NextEra Energy And NextEra Energy Partners: The Weather Blows Favorable Tailwinds (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• NextEra Energy is the leading US Wind Energy player. NextEra Energy Partners' generation portfolio is also heavily geared toward wind power, making fundamental drivers of wind energy highly relevant.
• A 71% chance of entering La Niña climate conditions in the next 2-3 months is likely to lead to increased wind speeds for NextEra's wind farms, boosting generation.
• Valuations are near fair value for both NEE and NEP, leaving little margin of safety for buys. Relative technicals also do not inspire much confidence.
• Key thesis monitorables include weather and climate. Distribution coverage is an additional key risk to track for NEP.
• From a ranking perspective, I prefer NEE, then NEP, NEEPRS, and NEP.PR.R, in that order. I believe equity exposure is needed to benefit from the weather- and climate-related catalyst.

Read the full article here.