NextEra Energy (NEE) 25 Jan 242023 Q4 Earnings call transcript

Good morning, and welcome to the NextEra Energy, Inc. and NextEra Energy Partners, LP Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Kristin Rose, Director of Investor Relations. Please go ahead.

Andrea. you, Thank and and everyone, call for our joining NextEra Good year thank XXXX quarter Partners. Energy full and conference combined fourth Energy morning, NextEra you financial for results

whom NextEra Resources; NextEra Vice Ketchum, officers this me as NextEra and of full and all Partners; Officer of Executive Energy, Armando Officer of call Chief morning Officer President Company. opening John Energy of President Pimentel, Rebecca Energy & the Energy; results. With to Officer and year turn some Chairman, John over Power review NextEra Chief Crews, are our Executive Kirk remarks, Executive and Energy; Kirk are Chief Executive President of fourth also Executive and then of a as Mark and will Financial provide Hickson, quarter President Vice of of well and Florida Kujawa, we'll Light Chief NextEra President for

answer will team executive Our questions. then available to your be

be forward-looking comments the Securities to update the forward-looking in making differ and materially made call subject if uncertainties. Risk release, accompanying on other incorrect could results be or the latest any assumptions, do statements. assumptions duty during based Actual key the to our of news websites, and this discussed of not our risks www.nexteraenergypartners.com. filings because with will forward-looking are our and expectations statements We Exchange factors any from statements can which We conference Factors presentation which today's are current earnings and on this of in our section of during found call any www.nexteraenergy.com and undertake each reports or and in Commission,

references financial measures. Today's presentation to non-GAAP also includes

measures presentation the the the You to of information for closest non-GAAP historical contained today's in should information financial GAAP and refer measure. reconciliation definitional accompanying slides to

call John. With turn will that, to I over the

good and Thanks, morning. Kristin,

in NextEra Energy FPL and and Resources both financial had at Energy XXXX. operational strong performance

up $X.XX, EPS XXXX, the share year earnings exceeding our full adjusted delivered over Energy high X% end per of NextEra adjusted range. of from expectations

interest through the higher adjusted to and headwinds delivering XXXX. disruption often From solar roughly navigated compound and for chain events challenging our challenges environment inflation unprecedented of growth sector were for NextEra opportunity. since rates, clear Energy XX.X% EPS presents supply These last renewables, X annual but years, a

At XX of to NextEra experience execution environment. our of navigate we Energy, this relied tough on years our renewables culture and

relationships, data-driven our the our On strengths and strength access few, and team, supply and competitive of of advantages, managed of cost development to our customer playbook chain just name successfully our advantages, sheet, balance scale the world-class the a capital capabilities, to our disruption. through we

competitive and scale and advantages as continue our earnings allowed to and and extend of us dividend deliver served growth. our key long differentiators for record track Our to customers

EPS delivered adjusted have have roughly power Over is years, past period, EPS we XX%, and companies growth on the power that XX X%. top annual adjusted XX highest compound the which roughly Over the of companies. annual top average, compound XX remaining among growth of achieved, and same all

are and execution disappointed the value long-term creating start share remain and And our we strong price. by shareholders. as in EPS recognize on we focus adjusted in the steadfast we continued for underperformance Notwithstanding results, the XXXX,

made X disruption the over the stronger has believe company. an We last years NextEra Energy even

chain is well ever is Energy Our we believe our been. and is has even diversified line, more development platform headed into Bottom business model it more is supply than advanced XXXX. more resilient, positioned our NextEra

Energy. for And there is NextEra optimism at good reason

equipment. mitigate interest rules Department will and hedging certainty what around with circumvention, with importing Energy certainty rate determination its to taken providing predict declined solar around has interest rates rate NextEra volatility program. XXXX can the nobody bring, solar their its peak, Although to from The have more inflation and provided suppliers steps expectations final interest has Commerce through the of and exposure

solar prices, see been lower continued chains leading internationally, solar towards reductions to U.S. have prices. established we New positive being the in the and in battery EVs continued for as and panel incrementally supply longer-term push

and from last their XX% Solar have battery over heading declined already by XXXX. months prices XX panel roughly the into peak

We have renewable our partnerships, due electrical complete through critical proactively transformers shortages project enough any equipment projects, we our impacting and and labor build XXXX. experienced cover our And lines. construction not to breakers to time have procured to securing expected scale

