NextEra Energy Partners(NEP) - 2021 Q1 - Quarterly Report

Financial Performance - Total operating revenues for Q1 2021 were $246 million, a 16% increase from $212 million in Q1 2020[23] - Net income attributable to NextEra Energy Partners, LP was $202 million in Q1 2021, compared to a net loss of $222 million in Q1 2020[23] - Earnings per common unit attributable to NextEra Energy Partners, LP were $2.66 in Q1 2021, recovering from a loss of $3.39 in Q1 2020[23] - For the three months ended March 31, 2021, NEP reported operating revenues of $149 million from renewable energy sales and $60 million from natural gas transportation services[43] - Operating income rose to $78 million for the three months ended March 31, 2021, compared to $49 million in the prior year, indicating improved operational performance[90] - NEP's net income attributable to Nextera Energy Partners, LP was $202 million for the three months ended March 31, 2021, compared to a net loss of $222 million in the same period of 2020[90] - The company recorded an income tax expense of approximately $70 million for the three months ended March 31, 2021, resulting in an effective tax rate of 11%[97] - NEP's equity in earnings of equity method investees increased by approximately $25 million during the three months ended March 31, 2021, primarily due to earnings from Pine Brooke Holdings and Desert Sunlight[95] Assets and Liabilities - Total current assets increased to $529 million as of March 31, 2021, up from $414 million at the end of 2020[29] - Total liabilities decreased to $4,445 million as of March 31, 2021, down from $4,855 million at the end of 2020[29] - Common units issued and outstanding remained at 75.9 million, with total equity increasing to $8,121 million as of March 31, 2021, up from $7,707 million at the end of 2020[29] - The fair value of NEP's long-term debt, including current maturities, was approximately $3,553 million as of March 31, 2021[56] - NEP's total long-term debt outstanding included approximately $90 million from a senior secured revolving credit facility and approximately $851 million under the existing credit agreement of the Meade purchaser as of March 31, 2021[65] - NEP's noncontrolling interests increased to $5,669 million as of March 31, 2021, compared to $5,353 million at the end of 2020, reflecting changes in net income and distributions[83] Cash Flow and Investments - Net cash provided by operating activities was $104 million in Q1 2021, compared to $99 million in Q1 2020[31] - Capital expenditures and other investments were $45 million in Q1 2021, a decrease from $52 million in Q1 2020[31] - NEP's net cash used in investing activities rose to $107 million in Q1 2021 from $88 million in Q1 2020, primarily due to higher cash sweeps under the CSCS agreement[115] - NEP's financing activities resulted in a net cash inflow of $4 million for the three months ended March 31, 2021, compared to a net outflow of $20 million in the same period in 2020[116] - The company expects to fund future acquisitions and investments primarily through internally generated cash flow and borrowings under credit facilities[101] Acquisitions and Projects - NEP completed the acquisition of Wilmot Energy Center, a 100 MW solar generation facility, and a 30 MW battery storage facility in Arizona, with an expected service date in Q2 2021[41] - NEP expects to finalize the acquisition of multiple project companies for a base purchase price of approximately $733 million in Q3 2021, pending regulatory approvals[42] - The company has a remaining commitment of approximately $48 million related to a pipeline expansion project, with $42 million already invested as of March 31, 2021[84] Derivative Instruments and Risk Management - The company reported a change in the value of derivative contracts of $(540) million in Q1 2021, compared to a gain of $795 million in Q1 2020[31] - As of March 31, 2021, NEP's derivative instruments had a net notional amount of approximately $7,094 million, with interest rate contracts recorded as liabilities totaling $268 million[47][53] - Approximately 2% of NEP's long-term debt was exposed to fluctuations in interest rates, with interest rate contracts in place for a net notional amount of approximately $7.1 billion[120] Governance and Shareholder Matters - The board of directors authorized a distribution of $0.6375 per common unit payable on May 14, 2021, to common unitholders of record on May 6, 2021[69] - NEP's unitholders elected four nominees to the Board of Directors with voting percentages ranging from 79.6% to 96.1%[129] - Deloitte & Touche LLP was ratified as NEP's independent registered public accounting firm for 2021 with 99.93% of votes in favor[130] - NEP's compensation for named executive officers received 92.5% approval from unitholders[131]