NextEra Energy Partners (NEP 1.29%) is showing up on high-yield screens today thanks to its huge 12%+ distribution yield. This wasn’t always the situation, noting that the yield was closer to 4% at the end of 2022. The steep unit price decline that pushed the yield higher is worth examining, but the potential fallout from that decline is also worth considering. To get an idea of why the latter consideration is important, just look at what’s happening with Equitrans Midstream (ETRN 1.31%) today.
What went wrong at NextEra Energy
NextEra Energy Partners was created by NextEra Energy (NEE 0.68%), one of the largest utilities in the United States. In addition to being a large regulated utility, NextEra Energy is also one of the largest producers of solar and wind power in the world. To take advantage of Wall Street’s once hot demand for anything related to clean energy, NextEra Energy…
