Download PDF

1. Company Snapshot

1.a. Company Description

NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States.It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects, as well as contracted natural gas pipeline assets.NextEra Energy Partners, LP was incorporated in 2014 and is headquartered in Juno Beach, Florida.

Show Full description

1.b. Last Insights on NEP

Breaking News: NextEra Energy Partners, LP recently eliminated its distribution to address heavy debt and equity obligations. The company's financial results for the fourth quarter and full year 2024 were reported on January 28, 2025. Levi & Korsinsky has commenced an investigation of XPLR Infrastructure, LP concerning possible violations of federal securities laws. NextEra Energy Partners is technically in oversold territory, and strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal.

1.c. Company Highlights

2. XPLR Infrastructure's Strategic Repositioning

XPLR Infrastructure's latest earnings report reveals a strategic repositioning of the company, focusing on investments funded by cash flows and balance sheet capacity, rather than issuing equity. The new management team, led by Alan Liu, will prioritize four investment opportunities: funding the cash buyout of selected Convertible Equity Portfolio Financings (CEPFs), investing in wind repowerings, investing in colocated storage, and pursuing other growth opportunities.

Publication Date: Feb -22

📋 Highlights
  • Strategic Repositioning: XPLR Infrastructure is suspending distributions to unitholders and focusing on making investments funded by cash flows and balance sheet capacity, prioritizing four investment opportunities: CEPF buyouts, wind repowerings, colocated storage, and growth opportunities.
  • Capital Plan: The company's plan includes funding CEPF buyouts with $4.4 billion of debt financing, investing in wind repowers and colocated storage, pursuing other growth opportunities, and refinancing existing debt.
  • EBITDA Expectations: Adjusted EBITDA for 2024 was $1.96 billion, and is expected to be roughly flat in 2025, with a decline of $105 million in 2026 due to the sale of the Meade pipeline investment.
  • Free Cash Flow Expectations: The company expects free cash flow before growth to be in the range of $600 million to $700 million in 2026, remaining relatively consistent through the end of the decade.
  • Return of Capital to Unitholders: The company expects to return capital to unitholders over time, potentially through common unit buybacks or the reinitiation of a distribution, after executing its plan to pursue investment opportunities without issuing equity.

Financial Performance

The company's adjusted EBITDA for 2024 was approximately $1.96 billion, close to the midpoint of its run rate expectations range. For 2025, XPLR expects EBITDA to be roughly flat year-over-year, although results may be impacted by the expected sale of the Meade pipeline investment. For 2026, the company expects EBITDA to be between $1.75 billion and $1.95 billion, with a decline of approximately $105 million due to the sale of the Meade pipeline investment. As Alan Liu stated, "We believe unitholders are meaningfully better off on a cash flow per unit basis relative to issuing equity at current prices."

Capital Plan and Credit Metrics

XPLR's capital plan includes funding the cash buyout of selected CEPFs with approximately $4.4 billion of debt financing, investing in wind repowers and colocated storage, pursuing other growth opportunities, and refinancing existing debt. The company expects its credit metrics to remain consistent with its ratings, as affirmed by the three rating agencies. As Brian Bolster mentioned, "The important part is that they've confirmed our credit metrics are consistent with our ratings."

Valuation Metrics

With a current PE Ratio TTM of 4.83, Price to Sales Ratio TTM of 0.85, and Enterprise Value over EBITDA TTM of 10.69, XPLR's valuation appears reasonable. The company's dividend yield percentage TTM of 25.76 and free cash flow yield TTM of 30.63 suggest that investors may be expecting a significant return on investment. Additionally, XPLR's ROIC TTM of 0.13 and ROE TTM of 5.8 indicate that the company's investments may generate modest returns on capital.

