XPLR Infrastructure (XIFR) Q2 2024 earnings summary

Executive summary

• Adjusted earnings per share rose 9.1% year-over-year to $0.96 for Q2 2024, with year-to-date adjusted EPS at $1.71, driven by strong performance at FPL and Energy Resources.

• FPL and Energy Resources contributed to earnings growth, with FPL's EPS up $0.03 and Energy Resources' adjusted EPS up $0.03 compared to the prior-year quarter.

• NextEra Energy Partners reported Q2 2024 net income of $62 million, adjusted EBITDA of $560 million, and CAFD of $220 million, declaring a $0.9050 per unit distribution, up 6% year-over-year.

• Energy Resources added over 3,000 MW of new renewables and storage to its backlog, including 860 MW from Google agreements, marking its second-best origination quarter ever.

• NEP completed the sale of its Texas pipelines in December 2023, with results now presented as discontinued operations.

Financial highlights

• FPL's net income rose to $1,232 million from $1,152 million year-over-year, with EPS increasing to $0.60 from $0.57.

• NextEra Energy Resources' adjusted net income increased to $865 million from $781 million, with adjusted EPS rising to $0.42 from $0.39.

• NextEra Energy Partners' adjusted EBITDA was $560 million, up from $486 million, and CAFD was $220 million, up from $200 million year-over-year.

• Q2 2024 operating revenues for NEP were $360 million, up from $293 million in Q2 2023; net income attributable to NEP was $62 million, up from $49 million.

• FPL's capital expenditures were $2.1 billion for the quarter, with full-year 2024 investments expected between $8–$8.8 billion.

Outlook and guidance

• Expectation to deliver financial results at or near the top of adjusted EPS ranges through 2027, with 6–8% annual growth off the 2024 base.

• Dividend per share growth targeted at roughly 10% per year through at least 2026.

• NextEra Energy Partners targets 5–8% annual distribution growth through at least 2026, with no need for acquisitions in 2024 and no need for growth equity until 2027.

• Year-end 2024 run-rate adjusted EBITDA expected between $1.9 billion and $2.1 billion; CAFD between $730 million and $820 million.

• Management believes current liquidity and cash flows are sufficient to meet operational and distribution needs.