NextEra Energy Partners faces lower unit prices due to investor focus shift, as parent company plans to reduce "drop-downs" and reduce NEP's growth, posing risk for investors.
NextEra Energy Partners (NEP) faces lower unit prices due to investors' shifting focus on clean energy, offering a 12%+ yield. Parent company NextEra Energy plans to reduce "drop-downs," potentially slowing NEP's growth. The risk for investors is that NextEra Energy might buy back MLP, eliminating the high yield like Equitrans Midstream's case. Investors should monitor NEP's situation and assess potential risks.
March 23, 2024
3 Articles