10-QPeriod: Q1 FY2010

NEXTERA ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 3, 2010For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy Inc. (NEE) reported solid financial results for the first quarter of 2010, driven by strong performance from both its regulated utility (FPL) and competitive energy business (NextEra Energy Resources). Overall net income for the quarter increased by 53% to $556 million, or $1.36 per diluted share, compared to $364 million, or $0.90 per diluted share, in the same period of 2009. This growth was fueled by higher customer usage at FPL, partly due to colder weather, and increased earnings from new investments and positive market conditions at NextEra Energy Resources. The company also saw a significant increase in cash flow from operations, supported by strong earnings and effective working capital management, while maintaining a healthy liquidity position. Key strategic initiatives, including ongoing investments in new generation capacity and infrastructure, continue to drive growth. The company is advancing plans for new wind and solar projects, as well as modernizing its power plants and expanding transmission capabilities. Despite some regulatory and market uncertainties, NextEra Energy appears well-positioned to execute its growth strategy and deliver value to shareholders, as evidenced by a strong operational performance and continued capital deployment.

Financial Highlights

39 data points
Beta

Revenue

$3.62B

Net Income

$556.00M

15.4% Net Margin

EPS (Diluted)

$0.34

Total Assets

$50.94B

Cash & Equivalents

$1.22B

Free Cash Flow

$896.00M

Financial Statements
Beta
Revenue$3.62B
Operating Expenses$2.68B
Operating Income$939.00M
Net Income$556.00M
EPS (Basic)$0.34
EPS (Diluted)$0.34
Shares Outstanding (Basic)1.63B
Shares Outstanding (Diluted)1.64B

Key Highlights

  • 1Net income increased significantly by 53% to $556 million ($1.36 per diluted share) compared to $364 million ($0.90 per diluted share) in the prior year's quarter.
  • 2Operating revenues for the consolidated entity increased to $3,622 million from $3,705 million in Q1 2009, with FPL revenues down slightly but NextEra Energy Resources revenues up significantly.
  • 3Cash flow from operating activities remained strong, totaling $896 million for the quarter, although slightly lower than $1,043 million in the prior year.
  • 4Capital expenditures remained substantial, with FPL investing $1,955 million in planned expenditures for 2010 and NextEra Energy Resources investing $950 million.
  • 5The company continues to invest in growth initiatives, with significant planned capital expenditures for wind, solar, and nuclear projects.
  • 6Dividends per share increased to $0.5000 from $0.4725 in the prior year's quarter, reflecting a commitment to shareholder returns.
  • 7The company maintains a robust liquidity position with approximately $4.1 billion in net available liquidity at March 31, 2010.

Frequently Asked Questions

The significant increase in Net Income was driven by higher customer usage at FPL, partly attributed to colder weather, and retail base rate increases. Additionally, NextEra Energy Resources saw increased earnings from new investments, gains from asset sales, and favorable market conditions, alongside positive impacts from the American Recovery and Reinvestment Act of 2009 (ARRA) which provided tax benefits.

NextEra Energy Inc. continued to invest heavily in its future growth. Planned capital expenditures for 2010 were substantial, with FPL allocating $1,955 million for projects including generation, transmission, and distribution. NextEra Energy Resources planned $950 million for wind, solar, and nuclear projects. The company also received cash grants under ARRA, contributing to its investing activities.

NextEra Energy Resources is actively expanding its renewable energy portfolio, particularly in wind and solar. The company plans to add significant new wind generation capacity (3,500-5,000 mw from 2010-2014) and solar generation (400-600 mw from 2010-2014). This strategy is supported by government policies like Renewable Portfolio Standards (RPS) and tax incentives, creating incremental demand for renewable energy.

Derivative instruments are used to manage commodity price risk and interest rate risk. For FPL, changes in the fair value of energy derivatives are generally deferred and passed through to customers via regulatory mechanisms. For NextEra Energy Resources, changes in fair value for non-qualifying hedges are recognized in earnings, leading to unrealized mark-to-market gains/losses that can impact short-term reported earnings. In Q1 2010, NextEra Energy Resources recorded significant unrealized mark-to-market gains from non-qualifying hedges, contributing positively to its earnings.