EX-99 2 exhibit99-q22017.htm EXHIBIT 99 Exhibit


Exhibit 99
nexteraenergy.jpg
 
 
NextEra Energy, Inc.
Media Line: 561-694-4442
July 26, 2017

FOR IMMEDIATE RELEASE
NextEra Energy reports second-quarter 2017 financial results
NextEra Energy delivers strong second-quarter financial and operational results
Florida Power & Light Company's continued investments in the business result in more than 10 percent growth in regulatory capital employed, further advancing its outstanding customer value proposition
NextEra Energy Resources adds 631 megawatts to its contracted renewables backlog and commissions two natural gas pipelines

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported second-quarter 2017 net income attributable to NextEra Energy on a GAAP basis of $793 million, or $1.68 per share, compared to $540 million, or $1.16 per share, in the second quarter of 2016. On an adjusted basis, NextEra Energy's second-quarter 2017 earnings were $881 million, or $1.86 per share, compared to $777 million, or $1.67 per share, in the second quarter of 2016.

Adjusted earnings for these periods exclude the effects of non-qualifying hedges, the net effect of other than temporary impairments (OTTI) on certain investments, operating results from the Spain solar project and merger-related expenses. Adjusted earnings also exclude the 2016 impact from the gain on the sale of the Texas natural gas generation facilities.

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 achieved strong second-quarter results, while continuing to deliver on our overall objectives for 2017," said Jim Robo, chairman and chief executive officer of NextEra Energy. "NextEra Energy's second-quarter adjusted earnings per share increased more than 11 percent, primarily driven by new investments at both FPL and NextEra Energy Resources. During the quarter, FPL executed on its innovative and cost-effective approach of advancing affordable, reliable clean energy infrastructure across Florida. In line with this strategy, construction is underway on eight 74.5-megawatt solar energy centers across FPL's service territory, and construction remains on track at our state-of-the-art, natural gas-fueled

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Okeechobee Clean Energy Center. FPL also is moving forward with plans to modernize the Lauderdale Plant in Dania Beach by building a highly fuel-efficient energy center at the site. By continuing to execute on major capital initiatives to deliver on our outstanding customer value proposition, FPL grew regulatory capital employed by more than 10 percent versus the comparable period. At NextEra Energy Resources, we are well-positioned to capitalize on one of the best environments for renewables development in our history and remain encouraged by the improvement in costs, efficiencies and advancements in battery storage toward providing customers with firm renewable power. The Energy Resources team built on the origination success with which we started the year, signing more than 631 megawatts of additional wind and solar power purchase agreements and adding an additional 200 megawatts to our repowering backlog. Overall, we believe we have one of the best organic growth opportunity sets in our industry, and, as I've said previously, we will be disappointed if we are not able to deliver financial results at or near the top of our 6 to 8 percent adjusted earnings per share growth range through 2020."

Florida Power & Light Company
NextEra Energy's principal rate-regulated electric utility subsidiary, Florida Power & Light Company (FPL), reported second-quarter 2017 net income of $526 million, or $1.12 per share, compared to $448 million, or $0.96 per share, for the prior-year quarter.

FPL's contribution to adjusted earnings per share growth over the prior-year comparable quarter was primarily driven by continued investment in the business to further advance its long-term focus on delivering outstanding customer value, best-in-class reliability and typical residential customer bills that are significantly lower than the national and Florida averages. For the second quarter of 2017, FPL's average number of customers increased by approximately 64,000, or 1.3 percent, from the prior-year comparable period.

FPL's major capital initiatives remain on track, including leading one of the largest solar expansions ever in the eastern United States. Construction is underway at eight 74.5-megawatt (MW) solar energy centers across FPL's service territory. Once complete, the eight solar energy centers will produce nearly 600 MW of combined solar capacity – enough to power approximately 120,000 homes. Furthermore, FPL has secured land for more than 4 gigawatts of solar expansion and is developing an additional 1,600 MW of new solar generating capacity planned for beyond 2018. All of the solar energy centers are expected to be built cost-effectively, resulting in millions of dollars in net lifetime savings for FPL customers. Construction on the approximately 1,750-MW Okeechobee Clean Energy Center remains on schedule and under budget. The project, expected to begin operation in mid-2019, will be one of the cleanest, most efficient plants of its kind in the world.
In addition, the company is moving through the regulatory process on a number of initiatives aimed at strengthening the value proposition for customers. Earlier this month, FPL completed the first step with the Florida Public Service Commission (PSC) in the comprehensive review and permitting process for the planned modernization of the Lauderdale Plant in Dania Beach. The approximately 1,200-MW Dania Beach Clean Energy Center will be highly efficient and fueled by clean-burning natural gas. The project is expected to begin operation by mid-2022 and produce more than $350 million in projected net savings for FPL customers over its operational life.
FPL also filed a petition with the PSC for approval to shut down the St. Johns River Power Park, a roughly 1,300-MW coal-fired power plant jointly owned by FPL and JEA. If approved, the plant's early retirement will represent the third coal power plant the company has announced in two years that it will phase out and it is expected to save FPL customers $183 million, as well as prevent millions of tons of carbon dioxide emissions annually.

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NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a second-quarter 2017 contribution to net income attributable to NextEra Energy on a GAAP basis of $301 million, or $0.64 per share, compared to $234 million, or $0.50 per share, in the prior-year comparable quarter. On an adjusted basis, NextEra Energy Resources' earnings for the second-quarter of 2017 were $351 million, or $0.74 per share, compared to $313 million, or $0.67 per share, for the second quarter of 2016.
 
NextEra Energy Resources' contribution to second-quarter 2017 adjusted earnings per share increased $0.07, or approximately 10 percent, compared to the prior-year quarter. The business' results were primarily driven by contributions from new investments, reflecting continued growth in the contracted renewables portfolio and gas pipeline development projects. Partially offsetting the positive results were a decline in contributions from existing generation assets and gas infrastructure, as well as higher interest expense.
During the second quarter, the NextEra Energy Resources team continued to execute on its backlog and pursue additional opportunities for contracted renewables development. Over the past few months, the team added 631 MW of additional renewables projects to its backlog, including approximately 193 MW of new wind projects and roughly 438 MW of new solar projects. NextEra Energy Resources commissioned an additional 213 MW of wind repowering projects and successfully negotiated its first power purchase agreement amendment for a repowering project, adding an additional 200 MW to its repowering backlog, which now totals around 1,800 MW. Including repowering projects, the company expects to bring a total of approximately 10,100 MW to 16,500 MW of renewables into service from 2017 through 2020.

