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.

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Brookfield Renewable Partners Non Voting Units

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Post by retiredcfon Feb 06, 2023 9:17am

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Post# 35268848

TD 2

Brookfield Renewable Partners L.P.

(BEP-N, BEP.UN-T) US$28.01 | C$37.55

Capital Recycling Accelerating; Growth Outlook Robust Event

Brookfield Renewable Partners L.P. (BEP) reported Q4/22 results on February 3 before the market opened. Q4/22 FFO/unit of $0.35 was between our estimate of $0.34 and the consensus forecast of $0.36. Proportionate adjusted EBITDA of $461 million was in line with our forecast of $463 million, but was below the consensus forecast of $499 million.

Impact: NEUTRAL

Q4/22 FFO was near expectations. We trimmed our Q4/22 generation expectations in advance of the release, given data pointing to relatively dry conditions earlier in the quarter across eastern North America. Q4/22 proportionate generation was 11% below LTA guidance.

BEP's development pipeline (confirmed plus prospective projects) has grown to 110 GW (up 8% q/q). This includes 19 GW of capacity either in construction or in advanced development. Projects scheduled for COD by the end of 2025 are expected to contribute net annual FFO of $176 million ($0.27/ unit, or 18% of the LTM figure). The company's pipeline has been considerably augmented in the last year by developer acquisitions (Scout, Standard Solar, and Urban Grid). Although M&A is expected to remain BEP's primary growth driver, its opportunity set of organic development initiatives continues to expand.
We view BEP as well-funded, augmenting liquidity via asset recycling to crystalize investment returns. The company has initiated divestiture initiatives, which could generate ~$4 billion of total proceeds ($1.5 billion net to BEP) once closed. BEP ended Q4/22 with available liquidity of $3.7 billion.
We reiterate our ACTION LIST BUY recommendation and $41.00 target price. Updates to our estimates reflect reconciliation of the Q4/22 results and BEP's updated development pipeline.

TD Investment Conclusion

We believe that BEP deserves a valuation premium based on several factors: scale; broad investment opportunity set; ability to act on large/complex transactions; operating/procurement expertise; management depth; and a strong funding platform. BEP's unit price has declined 27% since mid-September 2022, lagging most peers.