To The Moon

$XPLR Infrastructure, LP(XIFR)$

Founded in 2014, XPLR Infrastructure, LP (a wholly owned indirect subsidiary of $NEE$) is a limited partnership that owns clean energy infrastructure assets, with a focus on contracted renewable energy projects, including wind, solar, and battery storage projects, which generate long-term, stable cash flows.

As of June 30, 2025, the average duration of contracted Power Purchase Agreements (PPAs) is 12 years. The existing assets' useful life is ~23 years.

They have roughly 10 GW of operational assets situated across 31 US states, comprising 8 GW of wind, 1.8 GW of solar, and 0.2 GW of storage. Additionally, 72% of their portfolio is concentrated in the West and South. They are the 3rd largest producer of wind and solar energy in the US.

The company’s capital allocation strategy focuses on the following

• Simplify capital structure via buyout of Convertible Equity Portfolio Financing (CEPFs)

• Invest in its existing portfolios

• Clean energy assets

• Returns of capital via buybacks (although this is not happening at the moment)

Debt/Refinance

On June 27, 2025, XPLR (through two of its indirect subsidiaries) completed two new project-level loans:

Clark Portfolio Holdings, LLC

• Borrowed ~$254 million in senior secured notes at a variable rate

• Matures June 2030, interest paid quarterly, and principal repaid gradually (semi-annual amortization)

• All assets and equity of Clark Holdings will serve as collateral

Lewis Portfolio Holdings, LLC

• Borrowed $172 million, but initially drew ~$84 million

• Matures June 2030, interest paid quarterly, and principal repaid gradually (semi-annual amortization)

• All assets and equity of Lewis Portfolio Holdings will serve as collateral

These financings are at the project level, not at the corporate level. They are secured by the projects themselves, meaning lenders cannot pursue other XPLR assets for repayment. This approach aligns with XPLR's financing plan for 2025-2026, which focuses on utilizing traditional project debt to fund or refinance its renewable assets instead of relying on corporate borrowing, which tends to be expensive.

XPLR expects to raise ~$1 billion by Q12026 to refinance 2026 maturities.

One Big Beautiful Bill Act (OBBBA)

On July 4, 2025, the OBBBA was signed into law, which lets companies immediately deduct the full costs of new clean energy assets. Since XPLR didn’t have transactions of tax positions in the first half of 2025, these changes did not affect their financial results.

How can this law help XPLR in the future?

The company will be able to deduct 100% of project costs immediately, rather than spreading the deductions over time. These changes will help lower taxable income, freeing up cash for reinvestment and debt repayment.

Meade Pipelines

On August 7, 2025, XPLR signed a definitive agreement to sell its Meade pipeline investment for ~$1.078 billion.

The transaction is expected to close by 3Q 2025, pending antitrust approval, repayment of project-level indebtedness, and satisfaction of customary closing conditions.

They intend to use proceeds from the sale to repay debt and to purchase the remaining outstanding Class B membership interests in XPLR Pipelines, with any excess proceeds to be used for general business purposes.

Summary of their remaining CEPFs:

Repowering Highlights

• Palo Duro and Mammoth Plains, the largest repower projects (located in the U.S. Midwest/Southwest region), were completed in June 2025. The expanded capacity of ~236MW (Palo Duro) and ~209MW (Mammoth Plains).

• These projects now qualify for a new 10-year Production Tax Credit (PTC), which is a major U.S. renewable tax incentive.  They also qualify for other extra tax benefits (Domestic Content and Energy Community Kickers).

• The upgrades will increase the asset life, reduce maintenance costs, and increase the amount of energy that can be produced and sold. It is expected that this will boost free cash flow before growth capital expenditures by double-digit yields, generating stronger returns.

Financials

• Operating revenue increased primarily due to solar generation, which had a planned outage in 2024

• Net income declined due to a $253 million goodwill impairment reported in Q1 2025, along with interest expense deductions from unfavorable mark-to-market activity and increased debt costs

• Little growth in the adjusted EBITDA and FCFBG is driven by lower net operating expenses

Cash Flows

• The change in operating cash flows was due to lower operating and maintenance costs (O&M), higher solar resource, and transaction timing

• Investing cash flow changed due to lower payments received from NEER (NextEra Energy Resources) subsidiaries, under the CSCS* agreement, and higher capital expenditures

• Financing cash flow changed due to proceeds from the issuance of long-term debt and larger buyout of Class B noncontrolling interest investors

*Cash Sweep and Credit Support Agreement - which is an agreement where NEER provides credit support to help XPLR meet certain obligations of its subsidiaries.

Balance sheet

• Little change in total assets

• Liabilities increased due to higher long-term debt and due to related parties

Guidance tracker