8-KRegulation FD

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Nov 29, 2011)

Filed November 29, 2011For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) issued this 8-K filing on November 28, 2011, primarily to disclose forward-looking statements made by its management team during investor meetings and a conference between November 29 and December 9, 2011. The company reiterated its adjusted earnings per share (EPS) expectations for 2011, projecting them to be towards the low end of the previously stated range of $4.35 to $4.65. For 2012, NEE reaffirmed its adjusted EPS expectations of $4.35 to $4.65. Furthermore, the company projected an average annual adjusted EPS growth rate of approximately 5% to 7% through 2014, based on the 2011 adjusted EPS range, which implies a 2014 EPS range of $5.05 to $5.65. It is important for investors to note that these adjusted EPS figures exclude several items, including the cumulative effect of adopting new accounting standards, unrealized mark-to-market effects of non-qualifying hedges, net other-than-temporary impairment losses on securities in nuclear decommissioning funds, and for 2011, expected losses from the sale of certain gas-fired generation assets. The filing also includes extensive cautionary statements and risk factors, highlighting the significant regulatory environment, operational risks, environmental compliance, nuclear generation risks, and market volatility that could impact the company's future financial performance.

Key Highlights

  • 1Reaffirmation of 2011 adjusted EPS expectations towards the low end of the $4.35-$4.65 range.
  • 2Reaffirmation of 2012 adjusted EPS expectations of $4.35-$4.65.
  • 3Projected average annual adjusted EPS growth of 5%-7% through 2014.
  • 4Implied 2014 adjusted EPS range of $5.05-$5.65 based on projected growth.
  • 5Disclosure of items excluded from adjusted EPS calculations (accounting changes, hedge effects, impairment losses, asset sale losses).
  • 6Extensive list of cautionary statements and risk factors impacting future results.
  • 7Emphasis on regulatory environment and its potential impact on financial results.

Frequently Asked Questions

NextEra Energy expects its 2011 adjusted EPS to be towards the low end of the $4.35 to $4.65 range. For 2012, the company reaffirmed its adjusted EPS expectations of $4.35 to $4.65. Looking ahead to 2014, NextEra Energy projects an average annual adjusted EPS growth of approximately 5% to 7% from the 2011 base, which translates to an estimated 2014 adjusted EPS range of $5.05 to $5.65.

The adjusted EPS figures exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and net other-than-temporary impairment losses on securities held in NextEra Energy Resources, LLC's nuclear decommissioning funds. For 2011 specifically, the expected loss on the sale of five gas-fired generation assets is also excluded.

The filing extensively details numerous risk factors, including the significant impact of federal, state, and local regulation on operations and financial results, potential difficulties in recovering costs through regulated rates, risks associated with environmental laws and regulations (including greenhouse gas emissions), operational and financial risks associated with nuclear generation facilities, potential project development and construction delays or cost overruns, risks related to weather conditions, credit and capital market volatility, the use of derivative contracts, and potential impacts from cybersecurity threats and terrorism.

Yes, NextEra Energy guarantees many of the obligations of its consolidated subsidiaries (other than Florida Power & Light Company) through guarantee agreements with Capital Holdings. These guarantees could require NextEra Energy to provide substantial funds to its subsidiaries or their creditors, potentially impacting its own liquidity and ability to pay dividends.