NextEra Energy Partners has entered into an agreement with a subsidiary of NextEra Energy Resources, LLC to acquire a 50% interest in an approximately 2,520-megawatt (MW) renewables portfolio. In conjunction with the acquisition, NextEra Energy Partners has also entered into an approximately $824 million convertible equity portfolio financing with Apollo Global Management.

"The transactions announced today support NextEra Energy Partners' continued ability to execute on its long-term growth plan and access attractive low-cost sources of capital," said Jim Robo, chairman and chief executive officer. "The acquisition of the high-quality, long-term contracted renewable energy assets extends the partnership's geographic footprint into three new states and expands its ownership of battery storage assets, which would total nearly 90 megawatts at close. Additionally, the convertible equity portfolio financing we are announcing today is the lowest cost in the partnership's history, with a more than 250 basis points lower implied return to the investor in the buyout price than the first iterations of the structure in 2018 and early 2019. This significant access to low-cost capital and access to NextEra Energy Resources' industry-leading renewables portfolio enables NextEra Energy Partners to be uniquely positioned to take advantage of the clean energy transformation and meet its long-term growth objectives."

Portfolio acquisition details

The contracted renewables portfolio of wind, solar and solar-plus-storage assets has a strong and diverse mix of investment-grade counterparties and cash available for distribution (CAFD)- weighted remaining contract life of approximately 19 years. The portfolio to be acquired by NextEra Energy Partners consists of 50% of the indirect membership interests in:

• White Mesa Wind, an approximately 501-MW wind generation facility in Texas.
• Irish Creek Wind, an approximately 301-MW wind generation facility in Kansas.
• Hubbard Wind, an approximately 300-MW wind generation facility in Texas.
• Cool Springs Solar, an approximately 213-MW solar generation and 40-MW solar storage facility in Georgia.
• Little Blue Wind, an approximately 251-MW wind generation facility in Nebraska.
• Dodge Flat Solar, an approximately 200-MW solar generation and 50-MW solar storage facility in Nevada.
• Elora Solar, an approximately 150-MW solar generation facility in Tennessee.
• Quitman II Solar, an approximately 150-MW solar generation facility in Georgia.
• Fish Springs Ranch Solar, an approximately 100-MW solar generation and 25-MW solar storage facility in Nevada.
• Minco Wind Energy III, an approximately 107-MW wind generation facility in Oklahoma.
• Ensign Wind Energy, an approximately 99-MW wind generation facility in Kansas.
• Borderlands Wind, an approximately 99-MW wind generation facility in New Mexico.
• Quinebaug Solar, an approximately 49-MW solar generation facility in Connecticut.

NextEra Energy Partners expects to close the acquisition later this year or in early 2022, subject to customary closing conditions and receipt of certain regulatory approvals.  

Outlook

NextEra Energy Partners continues to expect to be in the upper end of its previously disclosed year-end 2021 run-rate adjusted EBITDA and CAFD expectations ranges of $1.44 billion to $1.62 billion and $600 million to $680 million, respectively. The current year-end 2021 adjusted EBITDA and CAFD expectations ranges exclude contributions from the approximately 1,260 MW of acquisitions that the partnership is announcing today due to uncertainty in regulatory approval timelines. These contributions are included in the partnership's previously disclosed year-end 2022 adjusted EBITDA and CAFD expectations ranges.

KeyFacts Energy: NextEra Energy US country profile