NextEra Energy Partners LP : Filings 8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of earliest event reported: January 24, 2020

Commission		Exact name of registrant as specified in its		IRS Employer
File		charter, address of principal executive offices and		Identification
Number		registrant's telephone number		Number
1-36518		NEXTERA ENERGY PARTNERS, LP	30-0818558
		700 Universe Boulevard
		Juno Beach, Florida 33408
	[phone]

State or other jurisdiction of incorporation or organization: Delaware

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

• Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
• Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
• Pre-commencementcommunications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
• Pre-commencementcommunications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

				Name of exchange
Title of each class		Trading Symbol		on which registered
Common Units		NEP		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

SECTION 2 - FINANCIAL INFORMATION

Item 2.02 Results of Operations and Financial Condition

On January 24, 2020, NextEra Energy Partners, LP posted on its website a news release announcing fourth-quarter and full-year 2019 financial results. A copy of the news release is attached as Exhibit 99, which is incorporated herein by reference.

SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.
The following exhibit is being furnished pursuant to Item 2.02 herein.
Exhibit
Number	Description

99NextEra Energy Partners, LP News Release dated January 24, 2020

101 Interactive data files for this Form 8-K formatted in Inline XBRL

	104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: January 24, 2020

NEXTERA ENERGY PARTNERS, LP

(Registrant)

JAMES M. MAY

James M. May

Controller and Chief Accounting Officer

Exhibit 99

NextEra Energy Partners, LP

Media Line: 561-694-4442

Jan. 24, 2020

FOR IMMEDIATE RELEASE

NextEra Energy Partners, LP reports fourth-quarter and full-year 2019 financial results

• Grows distributions approximately 15% year-over-year
• Acquires more than 600 megawatts of new wind and solar projects and Meade Pipeline Co LLC during the year
• Partnership continues to expect it can achieve long-term growth expectations without additional acquisitions until 2021

JUNO BEACH, Fla. - NextEra Energy Partners, LP (NYSE: NEP) today reported fourth-quarter 2019 net income attributable to NextEra Energy Partners of $34 million. NextEra Energy Partners also reported fourth-quarter 2019 adjusted EBITDA of $280 million and cash available for distribution (CAFD), excluding all contributions from the Desert Sunlight projects, was $101 million. Including all contributions from the Desert Sunlight projects, CAFD was $98 million for the fourth quarter of 2019.

For the full year 2019, NextEra Energy Partners reported a net loss attributable to NextEra Energy Partners of $88 million. NextEra Energy Partners also reported full-year 2019 adjusted EBITDA of $1.104 billion and CAFD, excluding all contributions from the Desert Sunlight projects, of $366 million. CAFD, including all contributions from the Desert Sunlight projects, was $408 million for the full year 2019.

NextEra Energy Partners' management uses adjusted EBITDA and CAFD, which are non-GAAP financial measures, internally for financial planning, analysis of performance and reporting of results to the board of directors. NextEra Energy Partners also uses these measures when communicating its financial results and earnings outlook to analysts and investors. The attachments to this news release include a reconciliation of historical adjusted EBITDA and CAFD to net income, which is the most directly comparable GAAP measure.

"NextEra Energy Partners had a terrific year of execution in 2019," said Jim Robo, chairman and chief executive officer. "In addition to growing limited partner unitholder distributions by 15% year-over-year and achieving a run-rate adjusted EBITDA range in excess of what was originally expected, year-end 2019 run-rate CAFD expectations, assuming full contributions from PG&E-related projects, represents approximately 60% growth from the comparable year-end 2018 run-rate range. We are proud that 2019 is the first year that NextEra Energy Partners successfully executed on all of the three ways it can grow --organically, acquiring assets from third parties and acquiring assets from NextEra Energy Resources' portfolio -- highlighting the clear flexibility and visibility into growth going forward. To support the ongoing growth investments and optimize the capital structure for the benefit of limited partner unitholders, NextEra Energy Partners completed a number of financings and refinancings in 2019. During the year, NextEra Energy Partners extended its best-in-class growth expectations by an additional year, as we continue to see 12% to 15% per year growth in limited partner distributions as being a reasonable range

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of expectations through at least 2024. As previously announced, NextEra Energy Partners expects to be able to achieve these growth expectations without the need for additional asset acquisitions until 2021. NextEra Energy Partners delivered a total unitholder return of approximately 28% in 2019, and we continue to believe that the combination of NextEra Energy Partners' clean energy portfolio, growth visibility and flexibility to finance that growth offers unitholders an attractive investor value proposition going forward."