Energy should and at for new greater all for great originations beyond, over demand believe, renewables in renewables Ultimately, XXXX the record customers and, all totaling on heels XXXX these XXXX, and years in drive tailwinds gigawatts. Resources consecutive are we of XX

the unique a believe U.S. strategically more continues the fastest-growing for company, the businesses represents proposition prospects X positioned which future largest with offers we than Energy with are we is electric outstanding our FPL, is in of one and growth. X/X in what of to that strong value best states nation's NextEra proposition utility customer deliver value believe the

renewables world's has Energy, differentiated plan the well Resources, and simple. scale, At industry in is Energy in itself an matters. NextEra which being experience the leader, capitalized

deploying in of for growth visible transmission Our opportunities are and providing businesses shareholders. renewables capital customers, X benefit for the

industry XX% we large FPL, utility customers per average. We megawatt the continue and running economy lower nonfuel on with the than of keeping growing investment value that efficiently while O&M the nation. At support bills identify for opportunities focus the and drive lowest lead in the hour Florida's to business approximately national any

generation $XX fuel FPL's over modernizing costs efficiency saved improve has to on and customers fleet since reduce XXXX. billion emphasis Our

expect roughly And FPL roughly XX% increase agreement. trend continued placing over rate we solar generation total megawatts add megawatts to over today XXXX current incremental adding X,XXX the of XXXX, expect our We XX,XXX from X% approximately to by in this into Solar by by X,XXX megawatts. and service cost-effective of to

to all and we hardened invest further are customers. continue resiliency for resilient Almost system FPL's steel to make We customers. enhance in or in towers undergrounding or and system reliability poles, grid it distribution with for transmission and continuing has to to stronger FPL's also our invest of more been concrete our

plan for visibility and growth The $XX $XX customer rate to XXXX. capital the of our value agreement provides current through extends clear billion of billion proposition

continue we to national is states through population the a of strategically with as the Florida well XXXX, growth U.S., to remains positioned, is in that one roughly Beyond double the XXXX. fastest-growing average FPL expected believe

Florida's for economy per approximately also Florida's a billion growing on XXth is were for if and the the in the is world responsible now lights of $X FPL day GDP. Florida is largest country. keeping

country. with coupled is opportunities that value the prospects, our renewables and FPL distribution transmission our infrastructure, the growth utility rate-regulated customer in long-term belief These and highest-quality support best-in-class enhance and investment proposition in

and serves key a customers. with transmission as Energy differentiator Resources' renewables deep expertise in

Driven As earnings playbook, record part Resources versus roughly and adding result development renewables of almost data-driven to placed had our storage megawatts origination, a megawatts X,XXX a in the our grew XXXX. new in XX% backlog. Energy year X,XXX adjusted XXXX, service Resources by in approximately Energy of

see strong and continues positioned to to period realize over Resources XXXX. expectations Energy demand well its development X-year is ending the

of Assuming of Energy achieve by operating XXXX. be renewable the capacity we will than countries. XX-gigawatt be installed but portfolio a range, Resources renewables the midpoint the larger all roughly the X of That would end

and from repowering, for qualify co-locating battery potentially By drive tax shareholder XX-gigawatt wind to value of is fleet, value. build our can also returns gigawatts dedicated existing years great our And footprint create optimizing of wind set. We existing maximize have footprint it interconnection and our Energy X multiple repowers; To and development excellent to our we wind existing XX% to decade extending land, shareholders. shareholders. provide roughly starting are playbook believe multiple a Resources be credits, capacity enhanced solar, opportunity roughly resulting operating and investing teams represents optimize XX storage gigawatts. existing over XX of existing underneath a Energy a new We of adding wind; additional existing the track future and record with solar wind to leveraging repowered attractive XX% in to for the of production footprint: there opportunities Resources XXXX, with and could value existing operations its cost to new date, to permits, we a have fleet. and customers

storage, By customers. likely future XXXX, operate of especially XX considering with opportunity, could to Resources long-term potential Energy of represents great co-locate to needs capacity the which gigawatts generation, battery up the a

Energy we business. the is believe leading competitive continued nation's also Resources transmission what XXXX, to build Throughout

As upgrade existing throughout or build renewables the transmission. occurs growing imperative in U.S., additional growth to there is a

was a business. XXXX our year competitive transmission for record

anticipate CAISO of deploying gigawatts investments which NextEra approximately Transmission complete double PJM, We to billion Energy was the these awarded to up enable transmission and construct projects, in roughly $X.X SPP would XXXX of business. estimate existing renewables. transmission we could XX made to new through capital in projects that the

XX% roughly significantly from towards is Resources started. Energy only just Energy shift XXXX, comprising mix, of renewables strategically is Beyond electrification. the the to getting benefit Resources With irreversible U.S.-generating positioned

double to over Renewable expected and penetration ready. Energy XX% XXXX, Resources to by is is

development XXX long-term the comprehensive ever roughly prospects. better We gigawatts Resources pipeline, positions interconnection capitalize positioned We have renewable including has substantial of storage new growth business and and is than Energy energy for the renewables most believe projects. world in to a on queue

FPL well, create to push and businesses one complement other, value be executed and our another better each Energy delivering scale Resources foster together individually innovation. and have for Both customers.

sector's into roughly in storage We placed and new and balance renewables megawatts have of strongest sheets and the X,XXX one projects of constructed service XXXX.

