uploads///NEE FCF

How NextEra Energy’s Free Cash Flows Compare to Peers

By

Nov. 20 2020, Updated 3:33 p.m. ET

Free cash flow

US utilities’ (XLU) free cash flows have been pressured in the last few years due to increasing capital expenditures and decreasing operating cash flows. However, NextEra Energy (NEE) seems better placed compared to peers when it comes to free cash flows. NEE’s free cash flow had been on a solid uptrend before a slight drop in 2016. At the end of 1Q17, its capital expenditure exceeded operating cash flows by $938 million.

In comparison, falling operating cash flows in the last few years squeezed the free cash flows of Southern Company (SO) and the largest rate-regulated utility, Duke Energy (DUK). Both the utility giants have failed to record positive free cash flows on an annual basis in the last five years.

To learn more about Xcel Energy’s (XEL) free cash flows, read Understanding Xcel Energy’s Free Cash Flow Trends.

Article continues below advertisement
Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.