US Wind Facilities Command $312M

NextEra Energy Partners has acquired two wind generation plants located in Kansas and California.
Wind turbines

Wind turbines

MiamiNextEra Energy Partners LP has acquired nearly 285 megawatts of contracted renewables from two modern wind facilities from a subsidiary of its sponsor, NextEra Energy Resources LLC, for $312 million, plus the assumption of approximately $253 million in liabilities.

“This transaction once again demonstrates the strong and visible runway for future growth opportunities from our sponsor, NextEra Energy Resources, which we believe is a core strength of the partnership’s value proposition,” Jim Robo, NextEra Energy Partners chairman & CEO, said in a prepared release. “The partnership’s already strong and flexible financial position for the year is further advanced by the addition of these high-quality projects expected to provide an attractive yield to investors.”

Located in Ellis, Ness, Rush and Trego counties in Kansas, Cedar Bluff Wind Energy Center is a 198.7-megawatt wind generation plant that has 111 1.7-megawatt GE turbines capable of generating enough electricity to power about 59,400 homes.

Golden Hills Wind Energy Center is a 85.9-megawatt wind generation plant located in Alameda County, Calif., that has 48 1.7-megawatt GE turbines capable of generating enough electricity to power about 25,500 homes.

Both began operating in December 2015 and are fully contracted under long-term power purchase contracts with strong creditworthy counterparties and remaining contract lives of approximately 20 years.

With the purchase, NextEra Energy Partners expands its portfolio to approximately 2,656 MW, excluding its ownership interests in equity method investments.

According to Robo, the utilization of debt to fund a portion of the initial purchase price reflects the partnership’s flexible and opportunistic approach to financing.

“As we continue to execute on our growth strategy and increase our portfolio, we remain well-positioned to deliver value to our investors,” he said. “In our view, NextEra Energy Partners remains the premier YieldCo in the space.”

The company expects the acquisition to contribute adjusted EBITDA, including grossed up (pre-tax) tax credits, of approximately $70 million to $80 million and cash available for distribution of approximately $29 million to $34 million, each on an annual run-rate basis as of end of year 2016.

Image courtesy of NextEra Energy Resources