10-QPeriod: Q1 FY2015

NEXTERA ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 1, 2015For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) reported strong financial results for the first quarter of 2015, demonstrating significant year-over-year growth. Net income attributable to NEE surged by 51.2% to $650 million, or $1.45 per diluted share, compared to $430 million, or $0.98 per diluted share, in the same period of 2014. This robust performance was driven by substantial increases in net income from both its regulated utility segment, Florida Power & Light Company (FPL), and its competitive energy business, NextEra Energy Resources (NEER). FPL showed steady performance with a 3.5% increase in net income, benefiting from continued investments in its infrastructure. NEER, however, was the primary growth engine, with its net income more than tripling year-over-year. This exceptional growth at NEER was largely attributed to favorable unrealized mark-to-market gains from non-qualifying hedges, improved customer supply and proprietary trading results, and contributions from new investments. Investors should note the strong operational execution across both segments, highlighting NEE's diversified business model and its ability to generate value through both stable regulated operations and dynamic competitive energy markets.

Financial Highlights

43 data points
Beta

Net Income

$650.00M

EPS (Diluted)

$0.36

Total Assets

$74.93B

Cash & Equivalents

$469.00M

Free Cash Flow

$1.18B

Financial Statements
Beta
Operating Expenses$2.98B
Operating Income$1.13B
Net Income$650.00M
EPS (Basic)$0.37
EPS (Diluted)$0.36
Shares Outstanding (Basic)1.77B
Shares Outstanding (Diluted)1.80B

Key Highlights

  • 1Net income attributable to NEE increased by 51.2% to $650 million ($1.45 per diluted share) in Q1 2015, up from $430 million ($0.98 per diluted share) in Q1 2014.
  • 2Florida Power & Light Company (FPL) reported a 3.5% increase in net income to $359 million, driven by investments in plant in service and growth in wholesale services.
  • 3NextEra Energy Resources (NEER) saw a significant surge in net income, increasing by $192 million year-over-year to $278 million, largely due to favorable mark-to-market hedge activity and new investments.
  • 4Operating revenues for NEE increased by 11.7% to $4,104 million, reflecting growth across both FPL and NEER segments.
  • 5Capital expenditures remain a key focus, with NEE planning significant investments in FPL ($14.6 billion) and NEER ($5.3 billion) over the next few years, primarily in generation, transmission, and distribution infrastructure.
  • 6The company maintained a strong liquidity position, with total net available liquidity of approximately $6.6 billion at the end of the quarter.
  • 7Dividends per share increased to $0.770 from $0.725, indicating a continued commitment to returning value to shareholders.

Frequently Asked Questions

The significant increase in net income was primarily driven by strong performance in both regulated and competitive segments. Florida Power & Light (FPL) saw steady growth due to infrastructure investments, while NextEra Energy Resources (NEER) experienced a substantial jump driven by favorable unrealized mark-to-market gains on non-qualifying hedges, improved trading results, and contributions from new renewable energy projects.

NEER's results benefited from new investments in wind and solar generation added during or after the prior year period. While results from existing assets saw a decrease primarily due to weaker wind resources, the overall contribution from new investments was positive. The company also highlighted significant capital expenditure plans for future wind and solar projects, indicating continued strategic focus on renewables.

NextEra Energy has substantial capital expenditure plans for the coming years. FPL expects to invest approximately $14.6 billion from the remainder of 2015 through 2019, focusing on generation, transmission, and distribution. NEER plans to invest approximately $5.3 billion in the same period, primarily for new wind and solar projects. Corporate and Other segments also have significant infrastructure investments planned.

NextEra Energy maintained a strong liquidity position, with approximately $6.6 billion in total net available liquidity at the end of the first quarter of 2015. The company expects to fund its requirements through a combination of operating cash flows, short- and long-term borrowings, and the issuance of debt and equity securities, with a long-term goal of maintaining a strong investment-grade credit rating.