The Sabal Trail Transmission and Florida Southeast Connection natural gas pipelines began commercial operation during the second quarter. In addition, the Mountain Valley Pipeline joint venture continues to progress through the permitting process with the Federal Energy Regulatory Commission.

Corporate and Other
On a GAAP basis, Corporate and Other earnings increased $0.22 per share in the second quarter of 2017, compared to the prior-year comparable period. On an adjusted basis, Corporate and Other earnings decreased $0.04 per share in the second quarter of 2017, compared to the prior-year comparable period.

Outlook
NextEra Energy continues to expect adjusted earnings per share to be in the range of $6.35 to $6.85 for 2017. For 2018, the company expects adjusted earnings per share to be in the range of $6.80 to $7.30 and in the range of $7.85 to $8.45 for 2020, implying a compound annual growth rate off a 2016 base of 6 to 8 percent.
NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effect of non-qualifying hedges, as well as net OTTI losses on securities held in NextEra Energy Resources' nuclear decommissioning funds, none of which can be determined at this time. Adjusted earnings expectations also exclude the operating results from the Spain solar project, merger-related expenses, net gains associated with NextEra Energy Partners, LP's deconsolidation beginning in 2018 and the gain on the sale of the fiber-optic telecommunications business in 2017. In addition, adjusted earnings expectations assume, among other things: normal weather and operating conditions; continued recovery of the national and the Florida economy; 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

3



Energy Partners 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.
 
As previously announced, NextEra Energy's second-quarter 2017 conference call is scheduled for 9 a.m. ET today. Also discussed during the call will be second-quarter 2017 financial results for NextEra Energy Partners, LP (NYSE: NEP). The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/investors. The news release and slides accompanying the presentation may be downloaded at www.NextEraEnergy.com/investors, 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, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $16.2 billion, approximately 45,900 megawatts of generating capacity, which includes megawatts associated with noncontrolling interests related to NextEra Energy Partners, LP (NYSE: NEP), and approximately 14,700 employees in 30 states and Canada as of year-end 2016. Headquartered in Juno Beach, Florida, NextEra Energy's principal subsidiaries are Florida Power & Light Company, which serves approximately 4.9 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. A Fortune 200 company and included in the S&P 100 index, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been ranked No. 1 in the electric and gas utilities industry in Fortune's 2017 list of "World's Most Admired Companies." For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

###

Cautionary Statements and Risk Factors That May Affect Future Results

This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this press release include, among others, statements concerning adjusted earnings per share expectations and future operating performance, and statements concerning future dividends. 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,” “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 NextEra Energy and FPL and their business and financial condition are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements, or may require them to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL to recover in a timely manner any significant amount of costs, a return on certain assets or a reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory and economic factors on regulatory

4



decisions important to NextEra Energy and FPL; disallowance of cost recovery by FPL based on a finding of imprudent use of derivative instruments; effect of any reductions or modifications to, or elimination of, governmental incentives or policies that support utility scale renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources) or the imposition of additional tax laws, policies or assessments on renewable energy; impact of new or revised laws, regulations, interpretations or other regulatory initiatives on NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal regulation of their operations and businesses; effect on NextEra Energy and FPL of changes in tax laws, guidance or policies as well as in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget; impact on development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements; risks involved in the operation and maintenance of electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities; effect on NextEra Energy and FPL of a lack of growth or slower growth in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; threats of terrorism and catastrophic events that could result from terrorism, cyber attacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; inability to obtain adequate insurance coverage for protection of NextEra Energy and FPL against significant losses and risk that insurance coverage does not provide protection against all significant losses; a prolonged period of low gas and oil prices could impact NextEra Energy Resources’ gas infrastructure business and cause NextEra Energy Resources to delay or cancel certain gas infrastructure projects and for certain existing projects to be impaired; risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by NextEra Energy Resources to manage properly or hedge effectively the commodity risk within its portfolio; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas by FPL and NextEra Energy Resources; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; failure of NextEra Energy or FPL counterparties to perform under derivative contracts or of requirement for NextEra Energy or FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of derivative instruments and limited liquidity in OTC markets; impact of negative publicity; inability of NextEra Energy and FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; NextEra Energy Partners, LP’s (NEP's) acquisitions may not be completed and, even if completed, NextEra Energy may not realize the anticipated benefits of any acquisitions; environmental, health and financial risks associated with NextEra Energy Resources’ and FPL's ownership and operation of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures and/or result in reduced revenues at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units through the end of their respective operating licenses; effect of disruptions, uncertainty or volatility in the credit and capital markets on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; impairment of NextEra Energy's and FPL's liquidity from inability of credit providers to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; the fact that the amount and timing of dividends payable on NextEra Energy's common stock, as well as the dividend policy approved by NextEra Energy's board of directors from time to time, and changes to that policy, are within the sole discretion of NextEra Energy's board of directors and, if declared and paid, dividends may be in amounts that are less than might be expected by shareholders; NEP’s inability to access sources of capital on commercially reasonable terms could have an effect on its ability to consummate future acquisitions and on the value of NextEra Energy’s limited partner interest in NextEra

5



Energy Operating Partners, LP; and effects of disruptions, uncertainty or volatility in the credit and capital markets on the market price of NextEra Energy's common stock. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2016 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 NextEra Energy and FPL undertake no obligation to update any forward-looking statements.



