10-QPeriod: Q3 FY2015

NEXTERA ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2015

Filed October 30, 2015For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) reported strong financial performance for the nine months ended September 30, 2015, with net income attributable to NEE rising to $2.25 billion, a significant increase from $1.58 billion in the same period of 2014. This growth was driven by both its regulated utility, Florida Power & Light (FPL), and its competitive energy business, NextEra Energy Resources (NEER). FPL saw an increase in net income to $1.28 billion, supported by investments in plant in service and a stable regulatory environment. NEER's performance was boosted by strong results from new investments, customer supply, and trading activities, alongside favorable unrealized gains from non-qualifying hedge activity. The company also maintained a robust liquidity position, with approximately $7.1 billion in net available liquidity at the end of the period, underscoring its financial strength and ability to fund ongoing capital expenditures and growth initiatives.

Financial Highlights

43 data points
Beta

Net Income

$879.00M

EPS (Diluted)

$0.48

Total Assets

$79.96B

Cash & Equivalents

$1.18B

Free Cash Flow

$1.58B

Financial Statements
Beta
Operating Expenses$3.47B
Operating Income$1.48B
Net Income$879.00M
EPS (Basic)$0.48
EPS (Diluted)$0.48
Shares Outstanding (Basic)1.82B
Shares Outstanding (Diluted)1.82B

Key Highlights

  • 1Net income attributable to NEE increased by 42% to $2.25 billion for the nine months ended September 30, 2015, compared to $1.58 billion in the prior year period.
  • 2Florida Power & Light (FPL) reported a 4% increase in net income to $1.28 billion for the nine months ended September 30, 2015.
  • 3NextEra Energy Resources (NEER) significantly improved its net income by 150% to $927 million for the nine months ended September 30, 2015, driven by new investments and favorable trading activities.
  • 4Total assets grew to $79.96 billion as of September 30, 2015, up from $74.93 billion at December 31, 2014, reflecting continued investment in property, plant, and equipment.
  • 5Operating cash flows remained strong, with $4.51 billion generated for the nine months ended September 30, 2015, up from $3.97 billion in the prior year period.
  • 6The company maintained a substantial liquidity position, with approximately $7.1 billion in net available liquidity at September 30, 2015.
  • 7Capital expenditures for the nine months ended September 30, 2015 totaled $5.68 billion, primarily directed towards FPL's infrastructure and NEER's renewable energy projects.

Frequently Asked Questions

NEER's substantial net income increase was primarily driven by favorable changes in unrealized mark-to-market gains from non-qualifying hedge activities, which shifted from losses in the prior year to gains in 2015. Additionally, improved results from customer supply and proprietary power and gas trading, coupled with earnings from new investments, contributed to the strong performance.

FPL demonstrated solid performance with a 4% increase in net income for the nine months ended September 30, 2015. Growth was primarily driven by continued investments in its rate base (plant in service), leading to higher earnings on its regulated assets, and an increase in AFUDC (Allowance for Funds Used During Construction) - equity.

NEE manages its debt through a combination of operating cash flows, short- and long-term borrowings, and the issuance of debt and equity securities. For the nine months ended September 30, 2015, NEE issued $3.46 billion in long-term debt and retired $3.10 billion. The company also has access to significant credit facilities and maintains a strong liquidity position to manage its capital requirements and debt obligations.

While NEE is involved in routine legal and regulatory proceedings, the company currently does not anticipate that the ultimate resolution of these matters, individually or collectively, will have a material adverse effect on its financial statements. However, a broad environmental regulation like the EPA's Clean Power Plan is being analyzed for its potential impact, and its final compliance obligations are not yet determined. Additionally, there are ongoing challenges and appeals related to certain environmental rules and past transactions.