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Investing.com -- Shares of XPLR Infrastructure, LP (NYSE:NEP) fell sharply by 24% as the company announced a suspension of its dividend and a strategic pivot away from its previous acquisition and distribution model. The decision to retain operating cash flows for reinvestment rather than distribution to unitholders has significantly impacted the stock's performance.
The Juno Beach, Florida-based renewable energy firm reported a net loss for the fourth quarter of 2024, including a one-time after-tax impairment of goodwill totaling $194 million. Despite this, the company achieved an adjusted EBITDA of $483 million for the quarter and $1.959 billion for the full year. However, the net loss attributable to XPLR Infrastructure stood at $10 million for the year.
XPLR Infrastructure's new strategy involves reallocating capital to buy out selected convertible equity portfolio financings and investing in existing assets, aiming for double-digit unitholder returns. The company also plans to explore additional growth opportunities in clean energy assets and may consider returning capital to unitholders through common unit buybacks.
The company has also appointed Alan Liu as its new president and CEO. Liu, an experienced leader in the industry, brings expertise from senior roles in risk management and corporate development at NextEra Energy (NYSE:NEE), as well as his tenure at Goldman Sachs.
For 2025, XPLR Infrastructure forecasts adjusted EBITDA to remain roughly flat YoY, with a potential impact from the expected sale of the Meade pipeline investment. Looking ahead to 2026, the company anticipates an adjusted EBITDA between $1.75 billion and $1.95 billion, a decrease attributed to the sale of the Meade pipeline investment.
XPLR Infrastructure has shifted its financial focus from cash available for distribution to free cash flow before growth, considering the indefinite suspension of its dividend. The company estimates its free cash flow before growth to be in the range of $600 million to $700 million in 2026, which is expected to stay relatively consistent through the end of the decade.
The company's relationship with its largest unitholder, NextEra Energy, remains unchanged, and it will continue to leverage the existing benefits from this relationship. Moreover, XPLR Infrastructure has received credit ratings affirmations from rating agencies and plans to refinance approximately $2.8 billion of debt maturities and convertible equity portfolio financing buyout payments in the coming years.
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