Acquisition of more than 600 megawatts of renewable assets

During the year, NextEra Energy Partners acquired a portfolio of more than 600 megawatts (MW) of wind and solar assets from NextEra Energy Resources. Additionally, the partnership advanced an additional organic growth opportunity, announcing the repowering of 275 MW of wind projects.

Meade Pipeline Co LLC acquisition complete

During the fourth quarter, NextEra Energy Partners closed on the acquisition of Meade Pipeline Co LLC, which owns an approximately 40% aggregate interest in the Central Penn Line, a 185-mile intrastate natural gas pipeline that is an integral part of a pipeline system regulated by the Federal Energy Regulatory Commission that provides the Marcellus natural gas-producing region access to large demand centers in the Mid-Atlantic and Southeastern regions of the U.S. The pipeline has the capacity to transport and deliver up to approximately 1.7 billion cubic feet of natural gas per day. The pipeline, which is backed by a minimum 14-year contract with an investment-grade-equivalent customer, is jointly owned by Transcontinental Gas Pipe Line Company, or Transco, which operates the pipeline as a segment of its larger Atlantic Sunrise project.

Recapitalization of existing investments

During the fourth quarter, NextEra Energy Partners closed on a recapitalization of the Texas Pipelines that included a new $750 million convertible equity portfolio financing. The proceeds of the financing were used to pay off the roughly $625 million of existing project debt at the NET Mexico and LaSalle pipelines and will fund the previously announced Texas Pipelines expansion investment that is expected to be in service late this year.

As part of the transaction, NextEra Energy Partners also refinanced the $200 million NET Holdings term loan that was due to mature in 2020 and extended the maturity by an additional four years to 2024. The existing revolving credit facility related to the pipeline was also upsized from $150 million to approximately $270 million and the maturity extended from December 2020 to November 2024. The enhanced revolving credit facility is expected to fund the future 30% cash buyout for the convertible equity portfolio financing. By leveraging project-level debt to fund the expected cash portion of the future buyout, NextEra Energy Partners expects to further enhance its financing and balance sheet flexibility.

Quarterly distribution declaration

The board of directors of NextEra Energy Partners declared a quarterly distribution of $0.5350 per common unit (corresponding to an annualized rate of $2.14 per common unit) to the unitholders of NextEra Energy Partners. With the declaration, the distribution has grown approximately 15% on an annualized basis versus the fourth quarter of 2018. The distribution will be payable on Feb. 14, 2020, to unitholders of record as of Feb. 6, 2020.

Outlook

The NextEra Energy Partners portfolio ended the year with adjusted EBITDA and CAFD run rates in line

with the previously announced expectations for Dec. 31, 2019, of $1.225 billion to $1.4 billion and $560 million to $640 million, respectively, reflecting calendar year 2020 expectations for the actual portfolio at year-end 2019, including full contributions from PG&E-related projects.

For year-end 2020, NextEra Energy Partners' run-rate expectations for adjusted EBITDA and CAFD remain unchanged. NextEra Energy Partners' expectations for a Dec. 31, 2020, run rate for CAFD, including full contributions from PG&E-related projects, is expected to be in a range of $560 million to

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$640 million, reflecting calendar year 2021 expectations for the forecasted portfolio at year-end 2020. Excluding all contributions from the Desert Sunlight projects, NextEra Energy Partners continues to expect a Dec. 31, 2020, run rate for CAFD in the range of $505 million to $585 million. Dec. 31, 2020, run-rate adjusted EBITDA expectations, which assume full contributions from projects related to PG&E, as revenue is expected to continue to be recognized, are $1.225 billion to $1.4 billion.

