By Denny Jacob

XPLR Infrastructure shares dived 24% in premarket trading after suspending distributions to unitholders for an indefinite period.

Shares were trading around $12.04. The stock is down 47% over the last year.

The clean-energy management company said the change was tied to a move in its business model. XPLR said it will focus almost entirely on raising new capital to acquire assets while distributing substantially all of its excess cash flows to unitholders to a model in which XPLR Infrastructure utilizes retained operating cash flows to fund investments.

The Juno Beach, Fla., company said the adoption of its plan eliminates the need for equity issuances.

"Suspending the distribution is a decision we do not take lightly. However, by doing so, the partnership will have a consistent source of capital which it can invest back in the business at attractive returns," said Chairman John Ketchum.

XPLR said it has five convertible equity portfolio financings in place. The company said it intends to buy out three of these portfolios by the end of 2027. At the end of 2027, it expects to have only two remaining convertible equity portfolio financings outstanding.

XPLR said it will continue to leverage benefits from its current relationships with NextEra Energy, its largest unitholder.

XPLR also named Alan Liu as president and chief executive officer. Liu will also remain an employee of NextEra Energy.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

January 28, 2025 08:47 ET (13:47 GMT)

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