Investor Presentaiton
Cautionary Statement And Risk Factors That May Affect
Future Results (cont.)
The natural gas pipeline industry is highly competitive, and increased competitive pressure could adversely affect NEP's business; NEP
may not be able to access sources of capital on commercially reasonable terms, which would have a material adverse effect on its ability
to consummate future acquisitions; Restrictions in NEP and its subsidiaries' financing agreements could adversely affect NEP's business,
financial condition, results of operations and ability to make cash distributions to its unitholders; NEP's cash distributions to its unitholders
may be reduced as a result of restrictions on NEP's subsidiaries' cash distributions to NEP under the terms of their indebtedness; NEP's
subsidiaries' substantial amount of indebtedness may adversely affect NEP's ability to operate its business, and its failure to comply with
the terms of its subsidiaries' indebtedness could have a material adverse effect on NEP's financial condition; Currency exchange rate
fluctuations may affect NEP's operations; NEP is exposed to risks inherent in its use of interest rate swaps; NEE exercises significant
influence over NEP; Under the cash sweep and credit support agreement, NEP receives credit support from NEE and its affiliates. NEP's
subsidiaries may default under contracts or become subject to cash sweeps if credit support is terminated, if NEE or its affiliates fail to
honor their obligations under credit support arrangements, or if NEE or another credit support provider ceases to satisfy creditworthiness
requirements, and NEP will be required in certain circumstances to reimburse NEE for draws that are made on credit support; NextEra
Energy Resources, LLC (NEER) or one of its affiliates is permitted to borrow funds received by NEP's subsidiaries and is obligated to
return these funds only as needed to cover project costs and distributions or as demanded by NEP OpCo. NEP's financial condition and
ability to make distributions to its unitholders, as well as its ability to grow distributions in the future, is highly dependent on NEER's
performance of its obligations to return all or a portion of these funds; NEP may not be able to consummate future acquisitions; NEER's
right of first refusal may adversely affect NEP's ability to consummate future sales or to obtain favorable sale terms; NextEra Energy
Partners GP, Inc. (NEP GP) and its affiliates may have conflicts of interest with NEP and have limited duties to NEP and its unitholders;
NEP GP and its affiliates and the directors and officers of NEP are not restricted in their ability to compete with NEP, whose business is
subject to certain restrictions; NEP may only terminate the Management Services Agreement among, NEP, NextEra Energy Management
Partners, LP (NEE Management), NEP OpCo and NextEra Energy Operating Partners GP, LLC (NEP OpCo GP) under certain specified
conditions; If the agreements with NEE Management or NEER are terminated, NEP may be unable to contract with a substitute service
provider on similar terms; NEP's arrangements with NEE limit NEE's potential liability, and NEP has agreed to indemnify NEE against
claims that it may face in connection with such arrangements, which may lead NEE to assume greater risks when making decisions
relating to NEP than it otherwise would if acting solely for its own account; NEP's ability to make distributions to its unitholders depends
on the ability of NEP OpCo to make cash distributions to its limited partners; If NEP incurs material tax liabilities, NEP's distributions to its
unitholders may be reduced, without any corresponding reduction in the amount of the IDR fee; Holders of NEP's units may be subject to
voting restrictions; NEP's partnership agreement replaces the fiduciary duties that NEP GP and NEP's directors and officers might have
to holders of its common units with contractual standards governing their duties; NEP's partnership agreement restricts the remedies
available to holders of NEP's common units for actions taken by NEP's directors or NEP GP that might otherwise constitute breaches of
fiduciary duties; Certain of NEP's actions require the consent of NEP GP;
54
NEXTera energy™
PARTNERSView entire presentation