8-KRegulation FD

NEXTERA ENERGY INC 8-K Report, Regulation FD Disclosure (Mar 2, 2016)

Filed March 2, 2016For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) filed an 8-K on March 2, 2016, to disclose discussions planned by its Senior Vice President of Finance at investor meetings on March 2-3, 2016. The primary focus of these discussions was the reaffirmation of the company's previously stated adjusted earnings per share (EPS) expectations for 2016 and 2018, as well as its compound annual average adjusted EPS growth target of approximately 6-8% through 2018, based on a 2014 adjusted EPS base. This filing provides specific adjusted EPS ranges for 2016 ($5.85 - $6.35) and 2018 ($6.60 - $7.10). It's crucial for investors to note that these adjusted EPS figures exclude various items, including the impact of new accounting standards, mark-to-market effects on non-qualifying hedges, impairment losses on nuclear decommissioning funds, and results from Spanish solar thermal facilities and merger-related expenses. The company also outlined several key assumptions underlying these expectations, such as normal weather, economic recovery, supportive public policy for renewables, and continued access to capital.

Key Highlights

  • 1NextEra Energy reaffirmed its 2016 adjusted EPS guidance of $5.85 - $6.35.
  • 2The company reaffirmed its 2018 adjusted EPS guidance of $6.60 - $7.10.
  • 3NextEra Energy reiterated its expectation for a 6-8% compound annual average adjusted EPS growth through 2018, based on 2014 adjusted EPS.
  • 4The adjusted EPS figures exclude specific items such as accounting standard adoption effects, mark-to-market impacts, and impairment losses.
  • 5Key assumptions for achieving these targets include normal weather, economic recovery, supportive renewable energy policies, and access to capital.
  • 6The filing serves as a disclosure for investor meetings and includes cautionary statements regarding forward-looking statements.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose that NextEra Energy's Senior Vice President of Finance would be reaffirming the company's previously announced adjusted earnings per share (EPS) expectations for 2016 and 2018, along with its projected compound annual average EPS growth rate, during investor meetings on March 2-3, 2016.

NextEra Energy provided specific adjusted EPS guidance for 2016 in the range of $5.85 to $6.35 and for 2018 in the range of $6.60 to $7.10. They also reiterated their target for a 6-8% compound annual average adjusted EPS growth through 2018, starting from a 2014 adjusted EPS base.

The adjusted EPS figures exclude several items, including 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 held in nuclear decommissioning funds, operating results from solar thermal facilities in Spain, and merger-related expenses. These exclusions are important for investors to understand when comparing adjusted EPS to GAAP net income.

The company's adjusted EPS expectations are based on several assumptions, including normal weather and operating conditions, continued recovery of the national and Florida economies, supportive commodity markets and forward curves, public policy support for renewable energy development, market demand and transmission expansion for renewables, access to capital at reasonable costs, and no significant adverse litigation or changes to governmental tax policy or incentives.