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Brookfield Renewable Partners Non Voting Units BEP

Alternate Symbol(s):  T.BEP.UN | BRENF | T.BEP.PR.G | T.BEP.PR.M | T.BEP.PR.R

Brookfield Renewable Partners L.P. is a Bermuda-based globally diversified, multi-technology, owner and operator of clean energy and sustainable solutions assets. The Company’s segments include hydroelectric, wind, utility-scale solar and distributed energy, and storage, which includes distributed generation and pumped storage, sustainable solutions, and corporate. Its sustainable solutions include renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, nuclear services, and power transformation. It has approximately 33,000 megawatts of renewable power operating capacity and an approximately 155,000-megawatt development pipeline. The Company’s portfolio of sustainable solutions includes investment in businesses with an operating portfolio of 47 thousand metric tons per annum of carbon capture and storage, three million Metric Million British thermal units of agricultural renewable natural gas. It is also engaged in the nuclear service business.


NYSE:BEP - Post by User

Post by retiredcfon Feb 04, 2022 11:18am
237 Views
Post# 34397694

RBC

RBC

February 4, 2022

Sector Perform

NYSE: BEP; USD 31.93; TSX: BEP.UN

Price Target USD 39.00

Brookfield Renewable Partners L.P.

First Glance: Q4/21 results in line with expectations; 5% distribution increase

Our view: We expect the Q4/21 results and updates will have a modestly positive impact on the shares/unit of BEP, as the company delivered in- line results and raised distributions by 5% as expected. Management is executing well, agreeing to deploy $1.1 billion of capital (net to BEP) in the past year, capturing higher power prices in new contracts, and growing their development pipeline.

First impression:

Q4/21 results were in line with expectations; 5% distribution increase.

Brookfield Renewable's Q4/21 FFO/unit was $0.33, which was largely in line with our estimate of $0.32 and consensus of $0.33. The slight variance to our estimate was mainly due to below average generation, offset by lower management fees and cash taxes. The company's overall proportionate generation for the quarter was 8% below the long-term average (LTA). On a segmented basis, hydrology was 9% below LTA, wind was 10% below LTA, and solar was 7% below LTA. The company also increased the quarterly distribution by 5% to $0.32/unit (in line with our estimate).

Signs attractive 40-year PPA for the Lievre hydro portfolio. As previously announced, BEP entered into a 40-year fixed price escalating electricity purchase agreement with Hydro-Quebec for the output of the Lievre hydro portfolio in Quebec, which has 263 MW of generation capacity. The contract represents a premium to the prices the facility historically achieved, generating an additional $20 million of revenue. The company concurrently raised an additional C$1 billion of 40-year investment grade debt on the facility at attractive rates and plans to deploy this capital into growth to generate over $100 million of annual FFO, net to BEP.

Update on growth initiatives. Since the company's last update, BEP has agreed to invest approximately $2 billion ($500 million net to BEP) of capital across various transactions at the target returns of 12-15%. For the past year, BEP agreed to invest a total of $1.1 billion. Some of the acquisitions and arrangements include Urban Grid (a leading utility-scale developer in the U.S. with a 20 GW development pipeline), a German uitility-scale solar developer with a 1.7 GW pipeline, an option to fund and own up to 800 MW of UK battery energy storage projects, a distributed generation portfolio in Europe and South America, and over 300 MW of wind asset in Asia.

Conference call: today at 9:00 AM (ET), dial-in is 1-866-688-9430 (2575137). On the call, we expect investors to focus on the development pipeline and potential M&A opportunities.


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