Xth enough on of megawatts renewable U.S. to its into energy largest and XXth capacity that as installed X,XXX own the generating context, largest rank put the To utility. renewable is company U.S.

NextEra to Turning Partners. Energy

delivering on no continue of to the September, growth Partners X% NextEra transition benefited target through growth the target XXXX. a to the We Energy at and focus decision an reduce partnership's least cost tough against plans from Last of distribution X% we when competitive made executing capital. to LP longer distribution rate

peers, its its focused improving, of growth success. rate comparable critical which a future on now cost With is capital for are partnership's to we the

equity Towards that and address XXXX obligations equity with are portfolio in to end, alternatives convertible beyond. financings remaining we the buyout evaluating

convertible portfolio and the We in the of extinguished, to that sale, NEP complete the we the portfolio closing STX due financings. The XXXX Pipeline has transition Midstream are portfolio convertible the proceeds against sufficient equity X near-term XXXX. with of addressed financing available partnership have Texas are II X Renewables the buyouts plans and been equity and has executing June

with convertible the Meade assets The financing gas expected XXXX. addressed is in portfolio equity be associated pipeline natural to third

in acquisition to to an Energy growth growth unit expect Looking Partners require ahead in until distributions X% to NextEra XXXX expect to partnership the XXXX. beyond, LP does meet the target, XXXX and not equity does not need per and

plans of and executing growth are XXXX, our through making against approximately expectations. the XXX megawatts We have against identified repowers progress wind

more been we set, Demand future. stakes Energy's about for XXXX, making customers. we yet have the renewable and on for XXXX page complex, been better about the a has about customer renewables turn sector, the head stronger, challenges NextEra optimistic and never are As higher and the opportunity even into demand never

and the Our to and power competitive industrial commercial with both us choice advantages are scale enabling be partner customers. of and

will process we will tools York our we FPL. event discuss how Beach with both investor development to then at Energy Energy XX, June our Day detail our Resources Energy development March plans for XX, greater long-term in our and Resources in and On New on And proprietary in Investor customers. illustrate Energy Juno hold NextEra discuss differentiate Resources

for leaders. future from themselves world-class to strength FPL scale and as NextEra Our leverage X the businesses, optimism that Energy's Resources, competitive and of flows advantages our Energy our differentiate

is in driven deploying transmission value capital to playbooks and of create for optimism customers. our Our proven from renewables

it team because competitive am at world-class the But by optimistic we spent far is last have our most and greatest strength. a decades X NextEra Energy, I building

improvement, providing we and together data the lives make a and have on for clean low-cost our team day. challenges our energy drive hyperfocused to team excellence solve automation continuous smart, industry. the shareholders. and importantly, of continuing with long solutions And track culture of analytics to value tough lead Most customers relying working execution, deployed and innovation, on developed better our decisions. record of that Our our breathes remains We serving long-term

it turn more me review detail. to Kirk, results XXXX let that, over the in With who will

John. Thanks,

begin with detailed FPL's results. Let's

on Gas, approximately $XXX on XXXX, versus City FPL's adjusted which earnings year after-tax results share per sale gain exclude closed FPL's full XX, Florida of the XXXX. million the the adjusted $X.XX increased November earnings For XXXX.

The principal was year driver regulatory performance of capital full employed FPL's the approximately XX.X%. growth XXXX of

FPL's agreement, runs current of expect regulatory and employed to to rate term roughly XXXX. growth X% over We X-year continue capital be the which our annual through average

reported for the will approximately full FPL's ROE year be XXXX, regulatory For XX.X%. purposes

leaving amortization, During year-end the $XXX approximately we $X.X FPL reserve year XXXX, full of used XXXX billion. of roughly a with million balance

of capital system. bringing billion. roughly were grid X,XXX successful in These fourth continued efforts a capital FPL's expenditures investments and capital underground $X roughly $X.X to approximately investments solar year our billion total the our in of its distribution the quarter, of megawatts supported commissioning XXXX, to full the hardening of

XX-megawatt fourth hydrogen During XXXX, our Energy at the successfully quarter Okeechobee of Center commercial the pilot operations. achieved Clean

plan together we facility, blend with green utilize create projects, this natural As solar it our a and at hydrogen gas reminder, to with adjacent Okeechobee to plant.

