Why NextEra Energy and NextEra Energy Partners Are Both Charging Higher Today
NextEra Energy Partners (NYSE: NEP) is closing in on the funding needed to refinance its debt due early next year, and markets are applauding the added certainty. Shares of NextEra Energy Partners were up 5% as of 11 a.m. ET, and shares of parent NextEra Energy (NYSE: NEE) were up nearly 3%, on the deal and positive commentary from one Wall Street analyst.
It has been a tough year for holders of NextEra Energy Partners. The company, a master limited partnership (MLP), or yieldco, is highly reliant on debt to fund its business model. Higher rates have eaten into profitability, causing a midyear profit warning that caused the stock to fall about 75% from its all-time highs and down 60% in 2023.
NextEra Energy, its electric utility parent, has done better but is also down about 30% for the year. One of the key questions lingering over NextEra Energy Partners is whether its dividend is sustainable as some of its loans come up for refinancing.
Source Fool.com
