Xplr Infrastructure, Lp · NYSE:XIFR
Xplr Infrastructure, Lp — NextEra Energy Partners — Merger or Acquisition (November 2020)
19 slides from Xplr Infrastructure, Lp's merger presentation, Nov 2, 2020
Slide 1: NEP Acquisition and CEPF Financing
NEP Acquisition and CEPF Financing November 2, 2020
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results These presentations include forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to
Slide 3: NEP announcing acquisition of ~1,100-MW renewables portfolio and convertible equity financing
NEP is announcing the acquisition of interests in a ~1,100-MW portfolio of renewables projects and a new convertible equity portfolio financing Transaction Summary • NEP is acquiring a 40% interest in ~1,000-MW renewables portfolio and 100% interest in 100-MW solar-plus-storage project – ~19 year re
Slide 4: Transaction Summary (continued)
NEP is announcing the acquisition of interests in a ~1,100-MW portfolio of renewables projects and a new convertible equity portfolio financing Transaction Summary (continued) • As a result of the transaction, increasing year-end 2020 run rate Adjusted EBITDA expectations range to $1.300 B – $1.480
Slide 5: NEP agreed to purchase interests in ~1,100-MW portfolio from Energy Resources
NEP has agreed to purchase interests in a ~1,100-MW portfolio of long-term contracted renewables projects from Energy Resources for ~$320 MM(1) NEP Portfolio Additions(2) Remaining Project Technology MW(3) COD PPA Years Blue Summit III Wind 200 2019 14 Taylor Creek Solar 75 2020 20 Harmony Solar 75
Slide 6: Acquired assets combined with existing NEP projects in ~$1.1 B CEPF
The acquired assets will be combined with existing NEP projects in a new 10-year, ~$1.1 B Convertible Equity Portfolio Financing (CEPF) Portfolio Financing Transaction Structure Investors NEP CEPF Partnership Existing NEP Assets 2020 acquisition (Genesis(1), Northern Colorado, Baldwin, Elk City) 6 1
Slide 7: Longest-dated and lowest-cost convertible equity portfolio financing to date
The financing is the longest-dated and lowest-cost convertible equity portfolio financing to date Enhanced 10-Year CEPF Structure Commitment Largest CEPF equity Size ~$1.1 B partnership yet Draw Timing Can occur over multiple years Enhances flexibility and and in partial amounts provides liquidity P
Slide 8: Transaction strengthens NEP's balance sheet and financing capacity up to ~$2.4 B
This transaction significantly strengthens NEP’s balance sheet and further enhances its post-transaction potential financing capacity up to ~$2.4 B Transaction Benefits NEP Financing Capacity(1) ($MM) • Post-transaction, NEP expected to have ~$1.15 B of capacity ~$900 ~$2,400 under its revolving cre
Slide 9: NEP remains well positioned to deliver on long-term growth objectives
NEP remains well positioned to deliver on its long-term growth objectives NextEra Energy Partners Adjusted EBITDA and CAFD Expectations Adjusted EBITDA CAFD 12/31/20 Run Rate(1) $1,300 – $1,480 MM $560 – $640 MM 12/31/21 Run Rate(2) $1,440 – $1,620 MM $600 – $680 MM Unit Distributions 2020(3) $2.40
Slide 10: Appendix
10 Appendix NexTera energy’ PARTNERS £
Slide 11: CEPF to fund acquisition and recapitalize balance sheet: Sources and Uses
The ~$1.1 B CEPF is expected to fund the acquisition and recapitalize NEP’s balance sheet, while also providing financing capacity to support future growth Sources and Uses Sources ($MM) Uses ($MM) From Existing NEP Assets $750(1) 2020 Acquisitions ~$320(2) & 2020 Acquisitions (Draw #1) NEP Assets:
Slide 12: Year-End CAFD Run-Rate Walk
NextEra Energy Partners Year-End CAFD Run-Rate Walk ($MM) $700 $24 – $29 ($11 – $16) $5 – $10 ($15 – $20) $15 – $20 ($18 – $23) $600 $560 – $640 $560 – $640 $500 Portfolio acquisition Recapitalization of NEP drives CAFD accretion floating debt offsets accretion; $400 essentially substitutes converti
Slide 13: Convertible Equity Portfolio Financing Summary Terms
Convertible Equity Portfolio Financing Summary Terms Key Terms Summary Funding Amount: Kohlberg Kravis Roberts & Co (“KKR”) commitment of $1,095.1 MM Draw Timing: Funds to be drawn in two separate closings, the first expected on or about December 18, 2020, the other by June 2021 Issuer: Genesis Sola
Slide 14: Expected Cash Available for Distribution (2020 run rate)
Expected Cash Available for Distribution(1) (December 31, 2020 Run Rate CAFD; $ MM) $1,440-$1,620 ($20-$30) ($110-$120) $1,300-$1,480 ($185-$235) ($485-$565) ($40-$45) ($5-$15) $560-$640 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated Adjusted EBITDA Expense
Slide 15: Expected Cash Available for Distribution (2021 run rate)
Expected Cash Available for Distribution(1) (December 31, 2021 Run Rate CAFD; $ MM) $1,610-$1,790 ($20-$30) ($140-$150) $1,440-$1,620 ($185-$235) ($590-$670) ($40-$45) ($5-$15) $600-$680 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated (2) Adjusted EBITDA Exp
Slide 16: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA and CAFD expectations. NEP’s adjusted EBITDA expectations represent projected (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
Slide 17: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results This presentation 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
Slide 18: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may not be able to extend, renew or replace expiring or terminated power purchase agreements (PPA), natural gas transportation agreements or other customer contracts at favorable rates or on a long-term basis; If the en
Slide 19: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) 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 ma
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