NextEra Energy : Q2 2023 Earnings Release

NextEra Energy, Inc.

Media Line: 561-694-4442

July 25, 2023

FOR IMMEDIATE RELEASE

NextEra Energy reports second-quarter 2023 financial results

• NextEra Energy delivers solid second-quarter 2023 results
• FPL continues to deploy capital to benefit customers, increasing regulatory capital employed by more than 12% year over year
• NextEra Energy Resources remains on track, adding approximately 1,665 megawatts of new renewables and storage projects to its backlog

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2023 second-quarter net income attributable to NextEra Energy on a GAAP basis of $2,795 million, or $1.38 per share, compared to net income attributable to NextEra Energy of $1,380 million, or $0.70 per share, for the second quarter of 2022. On an adjusted basis, NextEra Energy's 2023 second-quarter earnings were $1,777 million, or $0.88 per share, compared to $1,593 million, or $0.81 per share, in the second quarter of 2022.

"NextEra Energy continued its solid execution with adjusted earnings per share growth of approximately 8.6% for the second quarter and 11% for the first half of the year," said John Ketchum, chairman, president and chief executive officer. "FPL is executing its well-established capital investment plan for the benefit of customers, with a focus on deploying cost-effective solar and improving reliability through our investments in our transmission and distribution system while keeping customer bills affordable. NextEra Energy Resources added approximately 1,665 megawatts of new renewables and storage projects to its backlog, which now totals roughly 20 gigawatts, net of projects placed in service. Due to our continued strong execution and visible earnings growth across both businesses, we remain confident in our long- term growth prospects. We will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2026 while at the same time maintaining our strong balance sheet and credit ratings."

FPL

FPL reported second-quarter 2023 net income of $1,152 million, or $0.57 per share, compared to $989 million, or $0.50 per share, for the prior-year comparable quarter. As America's largest electric utility, FPL's growth in the second quarter of 2023 was principally driven by continued investment in the business. FPL's capital expenditures were approximately $2.5 billion for the second quarter of 2023 and full-year capital investments are now expected to be between $8.5 billion and $9.5 billion. Regulatory capital employed increased by approximately 12.1% over the same quarter last year. FPL's average number of customers increased by more than 66,000 from the prior-year comparable quarter.

During the second quarter, FPL successfully executed on its strategic initiatives, placing in service approximately 225 megawatts (MW) of cost-effective solar, bringing the total 2023 solar additions to nearly 1,200 MW. Longer term, FPL continues to expect capital investments of between $32 billion to $34 billion from 2022 through 2025, with approximately $10 billion invested in new solar generation and approximately $14 billion to $16 billion invested in transmission and distribution infrastructure. By executing on smart capital investments and running the business efficiently, FPL is able to maintain its best-in-class customer value proposition of low bills, high reliability and outstanding customer service.

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NextEra Energy Resources

NextEra Energy Resources reported second-quarter 2023 net income attributable to NextEra Energy on a GAAP basis of $1,462 million, or $0.72 per share, compared to $133 million, or $0.07 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources' earnings for the second quarter of 2023 were $781 million, or $0.39 per share, compared to $683 million, or $0.35 per share, for the second quarter of 2022.

NextEra Energy Resources delivered another solid quarter of renewables and storage origination, adding approximately 1,665 MW of new renewables and storage to its backlog since the release of the first- quarter 2023 financial results in April. NextEra Energy Resources added approximately 1,215 MW of solar, 150 MW of wind and 300 MW of storage. NextEra Energy Resources' backlog stands at roughly 20 gigawatts (GW) after adding almost 1.7 GW and placing over 1.8 GW into service.

Corporate and Other

In the second quarter of 2023 on a GAAP basis, Corporate and Other results decreased $0.04 per share, compared to the prior-year quarter. On an adjusted basis, Corporate and Other results for the second quarter of 2023 decreased $0.04 per share, compared to the prior-year quarter.

Outlook

NextEra Energy's long-term financial expectations remain unchanged. For 2023 and 2024, NextEra Energy continues to expect adjusted earnings per share to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43, respectively. For 2025 and 2026, NextEra Energy expects to grow 6% to 8%, off the 2024 adjusted earnings per share range. This translates to a range of $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026. NextEra Energy also continues to expect to grow its dividends per share at a roughly 10% rate per year through at least 2024, off a 2022 base.

Conference call information

As previously announced, NextEra Energy's second-quarter 2023 financial results conference call is scheduled for 9 a.m. ET today. Also discussed during the call will be the second-quarter 2023 financial results for NextEra Energy Partners, LP (NYSE: NEP). The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/FinancialResults. The news release and slides accompanying the presentation may be downloaded at www.NextEraEnergy.com/FinancialResults, beginning at 7:30 a.m. ET today. A replay will be available for 90 days by accessing the same link as listed above.

NextEra Energy, Inc.

NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns Florida Power & Light Company, which is America's largest electric utility that sells more power than any other utility, providing clean, affordable, reliable electricity to approximately 5.8 million customer accounts, or more than 12 million people across Florida. NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin. A Fortune 200 company, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity. NextEra Energy is ranked No. 1 in the electric and gas utilities industry on Fortune's 2023 list of "World's Most Admired Companies," recognized on Fortune's 2021 list of companies that "Change the World" and received the S&P Global Platts 2020 Energy Transition Award for leadership in environmental, social and governance. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

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Adjusted earnings for these periods exclude the effects of non-qualifying hedges; NextEra Energy Partners, LP net investment gains; differential membership interests-related; change in unrealized gains

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and losses on equity securities held in NextEra Energy Resources' nuclear decommissioning funds and other than temporary impairments (OTTI); and impairment charges.

NextEra Energy's management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, analysis of performance, reporting of results to the board of directors and as an input in determining performance-based compensation under the company's employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its financial results and earnings outlook to analysts and investors. NextEra Energy's management believes that adjusted earnings provide a more meaningful representation of NextEra Energy's fundamental earnings power. A reconciliation of historical adjusted earnings to net income (loss) attributable to NextEra Energy, which is the most directly comparable GAAP measure, is included in the attachments to this news release.

NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards; the effects of non-qualifying hedges and unrealized gains and losses on equity securities held in NextEra Energy Resources, LLC's nuclear decommissioning funds and other than temporary impairments, none of which can be determined at this time. Adjusted earnings expectations also exclude the effects of NextEra Energy Partners, LP net investment gains, differential membership interests-related and impairment charges related to NextEra Energy's investment in Mountain Valley Pipeline, LLC. In addition, adjusted earnings expectations assume, among other things, normal weather and operating conditions; positive macroeconomic conditions in the U.S. and Florida; supportive commodity markets; current forward curves; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; market demand for pipeline capacity; access to capital at reasonable cost and terms; divestitures to NextEra Energy Partners, LP; no adverse litigation decisions; and no changes to governmental policies or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.

This news release should be read in conjunction with the attached unaudited financial information.

Cautionary Statements and Risk Factors That May Affect Future Results

This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning adjusted earnings per share expectations and future operating performance and statements concerning future dividends. In some cases, you can identify the forward-looking statements by words or phrases such as "will," "may result," "expect," "anticipate," "believe," "intend," "plan," "seek," "potential," "projection," "forecast," "predict," "goals," "target," "outlook," "should," "would" or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and FPL and their business and financial condition are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements, or may require them to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, those discussed in this news release and the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL to recover in a timely manner any significant amount of costs, a return on certain assets or a reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory, operational and economic factors on regulatory decisions important to NextEra Energy and FPL; disallowance of cost recovery by FPL based on a finding of imprudent use of derivative instruments; effect of any reductions or modifications to, or elimination of, governmental incentives or policies that support utility scale renewable energy projects of NextEra Energy and FPL and its affiliated entities or the imposition of additional tax laws, tariffs, duties, policies or assessments on renewable energy or equipment necessary to generate it or deliver it; impact of new or revised laws, regulations, interpretations or constitutional ballot and regulatory initiatives on NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal regulation of their operations and businesses; effect on NextEra Energy and FPL of changes in tax laws, guidance or policies as well as in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; impacts on NextEra Energy or FPL of allegations of violations of law; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget; impact on development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, planning, financing, construction, permitting, governmental approvals and the negotiation of project development agreements, as

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well as supply chain disruptions; risks involved in the operation and maintenance of electric generation, transmission and distribution facilities, gas infrastructure facilities, retail gas distribution system in Florida and other facilities; effect on NextEra Energy and FPL of a lack of growth or slower growth in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; threats of geopolitical factors, terrorism and catastrophic events that could result from terrorism, cyberattacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; inability to obtain adequate insurance coverage for protection of NextEra Energy and FPL against significant losses and risk that insurance coverage does not provide protection against all significant losses; a prolonged period of low gas and oil prices could impact NextEra Energy Resources, LLC's (NextEra Energy Resources) gas infrastructure business and cause NextEra Energy Resources to delay or cancel certain gas infrastructure projects and could result in certain projects becoming impaired; risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by NextEra Energy Resources to manage properly or hedge effectively the commodity risk within its portfolio; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas by NextEra Energy, including FPL; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; failure of NextEra Energy or FPL counterparties to perform under derivative contracts or of requirement for NextEra Energy or FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of derivative instruments and limited liquidity in over-the-counter markets; impact of negative publicity; inability of FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; environmental, health and financial risks associated with NextEra Energy Resources' and FPL's ownership and operation of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures and/or reduced revenues at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units through the end of their respective operating licenses; effect of disruptions, uncertainty or volatility in the credit and capital markets or actions by third parties in connection with project-specific or other financing arrangements on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; impairment of NextEra Energy's and FPL's liquidity from inability of credit providers to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; the fact that the amount and timing of dividends payable on NextEra Energy's common stock, as well as the dividend policy approved by NextEra Energy's board of directors from time to time, and changes to that policy, are within the sole discretion of NextEra Energy's board of directors and, if declared and paid, dividends may be in amounts that are less than might be expected by shareholders; NextEra Energy Partners, LP's inability to access sources of capital on commercially reasonable terms could have an effect on its ability to consummate future acquisitions and on the value of NextEra Energy's limited partner interest in NextEra Energy Operating Partners, LP; effects of disruptions, uncertainty or volatility in the credit and capital markets on the market price of NextEra Energy's common stock; and the ultimate severity and duration of public health crises, epidemics and pandemics, and its effects on NextEra Energy's or FPL's businesses. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2022 and other Securities and Exchange Commission (SEC) filings, and this news release should be read in conjunction with such SEC filings. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.

