10-KPeriod: FY2019

NEXTERA ENERGY INC Annual Report, Year Ended Dec 31, 2019

Filed February 14, 2020For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE), a major electric power and energy infrastructure company, reported strong performance driven by its two primary businesses: Florida Power & Light (FPL) and NextEra Energy Resources (NEER). FPL, Florida's largest electric utility, demonstrated stable growth through continued investments in its infrastructure, contributing positively to NEE's overall results. NEER, a leader in renewable energy generation, experienced a significant decrease in net income year-over-year, largely due to the absence of substantial gains recognized in the prior year from the deconsolidation of NextEra Energy Partners, LP (NEP) and favorable tax adjustments. The company also successfully integrated Gulf Power in early 2019, expanding its regulated utility footprint in Florida. Despite the fluctuations in NEER's reported income, NEE's diversified business model, spanning regulated utilities and competitive energy, showcased resilience. The company continues to invest heavily in its infrastructure, particularly in solar generation and transmission assets. Management remains focused on long-term value creation through operational efficiency and strategic investments, underscoring a commitment to delivering shareholder returns. Investors should note the significant capital expenditures planned for the coming years, aimed at supporting future growth and maintaining operational excellence.

Financial Highlights

48 data points
Beta

Revenue

$17.50B

Net Income

$3.77B

21.5% Net Margin

EPS (Diluted)

$1.94

Total Assets

$117.69B

Cash & Equivalents

$600.00M

Free Cash Flow

$8.15B

Financial Statements
Beta
Revenue$17.50B
Operating Expenses$14.26B
Operating Income$5.35B
Net Income$3.77B
EPS (Basic)$1.95
EPS (Diluted)$1.94
Shares Outstanding (Basic)1.93B
Shares Outstanding (Diluted)1.94B

Key Highlights

  • 1NEE operates two main businesses: FPL (Florida's largest electric utility) and NEER (a major renewable energy generator).
  • 2The company completed the acquisition of Gulf Power in January 2019, expanding its regulated utility operations in Florida.
  • 3NEER's net income decreased significantly in 2019 compared to 2018, primarily due to the absence of substantial gains from the deconsolidation of NEP and favorable tax adjustments recognized in the prior year.
  • 4FPL showed increased net income driven by investments in its plant in service and other property.
  • 5NEE continues to invest heavily in capital expenditures, with significant allocations towards generation and transmission infrastructure, including renewable energy projects.
  • 6The company announced a planned increase in its quarterly common stock dividend in February 2020.
  • 7NEE maintains strong liquidity with approximately $8.5 billion in net available liquidity at December 31, 2019.

Frequently Asked Questions

NextEra Energy's strategy focuses on creating value through its two principal businesses: FPL, a rate-regulated electric utility focused on low bills, high reliability, and clean energy for its Florida customers, and NEER, a competitive energy business focused on developing, constructing, and operating long-term contracted clean energy assets across North America.

The acquisition of Gulf Power in January 2019 expanded NEE's regulated utility operations into northwest Florida, adding approximately 470,000 customers and contributing positively to NEE's overall results for the year. The integration of Gulf Power's operations was a key strategic move to enhance NEE's regulated segment.

NEER's net income in 2019 decreased significantly compared to 2018 primarily due to the absence of a large investment gain related to the deconsolidation of NextEra Energy Partners, LP (NEP) in 2018, and a favorable tax-related adjustment recognized in 2018. These impacts were partially offset by increased earnings from new investments in renewable energy projects and higher contributions from existing assets.

NextEra Energy and its subsidiaries require significant funds for growth and operational enhancements. The company plans substantial capital expenditures, with FPL investing in its electric system and generation facilities, and NEER investing in independent power projects, including renewable energy and transmission assets. These investments are crucial for meeting customer demand and supporting the company's long-term growth strategy.