NextEra Energy Partners Cuts Distribution Growth Outlook Due to Higher Rates, Transitions to Renewables

NextEra Energy Partners (NEP) slashed its distribution growth outlook to 5-8% through 2026 due to higher interest rates impacting financing.
NEP will transition by selling gas pipelines and buying out convertible equity payments.
The company updated its 2023 adjusted EBITDA and cash available for distribution outlook lower.
NEP expects to focus more on repowering wind assets and acquiring renewable projects.
Analysts remain largely bullish on NEP stock despite the lowered growth outlook.

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Relevant topic timeline:

9/27/2023

NextEra Energy Partners Lowers Growth Outlook Due to Higher Interest Rates

NextEra Energy Partners' stock tumbles after lowering expectations for limited partner distribution growth due to higher interest rates and tighter monetary policy.

9/27/2023

NextEra Energy Slashes Distribution Growth Outlook in Half, Blames Tighter Fed Policy

NextEra Energy subsidiary, NextEra Energy Partners, has cut its distribution growth outlook in half due to Federal Reserve monetary policy tightening and higher interest rates, resulting in a significant drop in stock performance.

9/28/2023

Analysts Downgrade NextEra Energy, Raytheon Technologies; Cut Targets for Terex, South State

NextEra Energy Partners received two downgrades after revising its growth expectations, leading to a drop of over 20% in share value, with JPMorgan downgrading to Neutral and Oppenheimer downgrading to Perform.

10/3/2023

Analysts See Value in Beaten-Down NextEra Energy Stock Despite Recent Sell-Off

NextEra Energy stock has experienced a recent decline, but it is still a good long-term investment due to its value and potential for dividend growth, despite recent downgrades and concerns from analysts.

10/6/2023

NextEra Energy Stock Rises Despite Recent Underperformance; Earnings and Revenue Growth Expected

NextEra Energy's stock price increased by 1.6% in the latest market close, outpacing the gains made by the S&P 500, Dow, and Nasdaq; however, its shares have depreciated by 25.36% over the past month, underperforming the Utilities sector. The company is expected to release its earnings soon, with projected increases in earnings per share and revenue. While recent estimate revisions for NextEra Energy have been downward, the company holds a Zacks Rank of #3 (Hold). The company's valuation indicates a premium compared to its industry average, and it currently trades at a PEG ratio of 2. The Utility - Electric Power industry, to which NextEra Energy belongs, has a Zacks Industry Rank of 65, putting it in the top 26% of all industries.

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Posted 9/27/2023, 2:31:56 PM

NextEra Energy Partners Cuts Distribution Growth Outlook Due to Higher Rates, Transitions to Renewables

NextEra Energy Partners (NEP) slashed its distribution growth outlook to 5-8% through 2026 due to higher interest rates impacting financing.
NEP will transition by selling gas pipelines and buying out convertible equity payments.
The company updated its 2023 adjusted EBITDA and cash available for distribution outlook lower.
NEP expects to focus more on repowering wind assets and acquiring renewable projects.
Analysts remain largely bullish on NEP stock despite the lowered growth outlook.

tipranks.com

Relevant topic timeline:

9/27/2023

NextEra Energy Partners Lowers Growth Outlook Due to Higher Interest Rates

NextEra Energy Partners' stock tumbles after lowering expectations for limited partner distribution growth due to higher interest rates and tighter monetary policy.

9/27/2023

NextEra Energy Slashes Distribution Growth Outlook in Half, Blames Tighter Fed Policy

9/28/2023

Analysts Downgrade NextEra Energy, Raytheon Technologies; Cut Targets for Terex, South State

10/3/2023

Analysts See Value in Beaten-Down NextEra Energy Stock Despite Recent Sell-Off

10/6/2023

NextEra Energy Stock Rises Despite Recent Underperformance; Earnings and Revenue Growth Expected