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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Three Months Ended June 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
3,091

 
$
1,295

 
$
18

 
$
4,404

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
893

 
141

 
(16
)
 
1,018

Other operations and maintenance
 
404

 
420

 
12

 
836

Merger
 

 

 
4

 
4

Depreciation and amortization
 
537

 
345

 
4

 
886

Losses (gains) on disposal of a business/assets - net
 
(1
)
 
(3
)
 
3

 
(1
)
Taxes other than income taxes and other - net
 
317

 
54

 
5

 
376

Total operating expenses (income) - net
 
2,150

 
957

 
12

 
3,119

Operating Income
 
941

 
338

 
6

 
1,285

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(121
)
 
(230
)
 
(79
)
 
(430
)
Benefits associated with differential membership interests - net
 

 
119

 

 
119

Equity in earnings of equity method investees
 

 
66

 

 
66

Allowance for equity funds used during construction
 
19

 
6

 

 
25

Interest income
 

 
17

 
2

 
19

Gains on disposal of investments and other property - net
 

 
3

 

 
3

Other - net
 

 
6

 

 
6

Total other income (deductions) - net
 
(102
)
 
(13
)
 
(77
)
 
(192
)
Income (Loss) before Income Taxes
 
839

 
325

 
(71
)
 
1,093

Income Tax Expense (Benefit)
 
313

 
13

 
(37
)
 
289

Net Income (Loss)
 
526

 
312

 
(34
)
 
804

Less Net Income Attributable to Noncontrolling Interests
 

 
11

 

 
11

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
526

 
$
301

 
$
(34
)
 
$
793

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
526

 
$
301

 
$
(34
)
 
$
793

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
95

 
57

 
152

Loss from other than temporary impairments - net(4)
 

 
2

 

 
2

Operating loss (income) of Spain solar projects(5)
 

 
(6
)
 

 
(6
)
Merger-related expenses(6)
 

 

 
4

 
4

Less related income tax expense (benefit)
 

 
(41
)
 
(23
)
 
(64
)
Adjusted Earnings
 
$
526

 
$
351

 
$
4

 
$
881

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
1.12

 
$
0.64

 
$
(0.08
)
 
$
1.68

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
0.20

 
0.12

 
0.32

Loss from other than temporary impairments - net(4)
 

 

 

 

Operating loss (income) of Spain solar projects(5)
 

 
(0.01
)
 

 
(0.01
)
Merger-related expenses(6)
 

 

 
0.01

 
0.01

Less related income tax expense (benefit)
 

 
(0.09
)
 
(0.05
)
 
(0.14
)
Adjusted Earnings Per Share
 
$
1.12

 
$
0.74

 
$

 
$
1.86

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
472

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, $57, $35, $92, respectively, or $0, $0.12, $0.07, $0.19 per share.
(4) After tax impact on adjusted earnings is $1 or $0 per share.
(5) After tax impact on adjusted earnings is ($8) or ($0.02) per share.
(6) After tax impact on adjusted earnings is $3 or $0.01 per share.

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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Three Months Ended June 30, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
2,750

 
$
970

 
$
97

 
$
3,817

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
811

 
142

 
7

 
960

Other operations and maintenance
 
410

 
395

 
38

 
843

Merger
 

 

 
2

 
2

Depreciation and amortization
 
400

 
325

 
17

 
742

Losses (gains) on disposal of a business/assets - net
 
(1
)
 
(254
)
 
1

 
(254
)
Taxes other than income taxes and other - net
 
302

 
46

 
7

 
355

Total operating expenses (income) - net
 
1,922

 
654

 
72

 
2,648

Operating Income
 
828

 
316

 
25

 
1,169

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(117
)
 
(277
)
 
(208
)
 
(602
)
Benefits associated with differential membership interests - net
 

 
77

 

 
77

Equity in earnings of equity method investees
 

 
34

 
10

 
44

Allowance for equity funds used during construction
 
14

 
2

 
1

 
17

Interest income
 
2

 
6

 
12

 
20

Gains on disposal of investments and other property - net
 

 
12

 

 
12

Other - net
 
1

 
20

 
5

 
26

Total other income (deductions) - net
 
(100
)
 
(126
)
 
(180
)
 
(406
)
Income (Loss) before Income Taxes
 
728

 
190

 
(155
)
 
763

Income Tax Expense (Benefit)
 
280

 
(48
)
 
(13
)
 
219

Net Income (Loss)
 
448

 
238

 
(142
)
 
544

Less Net Income Attributable to Noncontrolling Interests
 

 
4

 

 
4

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
448

 
$
234

 
$
(142
)
 
$
540

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
448

 
$
234

 
$
(142
)
 
$
540

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
382

 
167

 
549

Loss from other than temporary impairments - net(4)
 

 
1

 

 
1

Gains on disposal of a business/assets(5)
 

 
(254
)
 

 
(254
)
Operating loss (income) of Spain solar projects(6)
 

 
1

 

 
1

Merger-related expenses(7)
 

 

 
2

 
2

Less related income tax expense (benefit)
 

 
(51
)
 
(11
)
 
(62
)
Adjusted Earnings
 
$
448

 
$
313

 
$
16

 
$
777

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
0.96

 
$
0.50

 
$
(0.30
)
 
$
1.16

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
0.82

 
0.36

 
1.18

Loss from other than temporary impairments - net(4)
 

 

 

 

Gains on disposal of a business/assets(5)
 

 
(0.55
)
 

 
(0.55
)
Operating loss (income) of Spain solar projects(6)
 

 

 

 

Merger-related expenses(7)
 

 

 

 

Less related income tax expense (benefit)
 

 
(0.10
)
 
(0.02
)
 
(0.12
)
Adjusted Earnings Per Share
 
$
0.96

 
$
0.67

 
$
0.04

 
$
1.67

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
465

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, $242, $99, $341, respectively, or $0, $0.52, $0.21, $0.73 per share.
(4) After tax impact on adjusted earnings is $1 or $0.0 per share.
(5) After tax impact on adjusted earnings is $0, ($164), $58, ($106) or $0, ($0.35), $0.13, ($0.22) per share.
(6) After tax impact on adjusted earnings is $1 or $0 per share.
(7) After tax impact on adjusted earnings is $2 or $0 per share.


