What are NextEra Energy's key financial targets being reaffirmed in this filing?

NextEra Energy (formerly FPL Group) reaffirmed its adjusted earnings per share (EPS) expectations of $4.20 to $4.40 for 2009 and $4.65 to $5.05 for 2010. They also reiterated their expectation for average adjusted EPS growth of at least 10% per year from 2006 to 2012.

What are the main assumptions behind these financial projections?

The projections are contingent on several factors, including normal weather and operating conditions, no further significant economic decline, supportive commodity markets, continued public policy support for renewable power, consistent interpretations of the American Recovery and Reinvestment Act of 2009, selective transmission expansion for renewables, continued wind supply chain expansion, expansion of non-wind activities, access to reasonable capital and credit markets, no acquisitions, and a continued constructive regulatory framework in Florida.

What are the most significant risks NextEra Energy highlighted?

The company detailed numerous risks that could affect future results. These include complex regulatory and legal environments, environmental compliance costs, operational risks in power generation and transmission (including nuclear facilities), construction project risks, financial risks from derivative contracts, competitive market pressures, economic uncertainties, customer growth and usage fluctuations, weather impacts, and volatility in capital and credit markets. The company also noted the potential for costs to exceed insurance coverage for nuclear incidents and for regulatory disallowance of costs by the FPSC.

Does the company provide guidance on GAAP earnings, or is it only adjusted earnings?

The filing explicitly states that adjusted earnings do not represent a substitute for net income as prepared in accordance with Generally Accepted Accounting Principles (GAAP). The guidance provided is for 'adjusted earnings per share,' which excludes items like the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and other than temporary impairment losses on securities held in nuclear decommissioning funds. Investors should note that these adjusted figures may differ from reported GAAP earnings.

NEXTERA ENERGY INC 8-K: Regulation FD

Summary

NextEra Energy Inc. (NEE), formerly FPL Group, Inc., filed an 8-K on May 27, 2009, detailing its chairman and CEO's statements at the 2009 Sanford C. Bernstein & Co. Strategic Decisions Conference. The primary focus was the reaffirmation of the company's adjusted earnings per share (EPS) expectations for 2009 ($4.20 to $4.40) and 2010 ($4.65 to $5.05), alongside a long-term growth expectation of at least 10% per year from 2006 to 2012. These projections are presented as adjusted figures, specifically excluding certain accounting impacts like mark-to-market effects and impairment losses. Management outlined several critical assumptions underpinning these financial forecasts, including normal weather and operating conditions, no significant further economic decline, supportive commodity and public policy environments (especially for renewables), and access to reasonable capital markets. The filing also extensively details numerous risk factors that could materially affect actual results, encompassing regulatory challenges, environmental compliance costs, operational risks inherent in power generation and transmission, nuclear facility risks, construction project uncertainties, derivative contract risks, competitive market pressures, potential economic downturns, customer growth fluctuations, weather impacts, and capital market volatility.

Key Highlights

1Reaffirmed 2009 adjusted EPS guidance of $4.20-$4.40 and 2010 adjusted EPS guidance of $4.65-$5.05.
2Reaffirmed long-term average adjusted EPS growth expectation of at least 10% per year from 2006 to 2012.
3Key assumptions for future performance include stable economic conditions, supportive public policy for renewables, and access to capital markets.
4The report extensively details numerous risk factors that could impact actual financial results, including regulatory, environmental, operational, and market risks.
5Specific risks highlighted include nuclear facility operations, construction project delays, derivative usage, and competitive energy market dynamics.
6The company is subject to significant regulatory oversight by the Florida Public Service Commission (FPSC) which impacts cost recovery and earnings growth.
7Adverse capital and credit market conditions are identified as a significant risk that could affect liquidity, cost of capital, and ability to grow.

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (May 27, 2009)

Summary

Key Highlights

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