Fourth Quarter 2015 Release

NextEra Energy, Inc. and NextEra Energy Partners, LP 2014 release
January 27, 2015
Q4 2014 ReleaseQ4 2014 Presentation Q4 and Full-Year 2014 RemarksFourth Quarter 2014 Financial Statements
Webcast Presentation      
  • NextEra Energy delivers strong fourth-quarter results and an excellent full year of growth
  • Florida Power & Light Company continues to invest in the business to improve customer value proposition
  • NextEra Energy Resources brought into service more than 1,600 megawatts of new contracted renewables

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2014 fourth-quarter net income attributable to NextEra Energy on a GAAP basis of $884 million, or $2.00 per share, compared to $327 million, or $0.75 per share, in the fourth quarter of 2013. On an adjusted basis, NextEra Energy's fourth-quarter earnings were $458 million, or $1.03 per share, compared to $414 million, or $0.95 per share, in the fourth quarter of 2013.

For the full year 2014, NextEra Energy reported net income attributable to NextEra Energy on a GAAP basis of $2.5 billion, or $5.60 per share, compared to $1.9 billion, or $4.47 per share, in 2013. On an adjusted basis, NextEra Energy's 2014 earnings were $2.3 billion, or $5.30 per share, for the full year, compared to $2.1 billion, or $4.97 per share, in 2013.

Adjusted earnings for these periods exclude the mark-to-market effects of non-qualifying hedges, as well as the net effect of other than temporary impairments (OTTI) on certain investments and operating results from the Spain solar project. Adjusted earnings for the full year also exclude the 2013 gain on the sale of the Maine hydropower assets, the 2013 loss and the 2014 gain associated with the Maine fossil assets, and the 2013 charges associated with an impairment on the Spain solar project. All of these items relate primarily to the business of NextEra Energy Resources, LLC and its affiliated entities.

NextEra Energy's management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, for analysis of performance, for reporting of results to the board of directors, and as an input in determining performance-based compensation under the company's employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its financial results and earnings outlook to analysts and investors. NextEra Energy's management believes that adjusted earnings provide a more meaningful representation of NextEra Energy's fundamental earnings power. The attachments to this news release include a reconciliation of historical adjusted earnings to net income attributable to NextEra Energy, which is the most directly comparable GAAP measure.

"NextEra Energy delivered strong performance in the fourth quarter, capping off an outstanding year overall," said NextEra Energy Chairman and Chief Executive Officer Jim Robo. "At FPL, continued investment in the business and an expansion in wholesale operations drove full-year earnings growth. Our highly efficient Riviera Beach modernization came into service ahead of schedule and contributed to reducing fuel costs for our customers. Our significant investment in new grid technologies showed clear reliability benefits for our customers. At Energy Resources, we attained our full-year financial expectations, while absorbing roughly $0.15 per share of a one-time impact from the launch of NextEra Energy Partners. At the same time, we had one of our best years ever in originating new investment opportunities and continue to build what we believe is the largest and best pipeline of new contracted renewables projects in North America. Stronger-than-expected demand for new renewables projects also highlights the long-term value of NextEra Energy's incentive distribution fees through its sponsorship of NextEra Energy Partners. We also made good progress in moving forward with the development of the Sabal Trail and Florida Southeast Connection pipelines, which will bring diversity of gas supply to our FPL customers and increase overall system reliability. Finally, our agreement to combine with Hawaiian Electric Industries reflects our strategy to grow earnings through regulated businesses and to leverage our position as North America's leader in wind and solar generation."

Florida Power & Light Company
NextEra Energy's principal rate-regulated utility subsidiary, Florida Power & Light Company, reported fourth-quarter net income of $286 million, or $0.65 per share, compared to $248 million, or $0.57 per share, for the prior-year quarter. For the full year, net income was $1.52 billion, or $3.45 per share, compared to $1.35 billion, or $3.16 per share, in 2013. FPL's fourth-quarter and full-year earnings per share increased approximately 14 percent and 9 percent, respectively, over the prior-year comparable periods.

Driving FPL's fourth-quarter and full-year growth were continued investments in clean, efficient generation and other infrastructure projects and an increase in wholesale power sales. FPL's capital expenditures were approximately $832 million in the quarter, bringing full-year capital investments to approximately $3.1 billion. Regulatory capital employed in 2014 grew 5.8 percent, compared to the prior year.

FPL averaged approximately 68,000 more customers during the fourth quarter of 2014 than in the comparable prior-year quarter. The 12-month average of low-usage accounts fell to 8.2 percent, while the number of inactive accounts declined approximately 15 percent from the prior-year quarter. New meter connections continued to show steady improvement by increasing approximately 47,000 in 2014, which is more than 20 percent higher than the prior year. Underlying usage per customer in the fourth quarter declined by 5 percent year-over-year, largely due to unfavorable weather, but weather-normalized usage per customer grew slightly.

