NextEra Energy, Inc. (NEE) Bundle
A Brief History of NextEra Energy, Inc.
NextEra Energy, Inc. (NEE) is a leading clean energy company based in Juno Beach, Florida. As of 2024, NEE has positioned itself as a major player in the renewable energy sector, with a focus on solar and wind energy generation.
Company Overview
Founded in 1925, NextEra Energy operates through its subsidiaries, including Florida Power & Light Company (FPL) and NextEra Energy Resources (NEER). The company has evolved significantly, expanding its operations to include a diverse portfolio of renewable energy projects across North America.
Financial Performance
For the nine months ending September 30, 2024, NextEra Energy reported a net income of $5,743 million, compared to $6,100 million for the same period in 2023. The earnings per share (EPS) for the nine months ended September 30, 2024, was $2.79, down from $3.02 in 2023. The company's total revenues for the nine months of 2024 were impacted by a decrease in operating revenues, which fell by $922 million primarily due to changes in energy prices and operational adjustments .
| Financial Metric | 2024 (9M) | 2023 (9M) |
|---|---|---|
| Net Income | $5,743 million | $6,100 million |
| Earnings Per Share (EPS) | $2.79 | $3.02 |
| Operating Revenues | Decreased by $922 million | — |
Renewable Energy Initiatives
NextEra Energy has made substantial investments in renewable energy, contributing to its recognition as the world's largest producer of wind and solar energy. As of September 30, 2024, NEE's clean energy projects included over 25,000 megawatts of renewable capacity, with significant growth in solar energy generation in particular .
Recent Developments
In 2024, NEE continued to enhance its portfolio with strategic acquisitions and investments in renewable energy projects. Notably, on March 21, 2023, a wholly owned subsidiary of NextEra Energy Resources acquired a portfolio of renewable energy projects, reflecting the company's commitment to expanding its clean energy footprint .
Market Position
As of 2024, NEE's market capitalization was approximately $110 billion, reflecting its strong position within the energy sector. The company remains committed to sustainability, aiming to reduce its greenhouse gas emissions and increase the share of renewables in its energy mix .
Future Outlook
Looking ahead, NextEra Energy plans to continue its aggressive expansion in the renewable energy sector, targeting a 40% increase in its renewable capacity by 2026. The company is also focused on enhancing its energy storage capabilities and improving the efficiency of its existing operations .
A Who Owns NextEra Energy, Inc. (NEE)
Major Shareholders
As of 2024, NextEra Energy, Inc. (NEE) has a diverse ownership structure. The largest shareholders include institutional investors, mutual funds, and individual stakeholders. Below is a summary of the major shareholders:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| The Vanguard Group, Inc. | 8.8% | Institutional Investor |
| BlackRock, Inc. | 7.5% | Institutional Investor |
| State Street Corporation | 4.1% | Institutional Investor |
| NextEra Energy Resources, LLC | 3.2% | Subsidiary |
| Fidelity Investments | 2.9% | Institutional Investor |
| Other Institutional Investors | 30.0% | Various |
| Individual and Retail Investors | 39.5% | Public |
Institutional Ownership
Institutional ownership in NEE is significant, with major players holding a substantial portion of the company's shares. The following table outlines the top five institutional investors as of September 2024:
| Institution | Shares Held (millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 185.6 | 8.8% |
| BlackRock, Inc. | 157.4 | 7.5% |
| State Street Corporation | 82.3 | 4.1% |
| Fidelity Investments | 61.2 | 2.9% |
| Invesco Ltd. | 45.0 | 2.1% |
Noncontrolling Interests
As of September 30, 2024, NextEra Energy, Inc. reported approximately $8,043 million in noncontrolling interests on its balance sheet, which relates to differential membership interests. This reflects the company's various joint ventures and investments in renewable energy projects.
Recent Transactions Impacting Ownership
In September 2024, subsidiaries of NextEra Energy Resources sold an ownership interest representing an approximately 65% economic interest in a renewable assets joint venture for cash proceeds of approximately $900 million. NEE retained a 35% economic interest in this venture.
Market Capitalization and Share Performance
As of September 30, 2024, NextEra Energy, Inc. had a market capitalization of approximately $120 billion. The company’s stock price has shown resilience, with shares trading around $58.50, reflecting a year-to-date increase of approximately 12%.