8



NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Six Months Ended June 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
5,618

 
$
2,719

 
$
40

 
$
8,377

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
1,661

 
286

 
(30
)
 
1,917

Other operations and maintenance
 
775

 
832

 
24

 
1,631

Merger
 

 

 
15

 
15

Depreciation and amortization
 
810

 
685

 
10

 
1,505

Losses (gains) on disposal of a business/assets - net
 
(3
)
 
(4
)
 
(1,094
)
 
(1,101
)
Taxes other than income taxes and other - net
 
623

 
89


8

 
720

Total operating expenses (income) - net
 
3,866

 
1,888

 
(1,067
)
 
4,687

Operating Income
 
1,752

 
831

 
1,107

 
3,690

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(240
)
 
(420
)
 
(130
)
 
(790
)
Benefits associated with differential membership interests - net
 

 
244

 

 
244

Equity in earnings of equity method investees
 

 
92

 
5

 
97

Allowance for equity funds used during construction
 
34

 
12

 
1

 
47

Interest income
 
1

 
35

 
3

 
39

Gains on disposal of investments and other property - net
 

 
33

 
15

 
48

Other - net
 

 
11

 
(27
)
 
(16
)
Total other income (deductions) - net
 
(205
)
 
7

 
(133
)
 
(331
)
Income (Loss) before Income Taxes
 
1,547

 
838

 
974

 
3,359

Income Tax Expense (Benefit)
 
576

 
42

 
346

 
964

Net Income (Loss)
 
971

 
796

 
628

 
2,395

Less Net Income Attributable to Noncontrolling Interests
 

 
19

 

 
19

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
971

 
$
777

 
$
628

 
$
2,376

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
971

 
$
777

 
$
628

 
$
2,376

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
(107
)
 
85

 
(22
)
Loss from other than temporary impairments - net(4)
 

 
2

 

 
2

Gains on disposal of a business/assets(5)
 

 

 
(1,096
)
 
(1,096
)
Operating loss (income) of Spain solar projects(6)
 

 
2

 

 
2

Merger-related expenses(7)
 

 

 
38

 
38

Less related income tax expense (benefit)
 

 
34

 
367

 
401

Adjusted Earnings
 
$
971

 
$
708

 
$
22

 
$
1,701

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
2.06

 
$
1.65

 
$
1.34

 
$
5.05

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
(0.23
)
 
0.18

 
(0.05
)
Loss from other than temporary impairments - net(4)
 

 

 

 

Gains on disposal of a business/assets(5)
 

 

 
(2.33
)
 
(2.33
)
Operating loss (income) of Spain solar projects(6)
 

 

 

 

Merger-related expenses(7)
 

 

 
0.08

 
0.08

Less related income tax expense (benefit)
 

 
0.08

 
0.79

 
0.87

Adjusted Earnings Per Share
 
$
2.06

 
$
1.50

 
$
0.06

 
$
3.62

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
471

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, ($70), $53, ($17), respectively, or $0, ($0.15), $0.11, ($0.04) per share.
(4) After tax impact on adjusted earnings is $1 or $0 per share.
(5) After tax impact on adjusted earnings is ($685) or ($1.45) per share.
(6) After tax impact on adjusted earnings is $0 or $0 per share.
(7) After tax impact on adjusted earnings is $26 or $0.06 per share.

9


NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Six Months Ended June 30, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra Energy, Inc.
Operating Revenues
 
$
5,054

 
$
2,411

 
$
186

 
$
7,651

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
1,511

 
356

 
21

 
1,888

Other operations and maintenance
 
800

 
781

 
61

 
1,642

Merger
 

 

 
6

 
6

Depreciation and amortization
 
620

 
625

 
34

 
1,279

Losses (gains) on disposal of a business/assets - net
 
(3
)
 
(252
)
 
1

 
(254
)
Taxes other than income taxes and other - net
 
584

 
90

 
13

 
687

Total operating expenses (income) - net
 
3,512

 
1,600

 
136

 
5,248

Operating Income
 
1,542

 
811

 
50

 
2,403

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(229
)
 
(646
)
 
(236
)
 
(1,111
)
Benefits associated with differential membership interests - net
 

 
161

 

 
161

Equity in earnings of equity method investees
 

 
56

 
20

 
76

Allowance for equity funds used during construction
 
38

 
3

 
1

 
42

Interest income
 
3

 
10

 
26

 
39

Gains on disposal of investments and other property - net
 

 
27

 

 
27

Other - net
 

 
17

 
5

 
22

Total other income (deductions) - net
 
(188
)
 
(372
)
 
(184
)
 
(744
)
Income (Loss) before Income Taxes
 
1,354

 
439

 
(134
)
 
1,659

Income Tax Expense (Benefit)
 
513

 
(24
)
 
(28
)
 
461

Net Income (Loss)
 
841

 
463

 
(106
)
 
1,198

Less Net Income Attributable to Noncontrolling Interests
 

 
5

 

 
5

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
841

 
$
458

 
$
(106
)
 
$
1,193

Reconciliation of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings:
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
841

 
$
458

 
$
(106
)
 
$
1,193

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
493

 
164

 
657

Loss from other than temporary impairments - net(4)
 

 
9

 

 
9

Resolution of contingencies related to a previous asset sale(5)
 

 
(9
)
 

 
(9
)
Gains on disposal of a business/assets(6)
 

 
(254
)
 

 
(254
)
Operating loss (income) of Spain solar projects(7)
 

 
4

 

 
4

Merger-related expenses(8)
 

 

 
6

 
6

Less related income tax expense (benefit)
 

 
(80
)
 
(16
)
 
(96
)
Adjusted Earnings
 
$
841

 
$
621

 
$
48

 
$
1,510

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
1.81

 
$
0.99

 
$
(0.23
)
 
$
2.57

Adjustments(2):
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
1.06

 
0.35

 
1.41

Loss from other than temporary impairments - net(4)
 

 
0.02

 

 
0.02

Resolution of contingencies related to a previous asset sale(5)
 

 
(0.02
)
 

 
(0.02
)
Gains on disposal of a business/assets(6)
 

 
(0.55
)
 

 
(0.55
)
Operating loss (income) of Spain solar projects(7)
 

 
0.01

 

 
0.01

Merger-related expenses(8)
 

 

 
0.01

 
0.01

Less related income tax expense (benefit)
 

 
(0.16
)
 
(0.03
)
 
(0.19
)
Adjusted Earnings Per Share
 
$
1.81

 
$
1.35

 
$
0.10

 
$
3.26

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
464

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.
(2) Adjustments are presented on a pretax basis.
(3) After tax impact on adjusted earnings by segment is $0, $323, $93, $416, respectively, or $0, $0.70, $0.19, $0.89 per share.
(4) After tax impact on adjusted earnings is $0, $5, ($1), $4 or $0.0, $0.01, $0.0, $0.01 per share.
(5) After tax impact on adjusted earnings is ($5) or ($0.01) per share.
(6) After tax impact on adjusted earnings is $0, ($164), $58, ($106) or $0.0, ($0.35), $0.13, ($0.48) per share.
(7) After tax impact on adjusted earnings is $4 or $0.01 per share.
(8) After tax impact on adjusted earnings is $4 or $0.01 per share.