These improved customer metrics are consistent with improving Florida economic indicators that the company tracks. The state's seasonally adjusted unemployment rate in December 2014 was 5.6 percent, down 0.7 percentage points from a year earlier, even as the labor force participation rate increased, and Florida's Consumer Sentiment Index reached its highest level since February 2007. In addition, the U.S. Census Bureau reported that Florida's population increased by more than 290,000 people over the 12-month period that ended July 1, 2014, reaching 19.9 million and moving Florida ahead of New York as America's third-largest state.

Over the course of 2014, FPL continued to strengthen and deliver a customer value proposition that includes high reliability, award-winning customer service, a clean emissions profile and the lowest typical residential customer electric bill in Florida. FPL continued to execute on major capital projects, including bringing the Riviera Beach Clean Energy Center into service last April, ahead of schedule and under budget. In addition, the Port Everglades Clean Energy Center remains on schedule and on budget, and is expected to come online in mid-2016. In total, since 2001, FPL's investments in clean, fuel-efficient power plants have saved customers more than $7.5 billion in fuel costs and helped reduce the company's use of foreign oil by 99 percent. These investments have also enabled FPL to significantly reduce power plant emissions rates and have prevented more than 85 million tons of carbon emissions to date. FPL now operates one of the most modern, clean, fuel-efficient and low-carbon generation fleets in the nation.

In addition, FPL's operational excellence continues to support low customer bills, including typical residential customer electric bills that are approximately 25 percent lower than the national average. Beginning in 2015, FPL's typical residential customer's electric bill further decreased by nearly $2 per month.

In December 2014, the Florida Public Service Commission (PSC) approved FPL's request to begin investing in long-term natural gas supplies. FPL will partner in the development of gas-producing properties in the Woodford Shale region in southeastern Oklahoma. FPL expects this project will save money for customers over the long term and help to reduce variability in the fuel portion of the customer bill, which research shows is an important component of customer satisfaction. This investment represents a first, small step in what FPL expects could become a larger program that would further improve the value it delivers to its customers. FPL also requested that the PSC approve a set of guidelines for subsequent natural gas production projects that would allow the company and, in turn, its customers to take advantage of future beneficial natural gas investment opportunities. FPL expects a decision on the proposed guidelines in the first quarter of 2015.

NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a fourth-quarter contribution to net income attributable to NextEra Energy on a GAAP basis of $614 million, or $1.39 per share, compared to $85 million, or $0.20 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources' earnings for the fourth quarter of 2014 were $178 million, or $0.40 per share, compared to $173 million, or $0.40 per share, for the fourth quarter of 2013. For the full year 2014, NextEra Energy Resources reported net income attributable to NextEra Energy on a GAAP basis of $985 million, or $2.24 per share, compared to $556 million, or $1.30 per share, in 2013. On an adjusted basis, NextEra Energy Resources' earnings were $833 million, or $1.89 per share, compared to $780 million, or $1.83 per share, for the full year 2013. Adjusted full-year results include a negative $0.15 per share impact associated with establishing and launching NextEra Energy Partners, LP (NYSE: NEP). This includes a $0.10 per share non-cash income tax charge, driven by separating the Canadian projects to enable them to fit into the overall NextEra Energy Partners structure.

NextEra Energy Resources' contribution to adjusted earnings in the fourth quarter was flat from the comparable prior-year quarter. Strong growth from new contracted renewables projects and improvements in customer supply and trading were offset by reductions from gas infrastructure and from existing assets, with two of Energy Resources' four nuclear units undertaking regular refueling outages.

Primary growth drivers for NextEra Energy Resources for the full year were strong contributions from new wind and solar investments. Growth in the contracted renewables portfolio added $0.29 per share, reflecting new wind and solar investments placed into service, while existing assets added $0.06 per share. The customer supply and trading business added $0.04 per share year-over-year. Asset sales added $0.01 per share year-over-year. Costs associated with establishing and launching NextEra Energy Partners reduced results by $0.15 per share. Lower contributions from the gas infrastructure business decreased earnings by $0.06 per share year-over-year. All other factors reduced results by $0.13 per share, including $0.07 per share of dilution.

During the course of 2014, NextEra Energy Resources added 1,364 megawatts (MW) of wind and 265 MW of solar.

Corporate and Other
In the fourth quarter on a GAAP basis, Corporate and Other earnings decreased $0.02 per share, compared to the comparable prior-year quarter. On an adjusted basis, Corporate and Other earnings per share were flat, compared to the prior-year quarter. For the full year 2014, Corporate and Other earnings decreased $0.10 per share on a GAAP basis, compared to 2013. On an adjusted basis, full-year 2014 Corporate and Other earnings decreased $0.02 per share year-over-year.

The Sabal Trail Transmission and Florida Southeast Connection natural gas pipeline projects continue to progress well through the development process. In 2014, both projects filed their certification applications with the Federal Energy Regulatory Commission (FERC). The company continues to expect FERC decisions in 2015, which would allow construction of the proposed interstate pipeline system to begin in 2016 and operations to commence in mid-2017.

