NextEra Energy Partners(NEP) - 2025 Q4 - Annual Results

Financial Performance - Fourth-quarter 2025 net income attributable to XPLR Infrastructure was $29 million, with adjusted EBITDA of $396 million and free cash flow before growth (FCFBG) of $111 million[3]. - For the full year 2025, XPLR Infrastructure reported a net loss of $28 million, adjusted EBITDA of $1.878 billion, and FCFBG of $746 million[4]. - Operating revenues for Q4 2025 were $249 million, down from $294 million in Q4 2024, representing a decrease of approximately 15.3%[23]. - The net loss attributable to XPLR for Q4 2025 was $29 million, compared to a net loss of $115 million in Q4 2024, indicating an improvement in performance[23]. - Adjusted EBITDA for the year ended December 31, 2025, was $1,878 million, a decrease from $1,959 million in 2024, reflecting a decline of about 4.1%[26]. - Free cash flow before growth for Q4 2025 was $111 million, compared to $152 million in Q4 2024, showing a decrease of approximately 27.0%[26]. - The income tax benefit for Q4 2025 was $42 million, compared to $82 million in Q4 2024, indicating a decrease of approximately 48.2%[26]. - Net loss for 2025 was $436 million, compared to a net loss of $411 million in 2024, representing a 6.1% increase in losses[32]. - Net cash provided by operating activities decreased from $800 million in 2024 to $739 million in 2025, a decline of approximately 7.6%[32]. Capital Structure and Investments - XPLR Infrastructure completed its two-year financing plan ahead of schedule, enhancing financial and strategic flexibility[5]. - The company aims to maintain balance sheet strength and disciplined capital allocation while executing on capital structure simplification[5]. - Capital expenditures and other investments rose sharply to $958 million in 2025 from $241 million in 2024, an increase of approximately 297.5%[32]. - Long-term debt increased from $4,609 million in 2024 to $5,440 million in 2025, an increase of approximately 18%[30]. - Total liabilities rose from $7,426 million in 2024 to $8,696 million in 2025, an increase of approximately 17.1%[30]. - Total equity decreased from $12,866 million in 2024 to $10,899 million in 2025, a decline of approximately 15.3%[30]. - Proceeds from the sale of equity method investments amounted to $1,139 million in 2025, with no proceeds reported in 2024[32]. Project Development and Operations - The company has completed approximately 1.3 gigawatts (GW) of its 1.6 GW repowering plan and is increasing the plan to approximately 2.1 GW through 2030[6]. - XPLR Infrastructure announced a co-investment agreement with NextEra Energy Resources for four battery storage projects totaling approximately 400 megawatts (MW) of capacity[7]. - The interconnection asset sales to NextEra Energy Resources are expected to generate $31 million and $14 million for additional projects, with net equity contributions expected to be $80 million[10]. - XPLR Infrastructure's repowering projects are expected to deliver strong equity returns and enhance portfolio value[6]. - The co-investment structure with NextEra Energy Resources is designed to accelerate project timelines and reduce execution risk while generating new cash flows[10]. Asset and Expense Management - Total operating expenses for Q4 2025 were $298 million, significantly lower than $847 million in Q4 2024, indicating a reduction of about 64.8%[23]. - The goodwill impairment charge for the year ended December 31, 2025, was $253 million, down from $575 million in 2024, reflecting a decrease of 56.0%[23]. - Interest expense for Q4 2025 was $93 million, compared to an interest income of $45 million in Q4 2024, indicating a significant shift in financial costs[23]. - Current assets increased significantly from $860 million in 2024 to $1,422 million in 2025, an increase of approximately 65.3%[30]. - Total assets decreased from $20,292 million in 2024 to $19,595 million in 2025, a decline of approximately 3.4%[30]. - The weighted-average number of common units outstanding for Q4 2025 was 94.0 million, slightly up from 93.5 million in Q4 2024[23]. Dependency and Risks - XPLR's ability to execute its business plan is highly dependent on the performance of NextEra Energy Resources, LLC (NEER) and its obligations to return funds[21].