Q3 2024 NextEra Energy Partners LP Earnings Call

Good day and welcome to the Nextera Energy, Inc, and Nextera Energy Partners L. P third quarter 2024 earnings call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two please.

Please note this event is being recorded.

Speaker Change: I would now like to turn the conference over to Mark Idleman Director of Investor Relations. Please go ahead.

Mark Idleman: Thank you Dave Good morning, everyone and thank you for joining our third quarter 2024, combined financial results conference call for Nextera Energy and Nextera Energy partners with me. This morning are John Ketchum, Chairman, President and Chief Executive Officer of Nextera Energy, Brian Bolstered Executive Vice President and Chief Financial Officer of Nextera.

Energy, Rebecca Kujawa, President and Chief Executive Officer of Nextera Energy resources, and Mark Hickson Executive Vice President of Nextera Energy all of whom are also officers of Nextera energy partners as well as Armando Pimentel, President and Chief Executive Officer of Florida Power and light company.

Mark Idleman: So I will start with opening remarks, and then Brian will provide an overview of our results. Our executive team will then be available to answer your questions.

We will be making forward looking statements. During this call based on current expectations and assumptions, which are subject to risks and uncertainties.

Mark Idleman: Results could differ materially from our forward looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release and the comments made during this conference call and the risk factors section of the accompanying presentation or in our latest reports and filings with the Securities and Exchange Commission each of which can be found on our website www.

Mark Idleman: But you don't Nextera energy Dot com and Www Dot Nextera energy Partners' Dot com, we do not undertake any duty to update any forward looking statements. Today's presentation. Also includes references to non-GAAP financial measures you should refer to the information contained in the slides accompanying today's presentation for definitional information and.

Mark Idleman: Reconciliations of historical non-GAAP measures to the closest GAAP financial measure with that I'll turn the call over to John.

John Ketchum: Thank you Mark and good morning, everyone.

John Ketchum: Nextera energy delivered strong third quarter results and remains well positioned to meet its overall objectives for the year.

John Ketchum: Just the earnings per share for the third quarter increased approximately 10% year over year, reflecting continued solid financial and operating operational performance at both FPL and energy resources.

John Ketchum: As a sign of the robust underlying demand for new renewables generation and storage. We are pleased to announce that for the second quarter in a row. We have added approximately three gigawatts to our backlog, bringing our running four quarter total to approximately 11 gigawatts.

John Ketchum: We're also pleased to announce incremental framework agreements with two fortune 50 customers for the potential development of renewables and storage projects totaling up to 10 and a half gigawatts between now and 'twenty 30, none of which is in our backlog today when combined with our entergy.

John Ketchum: <unk> development agreement from last quarter, our recent announced framework agreements now total up to a potential 15, gigawatts demonstrating our unique position in the market and our customers' confidence in our ability to help meet the nation's need for power.

John Ketchum: Before I turn it over to Brian to take you through the detailed results I want to spend a moment on FPL and Hurricanes Helane in Milton I, then will discuss our view of the industry at this transformative time.

John Ketchum: I would like to extend our deepest sympathies to all those who have been affected by the widespread destruction caused by these two hurricanes over the last month.

Hurricane Helane was one of the most destructive hurricanes to ever make landfall in the continental United States.

John Ketchum: The powerful and destructive storm hit Florida as a high end category four hurricane with devastating storm surges surges and sustained wins of approximately 140 miles per hour, causing approximately 680000 FPL customers to lose power hurricane.

Milton made landfall in Florida as a high end category three hurricane with sustained wins of approximately 120 miles per hour producing numerous tornadoes widespread flooding and causing approximately 2 million FPL customers to lose power.

John Ketchum: Hurricane Milton made landfall on the West Coast of Florida, and FPL service territory in Sarasota County, and exited on the East Coast of Florida, and FPL service territory in Brevard County in preparation for the Hurricane FPL assembled a combined restoration workforce of more than 30000 work.

<unk> across these two storms this preparation and coordinated response enabled FPL to restore service to roughly 95% of affected customers. After the second full day of restoration following hurricane Helane landfall and 95% of affected customers after the fourth.

John Ketchum: Full day of restoration following hurricane Milton landfall.

John Ketchum: I would like to thank all of our employees have made personal sacrifices, leaving their own homes to serve our customers our communities and our state it was because of their training their preparation their dedication and their commitment that we were able to restore power to our customers. So quickly I would.

John Ketchum: Also like to thank other members of the restoration team, including the contractors vendors and first responders that supported our efforts for their dedicated assistance. During this critical time.

John Ketchum: Finally, I would like to express our sincere gratitude to governor to Santos for his unwavering leadership and support during these devastating hurricanes.

John Ketchum: We're also deeply grateful for the resources provided by our industry partners, who came from 41 different states in Canada to help support our customers during hurricane saline and Milton.

John Ketchum: Mutual aid in times of disaster. It was one of the hallmarks of our industry and we were proud to be able to assist other utilities to help rebuild some of the damaged southeastern power grid that saw significant impacts from hurricane Helane in Georgia and the Carolinas.

John Ketchum: For nearly two decades that FPL has invested significantly in building a stronger smarter and more storm resilient grid. The performance of our system demonstrates that fpl's hardening under grounding automation and smart grid investments are providing significant benefits to our customers.

John Ketchum: During sustained wins of approximately 140 miles per hour during hurricane Helane and 120 miles per hour during hurricane Milton.

Our smart grid technology investments avoided 185000 outages during hurricane Helane and avoided 554000 outages during hurricane Melton. Additionally.

John Ketchum: Additionally, initial performance data shows that Fpl's underground distribution power lines for <unk>.

John Ketchum: For more than six times better in terms of outage rates than existing overhead distribution power lines in Florida. We are proud to report that our generation fleet, including our solar sites sustained no significant damage. Despite 66 of Fpl's 88 existing solar sites.

Approximately 16 million panels being exposed to storm conditions during hurricanes Helane of Milton less than 0.05% of our solar panels were affected we believe these investments together with our preparation and coordinated response have.

John Ketchum: <unk> fpl's overall reliability and resiliency, providing significant value to our customers.

John Ketchum: The recent storms underscore the importance of a reliable and resilient power grid and this need will only intensify as we face a period of unprecedented growth in power demand.