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NextEra Energy, Inc.

Condensed Consolidated Statements of Income

(millions, except per share amounts) (unaudited)

Preliminary

									Corporate
									and			NextEra
Three Months Ended June 30, 2023			FPL			NEER			Other(a)			Energy
Operating Revenues	$	4,774	$	2,556	$	19	$	7,349
Operating Expenses
Fuel, purchased power and interchange			1,212			172			(25)			1,359
Other operations and maintenance			427			581			119			1,127
Depreciation and amortization			984			490			20			1,494
Taxes other than income taxes and other - net			500			74			2			576
Total operating expenses - net			3,123			1,317			116			4,556
Gains (losses) on disposal of businesses/assets - net			-			(4)			10			6
Operating Income (Loss)			1,651			1,235			(87)			2,799
Other Income (Deductions)
Interest expense			(272)			(106)			243			(135)
Equity in earnings (losses) of equity method investees			-			131			1			132
Allowance for equity funds used during construction			30			1			-			31
Gains on disposal of investments and other property - net			-			100			1			101
Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning			-			(7)			-			(7)
funds - net
Other net periodic benefit income			-			-			62			62
Other - net			20			40			18			78
Total other income (deductions) - net			(222)			159			325			262
Income (Loss) before Income Taxes			1,429			1,394			238			3,061
Income Tax Expense (Benefit)			277			163			57			497
Net Income (Loss)			1,152			1,231			181			2,564
Net Loss Attributable to Noncontrolling Interests			-			231			-			231
Net Income (Loss) Attributable to NextEra Energy, Inc.	$	1,152	$	1,462	$	181	$	2,795
Reconciliations of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings (Loss):
Net Income (Loss) Attributable to NextEra Energy, Inc.	$	1,152	$	1,462	$	181	$	2,795
Adjustments - pretax:(b)
Net losses (gains) associated with non-qualifying hedges			-			(976)			(449)			(1,425)
Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning			-			3			-			3
funds and OTTI - net
Differential membership interests - related			-			14			-			14
NEP investment gains - net			-			43			-			43
Impairment charges related to investment in Mountain Valley Pipeline			-			22			-			22
Less related income tax expense (benefit)			-			213			112			325
Adjusted Earnings (Loss)		$	1,152		$	781		$	(156)		$	1,777
Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
$	0.57	$	0.72	$	0.09	$	1.38
Adjustments - pretax:(b)
Net losses (gains) associated with non-qualifying hedges			-			(0.48)			(0.22)			(0.70)
Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning			-			-			-			-
funds and OTTI - net
Differential membership interests - related			-			0.01			-			0.01
NEP investment gains - net			-			0.02			-			0.02
Impairment charges related to investment in Mountain Valley Pipeline			-			0.01			-			0.01
Less related income tax expense (benefit)			-			0.11			0.05			0.16
Adjusted Earnings (Loss) Per Share	$	0.57	$	0.39	$	(0.08)	$	0.88
Weighted-average shares outstanding (assuming dilution)												2,027

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1. Corporate and Other represents other business activities and eliminating entries, and may include the net effect of rounding. Corporate and Other allocates a portion of corporate interest expense to NextEra Energy Resources' subsidiaries. Interest expense is allocated based on a deemed capital structure of 70% debt and differential membership interests sold by NextEra Energy Resources' subsidiaries. Residual corporate interest expense is included in Corporate and Other.

(b) After tax impact by segment is as follows:		NEER				Corporate and Other			NextEra Energy
		Adjusted			Adjusted			Adjusted			Adjusted			Adjusted			Adjusted
		Earnings			EPS			Earnings			EPS			Earnings			EPS
Net losses (gains) associated with non-qualifying hedges	$	(742)	$	(0.37)	$	(337)	$	(0.17)	$	(1,079)	$	(0.54)
Change in unrealized losses (gains) on equity securities held in NEER's	$	7	$	-	$	-	$	-	$	7	$	-
nuclear decommissioning funds and OTTI - net
Differential membership interests - related	$	11	$	0.01	$	-	$	-	$	11	$	0.01
NEP investment gains - net	$	31	$	0.02	$	-	$	-	$	31	$	0.02
Impairment charges related to investment in Mountain Valley Pipeline	$	12	$	0.01	$	-	$	-	$	12	$	0.01

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