Dividend History
NEE has a consistent dividend policy, with dividends per share reported at $0.515 for the three months ended September 30, 2024, marking an increase from prior periods. The company’s commitment to returning value to shareholders is evident in its dividend growth strategy.
Conclusion on Ownership Structure
Overall, NextEra Energy, Inc. displays a robust ownership structure, characterized by significant institutional ownership and active participation from individual investors. The company’s strategic moves in the renewable energy sector, coupled with its financial performance, position it favorably in the market.
NextEra Energy, Inc. (NEE) Mission Statement
NextEra Energy, Inc. (NEE) is committed to providing clean, renewable energy while delivering value to its customers and stakeholders. The company's mission emphasizes sustainability, innovation, and operational excellence in the energy sector.
Core Values
- Safety: Prioritizing the health and safety of employees and communities.
- Integrity: Conducting business ethically and transparently.
- Stewardship: Commitment to environmental responsibility and sustainability.
- Innovation: Embracing new technologies and solutions to enhance energy efficiency.
- Customer Focus: Delivering reliable and affordable energy solutions.
Financial Overview
As of September 30, 2024, NextEra Energy reported the following financial highlights:
| Financial Metrics | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Operating Revenues | $6.7 billion | $7.2 billion |
| Net Income Attributable to NEE | $5.743 billion | $6.100 billion |
| Earnings Per Share | $2.79 | $3.02 |
| Total Assets | $173.8 billion | $162.1 billion |
| Total Liabilities | $96.8 billion | $90.5 billion |
| Total Equity | $76.9 billion | $71.6 billion |
Investment in Renewable Energy
NextEra Energy continues to invest significantly in renewable energy sources, with capital expenditures as follows:
| Investment Area | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Wind Energy | $3.851 billion | $3.363 billion |
| Solar Energy | $4.613 billion | $3.995 billion |
| Other Clean Energy | $2.621 billion | $1.889 billion |
| Total Capital Expenditures | $20.108 billion | $18.910 billion |
Customer Growth and Demand
As of September 30, 2024, NEE reported an increase in its customer base:
- Average number of customer accounts increased by approximately 2.1%.
- Average usage per retail customer decreased by 1.1% due to weather conditions.
Market Position
NextEra Energy holds a leading position in the renewable energy market, with a total generating capacity of approximately 1,634 MW from its renewable assets joint venture. The company continues to operate its facilities while enhancing its portfolio through strategic investments.
Conclusion of Financial Performance
The financial and operational metrics highlight NextEra Energy's commitment to its mission statement while navigating market challenges and opportunities in the renewable energy sector.
How NextEra Energy, Inc. (NEE) Works
Company Overview
NextEra Energy, Inc. (NEE) operates primarily through its subsidiaries, Florida Power & Light Company (FPL) and NextEra Energy Resources (NEER). NEE is one of the largest producers of renewable energy from wind and solar in North America.
Financial Performance
As of September 30, 2024, NEE reported a net income of $1,852 million for the third quarter, up from $1,219 million in the same quarter of 2023. For the nine months ending September 30, 2024, net income was $5,743 million compared to $6,100 million in 2023. The earnings per share (EPS) for the third quarter of 2024 was $0.90, compared to $0.60 in 2023.
Operating Revenues
Operating revenues for the three months ended September 30, 2024, increased by $916 million, driven by:
- Non-qualifying commodity hedges gains of approximately $574 million.
- Revenues from new investments totaling $148 million.
However, revenues from customer supply and gas infrastructure businesses decreased by $194 million.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, increased by $245 million, primarily due to:
- $140 million increase in depreciation and amortization.
- $70 million increase in operation and maintenance (O&M) expenses.
- $28 million increase in fuel, purchased power, and interchange expenses.
For the nine months ended September 30, 2024, operating expenses increased by $828 million.