Speaker Change: Over the last eight years, our sector has experienced many demand cycles from growth emerging out of the World War, two and the industrial revolution to multiple decades of essentially little to flat demand.

Speaker Change: That's all changed today there are forecast for an approximate six X increase in power demand growth in the next 20 years versus the prior 20.

Speaker Change: That significant projected shift in fundamental demand is across industries driven in large part by seven by 24 loads from data centers re shoring of manufacturing and electrification application of industry, including oil and gas and chemicals to name a few.

Speaker Change: U S data center power demand alone is expected to increase substantially adding approximately 406 terawatt hours of new electricity demand at a compound annual growth rate of 22% from 2023 to 2030, which could potentially enable 150 gigawatts of <unk>.

Speaker Change: New renewables and storage demand over the same period.

Speaker Change: With all of that demand with all of that power demand. It's important to consider what it will take to meet that demand and what type of generation will be required over the next decade, or so and importantly, when Canada practically be brought to market. If that demand is not met in a smart prudent way power.

Rice's could escalate overtime and affordability could become an increasing concern driving inflation and making U S industry uncompetitive on a global scale.

Speaker Change: Fortunately at FPL, we have a playbook in place we have been addressing the benefits and challenges of fundamental growth for years now while continuing to deliver on our strong customer value proposition, which is anchored in bills that are nearly 40% below the national average and maintaining top decile reliability.

Speaker Change: We are making smart capital investments in low cost solar generation and battery storage, which are continuing to reduce our overall fuel costs and when combined with generation Modernizations have save customers nearly $16 billion. Since 2001, we are.

Speaker Change: Delivering best in class non fuel O&M, where we're 70% better than national average saving our customers $3 billion every year compare to the average utility.

Speaker Change: Our experience at FPL puts energy resources in a unique position to help our customers meet their power demands. We know what it is going to take to successfully meet the challenge that is in front of our industry, we need low cost reliable energy that can also deliver the capacity needed to support grid and we need it.

Speaker Change: Now cost capacity and speed are the three big issues that need to be addressed and medium power demand and as we have demonstrated in Florida, a mix of new renewable storage of gas generation is the solution.

Speaker Change: When it comes to economics, renewables and storage are lowest cost generation and capacity resource for customers in many parts of the U S. We believe new wind is up to 60% cheaper than new solar up to 40% cheaper than new gas power generation and thats on a nearly firm basis with.

Speaker Change: Paired with a four hour battery.

Speaker Change: Incentives for wind solar and storage flow directly to customers in the form of lower bills.

Speaker Change: Over the past several years, we have seen the customer benefits of low cost solar and storage at FPL.

Speaker Change: The two combined resources are currently the lowest cost option for customers, beating out Newbuild gas power <unk> and combined cycle units and our 10 year site plan as a result, FPL now has the largest utility owned solar portfolio in the country with FPL was seen in Florida is also playing out.

Speaker Change: Across the rest of the country, whether with investor owned utilities municipalities cooperatives, or commercial and industrial customers.

Speaker Change: When it comes to speed the market no technology is quicker to deploy than renewables and storage wind solar and storage not only can be built quicker, but theyre already in the interconnection queue.

Speaker Change: But don't just take our word for look at our backlog. We've added another approximately three gigawatts of renewables and storage this quarter, our second quarter in a row.

Speaker Change: As the top operator of all forms of power generation, we often get asked about nuclear and gas. Let me start with nuclear nuclear will play a role, but there are some practical limitations remember on a national level. We expect we're going to need to add 900, gigawatts of new generation to the grid by 2040.

Speaker Change: There are only a few nuclear plants that can be recommissioned in an economic way. We are currently evaluating the re commissioning of our Duane Arnold nuclear plant in Iowa as one example.

Speaker Change: But even with a 100% success rate on those recommissioned needs, we would still only meet less than 1% of that demand existing merchant nuclear generation is also limited in its ability to meet that demand given there are only approximately 20 merchant nuclear plants in this country.

Speaker Change: That nuclear capacity is also not evenly spread across the U S and is not in many places we know hyperscale or are looking to develop data centers. Our manufacturing manufacturers are looking to expand their footprint. For example, there are only two merchant nuclear plants west of the Mississippi.

Speaker Change: Nuclear.

Speaker Change: Plants across the country are already serving existing demand. So even if they are contracted by specific customers new resources need to be built to meet new demand.

Speaker Change: And alternatives, such as new utility scale nuclear and <unk> are unproven expensive and again not expected to be commercially viable at scale scale until the latter part of the next decade.

Speaker Change: Turning to gas when it comes to gas power generation Nobody has built more over the last two decades in Nextera energy, we understand the benefits and the challenges and we know what it all cost and how long it takes to build.

Speaker Change: The power sector is going to need to build more gas power generation and battery storage to meet growing capacity needs over the next decade and as we build more we also enable more renewables to come to market as the lowest cost generation source of energy.

Speaker Change: Renewables will be built for energy and battery storage and gas for capacity that being said, while we are going to need both storage has an advantage because it's ready now as it can be paired with renewables at the same interconnect and there are no wait times are permitting hurdles for batteries.

In our renewables and storage will only get cheaper and cheaper overtime and we believe we'll continue to make up the lion's share of new additions over the long haul.

Speaker Change: To summarize we believe power demand is at an inflection point and we expect much of that demand to be met by renewables and storage because they are low cost fast to deploy and in the transmission queue now and the potential opportunity is significant forecasts are projecting a tripling in renewables growth over the next.

Speaker Change: Seven years compared to what we've seen over the prior seven no. One is better positioned to capitalize on that demand growth for Nextera energy and we have the track record to prove it since 2021 at energy resources, we have originated more than 33 gigawatts of renewables and storage while play.

Speaker Change: <unk> nearly 18 gigawatts into commercial operation, we have advanced from originating on average eight gigawatts per year from 2021% to 2023 to approximately 11 gigawatts over the last four quarters, if we achieve the midpoint of our development expectations. This pace of development is expected to.

Speaker Change: More than double our combined renewable generation portfolio growing from 38, Gigawatts today to potentially 81 gigawatts by the end of 2027, it's hard to overstate. The advantage. This would give us as we head into the end of the decade this potential growth and the poor.

