NextEra Energy(NEE)2024-02-15 16:00Financial Reporting and Internal Control - NextEra Energy, Inc. (NEE) and Florida Power & Light Company (FPL) reported effective internal control over financial reporting as of December 31, 2023[337]. - NEE and FPL's consolidated financial statements were prepared in accordance with generally accepted accounting principles, presenting a fair view of their financial positions as of December 31, 2023[347]. - The independent auditors, Deloitte & Touche LLP, expressed unqualified opinions on NEE's and FPL's financial statements for the year ended December 31, 2023[341]. - Management believes that the overall system of internal accounting control provides reasonable assurance against material errors or irregularities[334]. - NEE's management assessed the effectiveness of internal control over financial reporting using the criteria set forth by COSO[337]. - The Audit Committee, comprised entirely of independent directors, oversees financial reporting and accounting matters[336]. - NEE's and FPL's internal control over financial reporting was deemed effective as of December 31, 2023, based on management's assessment[340]. Financial Performance - NEE's operating revenues for the year ended December 31, 2023, reached $28,114 million, a 34% increase from $20,956 million in 2022[362]. - The net income attributable to NEE for 2023 was $7,310 million, up 76% from $4,147 million in 2022[362]. - Comprehensive income attributable to NEE for 2023 was $7,375 million, compared to $3,929 million in 2022[365]. - The basic earnings per share attributable to NEE increased to $3.61 in 2023 from $2.10 in 2022[362]. - NEE's operating income for 2023 was $10,237 million, a substantial increase from $4,081 million in 2022[362]. - Net income for 2023 was $6.282 billion, a significant increase of 93% compared to $3.246 billion in 2022[370]. - Operating revenues for 2023 reached $18,365 million, an increase of 6.3% from $17,282 million in 2022[377]. - Net income for 2023 was $4,552 million, up 22.9% from $3,701 million in 2022[377]. Assets and Liabilities - Total assets increased to $177.489 billion in 2023, up from $158.935 billion in 2022, representing a growth of approximately 11.5%[368]. - Total current liabilities rose to $27.963 billion in 2023, compared to $26.695 billion in 2022, an increase of about 4.8%[368]. - Long-term debt increased to $61.405 billion in 2023, up from $55.256 billion in 2022, reflecting a rise of approximately 11.5%[368]. - Total common shareholders' equity grew to $47.468 billion in 2023, compared to $39.229 billion in 2022, marking an increase of about 21%[368]. - At December 31, 2023, NEE had approximately $730 million in restricted cash, down from $1.840 billion in 2022[428]. - The net regulatory liability totaled $3,195 million at December 31, 2023, compared to $3,504 million at December 31, 2022[451]. Cash Flow and Investments - Net cash provided by operating activities was $11.301 billion in 2023, up from $8.262 billion in 2022, indicating a growth of approximately 37%[370]. - Cash and cash equivalents at the end of 2023 were $3.420 billion, slightly down from $3.441 billion at the end of 2022[370]. - The company reported cash, cash equivalents, and restricted cash at the end of 2023 at $72 million, an increase from $58 million at the end of 2022[384]. - The net cash used in investing activities decreased to $8,515 million in 2023 from $9,358 million in 2022, a decline of 9%[384]. - The company issued $13.857 billion in long-term debt in 2023, consistent with the previous year's issuance of $13.856 billion[370]. Regulatory and Rate Agreements - FPL's accounting for rate regulation impacts multiple financial statement line items, including operating revenues and regulatory assets[356]. - FPL's new retail base rates established in the 2021 rate agreement resulted in an increase of $692 million in annualized retail base revenues starting January 1, 2022, and an additional $560 million beginning January 1, 2023[399][400]. - FPL expects to save customers approximately $400 million over the remaining term of the 2021 rate agreement due to the Inflation Reduction Act, including a one-time refund of $36 million made in January 2023[404]. Capital Expenditures and Development - Capital expenditures for FPL were $9.302 billion in 2023, slightly higher than $9.067 billion in 2022[370]. - At December 31, 2023, NEER's capitalized development costs totaled approximately $1.5 billion, up from $1.0 billion in 2022, reflecting ongoing project development[411]. - FPL's construction work in progress includes costs directly associated with various projects, which are transferred to electric utility plant in service upon completion[410]. Derivative Instruments and Risk Management - NEE and FPL utilize derivative instruments to manage risks associated with fuel and electricity purchases, with changes in fair value recognized in operating revenues for NEER's non-rate regulated operations[478]. - NEE's total derivative assets amounted to $3,520 million, while total derivative liabilities were $3,586 million, resulting in a net derivative position of $(66) million[491]. - NEE's commodity contracts showed a decrease in gross positions from $12,030 million in 2022 to $6,171 million in 2023, reflecting a significant reduction in exposure[491]. - NEE recorded total gains of $2,222 million in 2023 from derivative instruments, a significant recovery from losses of $(2,145) million in 2022[505]. Equity and Shareholder Returns - Dividends on common stock increased to $3.782 billion in 2023, compared to $3.352 billion in 2022, reflecting a rise of approximately 12.8%[370]. - Common stock dividends per share were $1.87 for 2023, compared to $1.70 in 2022[376]. - Dividends to NEE increased significantly to $4,545 million in 2023 from $2,000 million in 2022, representing a 127% increase[386].