3. NewsRoom

Card image cap

XIFR, NEP DEADLINE: ROSEN, NATIONAL INVESTOR RIGHTS COUNSEL, Encourages XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP Investors with Losses in Excess of $100K to Secure Counsel Before Important Deadline in Securities Class Action – XIFR, NEP

Sep -05

Source: globenewswire.com

Card image cap

XIFR, NEP Investors Have Opportunity to Lead XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP Securities Fraud Lawsuit

Sep -01

Source: prnewswire.com

Card image cap

XIFR, NEP Investors Have Opportunity to Lead XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP Securities Fraud Lawsuit

Aug -25

Source: prnewswire.com

Card image cap

XIFR, NEP Investors Have Opportunity to Lead XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP Securities Fraud Lawsuit

Aug -18

Source: prnewswire.com

Card image cap

Levi & Korsinsky Reminds Shareholders of a Lead Plaintiff Deadline of May 9, 2025 in XPLR Infrastructure, LP Lawsuit – NEP

Mar -11

Source: accessnewswire.com

Card image cap

XPLR INFRASTRUCTURE INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that XPLR Infrastructure, LP f/k/a NextEra Energy Partners, LP Investors with Substantial Losses Have Opportunity to Lead the XPLR Infrastructure Class Action Lawsuit

Mar -11

Source: globenewswire.com

Card image cap

Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against XPLR Infrastructure, LP (f/k/a NextEra Energy Partners, LP) (NEP)

Mar -11

Source: globenewswire.com

Card image cap

Bronstein, Gewirtz & Grossman, LLC Initiates an Investigation into Allegations Against XPLR Infrastructure, LP (NEP) And Encourages Shareholders to Reach Out

Feb -14

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Renewable Energy

Expected Growth: 9.0%

NextEra Energy Partners' 9.0% growth is driven by increasing demand for renewable energy, declining costs of wind and solar power, and favorable government policies and incentives. Additionally, the company's diversified portfolio of wind and solar assets, strategic acquisitions, and long-term contracts with investment-grade counterparties contribute to its growth momentum.

7. Detailed Products

Wind Energy

NextEra Energy Partners, LP generates electricity through wind energy, utilizing wind turbines to convert wind kinetic energy into electrical energy.

Solar Energy

NextEra Energy Partners, LP develops and operates solar energy facilities, harnessing sunlight to generate electricity.

Natural Gas Infrastructure

NextEra Energy Partners, LP owns and operates natural gas pipelines, storage facilities, and other midstream assets.

Energy Storage

NextEra Energy Partners, LP develops and operates energy storage systems, enabling the efficient storage and release of electrical energy.

8. NextEra Energy Partners, LP's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for NextEra Energy Partners, LP is medium due to the availability of alternative energy sources such as solar and wind power. However, the company's focus on renewable energy and its diversified portfolio of energy assets mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for NextEra Energy Partners, LP is low due to the company's diversified customer base and long-term contracts. This reduces the dependence on individual customers and limits their bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for NextEra Energy Partners, LP is medium due to the company's dependence on a few large suppliers for equipment and services. However, the company's scale and diversified supply chain mitigate this threat.

Threat Of New Entrants

The threat of new entrants for NextEra Energy Partners, LP is low due to the high barriers to entry in the energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for NextEra Energy Partners, LP is high due to the competitive nature of the energy industry, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.80%
Debt Cost 6.94%
Equity Weight 36.20%
Equity Cost 8.92%
WACC 7.66%
Leverage 176.21%

11. Quality Control: NextEra Energy Partners, LP passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Otter Tail

A-Score: 6.6/10

Value: 5.3

Growth: 7.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
NiSource

A-Score: 6.3/10

Value: 5.0

Growth: 3.3

Quality: 4.7

Yield: 6.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Clearway Energy

A-Score: 5.9/10

Value: 3.4

Growth: 5.4

Quality: 3.6

Yield: 9.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
NextEra Energy Partners

A-Score: 5.0/10

Value: 9.4

Growth: 2.9

Quality: 4.4

Yield: 10.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Ormat Technologies

A-Score: 4.6/10

Value: 1.6

Growth: 4.7

Quality: 4.0

Yield: 0.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Fluence Energy

A-Score: 3.4/10

Value: 7.6

Growth: 7.2

Quality: 3.1

Yield: 0.0

Momentum: 2.0

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.54$

Current Price

10.54$

Potential

-0.00%

Expected Cash-Flows