Speaker Change: Folio it would enable a long term co located storage opportunity set of more than 50 gigawatts by the end of 2027, creating a meaningful opportunity for us to win new business and continue to deliver superior returns, our new framework agreements with fortune 50 companies.

Speaker Change: As well as our Entergy joint development agreement announced last quarter together with our continued origination success are key examples of our leadership in power generation.

Speaker Change: While these additions clearly demonstrate that some of the most sophisticated customers in the country understand the value proposition of renewables and storage I want to close with a reminder of the broader economic impact the build out of renewables has had and continues to have on the U S. Economy, we have invested tens of billions of <unk>.

Speaker Change: And the nations energy infrastructure, creating tens of thousands of jobs increased tax revenues and economic stimulus for the communities. We invest in and we are powering millions of American homes and businesses with low cost reliable and clean electricity. The fact is that renewal.

Speaker Change: <unk> are a critical part of the energy infrastructure in this country when solar and storage are not only ready now and fast to deploy but also presents a cost effective solution for meeting our country's energy needs tens of thousands of good jobs have already been created with many more yet to come over.

Speaker Change: For the next several years boosting manufacturing and helping to revitalize rural communities across America with scale experience and technology across the energy value chain and sites ready to develop an interconnect today Nextera energy was built for this moment with that I will turn the call.

Speaker Change: Over to Brian to cover the detailed results. Thank you John and good morning, everyone for the third quarter of 2020 for FPL increased earnings per share by <unk> <unk> year over year.

Brian Bolstered: <unk> driver of this performance was FPL as regulatory capital employed growth of them.

Brian Bolstered: Approximately nine 5% year over year.

Brian Bolstered: We continue to expect FPL to realize roughly 10% average annual growth in regulatory capital employed over our current rate agreement four year term, which runs through 2025.

Brian Bolstered: <unk> capital expenditures were approximately $2 billion for the quarter and.

Brian Bolstered: And we expect that feels full year 2020 for capital investment to be between eight and $8 8 billion.

Over the current four year settlement agreement, we expect Fpl's capital investments to exceed $34 billion.

Brian Bolstered: Fpl's third quarter retail sales increased 1% from the prior year comparable period.

Brian Bolstered: <unk> grew retail sales by roughly one 6% on a weather normalized basis offset by milder weather during.

Brian Bolstered: During the quarter.

Brian Bolstered: <unk> reversed approximately $231 million of ROE.

Brian Bolstered: Reserve amortization and <unk> ended the quarter with a balance of roughly $817 million.

Brian Bolstered: With.

Brian Bolstered: The cost associated with storm recovery as a reminder, we have both the storm reserve and a surcharge mechanism to the extent the reserve has been fully utilized.

Brian Bolstered: Following hurricane Debbie we had depleted our storm reserve and have deferred the remaining incremental costs for hurricane Debbie Helane in Milton to the balance sheet we.

Brian Bolstered: We intend to recover those deferred costs and replenish the storm reserve.

Brian Bolstered: Storm surcharge and customers' bills over the calendar year 2025.

Brian Bolstered: Although FPL has not completed the final accounting our preliminary estimate estimate of restoration costs that we plan to recover from customers through a surcharge is approximately $1 $2 billion.

Brian Bolstered: Inclusive of $150 million, which will be utilized to replenish the storm reserve.

Brian Bolstered: Of course, the restoration cost will be subject to final review and Prudence determination by the Florida Public Service Commission.

Brian Bolstered: The 12 months ending September 2024.

Brian Bolstered: <unk> reported ROE for regulatory purposes will be approximately 11, 8%.

Brian Bolstered: We still expect the regulatory ROE for the 12 months ended December 2024, and 2025 to 11, 4%.

Speaker Change: Now, let's turn to energy resources, which reported adjusted earnings growth of approximately 11% year over year at energy resources adjusted earnings per share increased by <unk> <unk> year over year.

Speaker Change: Contributions from new investments increased <unk> 15 per share year over year, primarily driven by continued growth in our renewables portfolio.

Speaker Change: Comparative contribution from our customer supply and trading business, which you will recall had a strong had strong earnings last year.

Speaker Change: Kris by <unk> 10 per share driven by normalization of origination activity and margins, which is consistent with our expectations.

Speaker Change: Contributions from both Nextera energy transmission and gas infrastructure businesses increased by <unk> <unk> per share year over year.

All other impacts reduced earnings by <unk> <unk> per share.

Energy resources had another strong quarter of new renewables and storage origination, adding approximately three gigawatts to backlog.

Speaker Change: With these additions our backlog now totals over 24 gigawatts after taking into account roughly one gigawatt of new projects placed into service since our last earnings call, providing great visibility into energy resources' ability to deliver on our development program expectations.

Speaker Change: We expect the backlog editions will go into service over the next several years.

Speaker Change: Turning now to our third quarter 2024 consolidated results adjusted EPS was $1 <unk> per share.

Speaker Change: Adjusted earnings from corporate and other were flat to last year's comparable quarter.

Speaker Change: At Nextera energy, our long term financial expectations remain unchanged.

Speaker Change: We will be disappointed if we're not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in 2020 for 2025 2026 and 2027.

Speaker Change: In 2023 to 2027, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.

Speaker Change: And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a base off of 2024 base.

Speaker Change: As a reminder, our expectations are subject to a caveat.

Speaker Change: Turning to Nextera energy partners.

Speaker Change: Yesterday, Nextera energy Partners' Board declared a quarterly distribution of <unk> $91 75 per common unit or $3 67 per common unit on an annualized basis.

Speaker Change: Nearly 6% from a year earlier.

Speaker Change: Today Nextera energy partners is pleased to announce the expected wind repowering of another approximately 225 megawatts of wind facilities.

Speaker Change: Bringing its total backlog of wind repowering approximately one six gigawatts through 2026.

Speaker Change: The partnership's organic growth opportunities have expanded and we are increasing our wind repowering target to approximately one nine gigawatts of wind projects owned by Nextera energy Partners' through 2026.

Speaker Change: Which is up from the previous target of one three gigawatts.

Nextera energy partners owns a large portfolio of high quality long term contracted clean energy assets.

Speaker Change: And has attractive organic growth from the repowering of its existing portfolio.

Speaker Change: Nextera energy partners remains focused on executing additional wind repowering opportunities in the future, which we believe would provide improved operating performance and higher generation.

Speaker Change: Let me now turn to the detailed results.