From an updated base of its fourth-quarter 2019 distribution per common unit at an annualized rate of $2.14 per common unit, NextEra Energy Partners continues to expect 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024, subject to the usual caveats. NextEra Energy Partners expects the annualized rate of the fourth-quarter 2020 distribution, which is payable in February 2021, to be in a range of $2.40 to $2.46 per common unit. As of year-end 2020, NextEra Energy Partners expects to have achieved the partnership's distribution growth objectives while maintaining a trailing 12-month payout ratio in the mid-70% range, even after excluding cash distributions from the Desert Sunlight projects.

These expectations include the impact of expected incentive distribution rights fees, as these fees are treated as an operating expense.

Adjusted EBITDA, CAFD and limited partner distribution expectations assume, among other things, normal weather and operating conditions; public policy support for wind and solar development and construction; market demand and transmission expansion support for wind and solar development; market demand for pipeline capacity; and access to capital at reasonable cost and terms. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results. Adjusted EBITDA and CAFD do not represent substitutes for net income, as prepared in accordance with GAAP. The adjusted EBITDA and CAFD run-rate expectations have not been reconciled to GAAP net income because NextEra Energy Partners did not prepare estimates of the effect of forecasted acquisitions on certain GAAP line items that would be necessary to provide a forward-looking estimate of GAAP net income, and the information necessary to provide such a forward-looking estimate is not available without unreasonable effort.

As previously announced, NextEra Energy Partners' fourth-quarter and full-year 2019 conference call is scheduled for 9 a.m. ET today. Also discussed during the call will be fourth-quarter and full-year 2019 financial results for NextEra Energy, Inc. (NYSE: NEE). The listen-only webcast will be available on the website of NextEra Energy Partners by accessing the following link: www.NextEraEnergyPartners.com/FinancialResults. The news release and the slides accompanying the presentation may be downloaded at www.NextEraEnergyPartners.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.

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

NextEra Energy Partners, LP

NextEra Energy Partners, LP (NYSE: NEP) is a growth-oriented limited partnership formed by NextEra Energy, Inc. (NYSE: NEE). NextEra Energy Partners acquires, manages and owns contracted clean energy projects with stable, long-term cash flows. Headquartered in Juno Beach, Florida, NextEra Energy Partners owns interests in geographically diverse wind and solar projects in the U.S. as well as natural gas infrastructure assets in Texas and Pennsylvania. For more information about NextEra Energy Partners, please visit: www.NextEraEnergyPartners.com.

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Cautionary Statements and Risk Factors That May Affect Future Results

