NextEra Energy Partners, LP announces agreement to acquire an approximately 1,080-megawatt net interest in a portfolio of long-term contracted renewables projects and enters into new convertible equity portfolio financing

Announces agreement to acquire a 49% interest in an approximately 1.5-gigawatt renewables portfolio and approximately 100% of the indirect membership interests in an approximately 345-MW portfolio of operating wind assetsEnters into agreement for a 10-year convertible equity portfolio financing for $805 million that includes the newly acquired assets plus six existing NextEra Energy Partners' wind projects

NextEra Energy Partners has entered into an agreement with subsidiaries of NextEra Energy Resources, LLC to acquire a 49% interest in an approximately 1.5-gigawatt renewables portfolio and approximately 100% of the indirect membership interests in an approximately 345-megawatt (MW) portfolio of operating wind assets. Immediately following the acquisition, NextEra Energy Partners will contribute its interests in the newly acquired projects and in six existing renewables assets to a new portfolio. In conjunction with the acquisition and creation of the new portfolio, NextEra Energy Partners has entered into a convertible equity portfolio financing with Ontario Teachers' Pension Plan Board (Ontario Teachers'), a leading global infrastructure investor, to invest $805 million into the new portfolio.

"The transactions announced today demonstrate NextEra Energy Partners' continued ability to execute on its long-term growth plan and continued access to attractive low-cost sources of capital," said John Ketchum, chairman and chief executive officer. "The acquisition of the high-quality, long-term contracted renewable energy assets further enhances the diversity of the partnership's existing portfolio. Combining this acquisition with the recapitalization of six existing NextEra Energy Partners' assets through the convertible equity portfolio financing with a global infrastructure investor is expected to provide significant benefits for unitholders, including a low cash coupon and the ability to retain upside from the share price appreciation for up to 10 years. This significant access to low-cost capital leaves NextEra Energy Partners uniquely positioned to take advantage of the transformation underway in the energy industry and meet its long-term growth objectives. In our view, NextEra Energy Partners remains well positioned to deliver unitholder value going forward."

49% of the membership interests in Emerald Breeze, an existing portfolio holding company, which indirectly owns:

• Great Prairie Wind, an approximately 1,029
• MW wind generation facility located in Texas and Oklahoma.
• Appaloosa Run Wind, an approximately 172-MW wind generation facility located in Texas.
• Eight Point Wind, an approximately 111-MW wind generation facility located in New York.
• Yellow Pine Solar, an approximately 125-MW solar generation and 65-MW storage facility located in Nevada.

100% of the indirect membership interests in:

• Elk City Wind II, an approximately 107-MW wind generation facility located in Oklahoma.
• Sac County Wind, an approximately 80-MW wind generation facility located in Iowa.
• Sholes Wind, an approximately 160-MW wind generation facility located in Nebraska.

NextEra Energy Partners expects to acquire the interests in the assets for total consideration of approximately $805 million, plus the assumption of its share of the portfolio's estimated $1.5 billion in tax equity financing, subject to working capital and other adjustments. NextEra Energy Partners expects to complete the acquisition later this year, subject to customary closing conditions. At the time of the closing, all of the assets other than Appaloosa Run Wind, Eight Point Wind and Yellow Pine Solar will be in operation, with Appaloosa Run Wind and Eight Point Wind expected to be in service in December 2022 and Yellow Pine Solar scheduled to begin initial operations by the end of the third quarter of 2023. If any of those projects do not achieve commercial operation by Nov. 30, 2023, NextEra Energy Partners will have the right to require the seller to repurchase the ownership interests in such projects for the same purchase price paid by NextEra Energy Partners. Following the acquisition and all of the projects achieving commercial operation, the portfolio of assets is expected to contribute adjusted EBITDA of approximately $210 million to $230 million and CAFD of approximately $62 million to $72 million, each on a five-year average annual run-rate basis, beginning Dec. 31, 2023.

Creation of a new portfolio

Immediately following the acquisition, NextEra Energy Partners will contribute its interests in the newly acquired projects to a new portfolio alongside six of the partnership's existing wind assets: Alta Wind VIII, Brady Wind, Brady Wind II, Golden West Wind, Osborn Wind and Oliver Wind III.

KeyFacts Energy: NextEra Energy US country profile