NextEra Energy(NEE) - 2023 Q2 - Quarterly Report

Financial Performance - Operating revenues for Q2 2023 reached $7,349 million, a 42% increase from $5,183 million in Q2 2022[22] - Net income attributable to NextEra Energy (NEE) for the first half of 2023 was $4,881 million, compared to $929 million in the same period of 2022, representing a significant increase[22] - Earnings per share attributable to NEE for Q2 2023 was $1.38, up from $0.70 in Q2 2022, reflecting a 97% increase[22] - Comprehensive income attributable to NEE for Q2 2023 was $2,795 million, compared to $1,341 million in Q2 2022[24] - Net income for the six months ended June 30, 2023, was $4,349 million, a significant increase from $420 million in the same period of 2022[30] - Net income attributable to NEE for Q2 2023 was $2,795 million, compared to $1,380 million for the same period in 2022, representing a 102% increase[137] Assets and Liabilities - Total assets as of June 30, 2023, were $168,275 million, an increase from $158,935 million at the end of 2022[28] - Total liabilities increased to $113,899 million as of June 30, 2023, compared to $109,499 million at the end of 2022[28] - The company’s retained earnings increased to $29,711 million as of June 30, 2023, from $26,707 million at the end of 2022[28] - Total common equity increased to $44,793 million as of June 30, 2023, from $39,229 million at the end of 2022[32] - Long-term debt as of June 30, 2023, was $23,307 million, up from $19,455 million at the end of 2022[47] Cash Flow and Capital Expenditures - Cash flows from operating activities provided $4,759 million, slightly down from $4,793 million year-over-year[30] - Capital expenditures of FPL totaled $4,664 million, compared to $4,007 million in the previous year[30] - Net cash used in investing activities increased to $12,814 million from $9,308 million in the prior year[30] - Total capital expenditures for NEER from 2023 to 2027 are estimated at $14.38 billion, with significant investments in clean energy projects[158] - Estimated capital expenditures for Florida Power & Light (FPL) from 2023 to 2027 total approximately $38.31 billion, with $14.16 billion allocated for new generation projects[158] Debt and Interest - Interest expense for the first half of 2023 was $1,318 million, compared to $359 million in the same period of 2022, indicating increased borrowing costs[22] - Cash paid for interest increased to $1,151 million from $666 million year-over-year[30] - NEE's notional amount of interest rate contracts was approximately $20.4 billion as of June 30, 2023, up from $19.7 billion at December 31, 2022[89] - Significant long-term debt issuances during the six months ended June 30, 2023, included $4,500 million in first mortgage bonds with interest rates ranging from 4.40% to 5.30%[135] Revenue Sources - For the three months ended June 30, 2023, NEE's revenue from contracts with customers was approximately $6.3 billion, with FPL contributing $4.8 billion, compared to $5.9 billion and $4.4 billion for the same period in 2022, respectively[55] - For the six months ended June 30, 2023, NEE's total revenue was $12.0 billion, with FPL accounting for $8.7 billion, compared to $11.0 billion and $8.1 billion for the same period in 2022[55] - The majority of FPL's revenues are derived from tariff-based sales with no defined contractual term, primarily to residential customers[56] Risk Management and Derivatives - NEE and FPL utilize derivative instruments to manage risks associated with fuel and electricity purchases, as well as interest rate and foreign currency exchange rate risks[59] - NEE's risk management activities involve the use of derivative instruments to optimize the value of its power generation and gas infrastructure assets[60] - As of June 30, 2023, NEE's total derivative assets amounted to $3,719 million, while total derivative liabilities were $3,059 million, resulting in a net fair value of $660 million[72] - NEE's commodity contracts included $2,832 million in Level 1 assets and $6,283 million in Level 2 assets, with a total net position of $3,183 million after netting[72] Legal and Regulatory Matters - NEE is involved in a securities class action lawsuit filed in June 2023, alleging lack of disclosures regarding legal and reputational risks, with unspecified damages sought[173] - FPL is currently defending against a class action lawsuit related to service interruptions from Hurricane Irma, with no trial date set[172] - The Florida Public Service Commission (FPSC) approved a recovery of approximately $2.1 billion for fuel under-recovery over 21 months starting April 2023, along with additional mid-course corrections totaling $635 million[147] Investments and Acquisitions - On March 21, 2023, NEE acquired a portfolio of renewable energy projects for approximately $1.1 billion in cash and assumed $34 million in debt[120] - The acquisition resulted in approximately $0.3 billion of goodwill recognized on NEE's balance sheet as of June 30, 2023[121] - NextEra Energy Resources completed the sale of five wind generation facilities and three solar generation facilities for cash proceeds of approximately $566 million, plus working capital of $32 million in June 2023[150] Customer and Service Metrics - FPL served approximately 5.8 million customer accounts in Florida, making it one of the largest electric utilities in the U.S.[178] - FPL's retail customers, which account for approximately 90% of its operating revenues, are billed monthly based on kWh usage[56]