Brookfield Renewable Partners Non Voting Units BEP

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

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 May 08, 2023 9:01am

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Post# 35436072

TD 2

Brookfield Renewable Partners L.P.

(BEP-N, BEP.UN-T) US$31.47 | C$42.03

Robust Q1 Hydrology; Capital Deployment is Accelerating Event

Brookfield Renewable Partners (BEP) reported Q1/23 results on May 5 before the market opened. Q1/23 FFO/unit of $0.43 was above our estimate of $0.40 and the consensus forecast of $0.41. Proportionate adjusted EBITDA of $559 million compared to our forecast of $502 million and the consensus estimate of $506 million.

Impact: SLIGHTLY POSITIVE

Q1/23 FFO surpassed expectations; strong results were driven by above- normal hydrology and improved price realizations. Strong results from the company's hydro segment (particularly robust generation and price realizations in North America) more than offset below-normal wind and solar generation. Proportionate hydro production was 14% above long-term average (LTA) guidance. Overall Q1/23 proportionate generation was 5% above LTA — the best comparison since Q2/10.
BEP's pace of capital deployment — both organic development and acquisitions — is significantly outpacing management's guidance update last September. So far in 2023, BEP has committed to over $1 billion of equity investment ($8 billion gross, including Brookfield-sponsored funds). Management suggested BEP is positioned to exceed its five-year capital deployment target of $6-7 billion. We believe that BEP's ability to participate in sector growth is differentiated by a strong liquidity position ($3.86 billion), ongoing asset-recycling programs, and co-investment from Brookfield's Global Transition Funds.
BEP's advanced development pipeline (either in construction or with clear line of sight on COD) is 22.5 GW, gross. This increased 13% from the end of 2022. Projects scheduled for COD by the end of 2025 are expected to contribute net annual FFO of $204 million ($0.32/unit, or 20% of the LTM figure).
We reiterate our ACTION LIST BUY recommendation and $41.00 target price. Updates to our estimates reflect reconciliation of the Q1/23 results and BEP's updated development pipeline.

TD Investment Conclusion

We believe that BEP deserves a wider 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 premium has narrowed the past two years.