NextEra Energy Partners, LP

For the first quarter of 2026, XPLR generated approximately $435 million in adjusted EBITDA and $89 million in Free Cash Flow Before Growth. Existing projects were affected by lower wind resource at about 99% of the long-term average versus 103% in the prior-year period, partly offset by repowered assets. Year over year, Free Cash Flow Before Growth was down mainly because of higher financing costs, including about $74 million of incremental corporate interest expense from approximately $1.75 billion of unsecured notes issued in March 2025 and about $12 million of higher project-financing interest expense. For 2026, management continues to expect adjusted EBITDA of $1.75 billion to $1.95 billion and Free Cash Flow Before Growth of $600 million to $700 million.

Alan Liu said the quarter was a solid start to 2026 and emphasized disciplined execution around simplifying the capital structure and maximizing portfolio value. He highlighted progress on repowering, saying roughly 30% of the 2026 program is complete, and noted that the company’s financing plan is relatively modest after prior refinancing and recapitalization work. He also pointed to improving power market fundamentals, saying a recent recontracting at an existing wind site at roughly $25 per MWh above prior realized pricing could be an early sign of a broader opportunity set.

Jessica Geoffroy said Q1 adjusted EBITDA of about $435 million and Free Cash Flow Before Growth of $89 million were in line with expectations given seasonally lower wind resource and higher financing costs. She said the quarter included about $74 million of incremental corporate interest expense from the March 2025 unsecured notes and about $12 million of higher project-financing interest expense, and reminded investors that Q1 typically represents only about 12% to 15% of full-year Free Cash Flow Before Growth. She reiterated full-year guidance of $1.75 billion to $1.95 billion of adjusted EBITDA and $600 million to $700 million of Free Cash Flow Before Growth, and noted about $300 million of cash was held in project reserves based on the prior quarter’s filing.

Analysts focused on the recontracting opportunity, asking about the size of the funnel, contract tenor, and how much pricing uplift is available; management said most of the opportunity is in wind and that roughly 70% of the opportunity sits beyond 2030. On storage, management said it remains confident it can fund the expected $80 million equity need through additional asset sales and that the 49% co-investment structure is a disciplined, capital-efficient way to add capacity, but it has not committed to any incremental investments beyond the current projects. On liquidity, management said some of the reported cash sits in project reserves and referenced roughly $300 million of reserves at projects in the prior quarter.