Summary
NextEra Energy, Inc. (NEE) announced its long-term growth expectations and capital investment plans at its 2015 Investor Conference on March 11, 2015. The company projects average adjusted earnings per share (EPS) growth of approximately 5-7% per year through 2018, based on a 2014 adjusted EPS. Specific adjusted EPS guidance was provided for 2015, 2016, and 2018, excluding certain one-time or non-recurring items and Spanish solar operations. Furthermore, NEE outlined a significant capital expenditure plan of $30 billion to $34 billion from 2015 through 2018. This substantial investment will be directed towards Florida Power & Light Company (FPL) for reliability and cost-reduction projects, NextEra Energy Resources for new wind and solar generation projects and natural gas infrastructure, and other corporate infrastructure. These investments are intended to support the company's projected earnings growth.
Key Highlights
- 1Projected average adjusted EPS growth of 5-7% annually through 2018, off a 2014 base.
- 2Specific adjusted EPS guidance provided for 2015 ($5.40-$5.70), 2016 ($5.75-$6.25), and 2018 ($6.50-$7.00).
- 3Total capital expenditures planned between $30 billion and $34 billion for the 2015-2018 period.
- 4Significant capital allocation towards renewable energy projects, with $5.5-$5.7 billion for wind and $4.4-$4.6 billion for solar development by NextEra Energy Resources.
- 5Florida Power & Light Company (FPL) to receive substantial investment ($13.9-$15.6 billion) for reliability, cost reduction, and emission reduction projects.
- 6Investment in natural gas pipelines and transmission facilities also highlighted as part of the capital plan.
- 7Guidance excludes certain items like accounting standard changes, mark-to-market effects of hedges, nuclear decommissioning fund impairments, and Spanish solar operations.