10-QPeriod: Q3 FY2022

NEXTERA ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 3, 2022For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) reported a significant increase in net income attributable to NEE for the three and nine months ended September 30, 2022, compared to the prior year. This improvement was driven by strong performance across its major segments, particularly Florida Power & Light (FPL) and NextEra Energy Resources (NEER), despite some unfavorable market impacts in NEER. FPL's growth was fueled by substantial investments in its rate base, while NEER benefited from favorable non-qualifying hedge activity and new investments, although it also faced challenges from market fluctuations and an impairment charge on its Mountain Valley Pipeline investment. The company's balance sheet shows substantial growth in total assets, reflecting ongoing capital expenditures in property, plant, and equipment, particularly for renewable energy projects. Cash flows from operating activities also saw a healthy increase, providing robust funding for investing activities, which include significant capital expenditures for both FPL and NEER's renewable energy initiatives. Financing activities involved a notable increase in long-term debt issuances and equity unit offerings, supporting the company's growth strategy and dividend payments.

Financial Highlights

46 data points
Beta

Revenue

$6.40B

Net Income

$1.70B

26.5% Net Margin

EPS (Diluted)

$0.86

Total Assets

$156.41B

Cash & Equivalents

$2.51B

Free Cash Flow

$2.47B

Financial Statements
Beta
Revenue$6.40B
Operating Expenses$5.03B
Operating Income$1.86B
Net Income$1.70B
EPS (Basic)$0.86
EPS (Diluted)$0.86
Shares Outstanding (Basic)1.97B
Shares Outstanding (Diluted)1.98B

Key Highlights

  • 1Net income attributable to NEE increased significantly to $1,696 million for the three months ended September 30, 2022, and to $2,625 million for the nine months ended September 30, 2022, up from $447 million and $2,369 million in the respective prior year periods.
  • 2Florida Power & Light (FPL) saw its net income increase year-over-year, driven by continued investments in its rate base, including the new Dania Beach Clean Energy Center and solar additions.
  • 3NextEra Energy Resources (NEER) experienced a notable increase in net income for the three months ended September 30, 2022, primarily due to favorable non-qualifying hedge activity, but recorded a decrease for the nine-month period due to impairment charges on its Mountain Valley Pipeline investment and unfavorable changes in equity securities.
  • 4Total assets grew to $156.4 billion at September 30, 2022, up from $140.9 billion at December 31, 2021, reflecting significant investments in property, plant, and equipment, especially in renewable energy projects.
  • 5Cash flows from operating activities increased to $7.3 billion for the nine months ended September 30, 2022, from $6.2 billion in the prior year, supporting substantial capital expenditures.
  • 6The company issued $11.6 billion in long-term debt and $2.0 billion in equity units during the nine months ended September 30, 2022, to fund growth and operations.
  • 7Hurricane Ian resulted in estimated recoverable storm restoration costs of approximately $1.1 billion, which are being managed through regulatory mechanisms and are expected to be recovered from customers.

Frequently Asked Questions

NextEra Energy (NEE) demonstrated strong financial performance, with net income attributable to NEE significantly increasing to $1,696 million for the third quarter of 2022 and $2,625 million for the first nine months of 2022, compared to $447 million and $2,369 million in the respective prior year periods. This growth was driven by robust contributions from its primary segments, FPL and NEER.

Hurricane Ian caused significant damage, with estimated recoverable storm restoration costs of approximately $1.1 billion. While FPL has a storm reserve, a deficit of approximately $900 million was recorded as a noncurrent regulatory asset. These costs are expected to be recovered from customers through a surcharge, subject to regulatory approval and prudence review.

NEER's performance in the third quarter of 2022 was positively impacted by favorable non-qualifying hedge activity. However, for the nine-month period, NEER's results were affected by an impairment charge of approximately $0.8 billion on its investment in Mountain Valley Pipeline and unfavorable changes in the fair value of equity securities held in its nuclear decommissioning funds. The company also continues to invest heavily in new renewable energy projects.

NEE is funding its significant capital expenditures, which totaled $13.8 billion for the first nine months of 2022, through a combination of strong operating cash flows ($7.3 billion), substantial issuances of long-term debt ($11.6 billion), and equity offerings, including $2.0 billion in equity units. The company also maintains significant available liquidity of approximately $14.0 billion.