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.