NextEra Energy, Inc.

Media Line: 561-694-4442

Oct. 21, 2020

FOR IMMEDIATE RELEASE

NextEra Energy reports third-quarter 2020 financial results

  • NextEra Energy delivers strong third-quarter financial and operational results; remains well- positioned to achieve full-year financial expectations
  • Florida Power & Light Company continues to deliver affordable and reliable power for customers
  • Gulf Power Company's initiatives to enhance customer and shareholder value remain on track
  • NextEra Energy Resources has a record quarter of origination as renewables backlog reaches more than 15,000 megawatts and is now larger than the business' existing renewables portfolio

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2020 third-quarter net income attributable to NextEra Energy on a GAAP basis of $1.229 billion, or $2.50 per share, compared to $879 million, or $1.81 per share, for the third quarter of 2019. On an adjusted basis, NextEra Energy's 2020 third-quarter earnings were $1.311 billion, or $2.66 per share, compared to $1.163 billion, or $2.39 per share, in the third quarter of 2019.

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 and losses on equity securities held in NextEra Energy Resources' nuclear decommissioning funds and other than temporary impairments (OTTI); and also in 2019, operating results from the Spain solar projects; and acquisition-related expenses.

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 attributable to NextEra Energy, which is the most directly comparable GAAP measure, is included in the attachments to this news release.

"NextEra Energy delivered strong third-quarter results and remains well-positioned to meet our 2020 and longer-term growth prospects," said Jim Robo, chairman and chief executive officer of NextEra Energy. "We grew adjusted earnings per share by more than 11% year-over-year, reflecting strong execution across all of our businesses. In addition to dealing with the challenges created by the COVID-19 pandemic, it also has been a very active hurricane season. We extend our deepest sympathies to the people throughout the eastern and southeastern U.S. who have experienced the severe effects of this year's dangerous and deadly storms, including those in our Gulf Power service area who were affected by Hurricane Sally. Thanks to the dedication of our employees and the mutual assistance crews, as well

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as our focus on preparation and execution, we were able to restore service safely and quickly to the more than 60% of Gulf Power customers who experienced outages.

"Both FPL and Gulf Power continue to focus on delivering an outstanding value proposition of low bills, high reliability, outstanding customer service and clean energy solutions for our customers. All of FPL's major capital initiatives, including one of the largest solar expansions ever in the U.S., remain on track. In addition to its excellent storm response, Gulf Power had a great quarter of execution, further reducing operations and maintenance costs and delivering on smart capital investments. The NextEra Energy Resources team continued to capitalize on what we believe is the best renewables development environment in our history, originating a record of nearly 2,200 megawatts since our second-quarter financial results call in July. Now totaling more than 15,000 megawatts, NextEra Energy Resources' renewables backlog is the largest in our history and is larger than the business' existing renewables portfolio. As a result of the ongoing strength of the renewables development environment and continued execution across all of our businesses, during the quarter we increased and extended our long-term financial expectations. Based on the resiliency of our underlying businesses and their strong growth prospects, we will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted earnings per share expectations ranges in 2020, 2021, 2022 and now 2023, while at the same time maintaining our strong credit ratings and, most importantly, continuing to reliably deliver for our customers. We remain intensely focused on execution and believe NextEra Energy remains well- positioned to drive shareholder value over the coming years."

Florida Power & Light Company

FPL, which serves more than 5.1 million customer accounts in Florida and is the largest rate-regulated electric utility in the U.S. as measured by retail electricity produced and sold, reported third-quarter 2020 net income of $757 million, or $1.54 per share, compared to $683 million, or $1.40 per share, for the prior-year quarter.

FPL's growth over the prior-year comparable quarter was primarily driven by continued investment in the business. FPL's capital expenditures were approximately $1.3 billion in the third quarter of 2020 and full- year capital investments are expected to be between $6.5 billion and $6.7 billion. Regulatory capital employed increased by more than 11% over the same quarter last year. During the third quarter of 2020, FPL's average number of customers increased by nearly 80,000 from the prior-year comparable quarter.

As previously announced, NextEra Energy believes that FPL and Gulf Power operating as a single, larger Florida utility company will create both operational and financial benefits for customers. Earlier this month, NextEra Energy received Federal Energy Regulatory Commission (FERC) approval for an internal reorganization whereby Gulf Power would merge into FPL in January 2021. Gulf Power will continue as a separate operating division during 2021, serving its existing customers under separate retail rates. NextEra Energy continues to expect the companies to file a combined rate case in the first quarter of next year for new rates effective in January 2022.

FPL remains committed to helping support customers experiencing hardship during the COVID-19 pandemic. Since mid-March, FPL has continued to offer payment extensions, waive late fees and connect customers with available financial assistance. In September, FPL announced plans to offer one- time, direct relief to eligible customers who are significantly behind on their FPL bill due to COVID-19, with up to a $200 bill credit based on the status of their past-due account. In October, FPL received unanimous approval from the Florida Public Service Commission (FPSC) to accelerate deposit refunds to eligible residential customers who have paid on time for the last 12 months.

FPL's continued strong execution is a result of the smart capital investments that it has made over the past several decades. FPL's typical residential bill remains 30% below the national average and the lowest among all of the Florida investor-owned utilities, while FPL maintains best-in-class service reliability and an emissions profile that is among the cleanest in the nation.

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All of FPL's major capital projects remain on track as FPL continues to advance its long-term focus on delivering outstanding customer value. FPL's next six SolarTogether projects, totaling approximately 450 megawatts (MW), are on schedule to be placed in service later this year. The final 600 MW of the roughly 1,500-MW community solar program are expected to be placed in service next year. This significant solar expansion, combined with low-cost battery storage solutions, such as the Manatee Energy Storage Center that remains on track to be complete next year, represent the next phase of FPL's generation modernization efforts. Beyond solar, construction on the highly efficient, roughly 1,200-MW Dania Beach Clean Energy Center remains on schedule and on budget as it continues to advance toward its projected commercial operation date in 2022.

During the quarter, the FPSC approved FPL's Storm Protection Plan settlement agreement that allows for clause recovery of storm hardening investments, including undergrounding. The agreement supports the continued hardening of FPL's already storm-resilient energy grid in a programmatic manner through the deployment of billions of dollars of incremental capital for the benefit of customers.

Gulf Power Company

Gulf Power, a rate-regulated electric utility that serves approximately 470,000 customers in eight counties throughout northwest Florida, reported third-quarter 2020 net income of $91 million, or $0.18 per share, compared to $76 million, or $0.16 per share, for the prior-year quarter. On an adjusted basis, Gulf Power's third-quarter 2020 earnings were $91 million, or $0.18 per share, compared to $80 million, or $0.16 per share, in the third quarter of 2019.

Gulf Power's capital expenditures were roughly $350 million for the third quarter of 2020, as it continues to execute on smart capital investments for the benefit of customers. Full-year capital investments are expected to be between $1.0 billion and $1.1 billion. As a result of these ongoing investments, regulatory capital employed increased by approximately 25% year-over-year.

All of Gulf Power's major smart capital investments continue to progress well. The Plant Crist coal-to- natural gas conversion and associated natural gas lateral are expected to be complete later this year, supporting NextEra Energy's coal phase-out strategy and commitment to remain a clean energy leader.

Similar to FPL, Gulf Power's Storm Protection Plan settlement agreement also was approved during the quarter. Gulf Power expects that these future hardening investments will lead to a stronger and more storm-resilient energy grid and support an even more rapid recovery from storms in the future.

NextEra Energy Resources

NextEra Energy Resources, the competitive clean energy business of NextEra Energy, reported a third- quarter 2020 contribution to net income attributable to NextEra Energy on a GAAP basis of $376 million, or $0.76 per share, compared to $381 million, or $0.78 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources' earnings for the third quarter of 2020 were $551 million, or $1.12 per share, compared to $443 million, or $0.91 per share, for the third quarter of 2019.

NextEra Energy Resources had another excellent period of origination during the third quarter, adding nearly 2,200 MW to its renewables backlog. Since the second-quarter financial results call in July, NextEra Energy Resources added 580 MW of wind, 911 MW of solar, 594 MW of battery storage and 86 MW of wind repowering to its renewables backlog. The significant additions include a new 325-MW, 4- hour battery storage system. This project, which is the largest stand-alone storage project in the world, is expected to support California's aggressive clean energy goals and help improve reliability across the regional electric grid when it comes online in 2023. In addition, NextEra Energy Resources executed a build-own-transfer agreement for a 180-MW solar project, which is not included in the backlog additions. Partially offsetting this quarter's strong origination success was the removal of several projects that had previously been included in NextEra Energy Resources' renewables backlog, resulting in a net increase of 1,446 MW.

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Consistent with the company's focus on growing its rate-regulated and long-term contracted business operations, NextEra Energy Transmission announced an agreement to acquire GridLiance, which owns three FERC-regulated transmission utilities spanning six states. Subject to regulatory approvals, the approximately $660 million acquisition, including the assumption of debt, is expected to close in 2021 and to be immediately accretive to earnings. The proposed acquisition has strong expansion potential in attractive markets with significant expected renewables growth, and furthers NextEra Energy's goal of growing America's leading competitive transmission company.

Corporate and Other

In the third quarter of 2020 on a GAAP basis, Corporate and Other earnings increased $0.55 per share, compared to the prior-year quarter. On an adjusted basis, Corporate and Other earnings for the third quarter of 2020 declined $0.10 per share, compared to the prior-year quarter.

Outlook

As announced in September, NextEra Energy increased its financial expectations for 2021 and 2022 and extended its longer-term growth outlook to 2023. For 2021, NextEra Energy increased its adjusted earnings per share expectations by $0.20 and now expects adjusted earnings per share to be in the range of $9.60 to $10.15. For 2022 and 2023, NextEra Energy expects to grow 6% to 8%, off the expected increased 2021 adjusted earnings per share.

On Sept. 14, the NextEra Energy board of directors approved a four-for-one common stock split, which is intended to make stock ownership more accessible to a broader base of investors. Trading will begin on a stock split-adjusted basis on Oct. 27, 2020, and the company's fourth-quarter and full-year 2020 financial results will reflect the post-split share count.

As a result of the four-for-one stock split, NextEra Energy updated its adjusted earnings per share financial expectations ranges to reflect the increase in outstanding shares. In 2020, the company now expects adjusted earnings per share to be in the range of $2.18 to $2.30. For 2021, the company expects adjusted earnings per share to be in the range of $2.40 to $2.54. For 2022 and 2023, NextEra Energy expects to grow 6% to 8%, off the expected increased 2021 adjusted earnings per share. For 2022 and 2023, this translates to an adjusted earnings per share range of $2.55 to $2.75 and $2.77 to $2.97, respectively.

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' nuclear decommissioning funds and OTTI, none of which can be determined at this time. Adjusted earnings expectations also exclude the effects of NextEra Energy Partners, LP net investment gains; gains on disposal of a business; differential membership interests-related; and acquisition-related expenses. In addition, adjusted earnings expectations assume, among other things, normal weather and operating conditions; 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; no divestitures other than to NextEra Energy Partners, LP or acquisitions; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.

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NextEra Energy Inc. published this content on 21 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2020 11:34:09 UTC