Morgan Stanley Global Energy & Power Conference Rebecca Kujawa Executive VP and CFO, NextEra Energy CFO, NextEra Energy Partners March 5, 2019
Cautionary Statements And Risk Factors That May Affect Future Results This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to differ are discussed in the Appendix herein and in NextEra Energy’s and NextEra Energy Partners’ SEC filings . Non-GAAP Financial Information This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein. 2
NextEra Energy is comprised of strong businesses supported by a common platform • ~$90 B market capitalization (1) • ~50 GW in operation (2) • $100+ B in total assets (3) • The largest electric utility in the United States by retail MWh sales • Provides electric service • The world leader in to over 460,000 customers electricity generated in northwest Florida (4) from the wind and sun Engineering & Construction Supply Chain Nuclear Generation Non-Nuclear Generation 1) As of February 22, 2019; Source: FactSet 2) Megawatts shown includes assets operated by Energy Resources owned by NextEra Energy Partners as of December 31, 2018; includes Gulf Power generation 3) As of December 31, 2018; includes Gulf Power 4) On January 1, 2019, NextEra Energy completed the acquisition of Gulf Power 3
Florida Power & Light is one of the best utility franchises in the U.S. and we recently added Gulf Power to the portfolio Florida Regulated Utilities • FPL – ~5 MM customer accounts – ~24 GW in operation – ~$12 B in operating revenues – ~$53 B in total assets • Gulf Power – ~0.5 MM customer accounts – ~2 GW in operation – ~$1.5 B in operating revenues (1) – ~$3.0 B 2018 regulatory capital employed 1) Source: Gulf Power December 2018 ESR Note: All data is as of December 31, 2018; NEE completed the acquisition of Gulf Power on January 1, 2019 4
Energy Resources is the leading North American clean energy company Energy Resources • World leader in electricity generated from the wind and sun ~23 GW (1) of generation in • operation – 15.0 GW wind – 2.4 GW solar Wind Natural Gas Nuclear Solar – 2.7 GW nuclear Other Storage – 2.4 GW natural gas/oil Pipeline • ~8 BCF of natural gas pipeline Wind capacity operating or under 67% development (2) • ~$4.9 B in operating revenues • ~$43.5 B in total assets Nuclear Solar 12% Natural Gas 11% Oil 7% 3% Generation mix is based on MW capacity operated by Energy Resources including NextEra Energy Partners’ assets 1) 2) Includes 4 BCF Texas Pipelines operated by Energy Resources for NextEra Energy Partners Note: As of December 31, 2018 5
We are well positioned to capitalize on and respond to potentially disruptive changes to our industry in the next decade Disruptive Industry Changes Potential Cost per kWh Post-2023 (1) ( ¢/ kWh) Shale 3 - 4¢ w/ 4 - 5 ¢ 3.5 - 5 ¢ Gas storage 2 - 3¢ w/ adder 3 - 4 ¢ storage Renewables adder Big Data /Storage Wind Solar Gas Coal Nuclear Generation U.S. Electricity Production by Fuel Type (2) Cost Smart Restructuring Restructuring Grid 2017 2030E Coal & Natural Natural Nuclear Coal & Gas Gas Generation Shareholder Nuclear Restructuring Activism Wind Wind & & Solar Solar Other Other 1) Represents potential projected cost per kWh for new build wind, solar, and natural gas, excluding PTC and ITC; projected per kWh operating cost including fuel for existing nuclear and coal; based on NextEra Energy internal estimates 2) 2017 Source: U.S. EIA; 2030 estimate Source: IHS Inc; the use of this content was authorized in advance by IHS; any further use or redistribution of this content is strictly prohibited without written permission by IHS; all rights reserved 6
We expect to grow adjusted EPS at a 6% - 8% CAGR through 2021, plus accretion from the Florida acquisitions in 2020 and 2021 NextEra Energy’s Adjusted Earnings Per Share Expectations (1) • The Florida acquisitions are $9.40 - expected to be $0.15 and $0.20 $9.95 $8.70 - accretive in 2020 and 2021, $9.20 $8.00 - respectively $8.50 $7.70 • Expected growth in DPS of 12% to 14% per year through at least 2020, off a 2017 base of $3.93 per share • Expect operating cash flow to grow roughly in line with our adjusted EPS CAGR range from 2018 through 2021 2018 2019E 2020E 2021E Expected accretion from FL acquisitions (2) 1) See Appendix for definition of Adjusted Earnings expectations 2) Includes Gulf Power, Florida City Gas, and the Stanton and Oleander natural gas power plants 7