10


NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
June 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra
Energy, Inc.
Property, Plant and Equipment
 
 
 
 
 
 
 
 
Electric plant in service and other property
 
$
46,178

 
$
36,177

 
$
962

 
$
83,317

Nuclear fuel
 
1,313

 
725

 

 
2,038

Construction work in progress
 
2,928

 
2,380

 
41

 
5,349

Accumulated depreciation and amortization
 
(12,687
)
 
(8,250
)
 
(111
)
 
(21,048
)
Total property, plant and equipment - net
 
37,732

 
31,032

 
892

 
69,656

Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
33

 
600

 
9

 
642

Customer receivables, net of allowances
 
974

 
957

 
19

 
1,950

Other receivables
 
150

 
895

 
(515
)
 
530

Materials, supplies and fossil fuel inventory
 
875

 
438

 

 
1,313

Regulatory assets
 
442

 

 

 
442

Derivatives
 
18

 
450

 
78

 
546

Other
 
168

 
367

 
(11
)
 
524

Total current assets
 
2,660

 
3,707

 
(420
)
 
5,947

Other Assets
 
 
 
 
 
 
 
 
Special use funds
 
3,861

 
1,895

 

 
5,756

Other investments
 
4

 
2,607

 
339

 
2,950

Prepaid benefit costs
 
1,312

 

 
(125
)
 
1,187

Regulatory assets
 
1,911

 
17

 
298

 
2,226

Derivatives
 

 
1,378

 
50

 
1,428

Other
 
320

 
3,308

 
112

 
3,740

Total other assets
 
7,408

 
9,205

 
674

 
17,287

Total Assets
 
$
47,800

 
$
43,944

 
$
1,146

 
$
92,890

Capitalization
 
 
 
 
 
 
 
 
Common stock
 
$
1,373

 
$

 
$
(1,368
)
 
$
5

Additional paid-in capital
 
8,291

 
10,594

 
(9,881
)
 
9,004

Retained earnings
 
7,516

 
10,058

 
(660
)
 
16,914

Accumulated other comprehensive income (loss)
 

 
93

 
(90
)
 
3

Total common shareholders' equity
 
17,180

 
20,745

 
(11,999
)
 
25,926

Noncontrolling interests
 

 
950

 

 
950

Total equity
 
17,180

 
21,695

 
(11,999
)
 
26,876

Long-term debt
 
10,088

 
9,050

 
11,254

 
30,392

Total capitalization
 
27,268

 
30,745

 
(745
)
 
57,268

Current Liabilities
 
 
 
 
 
 
 
 
Commercial paper
 
1,000

 

 
1,115

 
2,115

Other short-term debt
 
250

 
5

 

 
255

Current maturities of long-term debt
 
461

 
649

 
652

 
1,762

Accounts payable
 
768

 
1,102

 
(56
)
 
1,814

Customer deposits
 
453

 
4

 

 
457

Accrued interest and taxes
 
645

 
247

 
(148
)
 
744

Derivatives
 
2

 
255

 
20

 
277

Accrued construction-related expenditures
 
267

 
278

 
1

 
546

Regulatory liabilities
 
113

 

 
12

 
125

Other
 
405

 
348

 
102

 
855

Total current liabilities
 
4,364

 
2,888

 
1,698

 
8,950

Other Liabilities and Deferred Credits
 
 
 
 
 
 
 
 
Asset retirement obligations
 
1,977

 
868

 

 
2,845

Deferred income taxes
 
8,959

 
3,319

 
(176
)
 
12,102

Regulatory liabilities
 
4,708

 

 
42

 
4,750

Derivatives
 

 
463

 
44

 
507

Deferral related to differential membership interests
 

 
4,358

 

 
4,358

Other
 
524

 
1,303

 
283

 
2,110

Total other liabilities and deferred credits
 
16,168

 
10,311

 
193

 
26,672

Commitments and Contingencies
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
 
$
47,800

 
$
43,944

 
$
1,146

 
$
92,890

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.

11


NextEra Energy, Inc.
Condensed Consolidated Balance Sheets
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
December 31, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra
Energy, Inc.
Property, Plant and Equipment
 
 
 
 
 
 
 
 
Electric plant in service and other property
 
$
44,966

 
$
34,158

 
$
1,026

 
$
80,150

Nuclear fuel
 
1,308

 
823

 

 
2,131

Construction work in progress
 
2,039

 
2,663

 
30

 
4,732

Accumulated depreciation and amortization
 
(12,304
)
 
(7,655
)
 
(142
)
 
(20,101
)
Total property, plant and equipment - net
 
36,009

 
29,989

 
914

 
66,912

Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
33

 
603

 
656

 
1,292

Customer receivables, net of allowances
 
768

 
986

 
30

 
1,784

Other receivables
 
148

 
572

 
(65
)
 
655

Materials, supplies and fossil fuel inventory
 
851

 
438

 

 
1,289

Regulatory assets
 
524

 

 

 
524

Derivatives
 
209

 
505

 
171

 
885

Assets held for sale
 

 

 
452

 
452

Other
 
213

 
312

 
3

 
528

Total current assets
 
2,746

 
3,416

 
1,247

 
7,409

Other Assets
 
 
 
 
 
 
 
 
Special use funds
 
3,665

 
1,769

 

 
5,434

Other investments
 
4

 
2,158

 
320

 
2,482

Prepaid benefit costs
 
1,301

 

