NextEra Energy Partners Sees Rise in Shares After Increase in Distribution

Shares of NextEra Energy Partners saw a boost on Tuesday following the news that the limited partnership would be increasing its third-quarter distribution and undertaking wind project repowering. The stock rose by 12% to $25.08 during morning trading, although shares have experienced a 64% decline this year.

Quarterly Distribution Increase

The clean-energy management company, based in Juno Beach, Florida, announced on Tuesday morning that it would be raising its quarterly distribution after the release of its third-quarter results. The company's board declared a quarterly distribution of 86.75 cents, which translates to an annualized increase of 6%. This represents a total annual distribution of $3.47.

Attractive Yield for Investors

With the new payout in place, investors can expect an annual yield of 15.5% based on the closing price of $22.42 on Monday. This presents an attractive opportunity for investors looking to capitalize on the potential returns that NextEra Partners offers.

Wind Project Repowering

NextEra Partners also revealed its plans to repower approximately 740 megawatts of wind facilities over the course of the next six years, until 2026. This move demonstrates the company's commitment to renewable energy and further solidifies its position within the clean-energy industry.

Strong Third-Quarter Profit

In terms of financial performance, NextEra Partners reported a profit of $53 million for the quarter. This equates to earnings of 57 cents per unit, compared to $79 million or 93 cents per unit from the previous year. Analysts had predicted a lower third-quarter profit of 44 cents per unit, making NextEra's actual results a positive surprise.

For more information, please contact NextEra Energy Partners directly.