Nextera Energy Partners ( (NEP) ) has released its Q4 earnings. Here is a breakdown of the information Nextera Energy Partners presented to its investors.
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XPLR Infrastructure, LP, a limited partnership based in Juno Beach, Florida, focuses on owning and operating clean energy infrastructure assets, with a portfolio that includes wind, solar, battery storage projects, and contracted natural gas pipeline assets in the U.S.
In its latest earnings report, XPLR Infrastructure announced a strategic shift in its business model from an acquisition and distribution approach to reinvesting retained cash flows into existing assets and other attractive investments. This shift includes suspending distributions to common unitholders indefinitely, which aims to eliminate the need for equity issuances and optimize cash flow allocation.
The company reported a fourth-quarter net loss of $101 million, attributed to a $194 million impairment of goodwill, but also achieved an adjusted EBITDA of $483 million for the same period. For the full year 2024, XPLR Infrastructure posted a net loss of $10 million and an adjusted EBITDA of $1.959 billion. The strategic repositioning involves plans to buy out selected convertible equity portfolio financings and invest in existing assets to achieve double-digit unitholder returns.
Looking ahead, XPLR Infrastructure expects its adjusted EBITDA for 2025 to remain flat year-over-year, with an anticipated range of $1.75 billion to $1.95 billion in 2026 due to the expected sale of the Meade pipeline investment. The company is also setting expectations for free cash flow before growth to be between $600 million and $700 million in 2026, maintaining consistency through the decade to support capital allocation decisions that benefit unitholders.
Overall, XPLR Infrastructure’s management anticipates that the strategic changes will enhance financial flexibility, allowing the partnership to capitalize on growth opportunities in the clean energy sector while maintaining strong relationships with key stakeholders such as NextEra Energy.
