NextEra Energy Partners has announced plans to simplify its capital structure and concentrate solely on a 100 percent renewable-energy strategy.
To achieve this goal, NextEra Energy Partners will launch a process to sell the company’s STX Midstream and Meade natural gas pipeline assets in 2023 and 2025, respectively. Upon closing of the sales, the excess proceeds would be used to buy out the STX Midstream, 2019 NEP Pipelines and NEP Renewables II convertible equity portfolio financings.
NextEra Energy Partners expects to use the excess proceeds from the sale of its interest in natural gas pipeline assets to finance its growth, eliminating all equity requirements through 2024 other than opportunistic equity issuances under its at-the-market equity-issuance program, to fund future growth beyond 2024.
To replace the cash available for distribution from the expected divested pipeline assets, NextEra Energy, Inc. and NextEra Energy Partners have entered into an agr