10-KPeriod: FY2022

NEXTERA ENERGY INC Annual Report, Year Ended Dec 31, 2022

Filed February 17, 2023For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) reported a strong performance in its 2022 10-K filing, driven by robust results from its principal businesses: Florida Power & Light Company (FPL) and NextEra Energy Resources (NEER). FPL, Florida's largest electric utility, saw increased net income primarily due to significant investments in its infrastructure and a growing customer base. NEER, a leader in renewable energy generation, experienced a decrease in net income mainly due to impairment charges related to its investment in Mountain Valley Pipeline and unfavorable changes in the fair value of its nuclear decommissioning funds. However, NEER's core operations continued to expand, with substantial additions to wind and solar generating capacity, underscoring its commitment to clean energy development and aligning with the positive long-term outlook provided by the Inflation Reduction Act (IRA). The company maintained a strong liquidity position and executed its growth strategy, investing heavily in new generation, transmission, and distribution facilities. Management expressed confidence in the company's ability to meet future capital requirements through a combination of operational cash flows and access to credit markets. The company also announced a quarterly dividend increase, signaling continued confidence in its financial health and commitment to returning value to shareholders.

Financial Highlights

48 data points
Beta

Revenue

$23.00B

Net Income

$4.15B

18.0% Net Margin

EPS (Diluted)

$2.10

Total Assets

$158.94B

Cash & Equivalents

$1.60B

Free Cash Flow

$8.26B

Financial Statements
Beta
Revenue$23.00B
Operating Expenses$17.40B
Operating Income$4.08B
Net Income$4.15B
EPS (Basic)$2.10
EPS (Diluted)$2.10
Shares Outstanding (Basic)1.97B
Shares Outstanding (Diluted)1.98B

Key Highlights

  • 1NEE reported net income attributable to NEE of $4.15 billion for 2022, an increase from $3.57 billion in 2021, driven primarily by stronger performance at FPL.
  • 2FPL's net income increased by $495 million in 2022, largely due to continued investments in plant in service and other property, growing its average rate base.
  • 3NEER's net income decreased by $314 million in 2022, primarily due to impairment charges related to its Mountain Valley Pipeline investment and less favorable changes in its nuclear decommissioning funds.
  • 4NEE added significant renewable energy capacity in 2022, with NEER adding approximately 2,850 MW of new wind generating capacity and 887 MW of solar generating capacity.
  • 5The Inflation Reduction Act (IRA) is expected to provide long-term visibility and support the growth of NEE's businesses, particularly its clean energy initiatives.
  • 6FPL incurred approximately $1.3 billion in recoverable storm restoration costs due to Hurricane Ian and Hurricane Nicole in 2022, which it plans to recover from customers.
  • 7NEE maintained a strong liquidity position with approximately $12.5 billion in net available liquidity at December 31, 2022.

Frequently Asked Questions

NextEra Energy reported a net income attributable to NEE of $4.15 billion for the year ended December 31, 2022, an increase from $3.57 billion in 2021. This growth was primarily driven by stronger results from its subsidiary, Florida Power & Light Company (FPL), partially offset by lower results from NextEra Energy Resources (NEER).

NEE believes the IRA provides long-term visibility and supports the growth of its businesses. The Act extends tax credits for wind and solar, expands them to new technologies, and includes provisions for energy storage and renewable natural gas facilities, which are expected to benefit NEER's clean energy development strategy.

FPL's net income increased by $495 million in 2022 primarily due to continued investments in plant in service and other property, which grew its average rate base. The utility also experienced growth in customer accounts and an increase in average usage per customer. However, FPL incurred significant storm restoration costs in 2022 due to Hurricanes Ian and Nicole, which are expected to be recovered from customers.

NEER's results were impacted by impairment charges related to its investment in Mountain Valley Pipeline and unfavorable changes in the fair value of its nuclear decommissioning funds. Despite these specific challenges, NEER continues to expand its renewable energy portfolio, adding significant wind and solar capacity. The company's strong development backlog and the supportive regulatory environment, including the IRA, position it for continued growth in the clean energy sector.