Brookfield Renewable Partners Non Voting Units BEP

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

Utilities Utilities - Independent Power Producers

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

Brookfield Renewable Partners Non Voting Units

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Aug 08, 2022 12:34pm

257 Views

Post# 34879071

TD Raise Target

By USD 5.00. GLTA

Brookfield Renewable Partners L.P.

(BEP-N, BEP.UN-T) US$39.25 | C$50.77

No Q2 Surprises; Organic Pipeline Growth Continues Event

Brookfield Renewable Partners L.P. (BEP) reported Q2/22 results on August 5 before the market opened. FFO/unit of $0.46 was slightly below our estimate of $0.48 and was close to the consensus forecast of $0.47. Proportionate adjusted EBITDA of $547 million was between our forecast of $542 million and the consensus forecast of $553 million.

Impact: NEUTRAL

Q2/22 FFO was relatively close to expectations. Most of the gap between our estimate and actual results is attributed to higher-than-expected interest expense, which management attributed to refinancing initiatives in Colombia and Brazil (considered non-recurring). Q2/22 proportionate generation was 2% below LTA guidance but slightly better than we expected.
BEP's development pipeline totals 75 GW (up 9% q/q). This includes 17 GW of capacity either in construction or in advanced development. Projects due for COD by the end of 2024 are expected to contribute net annual FFO of $154 million ($0.24/unit, or 16% of the LTM figure). While M&A is the most material growth lever for BEP, the company continues to grow its organic growth platform at the margin.
BEP's balance sheet is well-funded, providing flexibility to fund growth organically. BEP ended Q2/22 with available liquidity of almost $3.9 billion. This total is augmented by co-investment from Brookfield's Global Transition Fund (recently closed $15 billion of capital) and from ongoing asset recycling initiative, long a feature of BEP's funding plan.
We reiterate our BUY recommendation and are raising our target to $46.00 (previously $41.00). Our increased target price is driven by expanded target multiples in our NAV (reflecting ongoing momentum for renewable power growth) and additions to BEP's construction pipeline since its Q1/22 release.

TD Investment Conclusion

We believe that BEP deserves a valuation premium based on several factors: scale; broad investment opportunity-set; consistent value-accretive track record; ability to act on large/complex transactions; operating/procurement expertise; management depth; and a strong funding platform. BEP's unit price has improved 20% since mid-June as investors have acknowledged the company's defensive attributes. We remain positive on BEP's mid-term prospects as growth continues.