NextEra Energy Partners, a leading buyer and manager of contracted clean-energy projects, has revised its long-term growth outlook downwards, attributing the change to higher interest rates and tighter monetary policy. The company had previously projected a limited partner distribution per unit growth of 12% to 15% through at least 2026. However, it now expects a more conservative growth rate of 5% to 8% annually with a target growth rate of 6%.
According to Chief Executive John Ketchum, the impact of tighter monetary policy and higher interest rates on financing has led to the reduction in growth expectations. Ketchum further stated that by scaling back its growth targets, NextEra Energy Partners will be able to concentrate on higher-yielding growth opportunities. It is worth noting that the company does not anticipate needing growth equity to meet its revised targets until 2027.
NextEra Energy Partners has also outlined plans to repower a significant portion of its wind portfolio in the coming years. Moreover, it intends to acquire additional wind, solar, and storage assets from NextEra Energy Resources as well as third parties.
In light of these adjustments, the company has stated that it may consider issuing stock through at-the-market offerings if market conditions are favorable.
Analyst Event
CEO John Ketchum is scheduled to present at an analyst event hosted by Wolfe Research in New York City at 11:00 a.m. ET.