This news release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy Partners, LP (together with its subsidiaries, NEP) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NEP's control. Forward-looking statements in this news release include, among others, statements concerning adjusted EBITDA, cash available for distributions (CAFD) and unit distribution expectations, as well as statements concerning NEP's future operating performance and financing needs. 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," "aim," "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 NEP and its business and financial condition are subject to risks and uncertainties that could cause NEP's actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties could require NEP to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, the following: NEP's portfolio includes renewable energy projects that have a limited operating history. Such projects may not perform as expected; NEP's ability to make cash distributions to its unitholders is affected by wind and solar conditions at its renewable energy projects; NEP's business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions, including, but not limited to, the impact of severe weather; Operation and maintenance of renewable energy projects involve significant risks that could result in unplanned power outages, reduced output, personal injury or loss of life; Natural gas gathering and transmission activities involve numerous risks that may result in accidents or otherwise affect the Texas pipelines' operations; NEP depends on certain of the renewable energy projects and pipelines in its portfolio for a substantial portion of its anticipated cash flows; NEP is pursuing the expansion of natural gas pipelines in its portfolio that will require up-front capital expenditures and expose NEP to project development risks; NEP's ability to maximize the productivity of the Texas pipeline business and to complete potential pipeline expansion projects is dependent on the continued availability of natural gas production in the Texas pipelines' areas of operation; Terrorist acts, cyber-attacks or other similar events could impact NEP's projects, pipelines or surrounding areas and adversely affect its business; The ability of NEP to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. NEP's insurance coverage does not insure against all potential risks and it may become subject to higher insurance premiums; Warranties provided by the suppliers of equipment for NEP's projects may be limited by the ability of a supplier to satisfy its warranty obligations, or by the terms of the warranty, so the warranties may be insufficient to compensate NEP for its losses; Supplier concentration at certain of NEP's projects may expose it to significant credit or performance risks; NEP relies on interconnection, transmission and other pipeline facilities of third parties to deliver energy from its renewable energy projects and to transport natural gas to and from the Texas pipelines. If these facilities become unavailable, NEP's projects and pipelines may not be able to operate or deliver energy or may become partially or fully unavailable to transport natural gas; NEP's business is subject to liabilities and operating restrictions arising from environmental, health and safety laws and regulations, compliance with which may require significant capital expenditures, increase NEP's cost of operations and affect or limit its business plans; NEP's renewable energy projects may be adversely affected by legislative changes or a failure to comply with applicable energy regulations; A change in the jurisdictional characterization of some of the Texas pipeline entities' assets, or a change in law or regulatory policy, could result in increased regulation of these assets, which could have a material adverse effect on NEP's business, financial condition, results of operations and ability to make cash distributions to its unitholders; NEP may incur significant costs and liabilities as a result of pipeline integrity management program testing and any necessary pipeline repair or preventative or remedial measures; The Texas pipelines' operations could incur significant costs if the Pipeline and Hazardous Materials Safety Administration or the Railroad Commission of Texas adopts more stringent regulations; Petroleos Mexicanos (Pemex) may claim certain immunities under the Foreign Sovereign Immunities Act and Mexican law, and the Texas pipeline entities' ability to sue or recover from Pemex for breach of contract may be limited and may be exacerbated if there is a deterioration in the economic relationship between the U.S. and Mexico; NEP does not own all of the land on which the projects in its portfolio are located and its use and enjoyment of the property may be adversely affected to the extent that there are any lienholders or land rights holders that have rights that are superior to NEP's rights or the U.S. Bureau of Land Management suspends its federal rights-of-way grants; NEP is subject to risks associated with litigation or administrative proceedings that could materially impact its operations, including, but not limited to, proceedings related to projects it acquires in the future; NEP's cross-border operations require NEP to comply with anti-corruption laws and regulations of the U.S. government and non-U.S. jurisdictions; NEP is subject to risks associated with its ownership or acquisition of projects or pipelines that remain under construction, which could result in its inability to complete construction projects on time or at all, and make projects too expensive to complete or cause the return on an investment to be less than expected; NEP relies on a limited number of customers and is exposed to the risk that they may be unwilling or unable to fulfill their contractual obligations to NEP or that they otherwise terminate their agreements with NEP; PG&E, which contributes a significant portion of NEP's revenues, has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Any rejection by PG&E of a material portion of NEP's PPAs with it or any material reduction in the prices NEP charges PG&E under those PPAs that occurs in connection with PG&E's Chapter 11 proceedings, or any events of default under the financing agreements of NEP's solar facilities that provide power and renewable energy credits to PG&E under these PPAs as a result of PG&E's reorganization activities, could have a material adverse effect on NEP's results of operations, financial condition or business; NEP may not be able to extend, renew or replace expiring or terminated power purchase agreements (PPA) and natural gas transportation agreements at favorable rates or on a long-term basis; If the energy production by or availability of NEP's renewable energy projects is less than expected, they may not be able to satisfy minimum production or availability obligations under their PPAs; NEP's growth strategy depends on locating and acquiring interests in additional projects consistent with its business strategy at favorable prices; NextEra Energy Operating Partners' (NEP OpCo) partnership