Third quarter, adjusted EBITDA was $453 million and cash available for distribution was $155 million.

Third quarter, adjusted EBITDA and cash available for distribution declined by approximately 50 $35 million and.

Speaker Change: And $92 million, respectively from the same period last year.

Speaker Change: Third quarter, adjusted EBITDA and cash available for distribution to reflect the year over year impact of the divestiture of the Texas pipeline portfolio.

In addition, third quarter cash available for distribution in 2024 was negatively impacted by the first interest payment on the Partnership's December 2023, holdco debt issuance.

Speaker Change: As well as $23 million of higher project level debt service related in large part to the 2023 acquisition financing.

Speaker Change: Nextera Energy partners continues to expect the run rate contribution for adjusted EBITDA from its forecasted portfolio at December 31, 2024 to be in the range of one nine to $2 1 billion.

Speaker Change: The year end 2024 run rate projections reflect expected calendar year 2025 contributions from the forecasted portfolio at year end 2024.

Speaker Change: The partnership also continued to evaluate alternatives to address its remaining convertible equity portfolio financing obligations and its cost of capital.

Speaker Change: Focusing on its capital structure and the potential for redeployment of more cash flow toward driving organic cash flow growth.

Speaker Change: Given the demand for power Nextera energy partners has many ways in which you can seek to grow which could include not only acquire assets, but also wind repowering and potential other organic growth opportunities.

Speaker Change: Nextera energy partners plans to complete its review by no later than the fourth quarter 2024 call.

Speaker Change: <unk> intends to provide its distribution and run rate cash available for distribution expectations at that time.

Speaker Change: As a reminder, our expectations are subject to a caveat.

Speaker Change: That concludes our prepared remarks and with that we'll open the line for questions.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw your question. Please press Star and then two.

Speaker Change: Our first question comes from Steve Fleishman with Wolfe Research. Please go ahead.

Steve Fleishman: Thanks, and good morning.

Steve Fleishman: D.

Steve Fleishman: Maybe if it's possible, but love to get more color on the framework agreements.

Steve Fleishman: I think when Brookfield announced one of these with Microsoft you kind of downplayed wanting to do things.

Steve Fleishman: A framework fashion just due to the fact that you wanted to maximize the value of each site. So could you maybe talk to the change in.

Steve Fleishman: Kind of now now having framework agreements.

Steve Fleishman: Yeah sure. Steve. This is this is John.

Steve Fleishman: First of all the framework agreements that.

We have been able to strike with with Entergy and with the two fortune.

Steve Fleishman: 50 companies that we mentioned that total over 10, five gigawatts and four and a half on the energy side gives us an enormous amount of flexibility in terms of.

Steve Fleishman: Which assets that we allocate towards those programs and so were not stuck.

Steve Fleishman: Line up inventory and it creates a close partnership arrangement.

Steve Fleishman: With each of these three counterparties that gives us a huge leg up.

Steve Fleishman: And being able to secure.

Steve Fleishman: Incremental business and what we would look for on the energy side for example, as kind of a 50 50.

Steve Fleishman: And ppas, but.

Steve Fleishman: I would think what we're doing with the framework agreements.

Steve Fleishman: With the Fortune 50 customers.

Speaker Change: It would be more in the lines of power purchase agreements I'll turn it over to Rebecca to see if she has anything to add sure Steve and I. Appreciate the question I think if you take a step back and you think about what's happening in our industry and you know as well is that as many of us on the call.

Rebecca Steve: The change in demand is significant and it has changed rapidly over the last couple of years and the customers that we're referencing today as well is quite a number of others with whom we are in discussions with have big important and urgent energy needs that they need to have visibility to how those are going to be Matt.

Rebecca Steve: And they want to make sure that we and they are aligned so that they have access to our substantial pipeline of projects.

Rebecca Steve: Very well there is no one else out there that has a pipeline of hundreds of gigawatts of projects in various stages of development. There is no one out there that has a 150 gigawatts of internet connected.

Rebecca Steve: Interconnect queue positions ready to go and these customers want to make sure we're focused on their business and how do we do that we get visibility to what their needs are so that we're working with them collaboratively. So that ultimately we can work to put these projects into the backlog I think the biggest takeaway that I would have is if I were in your.

Speaker Change: She is is that this is a sign of how we are differentiated from others and how we're getting incremental visibility to the significant demand that is related to the characteristics that we all know well and I think it's also a great sign of let John and Brian just went through about specifically the demand for renewables.

Speaker Change: Low cost ready to deploy and aligned with the goals and objectives of the customers with virtual working I think it's just one more sign of a great environment into operating.

Speaker Change: Okay.

Speaker Change: Okay, that's helpful and maybe just.

Speaker Change: A follow up or two on this so the.

Speaker Change: Is there a point in time, when you'll be able to disclose who these agreements are with.

Speaker Change: Obviously, you can't do that now, but just is it fair to say these are both.

Speaker Change: Hyperscale or tech type customers or for other industries.

Speaker Change: So.

Speaker Change: Take the first one Steve is there a point in time, where we can give names probably and I think the preference of the counterparties.

Speaker Change: And our preference is to go ahead and make an announcement of who they are side by side with the transaction.

Speaker Change: Once once we bring a deal to the table.

Speaker Change: With them.

Speaker Change: And Rebecca you want to handle the second question, Yes, I think the second part of it and we are careful to write a fortune 50 companies. These are not technology companies.

Speaker Change: And I think Thats another great point is yes, absolutely where many of us are talking about.

Speaker Change: Demand from Hyperscale.

Speaker Change: And Colocation data center developers and that demand is real and significant and we're having quite a number of conversations with all of them.

Speaker Change: But these are actually with customers that are outside of the technology industry. There are folks that are building facilities that they need to get power to they are folks that are concerned and care about and sharing that they are low cost deploy and ideally low carbon forms of energy and capacity.

Speaker Change: <unk> robust sign of a significant broad based demand, yes, and one thing I'll add to that Steve, which I think is important color as investors think about the value proposition that we have going forward.

Speaker Change: Given all the demand that we're seeing from data centers, it's actually.

Speaker Change: And the compression of supply and available sites ready to go.

Speaker Change: It's creating more even more of a premium on other industries outside of data centers to try to lock up low cost renewable generation and so.

