Good day, everyone, and welcome to the NextEra Energy and NextEra Energy Partners 2015 Second Quarter Earnings Conference Call. Today's conference is being recorded. At this time, for opening remarks, I would like to turn the call over to Amanda Finnis.

Thank you, Noah. Good morning everyone, and welcome to the second quarter 2015 combined earnings conference call for NextEra Energy and for NextEra Energy Partners. With me this morning are Jim Robo, Chairman and Chief Executive Officer of NextEra Energy; Moray Dewhurst, Vice Chairman and Chief Financial Officer of NextEra Energy; Armando Pimentel, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Senior Vice President of NextEra Energy, all of whom are also officers of NextEra Energy Partners; as well as Eric Silagy, President and Chief Executive Officer of Florida Power & Light Company; and John Ketchum, Senior Vice President of NextEra Energy. Moray will provide an overview of our results and then turn the call over to Jim for closing remarks. Our executive team will then be available to answer your questions. We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the Risk Factor section of the accompanying presentation, or in our various reports and filings with the Securities and Exchange Commission, each of which can be found on our websites, nexteraenergy.com and nexteraenergypartners.com. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of the non-GAAP measure to the closest GAAP financial measure. With that, I will turn the call over to Moray.

Thank you, Amanda. Good morning, everyone. NextEra Energy delivered solid second quarter results and continued to make excellent progress towards meeting its objectives for the year. NextEra Energy Partners completed the acquisition of four projects from energy resources during the second quarter and just recently signed an agreement to purchase a portfolio of seven natural gas pipelines located in Texas. As a result of NextEra Energy's strong financial performance during the first half of the year as well as this NEP acquisition announcement, we are increasing our financial expectations for both businesses. NextEra Energy's adjusted earnings per share increased $0.13 or 9%. Growth was particularly strong at Energy Resources driven by continued strong contributions from new wind and solar project additions. The impact of weak wind resource was roughly offset by another period of good performance from the customer supply business and increased contributions from the balance of the existing asset portfolio, including the absence of an outage of Seabrook in comparison to the second quarter of last year. Energy Resources had another excellent quarter of origination activity signing contracts for roughly 555 megawatts of new wind and solar projects since the last call, including an additional 125 megawatts solar project that is expected to be delivered late in 2016 that was not in our earlier development forecast. Energy Resources growth in adjusted EBITDA and operating cash flow continues to be strong year-to-date reflecting the addition of new contracted renewal projects due to the portfolio. Florida Power & Light remains on track to achieve its full year objectives. The relatively modest growth in second quarter earnings per share from the prior year was generally in line with our expectations and was impacted by share dilution timing considerations in a number of smaller items, regulatory capital employed, the capital on which…

Thanks Moray and good morning everyone. It's been a terrific first half of the year. At both NEE and NEP we've executed well both financially and operationally and we've had strong execution of our growth plans all across the board. At FPL the team continued to make excellent progress against our core strategy of investing to further improve our customer value proposition. Our goal at FPL was nothing less than to be the cleanest, lowest cost and most reliable utility in the nation and we are well on our way to achieving that. At Energy Resources we've made terrific progress against our core strategy of being the world's largest generator of wind and solar energy. I feel better than I ever have about our renewables growth prospects and the quality of our renewables development pipeline. In our gas pipeline business I am very pleased with NEP's announced acquisition of seven high-quality and long-term contracted pipeline assets in Texas. When combined with Sabal Trail, Florida Southeast Connection and the Mountain Valley pipeline, the transaction is expected to expand our scale and scope in the natural gas pipeline space serving as a platform for future growth. NextEra Energy and NextEra Energy Partners form an excellent strategic partnership. I think NEE is a terrific sponsor for NEP with an industry-leading and growing runway of potential long-term contracted assets. NEP offers NEE the ability to highlight the value of these assets and is a significant source of cash flow for NEE as well. In addition the expected growth of general partner incentive distributions from NEP to NEE will be an increasingly important source of cash and potential value to NEE shareholders. Based on all of these factors, together with the strong growth in our underlying cash flow from operations, I'm pleased to discuss an…

Thank you. [Operator Instructions] And we'll take our first question from Daniel Eggers with Credit Suisse.

Hey, good morning guys. On the NEP acquisition this morning you guys have been telegraphing that you wanted to do something out in the market, but you kind of go in the pipeline side versus renewable side, can you just talk about the returns you are seeing in those different asset classes and then also kind of what sort of IRRs you're seeing on that project since you have to keep goading us to look out for the value of these projects?