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agreement requires that it distribute its available cash, which could limit NEP's ability to grow and make acquisitions; Lower prices for other fuel sources may reduce the demand for wind and solar energy; Reductions in demand for natural gas in the United States or Mexico and low market prices of natural gas could materially adversely affect the Texas pipelines' operations and cash flows; Government laws, regulations and policies providing incentives and subsidies for clean energy could be changed, reduced or eliminated at any time and such changes may negatively impact NEP's growth strategy; NEP's growth strategy depends on the acquisition of projects developed by NextEra Energy, Inc. (NEE) and third parties, which face risks related to project siting, financing, construction, permitting, the environment, governmental approvals and the negotiation of project development agreements; Acquisitions of existing clean energy projects involve numerous risks; Renewable energy procurement is subject to U.S. state regulations, with relatively irregular, infrequent and often competitive procurement windows; NEP may continue to acquire other sources of clean energy and may expand to include other types of assets. Any further acquisition of non-renewable energy projects may present unforeseen challenges and result in a competitive disadvantage relative to NEP's more-established competitors; NEP faces substantial competition primarily from regulated utilities, developers, independent power producers, pension funds and private equity funds for opportunities in North America; The natural gas pipeline industry is highly competitive, and increased competitive pressure could adversely affect NEP's business; NEP may not be able to access sources of capital on commercially reasonable terms, which would have a material adverse effect on its ability to consummate future acquisitions; Restrictions in NEP and its subsidiaries' financing agreements could adversely affect NEP's business, financial condition, results of operations and ability to make cash distributions to its unitholders; NEP's cash distributions to its unitholders may be reduced as a result of restrictions on NEP's subsidiaries' cash distributions to NEP under the terms of their indebtedness; NEP's subsidiaries' substantial amount of indebtedness may adversely affect NEP's ability to operate its business, and its failure to comply with the terms of its subsidiaries' indebtedness could have a material adverse effect on NEP's financial condition; NEP is exposed to risks inherent in its use of interest rate swaps; NEE exercises significant influence over NEP; Under the cash sweep and credit support agreement, NEP receives credit support from NEE and its affiliates. NEP's subsidiaries may default under contracts or become subject to cash sweeps if credit support is terminated, if NEE or its affiliates fail to honor their obligations under credit support arrangements, or if NEE or another credit support provider ceases to satisfy creditworthiness requirements, and NEP will be required in certain circumstances to reimburse NEE for draws that are made on credit support; NextEra Energy Resources, LLC (NEER) or one of its affiliates is permitted to borrow funds received by NEP's subsidiaries and is obligated to return these funds only as needed to cover project costs and distributions or as demanded by NEP OpCo. NEP's financial condition and ability to make distributions to its unitholders, as well as its ability to grow distributions in the future, is highly dependent on NEER's performance of its obligations to return all or a portion of these funds; NEP may not be able to consummate future acquisitions; NEER's right of first refusal may adversely affect NEP's ability to consummate future sales or to obtain favorable sale terms; NextEra Energy Partners GP, Inc. (NEP GP) and its affiliates may have conflicts of interest with NEP and have limited duties to NEP and its unitholders; NEP GP and its affiliates and the directors and officers of NEP are not restricted in their ability to compete with NEP, whose business is subject to certain restrictions; NEP may only terminate the Management Services Agreement among, NEP, NextEra Energy Management Partners, LP (NEE Management), NEP OpCo and NextEra Energy Operating Partners GP, LLC (NEP OpCo GP) under certain specified conditions; If the agreements with NEE Management or NEER are terminated, NEP may be unable to contract with a substitute service provider on similar terms; NEP's arrangements with NEE limit NEE's potential liability, and NEP has agreed to indemnify NEE against claims that it may face in connection with such arrangements, which may lead NEE to assume greater risks when making decisions relating to NEP than it otherwise would if acting solely for its own account; NEP's ability to make distributions to its unitholders depends on the ability of NEP OpCo to make cash distributions to its limited partners; If NEP incurs material tax liabilities, NEP's distributions to its unitholders may be reduced, without any corresponding reduction in the amount of the IDR fee; Holders of NEP's units may be subject to voting restrictions; NEP's partnership agreement replaces the fiduciary duties that NEP GP and NEP's directors and officers might have to holders of its common units with contractual standards governing their duties; NEP's partnership agreement restricts the remedies available to holders of NEP's common units for actions taken by NEP's directors or NEP GP that might otherwise constitute breaches of fiduciary duties; Certain of NEP's actions require the consent of NEP GP; Holders of NEP's common units and preferred units currently cannot remove NEP GP without NEE's consent; NEE's interest in NEP GP and the control of NEP GP may be transferred to a third party without unitholder consent; The IDR fee may be assigned to a third party without unitholder consent; NEP may issue additional units without unitholder approval, which would dilute unitholder interests; Reimbursements and fees owed to NEP GP and its affiliates for services provided to NEP or on NEP's behalf will reduce cash distributions from NEP OpCo and from NEP to NEP's unitholders, and there are no limits on the amount that NEP OpCo may be required to pay; Discretion in establishing cash reserves by NEP OpCo GP may reduce the amount of cash distributions to unitholders; NEP OpCo can borrow money to pay distributions, which would reduce the amount of credit available to operate NEP's business; Increases in interest rates could adversely impact the price of NEP's common units, NEP's ability to issue equity or incur debt for acquisitions or other purposes and NEP's ability to make cash distributions to its unitholders; The price of NEP's common units may fluctuate significantly and unitholders could lose all or part of their investment; The liability of holders of NEP's units, which represent limited partnership interests in NEP, may not be limited if a court finds that unitholder action constitutes control of NEP's business; Unitholders may have liability to repay distributions that were wrongfully distributed to them; Provisions in NEP's partnership agreement may discourage or delay an acquisition of NEP that NEP unitholders may consider favorable, which could decrease the value of NEP's common units, and could make it more difficult for NEP unitholders to change the board of directors; The board of directors, a majority of which may be affiliated with NEE, decides whether to retain separate counsel, accountants or others to perform services for NEP; The New York Stock Exchange does not require a publicly traded limited partnership like NEP to comply with certain of its corporate governance requirements; The issuance of preferred units or other securities convertible into common units may affect the market price for NEP's common units, will dilute common unitholders' ownership in NEP and may decrease the amount of cash available for distribution for each common unit; The preferred units have rights, preferences and privileges that are not held by, and will be preferential to the rights of, holders of the common units; NEP's future tax liability may be greater than expected if NEP does not

