10-QPeriod: Q3 FY2020

NEXTERA ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2020

Filed October 23, 2020For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) reported solid financial results for the third quarter and first nine months of 2020. The company demonstrated robust operating income and net income, driven by the performance of its principal businesses, Florida Power & Light Company (FPL) and NextEra Energy Resources (NEER). FPL's net income saw an increase primarily due to ongoing investments in its infrastructure, while NEER's performance, though impacted by derivative activities and asset sales, remained a significant contributor to overall results. Key financial metrics indicate a strengthening balance sheet, with increases in property, plant, and equipment, and a managed approach to debt. The company generated substantial cash flow from operations, supporting its significant capital expenditure program aimed at expanding and enhancing its generation and transmission assets. Despite the broader economic uncertainties stemming from the COVID-19 pandemic, NEE has maintained access to capital markets and demonstrated resilience in its operations and financial performance.

Financial Highlights

45 data points
Beta

Revenue

$4.90B

Net Income

$1.23B

25.1% Net Margin

EPS (Diluted)

$0.62

Total Assets

$126.38B

Cash & Equivalents

$1.96B

Free Cash Flow

$2.84B

Financial Statements
Beta
Revenue$4.90B
Operating Expenses$3.77B
Operating Income$1.01B
Net Income$1.23B
EPS (Basic)$0.63
EPS (Diluted)$0.62
Shares Outstanding (Basic)1.96B
Shares Outstanding (Diluted)1.97B

Key Highlights

  • 1For the three months ended September 30, 2020, Net Income Attributable to NEE was $1,229 million, a significant increase from $879 million in the prior year period.
  • 2Earnings Per Share (EPS) assuming dilution for the third quarter of 2020 was $2.50, up from $1.81 in the same period of 2019.
  • 3Total assets grew to $126.38 billion as of September 30, 2020, from $117.69 billion at December 31, 2019, reflecting substantial investments in property, plant, and equipment.
  • 4Cash flow from operating activities for the nine months ended September 30, 2020, was $6,631 million, an increase from $6,243 million in the prior year period.
  • 5Capital expenditures for the nine months ended September 30, 2020, totaled $9,312 million, reflecting continued investment in generation, transmission, and distribution infrastructure.
  • 6NEE announced a four-for-one stock split effective October 26, 2020, demonstrating confidence in future growth and aiming to increase stock accessibility.
  • 7The proposed merger of Gulf Power into FPL, approved by FERC, is expected to be effective January 1, 2021, creating a larger, more integrated utility.

Frequently Asked Questions

For the three months ended September 30, 2020, NextEra Energy reported a net income attributable to NEE of $1,229 million.

Total assets increased to $126.38 billion as of September 30, 2020, from $117.69 billion at December 31, 2019. This growth is largely attributed to significant investments in property, plant, and equipment, particularly in FPL's infrastructure and NEER's renewable energy projects.

The Federal Energy Regulatory Commission (FERC) approved the merger of Gulf Power with and into FPL, effective January 1, 2021. FPL will be the surviving entity. This merger is expected to create a more streamlined and efficient utility operation serving a larger customer base in Florida.

Derivative instruments had a mixed impact. For NEER, unfavorable non-qualifying hedge activity, particularly related to commodity contracts, negatively impacted results for the three and nine months ended September 30, 2020. Conversely, favorable impacts from interest rate derivative instruments benefited NEER's equity in earnings from equity method investees and NEE's Corporate and Other segment due to changes in fair value.