Good morning, Dan, it's Armando. First of all, the way we looked at it is its pipelines, right, so we have different metrics, different economics that we' re looking at in that business than in the renewable business and it is not a Greenfield opportunity so the returns are you know, certainly not what you would expect from Greenfield renewable assets. But having said that, it is based on all of the market metrics that we looked at, a very positive acquisition, both in just terms of EV to EBITDA which is around 12, 12.5 times, but also in terms of CAFD, but its cash available for distribution. It's important to note that we did the acquisition because it's a good acquisition economically for NEP. This wasn’t an acquisition that we did for other reasons, i.e. IDR reasons at NEE. It is a very positive acquisition and we're very happy with it.

Just the expenses you asked about the IRRs without going into the numbers they are very consistent with other investments that we've been seeing in the pipeline space and significantly above the IRRs that we’re seeing in the third party acquisition market for renewable assets at the moment.

So these returns are better than what we've seen in the renewables market?

In the third party acquisition market there are substantially yes, that market as I think you know become, they are down, returns have come a down significantly.

Okay, and then I guess just on the increase in both the EPS growth rate and the dividend growth rate, how should we think about long-term equity financing and funding needs of the company as more dollars or underlying growth are going to be returned back to shareholders through the dividend?

Dan, this is John. The change in the dividend policy was all about cash flows at Energy Resources. You know, we've executed very well on our long-term contracted renewables plan. We've had strong growth at NEP as well. And then looking out at the peers in terms of where the payout ratios are for other yieldcos and infrastructure plays, we thought that justified a higher payout ratio. And when you look at what the financing requirements will be long-term in that to finance the dividend we have a lot of underlying cash flow that's going to be available to support that and then we also have a lot of levers available that we can pull internally to go ahead and finance what is going to be a small cash need.

Okay, thank you guys.

Dan, just to supplement that, remember that one of the effects of having NEP is that we really are accelerating the realization of the underlying cash flows from the projects, so effective financing needs are lower than they were in a pre-NEP world.

We’re ready for the next question.

And we’ll take our next question from Jonathan Arnold with Deutsche Bank.

Hi, good morning guys.

Good morning Jonathan.

Just a quick one, just I'm not sure we heard this correctly, but on the expansion at NET, is it $300 million of additional spend, but that breaks down, $200 million as consideration and only $100 million of CapEx, do I understand that right?

Yes, that’s roughly right, it is about $200 million in additional consideration about $85 million in CapEx. We rounded that to about $300 million.

And so, but then $50 million of incremental EBITDA, can you just give us a little sense of how then it looks like a pretty decent return on that just if we ignore the consideration piece, what exactly is going on.

Well, I think what’s going on there is, we wanted to make sure that for other incremental opportunities, that we both were not paying the same thing as we were for the opportunities that were already in the door. So that’s why you’ve got a roughly six times EBITDA, EBIT to EBITDA multiple on that and roughly about 12.5 times on the whole deal.

The expansions Armando are they contracted and what yet has to be done to…?

It will, well the contracts would have to be signed. Right? They’re not signed. If they were signed then it would be just be part of the deal, but we feel pretty good about them based on the details that we know about the opportunities themselves, but we also feel like there is a good alignment of interest between the sellers and the buyers that there is an opportunity obviously to increase the purchase price by couple $100 million. So we feel good with the alignment of interest and we feel good with the underlying opportunities which will again be long-term contracted type opportunities in the 20-year range.

Okay and did you say what sort of timeframe you expect for clarifying that?

Yes, our expectation is that they'd be done in 12 months.

Okay and then just, if I may, just one other thing we noticed this typical slide on the financial outlook, the resources businesses is no longer in the deck is that, has that gone permanently or is it just well digesting some of these new things?

It’s the latter. The introduction of the NET Mexico acquisition is likely to change our thinking about further acquisitions for any NEP. While we have made a rough aggregate cut of that we haven’t yet rippled all that down to the level of the individual segments that are shown in the chart that you’re referring to Jonathan. So, rather than trying to doing something in haste and introduce the possibility of errors as we pulled it for this quarter, but we expect to bring it back with the third quarter.

Great, thank you very much.

And we’ll take our next question from Michael Weinstein with UBS.

Hey, good morning it's Julien here.

Good morning.

So, perhaps just to touch base on the credit implications in this all can you elaborate on how you’re thinking about the overall consolidated next year balance sheet from both the GPS, any acquisitions and perhaps in conjunction with that speaks to a potential desire to expand the platform more towards midstream and/or perhaps with a need to maintain a regulated mix in the portfolio?

Let me ask Jim to comment on the second part, the strategy aspect and then John will comment on the credit metric side. Yes, looking at it from a credit metrics standpoint, we’re fine. We're within the range that we’ve committed to with the agencies. The acquisition opportunity again will be about $1.2 billion of equity, $900 million of debt. I'll let Jim speak more about the strategic elements.