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generate net operating losses (NOLs) sufficient to offset taxable income or if tax authorities challenge certain of NEP's tax positions; NEP's ability to use NOLs to offset future income may be limited; NEP will not have complete control over NEP's tax decisions; A valuation allowance may be required for NEP's deferred tax assets; Distributions to unitholders may be taxable as dividends; NEP discusses these and other risks and uncertainties in its annual report on Form 10-K for the year ended December 31, 2018 and other SEC filings, and this news release should be read in conjunction with such SEC filings made through the date of this news release. The forward-looking statements made in this news release are made only as of the date of this news release and NEP undertakes no obligation to update any forward-looking statements.

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NEXTERA ENERGY PARTNERS, LP

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in millions, except per unit amounts)

OPERATING REVENUES

Renewable energy sales

Texas pipelines service revenue

Total operating revenues

OPERATING EXPENSES

Operations and maintenance

Depreciation and amortization

Taxes other than income taxes and other

Total operating expenses

OPERATING INCOME

OTHER INCOME (DEDUCTIONS)

Interest expense

Equity in earnings of equity method investees

Equity in earnings (losses) of non-economic ownership interests

Other - net

Total other deductions - net

INCOME (LOSS) BEFORE INCOME TAXES

INCOME TAX EXPENSE (BENEFIT)

NET INCOME (LOSS)

Net income attributable to preferred distributions

Net loss (income) attributable to noncontrolling interests

NET INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP

Weighted average number of common units outstanding - basic

Weighted average number of common units outstanding - assuming dilution

Earnings (loss) per common unit attributable to NextEra Energy Partners, LP - basic

Earnings (loss) per common unit attributable to NextEra Energy Partners, LP - assuming dilution

		PRELIMINARY
	Three Months Ended December 31,
	2019	2018
$	151	$	101
	55				54
	206				155
	89				67
	67				51
	7				6
	163				124
	43				31
	33				(155)
	9				2
	6				(10)
	1				8
	49				(155)
	92				(124)
	9				(7)
	83				(117)
	(2)				(6)
	(47)				101
$	34	$	(22)
	62.9				56.1
	75.8				75.8
$	0.53	$	(0.39)
$	0.50			$	(0.39)

NEXTERA ENERGY PARTNERS, LP

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Cash Available for Distribution (CAFD)