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NEP’s value proposition is built upon four core strengths NextEra Energy Partners’ Core Strengths High-Quality Portfolio (1) Financial Strength and Flexibility Issuer Credit ~5.3 GW Rating (3) Diversified Year-end 2018 >90% 17-Yr Portfolio with Renewables Ba1/BB/BB+ ~1.2x Capacity of Project Debt 48 Remaining supports 4x-5x & Tax Equity Coverage ~4 Bcf Contract Life (2) counterparties Is Amortizing Ratio (4) Holdco debt / project Pipeline Capacity CAFD Tax-Advantaged Structure (5) Opportunities For Growth ≥8 years Clean energy Treated as C-Corp assets at Organic ≥15 years for U.S federal tax Potential return of Energy 3rd Party purposes with capital treatment Not expected to prospects for Resources , for distributions to Form 1099 pay significant Texas Pipelines acquisitions the extent of including future U.S. federal taxes and Repowerings for investors investor’s tax development (vs K1) basis 1) Includes announced acquisition of 611 MW that is expected to close in the second quarter of 2019 2) Weighted on calendar year 2020 Cash Available for Distribution (CAFD) expectations for current portfolio plus 2019 announced acquisitions; See Appendix for definition of CAFD Moody’s, Standard & Poor’s, and Fitch ratings, respectively 3) 4) Assumes calendar year 2019 expectations for portfolio as of 12/31/18, divided by the product of annualized LP distributions of $1.86 and 157 MM outstanding units, plus distributions made to the Series A Preferred Units 5) As of December 31, 2018; should not be construed as tax advice 9
NEP has agreed to purchase a 611 MW portfolio of unlevered renewable projects from Energy Resources for $1.02 B (1) Portfolio Additions Remaining Counterparty Asset MW Technology Counterparty COD PPA Term (2) Credit Rating City of Ames, IA; NR / NR; Story II 150 Wind 2010 11 Google AA+ / Aa2 Southern Silver State (3) 125 Solar 2016 17 BBB / A3 California Edison Great River; A- / Baa1; Ashtabula II 120 Wind 2009 21 Minnkota Power A- / Baa2 Tennessee Valley White Oak 150 Wind 2011 13 AA+ / Aaa Authority Southwestern Roswell (3) 35 Solar 2016 22 A- / Baa2 Public Service Co. Northern States Marshall (3) 31 Solar 2017 23 A- / A2 Power Co. Total Acquisition 611 15 The acquisition is expected to close in Q2 2019 and contribute $100 – $115 MM of adjusted EBITDA and $97 – $107 MM of CAFD on a run rate basis 1) Subject to working capital adjustments 2) Story II and Ashtabula II have multiple off-takers with various PPA terms; remaining PPA term reflects CAFD weighted average 3) NEP acquiring 49.99% interest; MW reflects NEP net ownership 10
The acquired assets and four existing NEP projects will be combined into a new portfolio with KKR, where existing project debt will be recapitalized Transaction Overview • After closing, NEP to contribute 1,192 MW into a new portfolio Sources – 611 MW of acquired projects KKR investment $900 MM – 581 MW of existing wind projects (1) Existing NEP debt capacity $340 MM • $220 MM of existing project debt to be paid down Total sources ~$1,240 MM • Recapitalization produces Uses significant benefits Cost CAFD – Bridges potential CAFD impact of Asset acquisition $1,020 MM $97-$107 MM the PG&E bankruptcy – NPV, DPU, and credit accretive Payoff project debt $220 MM $25 MM – Cash savings reduce future asset Total uses ~$1,240 MM $122-$132 MM and financing needs Existing assets $17-$23 MM – Assets remain de-risked, allowing Total Second Portfolio $142-$152 MM for potential re-levering in the future With this transaction, CAFD is expected to increase by ~$125 MM, enabling NEP to meet its 2019 CAFD growth objectives without PG&E related CAFD 1) 99 MW Perrin Ranch, 120 MW Tuscola Bay, 62 MW Ashtabula III, 300 MW Stateline projects; see Appendix for additional portfolio details 11
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