8-KRegulation FD

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Sep 2, 2014)

Filed September 2, 2014For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) filed an 8-K on September 2, 2014, primarily to disclose forward-looking statements that management planned to discuss at various investor meetings and industry conferences. The company reaffirmed its long-term growth expectations, including its 2014 adjusted earnings per share (EPS) forecast of $5.15 to $5.35 and projected average annual adjusted EPS growth of approximately 5-7% through 2016, targeting $5.50 to $6.00 for 2016. These projections are based on a 2012 adjusted EPS base. The company provided specific exclusions from its adjusted EPS calculations, such as accounting standard changes, mark-to-market effects of non-qualifying hedges, and impairment losses on nuclear decommissioning funds. Additionally, certain operational results, like those from Spanish solar thermal facilities and specific fossil asset gains in Maine, are excluded. The expectations are contingent on several assumptions including normal weather, economic recovery, supportive public policy for renewables, access to capital, and no significant acquisitions, divestitures, adverse litigation, or changes in tax policy.

Key Highlights

  • 1Reaffirmed 2014 adjusted EPS guidance of $5.15 to $5.35.
  • 2Projected average annual adjusted EPS growth of 5-7% through 2016, targeting $5.50 to $6.00 for 2016 (based on 2012 adjusted EPS).
  • 3Disclosed specific exclusions from adjusted EPS calculations, including accounting adjustments, hedging impacts, and certain operational results.
  • 4Stated that expectations are subject to various assumptions, including normal weather, economic recovery, and supportive public policy for renewables.
  • 5Detailed numerous risk factors that could materially impact future results, covering regulatory, economic, operational, and capital market uncertainties.
  • 6Provided a link for investors to access presentation materials on the company's investor relations website.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose forward-looking statements and management's expectations regarding NextEra Energy's long-term growth, which were to be discussed at upcoming investor meetings and conferences. It serves to inform investors about the company's financial outlook and the assumptions and risks associated with it.

NextEra Energy reaffirmed its 2014 adjusted earnings per share (EPS) expectations of $5.15 to $5.35. It also projected average adjusted EPS growth of approximately 5-7% per year through 2016, with an adjusted EPS expectation of $5.50 to $6.00 for 2016, based on a 2012 adjusted EPS base.

The adjusted EPS expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, net other-than-temporary impairment losses on securities in nuclear decommissioning funds, operating results from Spanish solar thermal facilities, and 2014 gains associated with fossil assets in Maine. These exclusions are detailed to provide clarity on the underlying operational performance.

Key assumptions include normal weather and operating conditions, continued recovery of the national and Florida economies, supportive commodity markets, public policy support for wind and solar development, market demand and transmission expansion for renewables, access to capital at reasonable costs, no significant acquisitions or divestitures, no adverse litigation, and no changes to governmental tax policy or incentives.