NextEra Energy(US:NEE)2022-07-22 14:34Financial Data and Key Metrics Changes - Adjusted earnings per share increased approximately 14% year-over-year, reflecting strong performance at both Florida Power & Light (FPL) and Energy Resources [9] - For the second quarter of 2022, GAAP net income attributable to NextEra Energy was $1.3 billion or $0.70 per share, with adjusted earnings of roughly $1.6 billion and adjusted EPS of $0.81 [35] Business Line Data and Key Metrics Changes - FPL reported net income of $989 million or $0.50 per share, an increase of $107 million and $0.05 per share year-over-year, with regulatory capital employed increasing by approximately 11.4% [14] - Energy Resources adjusted earnings per share increased by $0.06 year-over-year, with a backlog addition of approximately 2,035 net megawatts, including 1,200 net megawatts of solar projects [11][27] Market Data and Key Metrics Changes - Florida's unemployment rate remains strong at approximately 3%, with new housing permits up nearly 9% year-over-year, indicating robust economic growth [21] - FPL's average number of customers increased by more than 87,000 or 1.5% year-over-year, driven by population growth [22] Company Strategy and Development Direction - FPL aims to achieve real zero carbon emissions by no later than 2045, focusing on smart capital investments such as solar expansion and grid hardening projects [10] - Energy Resources expects to build roughly 28 to 37 gigawatts of renewables and storage projects from 2022 through the end of 2025, which is approximately 30% larger than its current operating portfolio [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term development expectations at Energy Resources, citing strong demand for renewables driven by high gas prices [12][40] - The company anticipates adjusted earnings per share for 2022 to be in the range of $2.80 to $2.90, with growth expectations of 6% to 8% off the 2024 adjusted earnings per share range for 2025 [37][39] Other Important Information - NextEra Energy Water entered into an agreement to purchase a rate-regulated Pennsylvania wastewater system for approximately $115 million, indicating strategic expansion into the water utility business [32] - NextEra Energy Partners reported a 43% increase in adjusted EBITDA and a 37% increase in cash available for distribution year-over-year [43] Q&A Session Summary Question: Can you provide details on the new backlog additions? - Management indicated that the wind additions are split evenly between 2023 and 2024-2025, while the majority of solar projects are expected in 2024-2025 [61] Question: What are the chances for tax extenders or executive actions on renewables? - Management stated that current expectations do not include any changes in tax law, but they remain optimistic about potential executive actions to support renewables [62][69] Question: How is the origination outlook for the back half of the year? - Management noted robust interest from customers in renewables, driven by economic value and commitments to reduce carbon emissions, indicating strong demand despite uncertainties [75] Question: What is the outlook for the water and wastewater strategy? - Management expressed excitement about growth opportunities in the water sector, highlighting synergies with renewable investments [97] Question: How does the real zero goal impact M&A prospects? - Management emphasized a focus on organic growth opportunities at both FPL and Energy Resources, while remaining open to M&A in the water sector [106]