Good morning, Julien. So I think we’ve always said that we have liked the pipeline space, I think originally when we announced Sabal Trail and Florida Southeast Connection we said that, that was not going to be a one and done exercise for us that we felt like the pipeline space was both attractive. It was long term contract typically and it was attractive to our over business mix, both from a shareholder perspective as well as from a fixed income and credit perspective and I continue to believe that and we are going to be continuing to be looking for opportunities to expand our presence there and it is a - this acquisition we are announcing at NEP today is another piece of expanding and growing that platform.

Excellent and then perhaps just the follow up [indiscernible] question here, current year guidance just to be clear about it, effectively you’re keeping your guidance in place because of your expectations for continued weak weather throughout the balance of this year?

This year, yes that is fundamentally right, we think that there is going to be some spill over from the El Nino effect into the second half of the year and that’s likely to offset the sort of goodness that we’ve had so far. Hopefully we’re wrong and if we got a normal weather year, but that is kind of how we’re feeling right now.

Actually just, and just trying to push on this a little bit and weather forecasting but just you would in theory last throughout the duration of this weather cycle? So it’s a multiyear effect just to be clear and you raised your guidance in despite multiyear weather headwinds from weaker weather or weaker winds specifically?

Yes, I think we’re only taking a view on the impact of the El Nino cycle on this year, let’s see how it goes. These correlations are not the strongest, but they are at least meaningful in the short-term, see how 2016 looks later on.

Got it. All right. Well congratulations again. Thank you.

Thanks Julien.

We'll take our next question from Greg Gordon with Evercore ISI.

Thanks. Good morning.

Good morning, Greg.

Congratulations on a great quarter despite the wind resource you were facing, is it a testament to the diversification of the business. Can you go over the timing on when this deal is going to close and when you’re expecting to finance it as per usual in this capital market over the last few weeks that deal close are responding very negatively to any financing overhang even if is an accretive deal like the one you have announced, so how do you plan on navigating that?

So we plan to close a deal sometime before the middle of October. In terms of financing the deal, we’re going to look for opportunities in the market to raise that equity during that time period. Importantly, we have I think Moray mentioned it if I remember correctly in the prepared remarks. We already have a $1 billion credit facility that backs up the equity issuance. It’s a one year term facility at very attractive pricing. So we have obviously, we want to be able to meet the financing plans and issue the equity at some point before closing. But we’re not going to do something silly either and that’s why we have the backup credit to take down if we need it.

And just to add to that, Greg this is Jim. I think it’s important to understand that even with this acquisition, remember we’re going to this acquisition replaces in part several assets that we would have dropped down this year anyway and the total equity needs in NEP was a little bit higher as a result of this acquisitions because we’re going to have a little bit higher distribution growth than we originally thought for this year aren’t actually meaningfully higher than what we’re going to have otherwise. And so I think it’s – I think from a funding standpoint, the reality is, is that we have a lot of different levels there and as Armando said we are going to be smart about it and we’re in this four, we’ve always said we’re in NEP for the long-term and we’re going to continue to do what’s right for both NEP unit holders and NEE shareholders.

Thanks. One other question that is a little bit bigger picture, obviously we are getting the big reveal today from the administration on the carbon rules, the visibility you have on your backlog through 2016 is very robust and it’s a little bit less. So have you said in your last update, we will go out in the decade, is your expectation that this should galvanize counterparties to want to enter into arrangements with you for post 16 or are we really waiting more for the tax situation to change in terms of getting patronage of the extension of the PTC?

Well Greg, I think it’s a little bit of both, I think in the near term, most of the drivers behind incremental renewable contracting will be driven by getting clarity on the incentives, but there is no question that today’s announcement is positive for renewables and will be positive in the long-term for our renewable business at NextEra Energy Resources. So I would view it quite positively there from that standpoint.

All right, thanks again.

Thanks Greg.

We’ll take our next question from Michael Lapides with Goldman Sachs.

Hey guys. Real quick, this one maybe for Eric and team, when I go back and look at the Slide Deck on FP&L in terms of expected capital spending, the slide deck you gave it at the investor day, how has that changed? What is your expectation now both for 2016 and kind of the 2017, 2018 average level for expected CapEx and therefore rate base at the utility?

Hey Michael, I would say it’s basically roughly the same, I don’t see any material changes, the reserves, guidelines were approved. We had that also in the presentation deck, so we’re moving forward with that. I think it’s, I think it would be safe to assume that we’re roughly in line with where we were. Okeechobee we’ve got, we still have to get a need for that, but the RP process is done and so we’re moving forward with that as well.

