMMEDIATE RELEASE NextEra Energy Partners, LP reports second-quarter 2024 financial results JUNO BEACH, Fla. - NextEra Energy Partners, LP (NYSE: NEP) today reported second-quarter 2024 net income attributable to NextEra Energy Partners of $62 million. NextEra Energy Partners also reported second- quarter 2024 adjusted EBITDA of $560 million and cash available for distribution (CAFD) of $220 million. "NextEra Energy Partners h ...

Core Viewpoint - NextEra Energy Partners, LP (NEP) is anticipated to report strong second-quarter 2024 results, benefiting from previous strategic sales and investments in renewable energy [1][3][12]. Group 1: Upcoming Earnings Expectations - NEP is scheduled to release its second-quarter results on July 24, 2024, before market open [1]. - The Zacks Consensus Estimate for revenues is projected at $366.9 million, reflecting a year-over-year increase of 4.8% [4]. - The earnings estimate is pegged at 59 cents per unit, indicating an 11.3% increase year-over-year [12]. Group 2: Factors Influencing Performance - The firm is expected to benefit from the sale of its Texas natural gas pipeline portfolio, completed in December 2023, which provided funds for NEP Renewables II buyouts in June 2024 [3]. - Continued expansion of its high-quality renewable energy portfolio is anticipated to positively impact earnings [9]. - The focus on long-term contracted clean energy assets with attractive cash flows is likely to contribute to earnings growth [10]. - Structural tax advantages may enhance earnings, as the firm is not expected to pay significant U.S. taxes for at least 15 years [17]. Group 3: Earnings Prediction Model - The earnings prediction model indicates a strong likelihood of an earnings beat for NEP, supported by a positive Earnings ESP of +8.11% and a Zacks Rank of 2 (Buy) [5][18].

The limited partnership for clean-energy projects's stock has dropped by 0.07% in the past month, exceeding the Oils-Energy sector's loss of 7.9% and lagging the S&P 500's gain of 4.43%. NEP's full-year Zacks Consensus Estimates are calling for earnings of $1.89 per share and revenue of $1.26 billion. These results would represent year-over-year changes of +455.88% and +0.53%, respectively. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed ...

In this video, Motley Fool contributors Jason Hall and Tyler Crowe discuss why NextEra Energy Partners' (NEP 0.85%) dividend and future growth may be at risk. The math on its dividend is not favorable. *Stock prices used were from the afternoon of June 25, 2024. The video was published on July 10, 2024. ...

The most recent trading session ended with NextEra Energy Partners (NEP) standing at $28.16, reflecting a -0.88% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.49%. The limited partnership for clean-energy projects's shares have seen a decrease of 16.61% over the last month, not keeping up with the Oils-Energy sector's loss of 0.71% and the S&P 500's g ...