“NextEra Energy Partners expects to acquire the project interest for approximately $191 million, subject to closing adjustments, which is expected to be funded with existing debt capacity.”

In context

“$0.7325 per common unit, or $2.93 per common unit on an annualized basis, up approximately 15% from a year earlier. Inclusive of this increase, NextEra Energy Partners has grown its LP distributions per unit by more than 290% since the IPO. Further building upon that strength, NextEra Energy Partners today is announcing that it has entered into an agreement with Energy Resources to acquire an approximately 67% interest in an approximately 230-megawatt, four-hour battery storage facility in California that is fully contracted with an investment grade counterparty for 15 years. The acquisition will further diversify NextEra Energy Partners’ existing portfolio with the addition of another battery storage project and is an excellent complement to NextEra Energy Partners’ existing operations. NextEra Energy Partners expects to acquire the project interest for approximately $191 million, subject to closing adjustments, which is expected to be funded with existing debt capacity. NextEra Energy Partners’ share of the asset’s tax equity financing is estimated to be approximately $80 million at the time of closing. The acquisition is expected to contribute adjusted EBITDA of approximately $30 million to $35 million and cash available for distribution of approximately $13 million to $18 million, each on a five-year average annual run-rate basis beginning December 31, 2022. The transaction is expected to close later this year, upon the project reaching its commercial operations date, and supports NextEra Energy Partners’ projected adjusted EBITDA and cash available for distribution growth in 2022. Finally, NextEra Energy Partners recently closed on a transaction to sell an approximately 156-mile gas pipeline from its existing portfolio for a total consideration of app”