Release Date: January 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you provide more details on the GE Vernova framework agreement? Will these projects be co-owned, and will they be contracted or merchant projects? A: John Ketchum, Chairman, President, and CEO, explained that the agreement with GE Vernova involves co-owning projects as part of a 50/50 joint venture. These will be long-term contracted assets, potentially including build-on-transfer projects with renewables and other growth opportunities. The focus is on targeting large load customers with integrated gas-fired generation and renewable battery storage solutions.
Q: What are your thoughts on the new administration's policies, particularly regarding wind leases on federal lands and the IRA risk? A: John Ketchum emphasized the need for all forms of energy, including gas, nuclear, renewables, and storage, to meet current power demand. He expressed optimism about working through any issues with the administration, highlighting the importance of low-cost energy and domestic job creation. He also noted that NextEra's investments are largely in Republican states, emphasizing the economic benefits.
Q: Can you provide an update on the Duane Arnold nuclear plant and its potential restart? A: John Ketchum stated that they have filed with the NRC for licensing recommissioning and are in active discussions with customers. The plant is in good condition, with the only issue being the cooling tower damaged by a derecho, which is a conventional construction task. He noted that recommissioning opportunities like Duane Arnold are near-term, while small modular reactors are more of a next-decade solution.
Q: How are you managing interest rate exposure, and have there been any changes in your strategy? A: John Ketchum mentioned that NextEra has $32 billion of interest rate swaps in place with an average coupon of around 3.9%. The sensitivity to interest rate changes is minimal, with an EPS impact of $0.01 to $0.03 for 2025 and 2026, and $0.03 to $0.05 for 2027, indicating a well-managed interest rate risk exposure.
Q: Are there any changes in customer conversations regarding renewables, especially with potential policy changes? A: John Ketchum and Rebecca Kujawa, CEO of NextEra Energy Resources, stated that customers are primarily concerned with ensuring projects are built on time to meet their power needs. There is strong demand for renewables and storage, and customers are focused on speed to market and cost-effectiveness. The conversations have not been negatively impacted by policy changes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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