2023-05-08 07:18:50 ET
NextEra Energy Partners ( NYSE: NEP ) unveiled a plan Monday to concentrate solely on its renewable energy portfolio, and will launch a process to sell its natural gas pipeline assets and use the proceeds to complete all planned buyouts of convertible equity portfolio financings through 2025.
To replace the cash available for distribution from the expected divested pipeline assets, NextEra Energy Partners ( NEP ) has entered into an agreement to suspend incentive distribution rights fees to NextEra Energy ( NEE ) through 2026.
NextEra Partners ( NEP ) said it expects it will have excess proceeds from the natural gas pipeline sales available to eliminate equity requirements to fund future growth through 2024.
From a base of its Q4 2022 distribution at an annualized rate of $3.25/unit, NextEra Partners ( NEP ) continues to see 12%-15% growth per year in limited partner distributions per unit as a reasonable range of expectations through at least 2026.
The partnership expects the annualized rate of the Q4 2023 distribution payable in February 2024 to be in a range of $3.64-$3.74/unit.
For further details see:
NextEra Energy Partners to sell assets, focus solely on renewables