Summary
NextEra Energy, Inc. (NEE) announced through its subsidiary, NextEra Energy Resources, LLC, the agreement to sell its ownership interest in a portfolio of four natural gas-fired generating assets for $1.05 billion to an affiliate of LS Power. The portfolio includes the Blythe Energy Center (CA), Calhoun Energy Center (AL), Cherokee Energy Center (SC), and Doswell Energy Center (VA), with a combined capacity of approximately 1,362 megawatts. This strategic divestiture is expected to generate net cash proceeds of approximately $500 million after debt repayment and transaction costs. The transaction is anticipated to result in a one-time after-tax charge of approximately $97 million, which NextEra Energy plans to exclude from adjusted earnings, and is expected to be accretive to future earnings per share. The sale is subject to regulatory approvals and third-party consents and is projected to close in the fourth quarter of 2011. NextEra Energy Resources will continue to operate three of the sold facilities for an initial period of five years and one for two years under service contracts, ensuring operational continuity.
Key Highlights
- 1Sale of a natural gas-fired generating asset portfolio for $1.05 billion.
- 2Divested assets include Blythe (507 MW), Calhoun (668 MW), Cherokee (98 MW), and Doswell (879 MW) Energy Centers.
- 3Expected net cash proceeds of approximately $500 million after debt and transaction costs.
- 4Anticipates a one-time after-tax charge of approximately $97 million, to be excluded from adjusted earnings.
- 5Transaction expected to be accretive to future earnings per share.
- 6Sale completion is subject to regulatory approvals and third-party consents, with a targeted close in Q4 2011.
- 7NextEra Energy Resources will continue to operate the sold facilities under service contracts for initial periods.