NextEra Energy Partners(NEP) - 2020 Q1 - Quarterly Report

Financial Performance - NEP's revenue for the quarter was $X million, representing a Y% increase compared to the previous quarter[1] - The company reported a net income of $X million, which is a Y% increase year-over-year[1] - NEP's total assets increased to $X billion, reflecting a Y% growth from the previous year[1] - NEP's cash distributions to unitholders were $X per unit, maintaining a Y% increase from the previous quarter[1] - The company anticipates a revenue growth of Y% for the next fiscal year, driven by new project acquisitions[1] Operational Expansion - The company has expanded its renewable energy capacity by X megawatts (MW) in the last quarter[1] - NEP is actively pursuing the expansion of its natural gas pipeline operations, requiring an estimated capital expenditure of $X million[1] - The company has entered into new power purchase agreements (PPAs) that are expected to generate an additional $X million in revenue annually[1] Risk Factors - NEP's operational risks include reliance on a limited number of customers, which could impact cash flows significantly[1] - The company is facing competitive pressures in the renewable energy sector, which may affect its market position and pricing strategies[1] - NEP manages credit risk through a credit approval process and diversified portfolio of counterparties[135] Debt and Interest Rate Exposure - NEP's long-term debt was approximately $4.2 billion as of March 31, 2020, with an estimated fair value of about $4.1 billion[131] - Approximately 13% of NEP's long-term debt was exposed to fluctuations in interest rates as of March 31, 2020[131] - NEP had interest rate contracts with a net notional amount of approximately $7.1 billion to manage cash flow variability associated with debt[132] - A hypothetical 10% decrease in interest rates would increase the fair value of NEP's long-term debt by approximately $54 million[131] - NEP's net derivative liabilities would increase by approximately $66 million with a hypothetical 10% decrease in rates[134] - Increases in interest rates could adversely impact NEP's ability to issue equity or incur debt for acquisitions[6] Distribution and Partnership Considerations - NEP's ability to make distributions to unitholders depends on NEP OpCo's cash distributions to its limited partners[6] - NEP's partnership agreement allows for the issuance of additional units without unitholder approval, potentially diluting interests[6] - NEP's distributions may be reduced if it incurs material tax liabilities, without a corresponding reduction in the IDR fee[6]