Key one of and its indicators strong, economy continues population over Florida's country. trillion, the in $X.X the is fastest upward, to an Florida's roughly now growing and Florida remains year. that the last show X.X% be trend continues increase to economy of GDP

the For XXXX, a from by growth, year sales continued retail of strong by the fourth weather-normalized increased comparable prior prior primarily customer the on which from basis FPL's quarter driven nearly X.X% increased year XX,XXX quarter.

the territory. strong from on year the growth full prior weather-normalized year also our by driven basis, in increased the sales retail service primarily customer a For XXXX, X.X% FPL

energy past Contributions XX reported XX.X% share by due adjusted years. results which $X.XX lowest new existing $X.XX driven increased resource per wind in weaker growth from strong wind to year Resources, Contributions was storage the of investments our Energy portfolio. the over from and primarily full of to turn clean by the year-over-year. growth decreased let's our assets renewables resource. share XXXX record on impact approximately per earnings by Now

results investments. higher $X.XX results $X.XX This costs customer-facing our support higher by primarily of to Our Other by in share, which was decline reflects new to costs per year-over-year. $X.XX customer new businesses. supply share increased decreased and by trading per driven per business $X.XX interest share margins of borrowing due

which for since last X,XXX of approximately megawatts ever origination, backlog, our approximately projects battery and our adding Resources Energy storage renewables our new best includes year X,XXX to delivered megawatts call.

origination looking and meet XXXX center decarbonize to or from operation uneconomic continued least-cost reflects AI power data for help serve and alternative to customers performance to and industrial Our demand strong customers replace looking commercial load generation the their their demand. and

now Energy since Resources' new projects clear placed to more provides than quarter stands XXXX beyond. backlog taking service backlog roughly account for XX and XX after at renewables our Our into shareholders into into gigawatts, gigawatt third call. believe We megawatts of X,XXX visibility ability through our deliver

the results to Energy. now NextEra consolidated for Turning

For by interest share businesses of sources. from year-over-year including flows, successfully segment operating higher credits per Other the year, driven the and our earnings as cash our growth decreased our We underlying from Corporate $X.XX primarily sale as tax supported costs. full strong in adjusted funding the by our well historical

In prove of of numerous our the flow given credits, quality its Energy tax from of to buyers excess this counterparties. We We first its transferred grew NextEra be $XXX as earnings. in XXXX, operations cash experience program. we approximately overall adjusted well size, will a competitive tax million to credit and advantage with establishing relationships look believe

we funding quarter for shared with third XXXX plans Overall, XXXX our the consistent on through the earnings information remain call.

believe to manage rate continue well is to We NextEra environment. positioned Energy the interest

is rates decline and to value shareholders. While deliver encouraging, committed to interest customers we business for in the managing the recent remain

positioned rate well our and as are to certainly customers. continue $XX.X represent environment, tailwind closely sector interest we will in rate monitor we a swaps, with interest rates believe the and we for Overall, declines billion of

financial long-term expectations Our remain unchanged.

are disappointed to if We financial at end expectation adjusted deliver and will ranges the able results in our we or XXXX, near top XXXX. XXXX be EPS of not

financial XX record years, a the has consecutive we are expectation, proud met For NextEra or its exceeded which of. is last Energy

roughly average share also operating expect compound our our annual grow above a year XXXX to at growth flow per that expect be XX% cash per at XXXX at annual we will or to continue we through to base. our XXXX, And EPS to continue XXXX off From growth dividends range. least in adjusted

assume are expectations our caveats. always, As

to Now Energy NextEra let's Partners. turn

of closed proceeds December, the sale the plan, portfolio late Pipeline net Texas approximately the providing in In Energy NextEra Partners of billion. transition $X.X of terms

stated through complete NextEra the Energy cash of Partners XXXX, million to the continue Renewables buyout expects roughly benefit and of to low as and the $XXX their respectively, from $XXX NEP II buyout date June on coupon million XXXX XXXX. partnerships minimum

at Partners' projects an well growth, available has involves megawatts are X.X XXXX. to roughly it as we additional yields. facilities of announced of as now In megawatts with XXX gigawatts attractive organic NextEra through XXX strong for wind acquiring distribution yields. plans announcing terms specifically Energy through Today, repowerings approximately assets growth of XXXX partnership The cash approximately as reminder, repowers a wind of repower of plan,

cash expect need which does attractive LP to generate partnership the are wind While roughly X% in distribution available not to megawatts part XXXX, for acquisition an of of the in growth repowers, yield. target expected is distribution supported with XXX

