4 High-Yielding Alternative Energy Investments презентация

a private equity firm that runs the world’s largest renewable energy fund
Has constructed, managed 3 GW of wind power since 2003
Management: CEO Mike Garland, 25 years experience financing, building energy infrastructure projects
Ran Babcock & Brown's North American Infrastructure Group, grew it to $12 billion in assets under management in just 5 years

long-term contract to utilities with average credit rating of “A”

on 441 MW of existing wind farm projects.
Pattern Energy has a growing backlog of potential drop downs for Pattern Energy Group Inc

pipeline
International diversification into Caribbean and Chile
Potentially longer contracts, 185 MW project to be completed 2016 has 25 year PPA

Energy Group is guiding for 10%-12% annual growth in cash available for distribution (CAFD)
Investors should watch focus on CAFD/share
Current debt $1.7 billion, EBITDA/interest coverage just 1.7
Risk that PPAs won’t be renewed at similar rate due to growth in renewable energy lowering long-term electricity rates.
Lower future PPA rates could threaten CAFD and distribution
Rising interest rates potentially threaten ability to make future accretive acquisitions and grow distribution.

makes Pattern Energy Group Inc a better renewable energy investment than most
However, current yield combined with slower probable distribution growth rate than other yieldCos makes Pattern Energy Group Inc a hold at current prices.
Risks include heavy debt, lack of project diversification (for now) and upcoming 29% share dilution
Better alternatives available

GW of capacity, composed of Florida Light and Power, NextEra Energy Resources
Florida Light and Power has 4.7 million regulated customers
Provides stable cash flows to support 2.9% yield that has grown at 8.4% annually over last 7 years
Analysts expect 6.5% annual dividend growth over next decade
Sponsor of NextEra Energy Partners, one of the most promising solar and wind investments in America

11 GW of solar and wind projects throughout 24 states and 4 Canadian provinces
Current backlog of 4.4 GW worth of projects to be completed by the end of 2016
NextEra Energy Partners IPOed with 10 solar and wind projects totaling 990 MW capacity
Right of first offer on 2.539 GW additional projects
160% short-term capacity growth
NextEra Energy Partners guiding for 12%-15% distribution growth through 2016
Current yield 2.8%

America
Fast growing, well diversified into gas, nuclear, and wind
The largest renewable portfolio in the country and will grow 40% by the end of 2016
NextEra Energy makes the perfect sponsor for NextEra Energy Partners
160% capacity growth through drop downs already scheduled only covers 23% of NextEra Energy’s renewable capacity
Second best renewable energy income investment in America
Only risk is solar/wind electrical rates fall long-term, future PPA contracts will result in CAFD declines

July 15, 2014

through project backlog
Targeting North America, Europe, and South America
84% of cash flows from Hydro power, solar and wind major growth catalysts
93% of cash flows contracted to inflation indexed PPAs, weighted average length remaining 17 years
Unlike solar and wind, who have inherent PPA risk (falling rates results in future contracts locked in at far lower prices) Hydro has limited supply and steadier long-term prices.
Highest (5.3%), safest, (60%-70% payout ratio) and most reliable yield makes Brookfield Renewable Energy Partners the best renewable energy income investment in America.

July 15, 2014

in America
Brookfield Asset Management, over 100 years experience managing real estate, utilities. and infrastructure
$175 billion under management
Largest, most diversified asset base in its industry
High yield, consistent 5% distribution growth and average distribution coverage ratio of 1.53 makes Brookfield Renewable Energy Partners a “buy and hold forever” investment.
Long-term total return target 10% (5% yield+5% distribution growth) vs market’s 1873-2013 compound annual total return of 9.2%
Market beating total returns with 57% less volatility (beta .43)

energy is causing more capacity builders to retain projects and consider yieldCos
Especially true in Solar industry
SunEdison has IPOed TerraForm Power
SunPower has retained 517 MW of solar projects and is considering a yieldCo to help finance additional growth
First Solar, Jinko Solar, and Canadian Solar all considering yieldCos
Pure Solar yieldCos are higher risk than wind, hydro or hybrid structured yieldCos.

energy sector.