Why NextEra Energy Partners Sank Almost 30% This Week

Shares of NextEra Energy Partners (NYSE: NEP) fell again this week, plunging 29.3% through Thursday trading, according to data from S&P Global Market Intelligence. This week marked an ugly snowball effect on top of last week's roughly 35% decline, which was set off when the yieldco announced it was lowering its dividend growth model.

NEP is the yieldco partner to utility NextEra Energy (NYSE: NEE). It's designed to acquire projects from NextEra Energy, then pay out growing distributions to shareholders. The thing is, when you have a captive yieldco or master limited partnership (MLP) that depends on issuing debt and equity to fund more repurchases, the model can be disrupted if there's either an increase in rates or a loss of confidence in the yieldco.

These two things usually go hand in hand. Over the last two weeks, NEP has seen both.

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Source Fool.com