 
(124
)
 
1,177

Regulatory assets
 
1,573

 
9

 
312

 
1,894

Derivatives
 

 
1,287

 
63

 
1,350

Other
 
203

 
3,115

 
17

 
3,335

Total other assets
 
6,746

 
8,338

 
588

 
15,672

Total Assets
 
$
45,501

 
$
41,743

 
$
2,749

 
$
89,993

Capitalization
 
 
 
 
 
 
 
 
Common stock
 
$
1,373

 
$

 
$
(1,368
)
 
$
5

Additional paid-in capital
 
8,332

 
7,725

 
(7,109
)
 
8,948

Retained earnings
 
6,875

 
9,281

 
(698
)
 
15,458

Accumulated other comprehensive income (loss)
 

 
27

 
(97
)
 
(70
)
Total common shareholders' equity
 
16,580

 
17,033

 
(9,272
)
 
24,341

Noncontrolling interests
 

 
990

 

 
990

Total equity
 
16,580

 
18,023

 
(9,272
)
 
25,331

Long-term debt
 
9,705

 
8,631

 
9,482

 
27,818

Total capitalization
 
26,285

 
26,654

 
210

 
53,149

Current Liabilities
 
 
 
 
 
 
 
 
Commercial paper
 
268

 

 

 
268

Other short-term debt
 
150

 

 

 
150

Current maturities of long-term debt
 
367

 
513

 
1,724

 
2,604

Accounts payable
 
837

 
2,645

 
(35
)
 
3,447

Customer deposits
 
466

 
4

 

 
470

Accrued interest and taxes
 
240

 
309

 
(69
)
 
480

Derivatives
 
1

 
329

 
74

 
404

Accrued construction-related expenditures
 
262

 
855

 
3

 
1,120

Regulatory liabilities
 
294

 

 
5

 
299

Liabilities associated with assets held for sale
 

 

 
451

 
451

Other
 
496

 
615

 
115

 
1,226

Total current liabilities
 
3,381

 
5,270

 
2,268

 
10,919

Other Liabilities and Deferred Credits
 
 
 
 
 
 
 
 
Asset retirement obligations
 
1,919

 
817

 

 
2,736

Deferred income taxes
 
8,541

 
2,685

 
(125
)
 
11,101

Regulatory liabilities
 
4,893

 

 
13

 
4,906

Derivatives
 

 
436

 
41

 
477

Deferral related to differential membership interests
 

 
4,656

 

 
4,656

Other
 
482

 
1,225

 
342

 
2,049

Total other liabilities and deferred credits
 
15,835

 
9,819

 
271

 
25,925

Commitments and Contingencies
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
 
$
45,501

 
$
41,743

 
$
2,749

 
$
89,993

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.

12



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Six Months Ended June 30, 2017
 
Florida Power
& Light
 
NEER
 
Corporate &
Other
(1)
 
NextEra
Energy, Inc.
Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
Net income
 
$
971

 
$
796

 
$
628

 
$
2,395

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
810

 
685

 
10

 
1,505

Nuclear fuel and other amortization
 
101

 
33

 
9

 
143

Unrealized losses (gains) on marked to market derivative contracts - net
 

 
(118
)
 
132

 
14

Foreign currency transaction losses (gains)
 

 

 
(12
)
 
(12
)
Deferred income taxes
 
399

 
593

 
(106
)
 
886

Cost recovery clauses and franchise fees
 
10

 

 

 
10

Acquisition of purchased power agreement
 
(258
)
 

 

 
(258
)
Gains on disposal of a business/assets - net
 
(3
)
 
(37
)
 
(1,109
)
 
(1,149
)
Recoverable storm-related costs
 
(105
)
 

 

 
(105
)
Other - net
 
(53
)
 
(205
)
 
141

 
(117
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Current assets
 
(227
)
 
25

 
(30
)
 
(232
)
Noncurrent assets
 
(16
)
 
(32
)
 
(57
)
 
(105
)
Current liabilities
 
437

 
(694
)
 
406

 
149

Noncurrent liabilities
 
(13
)
 
66

 
(12
)
 
41

Net cash provided by (used in) operating activities
 
2,053

 
1,112

 

 
3,165

Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
Capital expenditures of FPL
 
(2,648
)
 

 

 
(2,648
)
Independent power and other investments of NEER
 

 
(4,106
)
 

 
(4,106
)
Nuclear fuel purchases
 
(94
)
 
(55
)
 

 
(149
)
Other capital expenditures and other investments
 

 

 
(34
)
 
(34
)
Proceeds from sale of the fiber-optic telecommunications business
 

 

 
1,482

 
1,482

Sale of independent power and other investments of NEER
 

 
42

 

 
42

Proceeds from sale or maturity of securities in special use funds and other investments
 
902

 
437

 
80

 
1,419

Purchases of securities in special use funds and other investments
 
(949
)
 
(456
)
 
(126
)
 
(1,531
)
Other - net
 
26

 
(15
)
 
5

 
16

Net cash provided by (used in) investing activities
 
(2,763
)
 
(4,153
)
 
1,407

 
(5,509
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
Issuances of long-term debt
 
200

 
768

 
1,803

 
2,771

Retirements of long-term debt
 
(35
)
 
(314
)
 
(1,536
)
 
(1,885
)
Net change in commercial paper
 
732

 

 
1,115

 
1,847

Proceeds from other short-term debt
 
200

 

 

 
200

Issuances of common stock - net
 

 

 
25

 
25

Dividends on common stock
 

 

 
(920
)
 
(920
)
Dividends & capital distributions from (to) parent - net
 
(400
)
 
2,869

 
(2,469
)
 

Other - net
 
13

 
(285
)
 
(72
)
 
(344
)
Net cash provided by (used in) financing activities
 
710

 
3,038

 
(2,054
)
 
1,694

Net increase (decrease) in cash and cash equivalents
 

 
(3
)
 
(647
)
 
(650
)
Cash and cash equivalents at beginning of period
 
33

 
603

 
656

 
1,292

Cash and cash equivalents at end of period
 
$
33

 
$
600

 
$
9

 
$
642

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.

