10-QPeriod: Q3 FY2010

NEXTERA ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2010

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

Summary

NextEra Energy, Inc. (NEE) reported strong financial results for the nine months ended September 30, 2010, with Net Income increasing by 34% to $1.694 billion compared to the same period in 2009. This growth was driven by solid performance across both its regulated utility segment (FPL) and its competitive energy business (NextEra Energy Resources). FPL demonstrated resilience with increased net income, supported by higher customer usage and recent rate adjustments. NextEra Energy Resources saw significant earnings growth, boosted by new investments, favorable wind conditions, and effective management of non-qualifying hedge activities. The company's balance sheet remains robust, with total assets growing to $52.7 billion. Capital expenditures remain a key focus, with significant investments planned for generation, transmission, and distribution infrastructure to support future growth and operational efficiency. NextEra Energy also maintains a strong liquidity position, with substantial available credit facilities, ensuring the company's ability to fund its ongoing operations and strategic initiatives.

Financial Highlights

40 data points
Beta

Revenue

$4.69B

Net Income

$720.00M

15.3% Net Margin

EPS (Diluted)

$0.43

Total Assets

$52.99B

Cash & Equivalents

$791.00M

Free Cash Flow

$1.02B

Financial Statements
Beta
Revenue$4.69B
Operating Expenses$3.57B
Operating Income$1.13B
Net Income$720.00M
EPS (Basic)$0.44
EPS (Diluted)$0.43
Shares Outstanding (Basic)1.64B
Shares Outstanding (Diluted)1.65B

Key Highlights

  • 1Net Income for the nine months ended September 30, 2010, increased by 34% to $1.694 billion, or $4.11 per diluted share, compared to $1.267 billion, or $3.12 per diluted share, in the prior year period.
  • 2Florida Power & Light Company (FPL) segment's net income increased by 18% to $764 million for the nine months ended September 30, 2010, driven by higher customer usage and rate increases.
  • 3NextEra Energy Resources segment's net income surged by 50% to $907 million for the nine months ended September 30, 2010, primarily due to new investments and improved operational performance.
  • 4Total assets grew to $52.7 billion as of September 30, 2010, up from $48.5 billion at December 31, 2009, reflecting continued investment in property, plant, and equipment.
  • 5Capital expenditures for FPL and NextEra Energy Resources remain substantial, with planned expenditures of approximately $11.5 billion and $4.8 billion, respectively, from the remainder of 2010 through 2014, underscoring a commitment to growth and infrastructure development.
  • 6The company maintained a strong liquidity position, with total net available liquidity of approximately $5.9 billion at September 30, 2010.
  • 7NextEra Energy successfully issued new debt and equity during the period, raising capital to support its growth initiatives and manage its capital structure.

Frequently Asked Questions

The significant increase in Net Income was primarily driven by the strong performance of both the FPL segment, benefiting from higher customer usage and rate adjustments, and the NextEra Energy Resources segment, which saw growth from new investments, improved wind generation, and effective management of derivative activities. Additionally, favorable tax impacts, including wind production tax credits and deferred tax benefits from the American Recovery and Reinvestment Act, contributed to the overall improvement.

NextEra Energy continues to invest significantly in its infrastructure. Planned capital expenditures for FPL include generation, transmission, and distribution projects, while NextEra Energy Resources focuses on wind, solar, and natural gas generation projects. The company is prioritizing investments in new generation capacity, grid modernization, and renewable energy projects, indicating a strategic focus on long-term growth and operational efficiency.

NextEra Energy maintains a strong liquidity position with approximately $5.9 billion in net available liquidity at September 30, 2010, supported by substantial bank revolving credit facilities and cash reserves. The company anticipates meeting its funding requirements through a combination of internally generated funds, short- and long-term borrowings, and equity issuances, aiming to maintain a strong investment-grade credit rating.

The company is involved in ongoing regulatory proceedings, most notably FPL's 2009 rate case settlement, which is awaiting FPSC approval and could impact depreciation expense and net income if not approved as expected. While the company is also involved in various legal proceedings, management does not expect their ultimate resolution to have a material adverse effect on the company's financial statements, though this is subject to change.