Capital Expenditures
For the nine months ended September 30, 2024, capital expenditures totaled $20,108 million, compared to $18,910 million in 2023. The breakdown is as follows:
| Category | 2024 (millions) | 2023 (millions) |
|---|---|---|
| FPL Generation (New) | 1,821 | 2,302 |
| FPL Transmission and Distribution | 3,296 | 3,405 |
| NEER Wind | 3,851 | 3,363 |
| NEER Solar | 4,613 | 3,995 |
| Other Clean Energy | 2,621 | 1,889 |
Liquidity Position
As of September 30, 2024, NEE reported a total net available liquidity of approximately $12.0 billion, broken down as follows:
| Liquidity Source | Amount (millions) |
|---|---|
| Syndicated Revolving Credit Facilities | 14,087 |
| Cash and Cash Equivalents | 2,228 |
| Commercial Paper | (7,010) |
Market Risk Exposure
NEE employs a value-at-risk (VaR) model to assess commodity price market risk. The VaR figures as of September 30, 2024, are:
| Risk Type | VaR (millions) |
|---|---|
| Trading | 4 |
| Non-Qualifying Hedges | 47 | Total | 49 |
Future Commitments
NEE has projected capital expenditures for 2024 through 2028, totaling approximately $59,615 million, with significant investments in renewable energy and infrastructure improvements.
How NextEra Energy, Inc. (NEE) Makes Money
Revenue Streams
NextEra Energy, Inc. (NEE) primarily generates revenue through its subsidiaries, Florida Power & Light Company (FPL) and NextEra Energy Resources (NEER). For the three months ended September 30, 2024, NEE reported operating revenues of approximately $4.9 billion, while for the nine months ended September 30, 2024, it reported $13.2 billion from FPL. NEER contributed to revenues primarily from renewable energy projects and other clean energy initiatives.
Operating Revenues Breakdown
| Source | Three Months Ended September 30, 2024 (in billions) | Nine Months Ended September 30, 2024 (in billions) |
|---|---|---|
| FPL | $4.9 | $13.2 |
| NEER | $1.9 | $4.9 |
| Total Operating Revenues | $6.8 | $18.1 |
Key Financial Metrics
For the three months ended September 30, 2024, NEE's net income attributable to the company was approximately $1.9 billion, an increase from $1.2 billion in the same period in 2023. The earnings per share (EPS) for the same period were $0.90, compared to $0.60 in 2023.
Investments and Capital Expenditures
NEE's capital investments are significant for sustaining its growth, especially in renewable energy. For the nine months ended September 30, 2024, NEE's total capital expenditures were approximately $20.1 billion, an increase from $18.9 billion in the prior year. The breakdown of capital expenditures for NEE includes:
| Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| FPL (Generation) | $6,409 | $7,358 |
| NEER (Wind) | $3,851 | $3,363 |
| NEER (Solar) | $4,613 | $3,995 |
| Other Clean Energy | $2,621 | $1,889 |
| Total | $20,108 | $18,910 |
Operational Performance
During the three and nine months ended September 30, 2024, NEE's operating expenses were $3.1 billion and $7.9 billion, respectively. The operating income for the same periods was $1.8 billion and $5.2 billion. The increase in operating income was primarily due to higher revenues from new investments and existing clean energy assets.
Net Income and Earnings Adjustments
NEE's net income for the three months ended September 30, 2024, was $1.85 billion, up from $1.22 billion in 2023. The adjusted earnings reflect significant after-tax adjustments, which include:
| Adjustment Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Net gains from hedging activities | ($328) | $284 |
| NEP investment gains, net | ($24) | ($908) |
| Unrealized gains/losses on equity securities | $77 | ($66) |
Future Outlook and Growth Strategies
NextEra Energy continues to focus on expanding its renewable energy portfolio, with planned capital expenditures for the remainder of 2024 through 2028 estimated at around $38.5 billion. This includes investments in solar, wind, and other clean energy projects to bolster its operational capacity and meet growing energy demands.
Debt and Liquidity Management
As of September 30, 2024, NEE reported total long-term debt of approximately $73.7 billion, with an effective interest expense of $304 million for the three months ended September 30, 2024. The company maintains liquidity through various credit facilities and strategic financial management, ensuring sufficient capital for ongoing and future projects.
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Article updated on 8 Nov 2024
Resources:
- NextEra Energy, Inc. (NEE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NextEra Energy, Inc. (NEE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NextEra Energy, Inc. (NEE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.