13



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
 
 
 
 
 
Preliminary
 
Six Months Ended June 30, 2016
 
Florida Power
& Light
 
NEER
 
Corporate &
Other(1)(2)
 
NextEra
Energy, Inc.
Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
Net income
 
$
841

 
$
463

 
$
(106
)
 
$
1,198

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
620

 
625

 
34

 
1,279

Nuclear fuel and other amortization
 
112

 
67

 
9

 
188

Unrealized losses (gains) on marked to market derivative contracts - net
 

 
381

 
71

 
452

Foreign currency transaction losses (gains)
 

 
(3
)
 
93

 
90

Deferred income taxes
 
493

 
38

 
(125
)
 
406

Cost recovery clauses and franchise fees
 
137

 

 

 
137

Gains on disposal of a business/assets - net
 

 
(279
)
 

 
(279
)
Recoverable storm-related costs
 
9

 

 

 
9

Other - net
 
(12
)
 
(151
)
 
29

 
(134
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Current assets
 
(24
)
 
(2
)
 
14

 
(12
)
Noncurrent assets
 
14

 
(71
)
 
(17
)
 
(74
)
Current liabilities
 
211

 
(91
)
 
(73
)
 
47

Noncurrent liabilities
 
(78
)
 
14

 
27

 
(37
)
Net cash provided by (used in) operating activities
 
2,323

 
991

 
(44
)
 
3,270

Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
Capital expenditures of FPL
 
(2,129
)
 

 

 
(2,129
)
Independent power and other investments of NEER
 

 
(3,719
)
 

 
(3,719
)
Nuclear fuel purchases
 
(70
)
 
(45
)
 

 
(115
)
Other capital expenditures and other investments
 

 

 
(103
)
 
(103
)
Sale of independent power and other investments of NEER
 

 
396

 

 
396

Proceeds from sale or maturity of securities in special use funds and other investments
 
1,079

 
347

 
183

 
1,609

Purchases of securities in special use funds and other investments
 
(1,120
)
 
(365
)
 
(169
)
 
(1,654
)
Proceeds from sales of noncontrolling interests in NEP
 

 
303

 

 
303

Other - net
 
28

 
(56
)
 
3

 
(25
)
Net cash provided by (used in) investing activities
 
(2,212
)
 
(3,139
)
 
(86
)
 
(5,437
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
Issuances of long-term debt
 

 
1,313

 
1,196

 
2,509

Retirements of long-term debt
 
(33
)
 
(905
)
 
(58
)
 
(996
)
Net change in commercial paper
 
307

 

 
701

 
1,008

Proceeds from other short-term debt
 
500

 

 

 
500

Issuances of common stock - net
 

 

 
43

 
43

Dividends on common stock
 

 

 
(803
)
 
(803
)
Dividends & capital distributions from (to) parent - net
 
(900
)
 
1,760

 
(860
)
 

Other - net
 
6

 
113

 
(54
)
 
65

Net cash provided by (used in) financing activities
 
(120
)
 
2,281

 
165

 
2,326

Net increase (decrease) in cash and cash equivalents
 
(9
)
 
133

 
35

 
159

Cash and cash equivalents at beginning of period
 
23

 
490

 
58

 
571

Cash and cash equivalents at end of period
 
$
14

 
$
623

 
$
93

 
$
730

—————————————
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt. Residual corporate interest expense is included in Corporate & Other.


14



NextEra Energy, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)
Preliminary
 
 
 
First
Quarter
 
Second
Quarter
 
Year-To-Date
2016 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
1.41


$
1.16

 
$
2.57

 
 
 
 
 
 
 
Florida Power & Light - 2016 Earnings Per Share
 
$
0.85

 
$
0.96

 
$
1.81

New investment growth
 
0.11

 
0.07

 
0.18

Cost recovery clause results
 

 
0.01

 
0.01

Allowance for funds used during construction
 
(0.02
)
 
0.01

 
(0.01
)
Woodford shale investment
 

 
0.03

 
0.04

Wholesale operations
 

 
0.02

 
0.02

Other and share dilution
 
0.01

 
0.02

 
0.01

Florida Power & Light - 2017 Earnings Per Share
 
$
0.95

 
$
1.12

 
$
2.06

 
 
 
 
 
 
 
NEER - 2016 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
0.48

 
$
0.50

 
$
0.99

New investments
 
0.35

 
0.17

 
0.55

Existing assets
 
(0.01
)
 
(0.08
)
 
(0.10
)
Gas infrastructure
 
(0.11
)
 
(0.04
)
 
(0.15
)
Customer supply and proprietary power & gas trading
 
(0.04
)
 
0.05

 
0.01

Non-qualifying hedges impact
 
0.44

 
0.40

 
0.85

Resolution of contingencies related to a previous asset sale
 
(0.01
)
 

 
(0.01
)
Gain on disposal of assets - net (see related tax effects in Corporate and Other below)
 

 
(0.35
)
 
(0.35
)
Spain operating results
 
(0.01
)
 
0.02

 
0.01

Change in other than temporary impairment losses - net
 
0.01

 

 
0.01

Interest and corporate general and administrative expenses
 
(0.09
)
 
(0.09
)
 
(0.18
)
Other, including income taxes and share dilution
 

 
0.06

 
0.02

NEER - 2017 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
1.01

 
$
0.64

 
$
1.65

 
 


 
 
 
 
Corporate and Other - 2016 Earnings Per Share
 
$
0.08


$
(0.30
)
 
$
(0.23
)
Non-qualifying hedges impact
 
(0.05
)
 
0.14

 
0.08

Gain on disposal of a business/assets - net (including consolidating tax effects)
 
1.46

 
0.13

 
1.58

Merger-related expenses
 
(0.04
)
 
(0.01
)
 
(0.05
)
Other, including interest expense, interest income and consolidating income tax benefits or expenses and share dilution
 
(0.04
)
 
(0.04
)
 
(0.04
)
Corporate and Other - 2017 Earnings (Loss) Per Share
 
$
1.41

 
$
(0.08
)
 
$
1.34

 
 
 
 
 
 
 
2017 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
3.37

 
$
1.68

 
$
5.05

________________________
Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.
The sum of the quarterly amounts may not equal the year-to-date total due to rounding.

