How did FPL's performance contribute to NEE's overall results?

FPL was a significant driver of NEE's financial performance, reporting increased net income for both the three and nine-month periods ending September 30, 2014. This growth was primarily attributed to substantial investments in plant in service, including the modernization of power plants and transmission/distribution additions, and the company's ability to earn its targeted regulatory return on equity.

What factors impacted NEER's profitability during the reporting period?

NEER's results were mixed. While new investments in wind and solar generation and strong performance from existing wind assets contributed positively, NEER's profitability was negatively impacted by unrealized mark-to-market losses on non-qualifying hedge activities compared to gains in the prior year. Additionally, the absence of a large gain from discontinued operations and an impairment charge recorded in the prior year also affected year-over-year comparisons.

What is the significance of the NextEra Energy Partners, LP (NEP) IPO for NextEra Energy?

The IPO of NEP in July 2014 marks a strategic move to unlock value from NEE's clean energy projects. It provides NEP with access to public capital markets to fund future acquisitions and growth, while allowing NEE to retain a controlling interest and consolidate NEP's results. This structure is intended to support the continued expansion of contracted clean energy projects with stable cash flows.

How does NextEra Energy manage its market risk, particularly related to commodity prices and interest rates?

NextEra Energy utilizes a combination of derivative instruments, such as swaps, options, futures, and forwards, to manage commodity price risk in fuel and electricity purchases/sales, as well as interest rate risk. For FPL, many of these derivative impacts are deferred as regulatory assets/liabilities and passed through to customers via cost recovery clauses. For NEER's competitive business, changes in fair value of certain derivatives are recognized in earnings, impacting reported results.

NEXTERA ENERGY INC 10-Q Quarterly Report Q3 FY2014

Summary

NextEra Energy, Inc. (NEE) reported its third-quarter 2014 financial results, showcasing continued growth driven by its regulated utility subsidiary, Florida Power & Light Company (FPL), and its competitive energy business, NextEra Energy Resources (NEER). FPL demonstrated strong performance with increased net income, benefiting from investments in plant in service and a favorable regulatory environment. NEER, while facing some headwinds from non-qualifying hedge activity and specific project charges, continued to expand its renewable energy portfolio. Overall, NEE's consolidated net income attributable to the company remained stable year-over-year for the nine-month period, supported by FPL's robust contributions. The company also highlighted its ongoing capital expenditure plans, focusing on infrastructure improvements and renewable energy development, and maintained a strong liquidity position with substantial available credit facilities. Investors should note the strategic expansion of NextEra Energy Partners, LP (NEP) through its IPO and subsequent acquisition agreements, aligning with NEE's focus on long-term clean energy projects.

Financial Highlights

43 data points

Beta

Net Income

$660.00M

EPS (Diluted)

$0.38

Total Assets

$72.19B

Cash & Equivalents

$485.00M

Free Cash Flow

$1.52B

Financial Statements

Beta

Operating Expenses	$3.49B
Operating Income	$1.16B
Net Income	$660.00M
EPS (Basic)	$0.38
EPS (Diluted)	$0.38
Shares Outstanding (Basic)	1.74B
Shares Outstanding (Diluted)	1.76B

Key Highlights

1Consolidated net income attributable to NEE for the nine months ended September 30, 2014, was flat compared to the prior year at $1,581 million.
2Florida Power & Light Company (FPL) reported an increase in net income to $1,231 million for the nine months ended September 30, 2014, driven by investments in plant in service and a regulatory return on common equity of 11.41%.
3NextEra Energy Resources (NEER) experienced a decrease in net income attributable to NEE for the nine months ended September 30, 2014, to $371 million, primarily due to unrealized mark-to-market losses from non-qualifying hedges, partly offset by earnings from new investments.
4NextEra Energy Partners, LP (NEP) completed its Initial Public Offering (IPO) in July 2014, raising approximately $438 million and impacting NEE's noncontrolling interests balance.
5Total assets for NEE increased to $72.2 billion as of September 30, 2014, from $69.3 billion at December 31, 2013, reflecting continued growth and investment.
6NEE maintained strong liquidity with approximately $6.7 billion in net available liquidity, comprised of bank revolving credit facilities and cash and cash equivalents.
7The company reiterated its commitment to capital expenditures, with an estimated $11.2 billion for FPL and $5.1 billion for NEER planned through 2018, focusing on generation, transmission, distribution, and renewable energy projects.

NEXTERA ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2014

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions