NextEra Energy Financial Analysis – Q3 2024

Business Description

NextEra Energy, Inc. (NEE) is a leading clean energy company headquartered in Juno Beach, Florida. It operates through its two main business segments:

• Florida Power & Light Company (FPL): A rate-regulated utility serving approximately 5.9 million customer accounts in Florida, making it one of the largest electric utilities in the U.S.
• NextEra Energy Resources (NEER): The world’s largest generator of renewable energy from the wind and sun, and a leader in battery storage.

NEE operates primarily within the United States. FPL serves customers in Florida, while NEER has a broad geographic footprint across multiple states.

Industry Position and Competitors

NEE is a prominent player in the energy industry, particularly in renewable energy. Its key competitors include Duke Energy, Southern Company, and Dominion Energy. NEE holds a significant market share in the renewable energy sector, leveraging its large-scale wind and solar operations.

Revenue Streams and Customer Base

NEE’s revenue streams are diversified across regulated utility operations (FPL) and competitive energy markets (NEER). FPL generates revenue from residential, commercial, and industrial customers, while NEER’s revenue comes from power generation and energy trading.

Financial Statement Analysis

Income Statement

For the nine months ended September 30, 2024, NEE reported operating revenues of \$19,368 million, down from \$21,236 million in the same period in 2023. Net income attributable to NEE was \$5,743 million, a decrease from \$6,100 million in 2023 [[7]].

Balance Sheet

As of September 30, 2024, NEE reported total assets of \$186,013 million, up from \$177,489 million at the end of 2023. Total liabilities stood at \$126,475 million, an increase from \$118,465 million at the end of 2023. The company had total equity of \$59,538 million [[9]].

Cash Flow Statement

NEE’s net cash provided by operating activities was \$11,279 million for the nine months ended September 30, 2024, compared to \$8,423 million in the same period in 2023. The company used \$18,384 million in investing activities and generated \$6,259 million from financing activities [[10]].

Key Findings

Strengths:

• Strong leadership in renewable energy generation.
• Robust cash flow from operating activities.
• Significant investments in new renewable energy projects.

Risks:

• Decreased net income year-over-year.
• High level of debt and liabilities.
• Exposure to market volatility in commodity prices and interest rates.

Dividends

NEE declared a quarterly dividend of \$0.515 per share for each of the quarterly periods in 2024 [[11]].

Special Activities

NEE continues to invest heavily in renewable energy projects, including wind, solar, and battery storage. The company also issued \$633 million in senior-secured limited-recourse notes in October 2024 to support its growth initiatives [[34]].

Investment Recommendations

If you are currently holding NEE stock: Continue to hold the stock. NEE’s strong position in the renewable energy sector and its ongoing investments in growth projects provide a solid foundation for future performance.

If you are not currently holding NEE stock: Consider buying the stock. Despite the recent decline in net income, NEE’s leadership in the renewable energy market and its robust cash flow generation make it a compelling investment opportunity.

Date of Report: October 23, 2024, reporting for the nine months ended September 30, 2024.

Disclaimer

This analysis is based on the financial report provided and is intended for informational purposes only. Investors should conduct their own research and consider their financial situation and objectives before making investment decisions.