The Mountain Valley Pipeline joint venture with EQT Corporation continues to progress through the permitting process. The joint venture completed a binding open season for the approximately 300-mile Mountain Valley natural gas pipeline project, which is designed to connect the Marcellus and Utica natural gas supply to markets in the U.S. Southeast to support growing demand and to improve reliability. The project is expected to be operational by year-end 2018.

Outlook
NextEra Energy continues to expect full-year 2015 adjusted earnings per share to be in the range of $5.40 to $5.70. NextEra Energy now expects 2016 full-year adjusted earnings per share to be in the range of $5.75 to $6.25.

NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, as well as net OTTI losses on securities held in NextEra Energy Resources' nuclear decommissioning funds, none of which can be determined at this time, and operating results from the Spain solar project. In addition, adjusted earnings expectations assume, among other things: normal weather and operating conditions; continued recovery of the national and the Florida economy; supportive commodity markets; current forward curves; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; access to capital at reasonable cost and terms; no divestitures, other than to NextEra Energy Partners, LP, or acquisitions; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.

As previously announced, NextEra Energy's 2014 fourth-quarter and full-year earnings conference call is scheduled for 9 a.m. ET today. Also discussed during the call will be financial results for NextEra Energy Partners, LP (NYSE: NEP). The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/Investors. The financial results news release and the slides accompanying the presentation may be downloaded at www.NextEraEnergy.com/Investors, beginning at 7:30 a.m. ET on the day of the webcast. A replay will be available by accessing the same link as listed above.

This news release should be read in conjunction with the attached unaudited financial information.

NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $17.0 billion, approximately 44,900 megawatts of generating capacity, which includes megawatts associated with noncontrolling interests related to NextEra Energy Partners, LP (NYSE: NEP), and approximately 13,800 employees in 27 states and Canada as of year-end 2014. Headquartered in Juno Beach, Fla., NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves approximately 4.7 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which, together with its affiliated entities, is the largest generator in North America of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been named No. 1 overall among electric and gas utilities on Fortune's list of "World's Most Admired Companies" for eight consecutive years, which is an unprecedented achievement in its industry. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

Cautionary Statements and Risk Factors That May Affect Future Results

This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning adjusted earnings per share expectations and future operating performance. In some cases, you can identify the forward-looking statements by words or phrases such as "will," "may result," "expect," "anticipate," "believe," "intend," "plan," "seek," "aim," "potential," "projection," "forecast," "predict," "goals," "target," "outlook," "should," "would" or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and FPL and their business and financial condition are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements, or may require them to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL to recover in a timely manner any significant amount of costs, a return on certain assets or an appropriate return on capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory and economic factors on regulatory decisions important to NextEra Energy and FPL; disallowance of cost recovery by FPL based on a finding of imprudent use of derivative instruments; effect of any reductions to or elimination of governmental incentives that support renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources) or the imposition of additional taxes or assessments on renewable energy; impact of new or revised laws, regulations or interpretations or other regulatory initiatives on NextEra Energy and FPL; effect on NextEra Energy and FPL of potential regulatory action to broaden the scope of regulation of over-the-counter (OTC) financial derivatives and to apply such regulation to NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal regulation of their operations; effect on NextEra Energy and FPL of changes in tax laws and in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget; impact on development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements; risks involved in the operation and maintenance of electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities; effect on NextEra Energy and FPL of a lack of growth or slower growth in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; threats of terrorism and catastrophic events that could result from terrorism, cyber attacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; inability to obtain adequate insurance coverage for protection of NextEra Energy and FPL against significant losses and risk that insurance coverage does not provide protection against all significant losses; risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by NextEra Energy Resources to manage properly or hedge effectively the commodity risk within its portfolio; potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-term contractual basis; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas by FPL and NextEra Energy Resources; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; failure of NextEra Energy or FPL counterparties to perform under derivative contracts or of requirement for NextEra Energy or FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of derivative instruments and limited liquidity in OTC markets; impact of negative publicity; inability of NextEra Energy and FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; increasing costs of health care plans; lack of a qualified workforce or the loss or retirement of key employees; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; environmental, health and financial risks associated with NextEra Energy's and FPL's ownership and operation of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units through the end of their respective operating licenses; liability of NextEra Energy and FPL for increased nuclear licensing or compliance costs resulting from hazards, and increased public attention to hazards, posed to their owned nuclear generation facilities; risks associated with outages of NextEra Energy's and FPL's owned nuclear units; effect of disruptions, uncertainty or volatility in the credit and capital markets on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; impairment of NextEra Energy's and FPL's liquidity from inability of creditors to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; and effect of disruptions, uncertainty or volatility in the credit and capital markets of the market price of NextEra Energy's common stock. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2013 and other SEC filings, and this news release should be read in conjunction with such SEC filings made through the date of this news release. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.

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