NextEra Energy Partners(NEP) - 2025 Q3 - Quarterly Results

Financial Performance - XPLR Infrastructure reported a net loss of $37 million for Q3 2025, with adjusted EBITDA of $455 million, consistent with the prior-year period [3]. - Operating revenues for Q3 2025 were $315 million, a slight decrease from $319 million in Q3 2024 [16]. - Total operating expenses for Q3 2025 were $308 million, compared to $284 million in Q3 2024, reflecting an increase of approximately 8.5% [16]. - The net loss attributable to XPLR for Q3 2025 was $37 million, compared to a net loss of $40 million in Q3 2024 [16]. - Earnings per common unit attributable to XPLR for Q3 2025 were $(0.40), slightly improved from $(0.43) in Q3 2024 [16]. - Net income for the three months ended September 30, 2025, was a loss of $64 million, compared to a loss of $83 million for the same period in 2024 [21]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,482 million, slightly up from $1,476 million in 2024 [21]. - Free cash flow before growth for the three months ended September 30, 2025, was $179 million, compared to $189 million in 2024 [21]. Cash Flow and Assets - Free cash flow before growth (FCFBG) for Q3 2025 was $179 million, down 5% year-over-year, primarily due to higher HoldCo interest expenses [3]. - Total current assets increased to $1,214 million as of September 30, 2025, from $860 million at December 31, 2024 [24]. - Cash and cash equivalents increased to $711 million as of September 30, 2025, from $283 million at December 31, 2024 [24]. - The net increase in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2025, was $447 million, compared to an increase of $52 million in 2024 [26]. - The company generated net cash provided by operating activities of $553 million for the nine months ended September 30, 2025, compared to $517 million in 2024 [26]. Debt and Capital Structure - XPLR Infrastructure reduced its planned HoldCo debt issuance by $250 million for 2025-2026 [4]. - Interest expense for Q3 2025 was $94 million, down from $124 million in Q3 2024, indicating a reduction of approximately 24.2% [16]. - Total liabilities rose to $8,148 million as of September 30, 2025, compared to $7,426 million at December 31, 2024 [24]. Operational Highlights - The company completed approximately 960 megawatts of its announced 1.6-gigawatt repowering program to date [4]. - The company remains focused on simplifying its capital structure and optimizing its portfolio to create long-term value in the U.S. power sector [4]. - XPLR Infrastructure's portfolio includes diversified clean energy assets across wind, solar, and battery storage technologies [6]. Future Projections - For 2025, adjusted EBITDA is expected to be between $1.85 billion and $2.05 billion, while for 2026, it is projected to be between $1.75 billion and $1.95 billion [5]. - The decline in adjusted EBITDA expectations from 2025 to 2026 is mainly due to the absence of contributions from the Meade pipeline investment, sold in September 2025 [5]. Risks and Challenges - The company faces various risks, including weather conditions, operational challenges, and regulatory changes that could impact future performance [12]. - Management emphasizes the importance of adjusted EBITDA and FCFBG as key financial measures for performance analysis and capital allocation [8]. Impairments and Other Income - The company reported a goodwill impairment charge of $253 million for the nine months ended September 30, 2025 [16]. - The total other income (deductions) for Q3 2025 was $(23) million, an improvement from $(79) million in Q3 2024 [16]. - Equity in earnings of equity method investees increased to $66 million in Q3 2025 from $30 million in Q3 2024 [16]. - Capital expenditures for the nine months ended September 30, 2025, were $684 million, significantly higher than $189 million in 2024 [26].