8-KRegulation FD

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Sep 7, 2011)

Filed September 7, 2011For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) filed an 8-K on September 7, 2011, to disclose information presented at the 2011 Barclays Capital CEO Energy-Power Conference. The company reaffirmed its previously stated expectation for an average annual adjusted earnings per share (EPS) growth rate of approximately 5% to 7% per year through 2014, based on a 2011 adjusted EPS base of $4.35 to $4.65. However, management indicated that 2011 adjusted EPS expectations are trending towards the lower end of this range. The filing also includes extensive "Cautionary Statements and Risk Factors" that highlight potential challenges impacting the company's future financial results. These risks encompass a broad range of factors including extensive government and regulatory oversight, potential disallowance of cost recovery by regulatory bodies, environmental regulations, risks associated with nuclear and other power generation facilities, project development and construction delays, operational and maintenance risks, credit and performance risks from customers and counterparties, volatility in credit and capital markets, and the impact of severe weather events. Investors should pay close attention to these risks as they are material to understanding potential future performance.

Key Highlights

  • 1Reaffirmed 5-7% average annual adjusted EPS growth target through 2014.
  • 2Indicated 2011 adjusted EPS trending towards the lower end of the previously stated range ($4.35-$4.65).
  • 3Management presented at the 2011 Barclays Capital CEO Energy-Power Conference and upcoming investor meetings.
  • 4Extensive discussion of various risk factors that could materially impact future financial results.
  • 5Key risk areas include regulatory, environmental, operational, financial market volatility, and weather-related risks.
  • 6The company operates under significant federal, state, and local regulation which can affect business planning and financial results.

Frequently Asked Questions

NextEra Energy reaffirmed its expectation for an average annual adjusted EPS growth of 5% to 7% through 2014. However, the company indicated that its 2011 adjusted EPS performance is tracking towards the lower end of its previously guided range.

The filing extensively details numerous risks. Key categories include regulatory and governmental oversight, environmental compliance, operational and construction risks for power generation and transmission facilities, financial market and credit risks, severe weather impacts, and risks associated with nuclear power operations.

Management discussed these expectations at the 2011 Barclays Capital CEO Energy-Power Conference on September 7, 2011, and was scheduled to continue discussions at various investor meetings in the Northeast and Canada from September 7 to September 21, 2011, as well as at the 2011 Bank of America Merrill Lynch Power and Gas Leaders Conference on September 21, 2011.

Yes, the filing notes that NextEra Energy's competitive energy business, particularly its wind and solar projects, is dependent on continued public policy support and governmental incentives, such as tax credits and Renewable Portfolio Standards (RPS). Any reduction or elimination of these policies could adversely affect demand for their renewable energy projects.