News & Events zu XPLR Infrastructure LP (NEP)NEPXPLR Infrastructure LP

XPLR Infrastructure down after strategic repositioning, suspending distributions

Shares of XPLR Infrastructure (NEP) are lower in Tuesday trading after the company announced earlier that it is moving from a business model that "focused almost entirely on raising new capital to acquire assets while distributing substantially all of its excess cash flows to unitholders" to a model in which XPLR Infrastructure "utilizes retained operating cash flows to fund attractive investments." Accordingly, XPLR Infrastructure is announcing the suspension of distributions to unitholders for an "indefinite period," stating that "by taking these actions today, XPLR Infrastructure adopts a plan that eliminates the need for equity issuances." John Ketchum, chairman of XPLR Infrastructure, stated: "We believe today's strategic repositioning of XPLR Infrastructure's business model will unlock the value of the strong cash flows in the existing portfolio and best position the partnership to allocate cash flow optimally for unitholders in the future. Suspending the distribution is a decision we do not take lightly. However, by doing so, the partnership will have a consistent source of capital which it can invest back in the business at attractive returns. We believe using our excess cash flow to buy out selected convertible equity portfolio financings and invest in our existing portfolio of high-quality assets are our best and most immediate value-enhancing opportunities for unitholders. Beyond these investments, we expect to have many other opportunities to reinvest our cash flow driven by the unprecedented demand for power in our country and the infrastructure required to serve it. The changes we are announcing today are intended to eliminate the need to issue equity, while enabling the partnership to both preserve its balance sheet capacity to facilitate near-term financings and maintain greater financial flexibility in the future to maximize unitholder value." The company noted that XPLR Infrastructure will continue to leverage the existing benefits from its current relationship with NextEra Energy (NEE), its largest unitholder, through existing agreements, meaningful board representation that remains unchanged and collaboration with respect to other investment opportunities in clean energy assets. XPLR Infrastructure will retain the same benefits and operational expertise that NextEra Energy currently provides across its entire portfolio. In addition, Alan Liu has been named president and Chief Executive Officer of XPLR Infrastructure, the company announced. XPLR Infrastructure also reported fourth-quarter 2024 net loss attributable to XPLR Infrastructure of $101M, which includes the one-time after-tax impairment of goodwill attributable to XPLR Infrastructure of $194M. XPLR Infrastructure also reported fourth-quarter 2024 adjusted EBITDA of $483M. For 2025, assuming normal weather and operating conditions among other caveats, XPLR Infrastructure expects adjusted EBITDA to be roughly flat year-over-year, although it said "results may be impacted by the timing of the expected sale of the Meade pipeline investment that is currently expected in the fourth quarter 2025." For calendar year 2026, XPLR Infrastructure expects the portfolio to deliver adjusted EBITDA of $1.75B-$1.95B. In Tuesday afternoon trading, share of XPLR are down $4.69, or 30%, to $11.11.