Okay. Next year is a rate case year. I know it’s probably too early to talk about the number side of it. Can you talk to us just about the process and what are some of the key – I don’t know the policy implications or things you might be looking for if any in terms of changes in Florida regulation as part of this process?

Yes, I will start with the process, so as you'll recall Michael it requires a first to test letter is filed, we would expect that to occur late fourth quarter or early first quarter and then that kind of kicks off formally the process, the rate case it is an eight to nine months process. The PSC sets the schedule ultimately, but obviously we have to have it all done with the final order in place, sometime in the November timeframe so we can go ahead and set rates for beginning of January 17. As to the overall policy, we are in a strong position I think to from a standpoint of what we have delivered to customers, we will be spending a lot of time with the Commission reviewing what we’ve done in the past four years during this last rate agreement and we've maintained a lowest [indiscernible] and highest reliability and we will be focusing on that kind of performance and how do we maintain that going forward.

Got it, thanks guys. Much appreciate it.

We will take our next question from Brian Chin with Bank of America Merrill Lynch.

Hi, good morning.

Good morning, Brian.

Question for you on the pipeline transaction, I noticed that the debt is non-amortizing debt, can you just comment on thoughts around how we should think about that going forward, are there plans to potentially convert that to more amortizing debt down the road or is that not really on the cards?

The non-amortizing debt which comes with the deal, we’re not actually we're adding a little piece of couple $200 million of non-amortizing debt to the dealers. So, we expect to potentially refinance that, but if we do refinance it, it’s a pretty decent terms on the debt. If we do refinance it, it will likely be non-amortizing debt, but we don’t expect at this point to add significantly to the non-amortizing debt from the deal.

Brian just to supplement, these non-amortizing debts fairly common in the pipeline space and I think for us one of the things that we’re really starting to think about is whether non-amortizing debt has more of a role on the renewable side than it historically has for us. Historical model has not employed non-amortizing debt but that maybe something that we won’t take advantage of later on given the longevity and the good fundamentals we are seeing for the renewables business.

Can you just go into that Moray, a little bit more on the general thought process of why non-amortizing debt makes more sensible renewables and how that matches up with pipelines, just if you could expand on that a little bit more that will be helpful?

Yes sure, historically we've thought of individual wind contract, wind projects you see largely as standalone entities that need to recover their cost, their capital cost through the period of the contract. When you put them in a portfolio in a vehicle like NextEra Energy Partners and given the long-term outlook for the need for renewable capacity in the country, I think the I'm certainly taking the view now, that we’re seeing the potential for those assets to go on for longer in which case it makes sense to think about increasing the cash coming off them that's available for distribution earlier than would otherwise be the case. So that’s what pushes you down the path of thinking about the use of non-amortizing debt.

That’s really helpful. Thank you very much.

Hey, I think we have time for one more.

And we’ll take our final question from Steven Fleishman with Wolfe Research.

Yes, hi good morning and congrats. The couple things that I guess you didn’t mentioned, first is any kind of thoughts on the Hawaiian deal and just, there does seem to opposition in your ability to get that done?

Steve this is Jim, obviously the state filed a testimony ten days ago saying that they opposed the deal in its current form and the Governor held a press release where he, press conference where he said he opposed the deal in its current form. I think the key, the keywords there in its current form, they also, the state also listed several conditions that would be, I think just positive for them to think about changing their view. And we are in the process of responding to that testimony and we think we have a very strong case to put forward to the Commission around the benefits to customers, the benefits to customers were actually pretty compelling and I think we’re going be able to make that case as we go forward. So, this was not necessarily a surprise to me that the state filed a kind of testimony that they did and we are going to continued to move forward on laying out our arguments and we look forward to the hearings we’re going to have in December to make our case.

Okay and my other question is just on the, there is some recent story that you might be looking to sell your Texas merchant assets. I don’t know if you could talk about that and but may be more if you can at a high level, how much are you looking at, may be monetizing some assets within the newer business, I guess assets are less contracted?

So, Steve I think we’re not going to comment on any individual potential transaction that’s been rumored out there. I will say that and this is not a surprise, that we’ve been consistently pretty bearish about the merchant markets around the country. I think as we continue to see the technology trends in renewables both in solar and winds and their impacts in those markets where you see high penetration of solar and wind, we continued to be pretty bearish merchant markets around the country. So, I think, if anything our views are even more bearish and there were a year ago and we will, as we always say, we always evaluate our portfolio and we’re always looking for ways to optimize it and that hasn’t changed and won’t change in the future.

Okay, thank you.

Thanks everybody. That I think completes our time.

And this does conclude today’s conference. Thank you for your participation.