NEP Earnings Prediction
The chart below shows how NEP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NEP sees a +5.27% change in stock price 10 days leading up to the earnings, and a -0.97% change 10 days following the report. On the earnings day itself, the stock moves by -2.82%. This data can give you a slight idea of what to expect for the next quarter's release.
NEP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
294.00M
390.00%
-7.84%
Gross Margin
--
--
--
Operating Margin
7.48%
102.67%
-31.81%
Net Margin
-131.97%
-73.78%
407.19%
EPS
-1.08
-190.00%
151.16%
No Data Available
NEP Earnings Analysis
Nextera Energy Partners LP Corporation (NEP.N) Earnings Conference Call
Positive
Adjusted EBITDA Performance: Adjusted EBITDA for the full year 2024 was approximately $1,960,000,000, aligning closely with the midpoint of run rate expectations.
Projected Free Cash Flow: Expected free cash flow before growth for 2026 is projected to be in the range of $600,000,000 to $700,000,000, indicating a stable cash flow outlook through the end of the decade.
Investment in SEPIF Buyouts: The company plans to invest approximately $945,000,000 in cash buyouts of selected SEPIFs over the next three years, which is expected to yield double-digit returns for unitholders.
Independent Power Production: Explorer Infrastructure is one of the largest independent power producers in the U.S., with a diversified portfolio of 10 gigawatts of renewable energy assets across 31 states, providing long-term visibility to cash flows through long-term contracts with high credit quality customers.
Capital Allocation Strategy: The management team is committed to a disciplined capital allocation strategy that prioritizes investments with attractive risk-adjusted returns, while maintaining sufficient balance sheet strength to support future growth opportunities.
Negative
Distribution Suspension Announcement: Suspension of distributions to unitholders indefinitely, indicating a shift from a cash flow distribution model to a focus on self-funding investments, which may lead to dissatisfaction among investors.
EBITDA Projections and Decline: Adjusted EBITDA for 2025 is expected to remain flat year-over-year, with a projected decline to $1,750,000,000 to $1,950,000,000 in 2026, reflecting a decrease of approximately $105,000,000 due to the anticipated sale of the Mead pipeline investment.
Projected Free Cash Flow: Free cash flow before growth is projected to be in the range of $600,000,000 to $700,000,000 in 2026, indicating a stagnation in cash flow generation and potential limitations on future growth opportunities.
Financing Cost Impact: Higher financing costs are anticipated due to the buyout of SEPIF obligations and refinancing of existing debt, which could negatively impact overall profitability and cash flow availability.
Debt Financing Concerns: The need for approximately $4,400,000,000 of debt financing over the next two years, including $1,500,000,000 of new debt, raises concerns about the company's leverage and financial stability moving forward.
NEP FAQs
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NEP Earning Call Sentiment
Earnings call transcript: XPLR Infrastructure misses Q4 2024 EPS, stock drops
NEP.N
0.96%Positive
The earnings call reveals several concerns: heavy reliance on equity markets, significant debt financing, and suspension of unitholder distributions. The Q&A section highlights management's evasiveness on key financial metrics, adding uncertainty. Despite stable EBITDA and free cash flow projections, the lack of clear growth guidance and operational risks from strategic shifts contribute to a negative outlook. The indefinite suspension of distributions and potential regulatory risks further exacerbate investor concerns, leading to a likely negative stock price movement.