Finally, we XXXX. to its mid-December. fourth $XXX corporate allowed the partnership refinancing in opportunistic pay was during the which of were pleased issuance high-yield revolver the of quarter completed with This million, off note

turn growth Partners. Let financial additions cash the was Fourth by fee quarter EBITDA and asset now was due million. for distributions Energy while cash prior $XX to quarter $XXX Adjusted new NextEra primarily year for was the debt impacted results the available and distribution right distribution EBITDA versus comparable service. million, me incremental suspension, for also incentive available adjusted was to

full adjusted right For primarily billion, the and year the from XXXX, contribution the XXXX up distribution incentive was and by was in and XXXX during XX.X% approximately suspension. late EBITDA year-over-year, fee new projects driven $X.X acquired

existing and million, EBITDA adjusted $XXX was partially approximately approximately year-over-year. million This by the a weaker added wind added $XXX investments growth fee projects distribution by offset of resource. driven suspension decline incentive from primarily right New

the the for partially suspension incentive being offset by resource. Cash of distribution full driven million, million approximately and was fee while right million contributions $XX distribution projects and wind year new by the weaker for primarily available $XXX $XXX from of

reflects unit per third on quarter X% per NextEra grew common Energy unit annualized LP or an a distributions per distribution of annualized quarterly declared by partnership Board X% The Partners XXXX year-over-year. more distribution its the its than of which unit. $X.XX increase basis, Yesterday, an unit per from $X.XX

From X% continue unit, year being updated of per X% per as of target at see quarter expectations growth at our year annualized per a unit we base range an distribution to rate growth XXXX common reasonable $X.XX, X% with an fourth of distributions least per a to of LP in current through XXXX.

We the mid-XXs the to partnership's continue XXXX. in payout expect ratio through be to

distribution fourth be payable rate XXXX common in the per $X.XX unit. the that XXXX annualized expect February to quarter We of is

$X.X Energy billion to expectation the XXXX. NextEra year billion for run available range calendar portfolio rate range of of cash million is the adjusted December reflecting million, XX, $XXX EBITDA expectations year-end XXXX, to and in $XXX Partners XXXX a introducing for distribution in at forecasted $X.X for

As a caveat. reminder, our expectations to our are subject

That prepared that, remarks. will our for concludes we the with questions. And open line

[Operator question will Partners. of Guggenheim Instructions] first Pourreza And from come our Shar

on okay. if starting Just NEP, it's

Just it's downs about help status sort And growth looking announced, that? the to whether importantly, when investors funding in or sort thinking do you organic guess, update is financing that the more buy you the equity And repowering Could projects, plan directly on issues? higher NEP the guess, on I I opportunities really of any you are there could money how specific these be pool in into to of on drop solve at growth level? 'XX it?

Sure.

with there. that can tax standpoint transferability project equity. to on from as pair as financing project the we with repowering, X we it We options Shar, look at So really There's at and look it -- look at or that can respect level. a

the that of both time repowerings. will at at decide the options those and So we of look

right to question, we're now. looking respect all there's options your With at second --

all goal remarks, but convertible terms are time There's really due the exploring value. the in of said are a XXXX number opportunities maximizing a that in with unitholder coming not and the of now, looking beyond. for we -- the prepared frame addressing in options update portfolio alternatives really are financings of John we and equity in at As

And Shar, John. this is

a to we provide on And we're alternatives. the think but one it on different raises Just just NEE, be as lot options, like equity That capital would Again, the adding looking do repowers, that. of number private mean, of at just us finance. of tax I at a project and with them. about again,

been any updates look investigation? you communicated John, case? Perfect. the haven't assuming the anything FEC. to regarding Okay. would from lastly, of then Has up settle, we you sort had the sort to quickly How And they of take

thinking of right, the And as process, confidential. we're it's kind about

say? an we communication investors how concurrent FEC steps? update on see we Or and you're future curious or pickup the on and So in the process you going could investors. press a to single confirming a a next X-K update see on the Would let's that from FEC release you'll settlement,

just to trying laid and an ruling this long case all could groundwork assuming already overhang, get I'm this a assess this the the kind for forward quick whether pass moves out. how of options you've be to comes when

question, the Shar. for Thanks Yes.

