NextEra Energy Partners Slashes LP Distribution Growth to 5%-8% (Vs Prior 12%-15%) Annually Through at least 2026
Portfolio Pulse from Benzinga Newsdesk
NextEra Energy Partners, LP (NEP) has announced a reduction in its limited partner distribution per unit growth rate from 12%-15% to 5%-8% annually through at least 2026. The decision is aimed at increasing flexibility and delivering long-term value for unitholders. The company also plans to repower the majority of its wind portfolio and continue to acquire wind, solar, and storage assets. The company expects run-rate contributions for adjusted EBITDA and CAFD from its forecasted portfolio at Dec. 31, 2023, to be in the ranges of $1,900 million to $2,100 million and $730 million to $820 million, respectively.
September 27, 2023 | 10:38 am
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NEGATIVE IMPACT
NextEra Energy Partners has reduced its growth rate, which may impact investor sentiment and the stock's performance. However, the company's plans to repower its wind portfolio and acquire more assets could potentially offset this in the long term.
The reduction in growth rate could lead to a short-term negative impact on the stock as it may be perceived as a sign of slowing growth. However, the company's plans for asset acquisition and repowering its wind portfolio could be seen as positive for long-term growth, potentially offsetting the initial negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100