All ships or rise are rising with the tide here so to speak so as data centers R. R.

Speaker Change: Increasing their demand, which is also increasing price, which is also increasing returns youre also seeing other industries that are looking to secure and hedge their power exposure because they believe that power prices they may be facing.

Speaker Change: Higher power prices down the road.

So it's kind of an across sector phenomenon that we're seeing and it's so encouraging because it is very consistent with what we've been saying that this is not just the data center movement. This is a movement across the industry. The electrification of industry manufacturing looking to decouple from China and they are all looking for ways.

Speaker Change: <unk> two.

Speaker Change: Control energy prices at the lowest cost possible going forward.

Speaker Change: Thank you last quick question just on the Duane Arnold the journey.

Speaker Change: Myles stones are key steps that we should be watching out for on.

Speaker Change: That opportunity.

Yes. So we are very busy looking at Duane Arnold.

Speaker Change: Interest and re commissioning the plant were doing all the things right now that you would expect us to do we're doing all the assessments, which includes engineering assessments includes working with the NRC. It includes working with local stakeholders.

Speaker Change: So we are we are continuing to advance that.

Speaker Change: That project and there obviously it goes without saying, there's very strong interest from customers really data center customers in particular.

Speaker Change: Around around that site, but we will we will keep all of you posted.

Speaker Change: As our evaluation progresses.

Speaker Change: Okay. Thank you.

Speaker Change: The next question comes from Shar.

<unk> <unk> with Guggenheim Partners. Please go ahead.

Speaker Change: Hey, guys good morning.

Speaker Change: Good morning.

Speaker Change: One just on Steve's question on Duane Arnold I guess, John any sort of sense on the cost to restart that plant and other structural items, we should be thinking about as you approach a decision and ultimately if you strike a contract with a counterparty is this an asset you'd want to own.

Speaker Change: Over the long term or could that be a monetization opportunities we're thinking about your kind of ongoing balance sheet needs.

Speaker Change: Yes, sure I'll start with the first one they go to the second so.

Speaker Change: I'm not going to give you a cost number yet because that's part of the evaluation that we're going through currently remember this is a BW are boiling water reactor. They are a lot less complex to bring back into recommissioned. It's a simpler design because they don't have a.

Speaker Change: Steve.

Speaker Change: Team generator.

Speaker Change: Like.

<unk>.

Speaker Change: Do and so that gives us optimism.

Speaker Change: Being able to do this at an attractive price and be able to execute it without as much risk that might be associated with re commissioning the plant debt.

Speaker Change: It does not have a boiling water reactor, but.

Speaker Change: As a PW are designed.

Speaker Change: On the second question, our desire to own versus monetize.

Speaker Change: For US look I mean, this is a very attractive asset to own.

Speaker Change: We would hope to be able to get an attractive PPA.

Speaker Change: This was this would be a long term asset that I think would fit nicely in our portfolio.

Speaker Change: Okay, Perfect and then John just on the <unk> side, I mean, obviously theres been subtle change in language around timing, obviously, concluding the financial review by the year end call I guess, what's given the confidence this quarter to put that timeline out there is there kind of a range of preferred outcomes that you can at least highlight to investors, especially.

Speaker Change: As you've kind of removed the language around the distribution growth targets I guess, what should we read into that I mean, obviously, the market's a little bit jittery around that language change and can you at least confirm if you see yourself as remaining the owner of this entity into the future.

Speaker Change: Yeah sure sure. Thank you. Thank you for the question so.

Speaker Change: As we have said to investors.

Speaker Change: Over the last several months, we're completing our review regarding how to address surface and <unk> cost of capital we've been exploring a number of options.

Speaker Change: As part of that and as we said today.

Speaker Change: We're also really reflecting on the Yieldco model.

Speaker Change: Self in and contemplating a strategic shift in how we allocate capital.

Speaker Change: The things that we are evaluating us.

Speaker Change: Shall we put.

Speaker Change: <unk> more of our capital towards really growing the underlying cash flow.

Speaker Change: Of the business and maybe less towards distributions.

Speaker Change: Distributions and so that's one of the things that we're thinking about obviously we have to also.

Speaker Change: Address the backend convertible equity.

Speaker Change: Portfolio financings, but what we wanted to do is just be upfront with investors that.

Speaker Change: This review is coming to a conclusion and we will be prepared to provide.

Speaker Change: Updated feedback.

Our distribution policy.

Speaker Change: Going forward on the on the fourth quarter call.

Speaker Change: Got it so just just reflecting on sort of the Yieldco model. It sounds like even next our remaining the ultimate owner of Nap is something that's a question mark as well too.

Speaker Change: Yes, no look.

Speaker Change: I think going forward, our preference would be to remain.

Speaker Change: The owner of Nextera Energy partners, we've looked at we consider all available options and alternatives I don't discount.

Speaker Change: And any potential options going forward, but our base case would be to remain the owner of <unk> going forward.

Speaker Change: Okay perfect. Thank you very much.

Speaker Change: And chart the thing I want to add is.

Speaker Change: We've talked a lot about on this call about the underlying dynamics in the industry.

In a period of substantial power demand and its industry.

Speaker Change: And there are many things where nextera energy is has a superior position in markets and they are going to be a number of potential growth opportunities that could favor not only nextera energy, but also potentially nextera energy partners.

Speaker Change: Going forward, obviously data centers being.

A big part of that.

Speaker Change: As well and so.

Speaker Change: We have a number of things that we're looking at that.

Speaker Change: Could potentially lead to attractive growth opportunities for <unk>.

Speaker Change: Going forward.

Speaker Change: Okay perfect. Thanks, so much and we'll see you guys soon I appreciate it.

Speaker Change: Thank you.

Speaker Change: The next question comes from Julien Dumoulin Smith with Jefferies. Please go ahead.

Speaker Change: Hey, good morning team. Thank you guys very much I appreciate it.

Speaker Change: Hey, John I know you guys are always a step ahead of everyone else here. So I wanted to get ahead here, how do you frame the discussion on safe harboring assets heading into this election outcome whatever maybe how would you assess derisking. Your plans through 2007 as you guys have talked about or even frankly beyond the 27 point in terms of proactively safe harboring.

Speaker Change: Your outlook, whether that storage solar or wind.

John: Yeah, we have fully.