those in So order. let take me just

of First there's no update. all,

by to group guidelines that usually a first have XX remind months response as that been these November is investors would to of I you. CREW no or may you been if you an find follow are the just that historical us. But to guess, FEC, all, received learn prescribed give believe a of filed having there's And decides claim in the it's would FEC investigation. by you to not first of I the terms the precedent back the in not contacted you We think, they there mean, FEC I'm had after is the a And timing, FEC. what been XXXX. are that I notified call time going the to you of to line XX of whether it, to providing complaint, FEC we conduct reason originally of called filed, ought just recall,

We heard regard. the FEC in from have that anything not

million. The is not Again, totaling roughly to investors these this second of allegations, contributions remind material. $X.X of would is political $X.X were million X thing I

dollar we update how investors about hear exactly what on and amounts. would FEC. talking we we're would when the depend smaller So And from

Steve Fleishman Wolfe of Research. question The next from comes

of I questions. big-picture couple guess, a

sustainability how of in to focus First, you're 'XX. the obviously, IRA of the event as elections now in in about trifecta, more we're lot Republican the just curious And speak, provisions. thoughts thinking a so your

Steve. Sure,

go is take that. ahead Let and John. This me

in administrations credits, XX as appeal all, or we've been the company, the seen here. form we've talking they've years changed seen IRA I've what change at of never and matter form we're we've is changes in no taken. the Congress, a about First of tax

that's first make. So I would the point

really law. existing to it's hard overturn Second,

matter very I the that. think ObamaCare good is example political just what no are. a winds It's of difficult, very

point and benefit that you reasons made where The of is states for of the these I flowing sides benefits a is it where would states. has is advantageous a and we're think because talking benefit flowing, but It the the states, around IRA to to IRA flowing third lot Republican to big make economically. the to that if of about difficult rural it's aisle. about both those communities for Democrats, obvious really Republicans IRA in of it's stimulate also certainly investments are parts And are being

communities. the base in And We're when we an for we it's property in that build the providing complete form these we sales and a providing wind turnaround economic revenues. of battery jobs. economic build economic come in form build storage We're project, spending an project, a base we of of occurs a so form project, tax a We're in the solar taxes and providing an base community. that in

for their communities difference going rural a and huge viability XXXs These forward. make these are on

mean, paying have salaries. Just the hospitals teacher and staffing county I or significant property think revenues benefits. about at tax hospitals doctors

aisle. for been always And we've reasons, the able work those of sides with so to both

as IRA being of repeal any unlikely. see So

questions guess, big-picture I other business. And on renewables X the Okay.

your color on your on strategy proposed -- rules data also center of the thoughts, and out? thoughts on hydrogen kind after came based that Just any new the

Steve, it's Rebecca.

enormous lot on And the in First of data but clearly, generative by at growth explosive data that economy driven the there's point. by course, AI. this demand amount of centers growth of specifically across driven an centers, the pretty a being U.S. is things,

where the they've And bit approaching these these companies, I they commitments to is a and, in their a made they're that and opportunity customers because able energy get driving of characteristics ways little the marketplace produce the different on it meet for is think so budget stakeholders. and number if unique to expecting of the time, significant projects that cost of course, power own these on for imperative built that the are demand that aren't them technology

So and just ensure they also of seeing capacity deepen, where relationships energy expand with megawatts their projects. period that the they it working that collaboratively not the day, those need but a long signing they need also over to we're get to where it's of support and them the time

Just alone tip of in again, installed, even we're the we do about our X that in already And that's believe not have what for iceberg years counting backlog, gigawatts customers. even of over installed. we these we coming have the projects have I building and, not the talking what

projects first pretty excited in our the it's came team be ultimate hydrogen really match and exciting, with guidance years So customers, And X we're on in day essentially that, course, of these guidance very ingrained about ahead. And really and an that to the is working will then of hourly turning out, is hydrogen, obviously, steering the cost from December hydrogen. needing that basis. towards the draft to increases

will And We're it a currently hydrogen can for you more and much then hourly more a market. be stands U.S. obviously of matching kick-start as transitioning the a time limit extent unfortunately, an built how over so would an drafted market. for to period relaxed that I for to of requirements advocating annual time, if of match think and

to administration the the which, excited will meeting over know further decarbonization kick-started hopefully, their economy we hydrogen and time. are very about of a see ambitious goals, of And the full course, hear having economy that will U.S. certainly that

are to end-of-the-decade-type probably So be more Regardless, pursue done, projects. work marketplace. and we're excited the to these

an in term. of near long more in term the investment the So opportunities for

David from question Arcaro next comes Morgan The of Stanley.

