NextEra Energy Partners(NEP) - 2024 Q1 - Quarterly Report

FORM 10-Q Details This section provides key administrative and filing information for the Quarterly Report on Form 10-Q for NEXTERA ENERGY PARTNERS, LP - This is a Quarterly Report (Form 10-Q) for the period ended March 31, 2024, filed by NEXTERA ENERGY PARTNERS, LP (NEP)[2] Condensed Consolidated Statements of Income (Loss) (Three Months Ended March 31) | Detail | Value | | :--- | :--- | | Commission File Number | 1-36518 | | IRS Employer Identification Number | 30-0818558 | | State of Incorporation | Delaware | | Trading Symbol | NEP | | Exchange | New York Stock Exchange | | Common Units Outstanding (March 31, 2024) | 93,539,258 | | Filer Status | Large Accelerated Filer | Definitions This section provides a glossary of acronyms and defined terms for clarity and consistency throughout the report - The report provides a glossary of acronyms and defined terms used throughout the document to ensure clarity and consistency in financial and operational discussions[5][6] Table of Contents This section outlines the structure of the 10-Q report, detailing its parts and corresponding page numbers - The table of contents outlines the structure of the 10-Q report, dividing it into Part I (Financial Information) and Part II (Other Information), with specific items and their corresponding page numbers[8][9] Forward-Looking Statements This section highlights forward-looking statements, which involve estimates, assumptions, and uncertainties that could cause actual results to differ materially - This section highlights that the report contains forward-looking statements, which involve estimates, assumptions, and uncertainties that could cause actual results to differ materially from expectations[11][12] - It also lists various performance, contract, acquisition, financial, relationship with NEE, ownership, and taxation risks[15][16][17][18][22] PART I – FINANCIAL INFORMATION Item 1. Financial Statements This section presents NEP's unaudited condensed consolidated financial statements, including the statements of income (loss), balance sheets, cash flows, and changes in equity, along with detailed notes explaining significant accounting policies, acquisitions, discontinued operations, derivative instruments, related party transactions, and noncontrolling interests for the three months ended March 31, 2024 and 2023 Condensed Consolidated Statements of Income (Loss) Condensed Consolidated Statements of Income (Loss) (Three Months Ended March 31) | (millions, except per unit amounts) | 2024 | 2023 | | :--- | :--- | :--- | | OPERATING REVENUES | $257 | $245 | | OPERATING EXPENSES | | | | Operations and maintenance | 123 | 146 | | Depreciation and amortization | 136 | 123 | | Taxes other than income taxes and other | 19 | 11 | | Total operating expenses – net | 278 | 280 | | OPERATING LOSS | (21) | (35) | | OTHER INCOME (DEDUCTIONS) | | | | Interest expense | (13) | (206) | | Equity in earnings of equity method investees | 30 | 28 | | Equity in earnings (losses) of non-economic ownership interests | 4 | (8) | | Other – net | 22 | 3 | | Total other income (deductions) – net | 43 | (183) | | INCOME (LOSS) BEFORE INCOME TAXES | 22 | (218) | | INCOME TAX BENEFIT | (13) | (36) | | INCOME (LOSS) FROM CONTINUING OPERATIONS | 35 | (182) | | INCOME FROM DISCONTINUED OPERATIONS, net of tax expense | — | 31 | | NET INCOME (LOSS) | 35 | (151) | | NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 35 | 137 | | NET INCOME (LOSS) ATTRIBUTABLE TO NEP | $70 | $(14) | | Earnings (loss) per common unit attributable to NEP – basic and assuming dilution | $0.75 | $(0.17) | - NEP's net income attributable to NEP significantly improved to $70 million in Q1 2024 from a net loss of $14 million in Q1 2023, driven by a substantial reduction in interest expense and improved operating revenues[25] Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (March 31, 2024 vs. December 31, 2023) | (millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | ASSETS | | | | Total current assets | $2,183 | $2,216 | | Property, plant and equipment – net | 14,732 | 14,837 | | Intangible assets – PPAs – net | 1,945 | 1,987 | | Goodwill | 833 | 833 | | Investments in equity method investees | 1,840 | 1,853 | | Total other assets | 20,153 | 20,295 | | TOTAL ASSETS | $22,336 | $22,511 | | LIABILITIES AND EQUITY | | | | Total current liabilities | $1,604 | $1,671 | | Long-term debt | 4,942 | 4,941 | | Intangible liabilities – PPAs – net | 1,186 | 1,210 | | Total other liabilities and deferred credits | 6,754 | 6,783 | | TOTAL LIABILITIES | 8,358 | 8,454 | | Common units | 3,564 | 3,576 | | Noncontrolling interests | 10,421 | 10,488 | | TOTAL EQUITY | 13,978 | 14,057 | | TOTAL LIABILITIES AND EQUITY | $22,336 | $22,511 | - Total assets slightly decreased from $22,511 million at December 31, 2023, to $22,336 million at March 31, 2024, primarily due to a reduction in property, plant and equipment – net[31] Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31) | (millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $78 | $82 | | Net cash provided by investing activities | 42 | 199 | | Net cash used in financing activities | (113) | (276) | | NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 7 | 5 | | CASH, CASH EQUIVALENTS AND RESTRICTED CASH – END OF PERIOD | $301 | $289 | - Net cash provided by operating activities decreased slightly from $82 million in Q1 2023 to $78 million in Q1 2024[34] - Net cash provided by investing activities saw a significant decrease from $199 million to $42 million, while net cash used in financing activities improved from $(276) million to $(113) million[34] Condensed Consolidated Statements of Changes in Equity Condensed Consolidated Statements of Changes in Equity (Three Months Ended March 31, 2024) | (millions) | Common Units (Units) | Common Units (Amount) | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | | Balances, December 31, 2023 | 93.4 | $3,576 | $(7) | $10,488 | $14,057 | | Net income (loss) | — | 70 | — | (35) | 35 | | Distributions to unitholders | — | (82) | — | — | (82) | | Balances, March 31, 2024 | 93.5 | $3,564 | $(7) | $10,421 | $13,978 | - Total equity decreased from $14,057 million at December 31, 2023, to $13,978 million at March 31, 2024, primarily due to distributions to unitholders and noncontrolling interests, partly offset by net income[37] - Distributions per common unit were $0.8800 for the three months ended March 31, 2024, compared to $0.8125 for the same period in 2023[37][39] [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%