John: De risked our safe Harbor program I mean were bought through 29. So those that are familiar with the safe Harbor program that would.

John: The moves that we have made and the investments that we have made a protected our development program through the for your Safe Harbor.

John: Through 2029 first so that's the first thing that I would say the second piece.

John: As you know don't forget we're always very forward looking from a supply chain perspective, and we've also.

John: Were very long Transformers were very long switch gears of electrical equipment that have caused problems for others in the industry. So.

John: We have planned ahead, we've taken all the necessary steps on safe harboring and we've also taken all the necessary steps in terms of locking up critical electric infrastructure that is leading to delays of projects by small developers, which again is.

John: The small developers have fallen down.

John: Thank the tolerance level of our utility customer base, and our C&I customer bases, whether it's thin and and so they're now looking to they have too much to lose too much on the line.

John: And they wanted to do business with established developers like Nextera that they know are going to get their projects built on time and that plan ahead and don't get caught off guard by by some of these issues that have.

John: Have chronically impacted the small developer in the renewable space.

Speaker Change: Excellent. Thank you guys step ahead as you say hey, good quick nuance here at Seabrook I'm, just curious we talked about Duane here, but what's the situation there with the thoughts about new England on any further shall we say co location or long term offtake arrangements there with potential counterparties.

Speaker Change: Yes, so for US I mean, we look at our entire nuclear fleet as <unk>.

Speaker Change: Part of our data center strategy so.

Speaker Change: We're sort of technology agnostic as we approach it most of the conversations that we have a data center customers are around renewables, but obviously we have.

Speaker Change: Comprehensive expertise across the energy value chain, whether it's win whether it's solar or whether it's battery storage, whether it's transmission, whether it's gas coupled with with a renewable solution and.

Speaker Change: And whether it's nuclear and I think we're uniquely positioned in that regard because we do do it all we know what it at all costs, we have the data to support it all and.

Speaker Change: What we tried to do is have educated discussions with our customer base to provide them with the low cost most comprehensive clean energy solution that addresses the demands that they see going forward to satisfy their business needs.

Speaker Change: Excellent Alright, I will leave it there alright, guys all the best.

Hey, Thanks Julien.

Speaker Change: And the next question comes from David Arcaro with Morgan Stanley. Please go ahead.

David Arcaro: Alright, thanks, so much good morning.

David Arcaro: I'm wondering if you could expand a little bit on your thoughts on <unk> as an asset and in particular, if you might consider that at FPL over time within your resource mix.

Speaker Change: Yeah on <unk>. So let me start with we have we.

Speaker Change: We have a small <unk> team inside the company right. So.

Speaker Change: We have been following <unk> for a very long time, we actually advise a couple of.

Speaker Change: <unk>.

Speaker Change: Fortune 100 companies on <unk> today.

Speaker Change: But here's what we see we're very close to the SMB market.

Speaker Change: There's really 911 it depends on your count of how many Oems or are in.

Speaker Change: In the <unk> area, we look at them all we know.

Speaker Change: We do.

Speaker Change: Technology reviews around them, we do financial reviews around them a lot of them are very strained financially either.

Speaker Change: Our only a handful that really have.

Speaker Change: Capitalization.

Speaker Change: That could actually carry them.

Speaker Change: Through the next several years and so.

Speaker Change: That's one piece the second piece is look you're looking at a first of a kind technology that are.

Speaker Change: And that comes with a ton of risk associated with that they are still very expensive I don't see that changing really as things move forward.

Speaker Change: There, particularly as you see renewables getting cheaper.

Speaker Change: And I think renewables used for energy and storage and gas use for capacity I think on an economic basis tough for <unk> to compete the other thing that doesn't get a lot of.

Speaker Change: Our attention is nuclear fuel.

Speaker Change: The nuclear fuel supply chain.

Speaker Change: As you know.

Speaker Change: It has a lot.

Speaker Change: Of <unk>.

Speaker Change: Repair and work that has to has to occur I think most of you know we passed sanctions against Russia on enrichment and conversion, we basically have to start an enrichment in conversion industry here in the U S. It's going to take a lot of time to get that up and running some <unk>.

They don't run off of low enriched uranium that Rob a halo Hey, Lou is remains a bit of improvement as well and so when we stack all of that together David That's why we're just not bullish tomorrow. So we think it's kind of a.

Speaker Change: Next the end of the next decade.

Speaker Change: Alternative but it is also something that.

Speaker Change: We stay close to and we have capacity at our existing <unk>.

Speaker Change: Generation facilities to be able to add.

Speaker Change: S. A mars and it's something that FPL, we will continue to keep a close eye on also as we move forward, but again, it's it's so far out in the future from a viability standpoint at scale.

It's it's we're prioritizing other generation resources at this time and I think renewables are.

Speaker Change: As I said in my prepared remarks are here for the long haul.

Yeah got it thanks, so much to that perspective makes sense.

Speaker Change: You had mentioned renewables returns.

Speaker Change: Just given the strong demand backdrop wondering if you could just give a little bit more color on what youre seeing in terms of the trend.

Of renewable returns.

Speaker Change: Incremental projects right now.

Speaker Change: Sure I'm going to turn that over to Rebecca.

Thanks, David as you might expect from my comments on not only the <unk>.

Rebecca Steve: Second quarter in a row of three gigawatt timings and the real excitement for us on these framework agreements not just the ones, we announced but also ones that we haven't gotten to the point of announcing it.

It is clearly a change dynamic.

Rebecca Steve: Terms of.

Rebecca Steve: Need for what we have to offer.

Rebecca Steve: And it's safe to say that there are.

Rebecca Steve: <unk> for us to improve margin and where that makes sense. We certainly are taking advantage of that.

Rebecca Steve: I would say, it's much more of an upward trajectory.

Rebecca Steve: Then staying the same and certainly not going down.

Rebecca Steve: And you should also expect that we will continue to.

Rebecca Steve: To be very disciplined and does the capital allocation as well as being aware of where our cost of capital or.

Rebecca Steve: So as we've seen changes in rates you should also expect us to respond appropriately to that.

Rebecca Steve: But the market dynamic for us in a unique position in this industry is a very positive tailwind for us.

Rebecca Steve: Okay.

Speaker Change: Okay excellent I appreciate the color. Thanks, so much.

Speaker Change: And the next question comes from Jeremy Tonet with J P. Morgan. Please go ahead.