lower little quite quarter, renewables storage give bit you're side the wind the little guess, what's a side the of targets, and the the particularly bit in origination you and it 'XX in like but Maybe could bookings added. on confidence new of Maybe a latest wind terms then your 'XX looked business? achieving more those solar seeing? trends detail in strong on on I of the demand that things,

obviously Dave, cut it's a about the at We're Rebecca. take origination. that. first I'll excited

and gigawatts have Kirk a record. years both last John X originating years the highlighted, XX as over and As serving

topping exciting. record So last year, is this year's very

of phase an more of solar think the going over production XXXX, time. demand the being period to go tax that focused we and as course, past, see I've this ultimately towards then a also, saw of strong and into the and aftereffect the mix We credit commented I storage. is that X in And ultimately when thought others we of some would down

second of that short the demand. And And stimulated very there impacted credit the that production we're pull think then demand about So the term a I customers. and excited for deployments that. has dynamic clearly tax obviously, forward our was near-term solar is

they really would our highlighted respond quickly, their position the characteristics the to at as growing through is not thought, in the see capacity remarks, Midwest. our demand we're even in adoption, way quickly that a but seeing that the just where be markets, we've advantaged well perhaps a spreading expectations terms got, the of in they Western And hadn't John where business. demand exceeding as need anticipated prepared very able we Storage now in really customers in to to as constructive least underlying

well. And value to much that And certainly a them very a like streams. customers about characteristic wind we're market, talked our an as the so and is returns complex are serve from deliver the that and standpoint, various premium is there is and looking in getting for to lot priority, quickly storage awful a to market we've

extending economics when part economics And is least laid as and specifically other say we're context of we incremental value anticipated to of the at at often out I'd that time generation strong is extending and the our the the some contracts our do life same with about we expectations customers, the excited the customers brings these projects, in that the to it repowering. that, bringing as that repowering. we

at technologies overall, cycle, individual recall, maybe be couple wind not context, in years, in leaving in I very to about So all feel a for a the I'm to continue point, we've expectations obviously had We'll we're to groundwork time. in reflect development laying the to look development actual meeting build now project. with mix over ranges those a the the sure them aggregate. as is of at short able But really part this what you comments good our

and But as as turbines X when service contract be acquire it a and into months. put the short we can enter into

time there's to a end still to not of to add ultimately wind the backlog 'XX of left now the commission. more but lot and between So -- the only

look couple them on, to some feel opportunities forward and the working of are are at those bringing And a couple I our good -- chunky I quarters, fruition. there teams about of of when

secondarily, just maybe potentially, the has Very space. And small the for it sounds Excellent. in development And share seeing be pipelines -- more result. challenging might market that developers a backdrop renewable from then like if gain for now? right any to as up gotten struggling developers opportunities helpful. you're pick Wondering

where but development bigger it a project have to, our create market to customers us, we opportunities presence work opportunistic Sure. so closely dynamic We we're and ago of of always in market. where certainly they to side, years haven't are acquisition attractive. The the prioritized would acquired the out holistically term come looking long of couple make be market. we've seen with selective say, folks development development where portfolios the part will our of need projects by development But in years, always back those the greenfield our that rights were portfolio the with and building the to on them. over be In I from couple a we particularly a be ability because sure number may really in recent compete

may cycle aligned the and quickly need isn't necessarily think know able where with sometimes cycle you of bit are a realize patient. private you bit a capital to the be completely slower over I time. I be and over than change things to to equity development wanting anticipated, little turn faster, that little

competitive about well, in years next we the development our in to this standpoint X, from am team So X on talk working keep for development be all, next can you road. that that March, our most often own opportunities. But -- hands. to the the as there'll of but advantages our make X -- on sure investing and we is I'm super not down want serve customers the XX greenfield opportunities our the or optimistic plus X, what we're you our one and things about that a in is we'll with excited fate in focus importantly, I just we And is years

from The Carly comes next question Davenport Sachs. of Goldman

Wanted to transmission. about just ask

highlighted piece as $X.X higher well. EBITDA And the contribution the we as You look XXXX is at NEER billion moving that at of XXXX, capital NEE. through for at

a what contribution talk just see be and over next over about what that time? the could then several of you So years growth sort could at you bit NEE could EBITDA

transmission Carly, the doubt appreciate, perspective, pipeline opportunities of you to no from come so to a years fruition. take couple the -- as

