NextEra Energy, Inc. (NYSE:NEE) Q2 2016 Earnings Conference Call - Final Transcript

Jul 27, 2016 • 09:00 am ET

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NextEra Energy, Inc. (NYSE:NEE) Q2 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the NextEra Energy and NextEra Energy Partners Conference Call. [Operator Instructions]

At this time for opening remarks, I would like to turn the call over to Ms. Amanda Finnis. Please go ahead, ma'am.

Executive
Amanda Finnis

Thank you, Clair. Good morning, everyone, and thank you for joining our Second Quarter 2016 Combined Earnings Conference Call for NextEra Energy and NextEra Energy Partners.

With me this morning are Jim Robo, Chairman and Chief Executive Officer of NextEra Energy; John Ketchum, Executive Vice President and Chief Financial Officer of NextEra Energy; and Armando Pimentel, President and Chief Executive Officer of NextEra Energy Resources, all of whom are also officers of NextEra Energy Partners; as well as Eric Silagy, President and Chief Executive Officer of Florida Power & Light Company. John will provide an overview of our results and our executive team will then be available to answer your questions.

We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the risk factor section of the accompanying presentation, or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, nexteraenergy.com and nexteraenergypartners.com. We do not undertake any duty to update any forward-looking statements.

Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of certain non-GAAP measures to the closest GAAP financial measure.

With that, I will turn the call over to John.

Executive
John W. Ketchum

Thank you, Amanda, and good morning, everyone. NextEra Energy and NextEra Energy Partners each delivered strong second quarter financial results and solid operating performance. NextEra Energy's adjusted earnings per share increased 7% against the prior year comparable quarter, driven by new investments and energy resources. For the first six months, NextEra Energy achieved year-over-year growth of 11% in both adjusted earnings per share and cash flow from operations. NEP grew per unit distributions by 40% from a year earlier and added to what we already considered to be a solid run rate with the acquisition of two high quality wind facilities just after the end of quarter.

Both businesses remain on track to achieve the full year financial expectations that we had previously discussed subject to our usual caveats. Florida Power & Light's contribution to second quarter earnings per share was roughly flat, down $0.01 from 2015. Strong growth driven by continued investment in the business was offset by share dilution and a refund to customers related to the decision by the Florida Supreme Court to disallow investments in long-term natural gas supplies. Aside from the impact of this decision, we are very pleased with FPL's financial results.

We earned a