Jeremy Tonet: Hi, good morning.

Speaker Change: Good morning, Jeremy.

Jeremy Tonet: Just wanted to turn to the near backlog additions it looks like.

<unk> has been added in the past few quarters here and it looks like about 11 over the past year, just wondering I guess your expectation for run rate backlog additions over an extended period of time should we be thinking kind of like 12, a year roughly or do you see that increasing over time.

Speaker Change: And then on slide five you can lay out significant.

Speaker Change: Demand growth there for renewables and just wondering how you think about nextera market share going forward there.

Speaker Change: Thanks, Jeremy I'll take I'll take the first stab at both of those in terms of the run rate and lower gigawatt signings I'll say the similar comments in higher quarterly signings, which is we shouldnt expect these to be perfectly linear.

Speaker Change: And there will be changes quarter to quarter.

Speaker Change: Hesitant to say that three gigawatts is the new normal for now and forever more.

Speaker Change: But it is very clear and we made the comments for a reason that we have seen the change in demand that we've been that we've been talking about and we've been expecting given.

Speaker Change: Thus the color commentary in the marketplace as well as to what's actually happening in the ground.

Speaker Change: For real demand of new Elektron splits in the form of energy and capacity.

Speaker Change: I'm really proud of our team. So we've invested a lot in our Greenfield development program over years and developed a lot of technology and capability to ensure that we can scale that effectively.

It is proving out to bring high quality projects to market.

Speaker Change: With teams that are working closely with our customers to ensure that we're getting those right projects to them at the right time right place.

Speaker Change: And at the right price for us mutually so clearly a positive tailwind and at this point I would say, we continue to feel comfortable with the expectations that we laid out.

Speaker Change: Greater detail at the Investor Conference in June at the level, where we think our overall four year development expectations are in aggregate through 2027. So I think this is a great quarter on Q2 being in those ranges.

Speaker Change: In terms of Ah I forgot the second part of your question actually Jeremy did I cover can I kind of a jet market.

Speaker Change: Just market share going forward market check listen leave over a long period of time had ranges of market share I would say the cross the technology's roughly at 20% market share.

Speaker Change: It has been rather consistent.

Speaker Change: Performance over time.

Unknown Executive: I think that is certainly achievable and potentially higher, and as you know, we'll continue to balance those higher market share and higher margin, and they are interrelated to an extent, and we're going to make sure that we continue to optimize that.

Speaker Change: That is certainly achievable and potentially higher.

Speaker Change: And as you know, we will continue to balance those higher market share and higher margin.

Speaker Change: And they are interrelated to an extent and we're going to make sure that we continue to optimize that I don't want to build every single project that we could possibly sell to somebody I wanted to build the projects that have great returns that create value for our shareholders.

Unknown Executive: I don't want to build every single project that we could possibly sell to somebody. I want to build the projects that have great returns that create value for our shareholders and build incremental value for our platform over time. And that's what we are going to continue saying, focused on.

Speaker Change: And build incremental value for our platform over time, and that's what we're going to continue staying focused on.

Unknown Executive: Got it, that's very helpful there.

Speaker Change: Got it that's very helpful. Then just quickly I guess on origination opportunity set how do you see solar versus wind stacking up at this point and also Big addition in batteries. There. So just wondering what youre seeing currently on that front.

Unknown Executive: And just quickly, I guess, on an origination opportunity that how you see solar versus wind stacking up at this point, and also big addition in batteries there, so just wondering what you've seen currently on that front. I would say the trends are consistent with what we've talked about the last couple of quarters, and specifically in more detail at the investor conference. There's clearly a tailwind for solar and even more so for storage, relatively speaking, over the last couple of years. For solar, I think it's a couple of things. It's relatively attractive to the other generation technologies, and specifically attractive with the addition of the PTC relative to what it had before, which is ITC, and therefore made it more economic and more regions in the last five to seven years.

Speaker Change: I would say the trends are consistent with what we've talked about for the last couple of quarters and specifically in more detail at the Investor Conference.

Speaker Change: There's clearly a tailwind for solar and even more so for storage relatively speaking over the last couple of years first solar I think it's a couple of things.

Speaker Change: Relatively attractive to the other generation technologies, and specifically attractive with the addition of the PTC relative to what it had before which is ITC and.

Speaker Change: And therefore, it made it more economic and more regions.

Speaker Change: In the last five to seven years on storage, it's really about capacity value as John outlined in our prepared remarks. It is clear that we need both energy and capacity to meet incremental demand that utilities are seeing for the first time in decades, and storage is ready to deploy and in and.

John Ketchum: On storage, it's really about capacity value, as John outlined in our prepared remarks. It is clear that we need both energy and capacity to meet the incremental demand that utilities are seeing for the first time in decades. And storage is ready to deploy, and in the places where it is needed most. So our customers are really interested in seeing those storage projects come to market.

The places where it is needed most so our customers are really interested in seeing those storage projects come to market. When does is continue to be a little bit weaker relatively speaking to how strong. It was for the first couple of decades of our renewables development program.

Unknown Executive: Wind is continued to be a little bit weaker, relatively speaking, to how strong it was for the first couple of decades of our renewables development program. There's still quite a number of customers that are interested in it. We have a good pipeline of projects in discussions with a variety of customers across the United States, and we see a mix of those resources being a good complement to one another to meet these seven by twenty-four solutions. So having pipeline of all three technologies has served as well, and we'll continue to pursue that path.

Speaker Change: Theres still quite a number of customers that are interested in it we have a good pipeline of projects in discussions with with a variety of customers across the United States.

Speaker Change: And we see a mix of those resources.

Speaker Change: Being a good complement to one another to meet these seven by 24 solutions.

Speaker Change: Pipeline of all three technologies has served us well and we will continue to pursue that path.

Unknown Executive: Great, that's helpful.

Great. That's helpful. Thank you.

Unknown Executive: Thank you.

Andrew Weisel: And the next question comes from Andrew Wiesel, Wisco Shabank. Please go ahead.

Speaker Change: Thank you.

Speaker Change: And the next question comes from Andrew Weisel with Scotiabank. Please go ahead.

Andrew Marc Weisel: Hi, good morning, everyone. It's a quick couple of follow-up, actually.

Speaker Change: Hi, good morning, everyone.