last secure with the has thrilled been to team awards the we're the year. So that in able

part into investments U.S., and of enabling expansion we other building processes. of that opportunities the that that on California one through parts opportunities market; new development are then already have, competitive headed On so competitive significantly the we it, won renewables

timing, dates to out terms the XXXX. prepared of In as we in in-service remarks, the highlighted are

and stand those obviously, to to others we we invest more solutions as cost-effective to and like we to extent contribution breakdown the order So highlighted, a transmission what give investor United wherever we material give as can contributions and we'll terrific. as bring over to to the everybody will of built. that that across renewables be business a the we've a in that momentum over not understands, unlock be will as capital, maybe States, more start to think solution ready opportunity And But do, typically by it's customers. needs get time. we happen. become the the we time. But look be And we to into color more going see And part is the of conference, of

the Great. more on And maybe year. financing just then one side this for

use Just each think tax do based of the tax transferability? that about How equity plans in seen on thinking the the mix through far sort whether 'XX? markets, for how we credits, are so your you financing monetize different you of about to or you've what can those of avenues the in of magnitude

we're we Kirk. quarter The as third -- Carly, in this shared approach we Yes. on the remarks, is we plan, information the financing shared call. we as finance also tax -- equity. it's will seeing -- transferability encouraged and with but use we're what the historical options, market. approach those And with project very consistent prepared by And is the our -- the is

we in and at are -- between we'll and those within we'll we're and as project having we the We that plan look demand between ranges we for going the expect forward. we with progress the shared between continue good optimize option really transferability really as an credits good that But really, equity. to the to use And those disclosure ultimately, NextEra 'XX tax Energy in options, that we really the provided for transferability demand finance all tax credit. And are funding to 'XX seeing provided. conversations, those and good -- utilize seeing those

The Jeremy next from comes Tonet of question JPMorgan.

the before. build growth? relative to were wealth that what dividend off forward, balance, wanted associated little opportunities bit, funding you Just How and needs guess, the looking of a you talking about to I do growth

business point as at that just in Do increases? and final price might wondering how you a capital for environment. for everything trends just And against lower the there, that look have growth CapEx you else E&P at change utility all competes industry dividend how a gas

Sure.

when business. levered low returns a we within shared -- Energy at the -- solar, basis. we we And see call that then for And In see wind, in returns the then look allocation also on mid-teens. Resources the the the the in capital storage at within we you at renewable see and XXs on in ROE look we quarter -- shared is we XXs. we as low returns So third

renewable to John transmission. allocated with across we are priority -- that the is remarks, prepared And that we renewables look is allocating And we capital great so And returns. the as it's -- businesses in that that allocate business. And discussed -- in to get both and capital. the way tends the capital that

in that project tax we've traditionally the of transferability it's terms funding the and funded of business. use equity, again, then finance, it's provisions. It's also that, then And the we way the

X pivoting a but it. a the I there in that's more And towards in additions the was backlog. a in And little little quarter, just the XX. of Got bit then was fell time post-XXXX little bit there bit backlog, frame that the lot a maybe out, think,

just more within and of puts a So some if portfolio on addition over kind takes could of composition you the time. bit the wondering talk the drivers,

I'll Sure. take that.

specific thrilled of and terms that. quarter, we are in backlog this strong, for really had, items. the that the In removal terms additions of obviously, quite project the -- we're it's about And

for related bit project do little a particular part, in Very removing projects. we're costs one to through back back. to these we megawatts it's and where likely, need But they're them work. the In interconnection come issues. work while higher good we a project In the really will go near backlog, more term, the

what as I excited tremendous we And forward projects time. to based backlog, to something We about add think that the we we're the it's mind on visibility. -- it's really with in keep important know moving at the

significant there work occasionally, some But you to have those through are things project. and And before commit of this you things through to development work are better. a that we business, capital still is a that

ultimately that to a are And time need decisions make for the need little them. right Sometimes, to we we worse. bit shareholders that make our at they're the

about So issues pressures the the X in rates. development it's interest in years and of and over countervailing is changes rate gigawatt that for of the we for context kind around changes inflationary think we've through minimis the de to talked antidumping in the related marketplace And normal last a duties significant the what issues. XX-plus fortunately, I type portfolio, run the worked

and normal do thing where we're from right think development. there's something only changes capital at view Every commit perspective going in this a project. like a we're kind the our while, I to on makes shareholder And in it once point, So of a specific sense. that

today's also conference concludes you our for The has concluded. attending session. you may disconnect. now question-and-answer presentation, This and now Thank