(millions)

		Three Months Ended December 31,
	2019		2018
Net income (loss)	$		83		$	(117)
Add back:
Depreciation and amortization			67			51
Interest expense			(33)			155
Income taxes			9			(7)
Tax credits			120			68
Amortization of intangible assets - PPAs			26			-
Equity in losses (earnings) of non-economic ownership interests			(6)			10
Noncontrolling interests in Silver State and NET Mexico			(8)			(2)
Depreciation and interest expense included within equity in earnings of equity method investees			18			12
Other			4			(5)
Adjusted EBITDA	$		280	$	165
Tax credits			(120)			(68)
Other - net			(2)			(2)
Cash available for distribution before debt service payments	$		158		$	95
Cash interest paid			(24)			(25)

Debt repayment principal(a)		(36)			(26)
Cash available for distribution including Desert Sunlight	$	98	$	44
CAFD generated at Desert Sunlight(b)		3		$	-
Cash available for distribution	$	101	$	44
__________________________

1. Includes normal principal payments, including distributions/contributions to/from tax equity investors and payments to convertible equity portfolio investors
2. Represents CAFD generated by Desert Sunlight in the period that is, or is expected to be, trapped and is expected to be subject to cash sweeps in 2020 due to the ongoing defaults related to the PG&E bankruptcy

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NEXTERA ENERGY PARTNERS, LP

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in millions, except per unit amounts)

OPERATING REVENUES

Renewable energy sales

Texas pipelines service revenue

Total operating revenues

OPERATING EXPENSES

Operations and maintenance

Depreciation and amortization

Taxes other than income taxes and other

Gain on disposal of Canadian Holdings

Total operating expenses

OPERATING INCOME

OTHER INCOME (DEDUCTIONS)

Interest expense

Equity in earnings of equity method investees

Equity in earnings (losses) of non-economic ownership interests

Other - net

Total other deductions - net

INCOME (LOSS) BEFORE INCOME TAXES

INCOME TAX EXPENSE (BENEFIT)

NET INCOME (LOSS)

Net income attributable to preferred distributions

Net loss (income) attributable to noncontrolling interests

NET INCOME (LOSS) ATTRIBUTABLE TO NEXTERA ENERGY PARTNERS, LP

Weighted average number of common units outstanding - basic

Weighted average number of common units outstanding - assuming dilution

Earnings (loss) per common unit attributable to NextEra Energy Partners, LP - basic

Earnings (loss) per common unit attributable to NextEra Energy Partners, LP - assuming dilution

PRELIMINARY

Years Ended December 31,

20192018

$	645	$	551
	210			220
	855			771
	336			257
	259			203
	27			21
	-			(153)
	622			328
	233			443
	(702)			(248)
	38			41
	(4)			15
	5			22
	(663)			(170)

1. 273

(26)

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	(404)			267
	(17)			(25)
	333			(75)
$	(88)		$	167
	58.8			54.9
	75.8			74.6
$	(1.51)		$	3.05
$	(1.51)	$	2.91

NEXTERA ENERGY PARTNERS, LP

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Cash Available for Distribution (CAFD)

(millions)

		Years Ended December 31,
	2019		2018
Net income (loss)	$		(404)		$	267
Add back:
Depreciation and amortization			259			203
Interest expense			702			248
Income taxes			(26)			6
Tax credits			465			271
Gains on disposal of Canadian Holdings and related foreign currency hedge			-			(162)
Amortization of intangible assets - PPAs			72			-
Equity in earnings of non-economic ownership interests			4			(15)
Payment of Jericho receivable			-			30
Noncontrolling interests in Silver State and NET Mexico			(40)			(11)
Depreciation and interest expense included within equity in earnings of equity method investees			65			49
Other			7			(5)
Adjusted EBITDA	$		1,104	$	881
Tax credits			(465)			(271)

Other - net		(5)			(15)
Cash available for distribution before debt service payments	$	634		$	595
Cash interest paid		(165)			(187)
Debt repayment principal(a)		(61)			(69)
Cash available for distribution including Desert Sunlight	$	408	$	339
CAFD generated at Desert Sunlight(b)		(42)			-
Cash available for distribution	$	366	$	339
__________________________