Andrew Weisel: Just a quick couple of follow ups actually so first on Duane Arnold I don't want to get too bogged down on the details, but one question I had is about transmission constraints I know when the nuclear unit shutdown you agreed with aligned to build a lot of solar and storage battery storage given that the <unk>.

Andrew Marc Weisel: So first on twin Arnold, I don't want to get too bogged down on the details, but one question I had is about transmission constraints. I know when the nuclear unit shut down, you agreed with a line to build a lot of solar and best storage battery storage. Given that the new capacity additional will take up some of the pre-existing transmission capacity, will you need to expand transmission opportunity there if you work to restart the new? And if so, with that add a lot of time in addition to cost.

Speaker Change: New capacity additions will take up some of the pre existing transmission.

Speaker Change: <unk> will you need to expand transmission opportunity. There. If you were to restart the nuc and if so would that add a lot of time in addition to the cost.

Unknown Executive: Yeah, Andrew, this is one of the benefits of having a very large pipeline. So, because we have a very large pipeline, we have the ability to convert two positions over to different types of technologies. So, not concerned about the transmission.

Speaker Change: Yes, Andrew this is one of the benefits of having a very large pipeline. So because we have a very large pipeline, we have the ability to convert.

Speaker Change: <unk> positions over to different types of technologies. So.

Speaker Change: Not concerned about the transmission.

Unknown Executive: Okay, great.

Andrew Weisel: Okay, great good to hear.

Unknown Executive: Good to hear.

Andrew Weisel: Second, on the framework agreements, between energy and the two new ones, it's about 15 gigawatts. I understand it's kind of the outer years.

Speaker Change: Second on the framework agreements.

Speaker Change: <unk> entered into two new ones, it's about 15, Gigawatts I understand it's kind of the outer years. My question is.

Unknown Executive: My question is, would any of that come to the roughly 40 gigawatts you're planning to add between now and 2027, or should we think of this as all being helping to sustain growth beyond that 20s, the planning period? Yeah, I think for now, we look at these opportunities as contributing to the midpoint of our expectations. Obviously, we always hope to do better, and these framework agreements put us in a position to do better.

Speaker Change: Would any of that come to the roughly 40 Gigawatts you plan to add between now and 2027 or should we think of this as all being.

Speaker Change: Helping to sustain growth beyond that 2000, and the planning period.

Speaker Change: Yes, I think for now.

Speaker Change: Look we look at these opportunities as contributing to the midpoint of our expectations.

Speaker Change: Obviously, we always hope to do better and these framework agreements push put put us in a position to do better.

Unknown Executive: Good point. You don't use the word midpoint very often.

Speaker Change: Mid point, you don't you don't use the word midpoint very often.

Unknown Executive: Okay, fair enough.

Speaker Change: Okay fair enough.

Unknown Executive: Well, I was going to say, midpoint is just a reference to our current development expectations. Obviously, we're pushing the teams to do far better than the midpoint. And again, the framework agreement, I think, gives us opportunities that we otherwise would not have to do better.

Speaker Change: Well on settled one sorry go ahead.

Speaker Change: No I was just going to say mid point is just a.

Speaker Change: A reference to our current development expectations, obviously, we're pushing the team to do far better than the mid point and again the framework agreement I think.

Speaker Change: It gives us opportunities than we otherwise would not have had.

Unknown Executive: Okay, then one, a subtle question about the quarterly results: customer supply with a negative 10 cent year over year, Greg, and I know last quarter was minus three cents as well, although it was positive in the first quarter.

Speaker Change: Okay sounds. Good then one subtle question about the quarterly results customer supply was a negative 10% year over year, Greg and I know last quarter. It was minus three cents as well, although it was positive in the first quarter I know, it's a bit of a more volatile business, but can you just talk a little bit about the dynamics for customer supply at near end.

Unknown Executive: I know it's a bit of a more volatile business, but can you just talk a little bit about the dynamics for customer supply and near, and maybe some thoughts on the outlook? Yeah, I think what you're seeing at our customer supply business, number one, is, you know, you got to remember coming off of 2022, we had very high gas prices, which create a lot of volatility and high margins, you know, in that business, not only for us, but for others that participate, you know, in that business. Obviously, gas prices have subsided, and we've seen less volatility in that market.

Speaker Change: Some thoughts on the outlook.

Speaker Change: Yes, I think what youre seeing that at.

Speaker Change: At our customer supply business number one is.

Speaker Change: You got to remember, we're coming off a vote of 2022, we had very high gas prices, which create a lot of volatility and high margins in that business not only for us, but but for others that participate in that business, obviously has as gas prices have.

Speaker Change: Sided we've seen less volatility in that market.

Unknown Executive: Some of the margins have come in, you know, a bit, and more normalized, and I think we've seen that carry over to the origination activity, as well. So, you know, look, that business has done great. And, you know, we expect it continues to be a solid contributor going forward, but some of what we saw coming off of 22 has subsided, and that's really the commentary that we were trying to get across in our prepared remarks today.

Speaker Change: Some of the margins have come in a bit.

And more normalized and I think we've seen that carryover to the origination activity as well so that business has done great.

Speaker Change: And we.

Speaker Change: <unk>.

Speaker Change: It continues to be a solid contributor going forward, but some of what we saw coming off of 'twenty two.

Speaker Change: Has subsided and that's really the commentary that we were trying to get across.

Speaker Change: In our prepared remarks today.

Unknown Executive: Okay, great.

Speaker Change: Okay, great. Thank you very much and congratulations on a Swift storm restoration efforts are very good to see.

Andrew Weisel: Thank you very much, and congratulations on the swift storm restoration efforts. Very good to see.

Unknown Executive: Thank you. Thank you, Andrew.

Speaker Change: Thank you thank you Andrew.

Unknown Executive: This concludes our question in the answer session.

Speaker Change: This concludes our question and answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Unknown Executive: The conference is now concluded. Thank you for attending today's presentation.

Unknown Executive: You may now disconnect. Thank you.

Speaker Change: Yeah.

Speaker Change: Okay.

Unknown Executive: And I'll take Ross. Where is Ross? Ross?

Speaker Change: Okay.

Speaker Change: I'll take over us.

Speaker Change: Ross.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Ross.

Unknown Executive: That'll error.

Speaker Change: Sure.