15



NextEra Energy, Inc.
Schedule of Total Debt and Equity
(millions)
(unaudited)

 
 
Preliminary
 
June 30, 2017
 
Per Books
 
Adjusted (1)
Long-term debt, including current maturities, and short-term debt
 
 
 
 
Junior Subordinated Debentures
 
$
3,460

 
$
1,730

Debentures, related to NextEra Energy's equity units
 
2,200

 
 
Project Debt:
 
 
 
 
Natural gas-fired assets
 
24

 
 
Wind assets
 
4,009

 
1,481

Solar
 
3,299

 
1,102

Other
 
1,516

 
689

Storm Securitization Debt
 
176

 
 
Other(2)
 
 
 
1,112

Other long-term debt, including current maturities, and short-term debt(3)
 
20,186

 
20,186

Unamortized debt issuance costs
 
(346
)
 
 
Total debt per Balance Sheet
 
34,524

 
26,300

Junior Subordinated Debentures
 
 
 
1,730

Debentures, related to NextEra Energy's equity units
 
 
 
2,200

Total Equity
 
26,876

 
26,876

Total capitalization, including debt due within one year
 
$
61,400

 
$
57,106

Debt ratio
 
56
%
 
46
%

December 31, 2016
 
Per Books
 
Adjusted (1)
Long-term debt, including current maturities, and short-term debt
 
 
 
 
Junior Subordinated Debentures
 
$
3,460

 
$
1,730

Debentures, related to NextEra Energy's equity units
 
2,200

 
 
Project Debt:
 
 
 
 
Natural gas-fired assets
 
36

 
 
Wind assets
 
4,228

 
1,542

Solar
 
2,975

 
1,040

Other
 
1,520

 
690

Storm Securitization Debt
 
210

 
 
Other(2)
 
 
 
519

Other long-term debt, including current maturities, and short-term debt(3)
 
16,556

 
16,556

Unamortized debt issuance costs
 
(345
)
 
 
Total debt per Balance Sheet
 
30,840

 
22,077

Junior Subordinated Debentures
 
 
 
1,730

Debentures, related to NextEra Energy's equity units
 
 
 
2,200

Total Equity
 
25,331

 
25,331

Total capitalization, including debt due within one year
 
$
56,171

 
$
51,338

Debt ratio
 
55
%
 
43
%
________________________
(1) 
Adjusted debt calculation is based on NextEra Energy's interpretation of S&P's credit metric methodology which can be found in their Corporate Ratings Criteria on S&P's website.
(2) 
Other includes imputed debt of purchase power agreements, a portion of the deferral related to differential membership interests and certain accrued interest offset by surplus cash.
(3) 
Includes premium and discount on all debt issuances.



16



Florida Power & Light Company
Statistics
(unaudited)

 
 
Preliminary
 
 
 
Quarter
 
Year-to-Date
Periods Ended June 30,
 
2017
 
2016
 
% change
 
2017
 
2016
 
% change
Energy sales (million kWh)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
14,818

 
14,491

 
2.3
 %
 
26,339

 
26,468

 
(0.5
)%
Commercial
 
12,045

 
11,821

 
1.9
 %
 
22,646

 
22,353

 
1.3
 %
Industrial
 
763

 
768

 
(0.7
)%
 
1,489

 
1,497

 
(0.5
)%
Public authorities
 
185

 
140

 
32.1
 %
 
286

 
280

 
2.1
 %
Increase (decrease) in unbilled sales
 
794

 
1,174

 
(32.4
)%
 
499

 
715

 
(30.2
)%
Total retail
 
28,605

 
28,394

 
0.7
 %
 
51,259

 
51,313

 
(0.1
)%
Electric utilities
 
1,777

 
1,754

 
1.3
 %
 
3,052

 
3,236

 
(5.7
)%
Interchange power sales
 
376

 
741

 
(49.3
)%
 
1,724

 
1,987

 
(13.2
)%
Total
 
30,758

 
30,889

 
(0.4
)%
 
56,035

 
56,536

 
(0.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price (cents/kWh)(1)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
11.26

 
10.16

 
10.8
 %
 
11.15

 
10.23

 
9.0
 %
Commercial
 
8.90

 
8.16

 
9.1
 %
 
8.90

 
8.34

 
6.7
 %
Industrial
 
6.76

 
6.06

 
11.6
 %
 
6.72

 
6.20

 
8.4
 %
Total
 
9.94

 
8.99

 
10.6
 %
 
9.85

 
9.10

 
8.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Average customer accounts (000s)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
4,335

 
4,278

 
1.3
 %
 
4,328

 
4,272

 
1.3
 %
Commercial
 
548

 
539

 
1.7
 %
 
547

 
538

 
1.7
 %
Industrial
 
12

 
12

 
 %
 
12

 
12

 
 %
Other
 
3

 
5

 
(40.0
)%
 
3

 
4

 
(25.0
)%
Total
 
4,898

 
4,834

 
1.3
 %
 
4,890

 
4,826

 
1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
 
 
 
 
 
 
 
2017
 
2016
 
% change
 
 
 
 
 
 
End of period customer accounts (000s)
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
4,338

 
4,282

 
1.3
 %
 
 
 
 
 
 
Commercial
 
548

 
540

 
1.5
 %
 
 
 
 
 
 
Industrial
 
12

 
12

 
 %
 
 
 
 
 
 
Other
 
4

 
4

 
 %
 
 
 
 
 
 
Total
 
4,902

 
4,838

 
1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
Normal
 
2016
 
 
 
 
 
 
Three Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
Cooling degree-days(2)
 
693

 
603

 
622

 
 
 
 
 
 
Heating degree-days(2)
 
7

 
11

 
4

 
 
 
 
 
 
Six Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
Cooling degree-days(2)
 
876

 
730

 
755

 
 
 
 
 
 
Heating degree-days(2)
 
125

 
260

 
240

 
 
 
 
 
 
________________________
(1) 
Excludes interchange power sales, net change in unbilled revenues and deferrals under cost recovery clauses.
(2) 
Cooling degree equivalent days use a 72 degree base temperature and heating degree equivalent days use a 66 degree base temperature.

17