1. Includes normal principal payments, including distributions/contributions to/from tax equity investors and payments to convertible equity portfolio investors
2. Represents CAFD generated by Desert Sunlight in the period that is, or is expected to be, trapped and is expected to be subject to cash sweeps in 2020 due to the ongoing defaults related to the PG&E bankruptcy

8

NEXTERA ENERGY PARTNERS, LP

CONSOLIDATED BALANCE SHEETS

(millions)

ASSETS

Current assets:

Cash and cash equivalents

Accounts receivable

Other receivables

Due from related parties

Other current assets

Total current assets

Non-current assets:

Property, plant and equipment - net

Intangible assets - PPAs

Intangible assets - customer relationships

Goodwill

Investment in equity method investees

Deferred income taxes

Other non-current assets

Total non-current assets

TOTAL ASSETS

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued expenses

Due to related parties

Current portion of long-term debt

Accrued interest

Accrued property taxes

Other current liabilities

Total current liabilities

Non-current liabilities:

Long-term debt

Asset retirement obligation

Derivatives

Non-current due to related party

Other non-current liabilities

Total non-current liabilities

TOTAL LIABILITIES

COMMITMENTS AND CONTINGENCIES

EQUITY

Preferred units (4.7 and 14.0 units issued and outstanding, respectively)

Common units (65.5 and 56.1 units issued and outstanding, respectively)

Accumulated other comprehensive income (loss)

Noncontrolling interests

TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

PRELIMINARY

December 31,

20192018

$	128		$	147
	79			63
	173			17
	17			68
	36			45
	433			340
	6,970			6,770
	1,655			617
	627			644
	609			584
	1,653			214
	172			108
	137			128
	11,823			9,065
$	12,256	$	9,405
$	122		$	10
	58			45
	12			707
	40			31
	21			19
	48			47
	301			859
	4,132			2,728
	139			95
	417			104
	34			34
	167			47
	4,889			3,008
	5,190			3,867
	183			548
	2,008			1,804
	(8)			(6)
	4,883			3,192
	7,066			5,538
$	12,256		$	9,405

9

NEXTERA ENERGY PARTNERS, LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(millions)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Intangible amortization - PPA

Change in value of derivative contracts

Deferred income taxes

Equity in earnings of equity method investee, net of distributions received

Equity in earnings of non-economic ownership interests

Gain on disposal of Canadian Holdings

Costs related to retirement of debt - net

Other - net

Changes in operating assets and liabilities:

Other current assets

Other non-current assets

Other current liabilities

Other non-current liabilities

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of membership interest in subsidiaries - net

Capital expenditures

Proceeds from the sale of Canadian Holdings - net

Proceeds from CITCs

Payments from (to) related parties under CSCS agreement - net

Other

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of common units - net

Issuances of long-term debt

Retirements of long-term debt

Debt issuance costs

Partners/Members' contributions

Partners/Members' distributions

Preferred unit distributions

Proceeds on sale of Class B noncontrolling interest - net

Payments to Class B noncontrolling interests investors

Proceeds from differential membership investors

Payments to differential membership investors

Other, primarily change in amounts due to related parties

Net cash provided by financing activities

Effect of exchange rate changes on cash

NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - BEGINNING OF YEAR

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - END OF YEAR

PRELIMINARY

Years Ended December 31,

20192018

$	(404)	$	267
	259			203
	72			-
	323			60
	(26)			23
	(23)			8
	4			(15)
	-			(153)
	153			-
	12			(4)
	(17)			(10)
	(1)			5
	(6)			(26)
	-			4
	346			362
	(2,322)			(1,283)
	(93)			(25)
	-			517
	-			3
	54			21
	12			4
	(2,349)			(763)
	2			86
	3,380			750
	(2,792)			(983)
	(48)			-
	14			36
	(362)			(281)
	(21)			(22)
	1,788			750
	(23)			-
	66			56
	(30)			(21)
	(5)			-
	1,969			371
	-			(2)
	(34)			(32)
	166			198
$	132	$	166

10