NextEra Energy announces sale of equity units

Rhea-AI Summary

NextEra Energy (NYSE: NEE) priced a public offering of $2.00 billion of equity units, expected to close on March 3, 2026, with a 13-day underwriter option for an additional $0.30 billion. Net proceeds are expected to be approximately $1.97 billion (or $2.27 billion fully exercised).

The equity units pay total annual distributions at 7.375% on the $50 stated amount and combine stock purchase contracts and guaranteed debentures due in 2031 and 2034. Stock purchases must occur by Feb. 15, 2029, at a per-share price range of $91.99–$115.00.

Positive

• Net proceeds ~$1.97B (or ~$2.27B if over-allotment exercised)
• Proceeds allocated to energy and power investments and debt repayment
• Debentures guaranteed by NextEra Energy, supporting unit credit quality

Negative

• Potential share dilution when stock purchase contracts settle by Feb. 15, 2029
• Equity units pay a 7.375% annual distribution, adding ongoing financing cost

Key Figures

Equity units offering: $2.00 billion Over-allotment option: $0.30 billion Net proceeds (base): $1.97 billion +5 more

8 metrics

Equity units offering $2.00 billion Total stated amount of equity units offered

Over-allotment option $0.30 billion Additional equity units to cover over-allotments

Net proceeds (base) $1.97 billion Estimated net proceeds without over-allotment

Net proceeds (full) $2.27 billion Estimated net proceeds if over-allotment exercised in full

Unit stated amount $50 per unit Stated amount for each equity unit

Annual distribution rate 7.375% Total annual distributions on $50 stated amount per unit

Stock purchase range $91.99–$115.00 Per‑share purchase price range in ~three years

Premium at upper range 25% Premium of $115.00 vs $91.99 Feb. 26, 2026 close

Market Reality Check

Price: $91.99 Vol: Volume 19,877,220 is 2.04...

high vol

$91.99 Last Close

Volume Volume 19,877,220 is 2.04x the 20-day average of 9,723,116, indicating elevated trading activity. high

Technical Price at $91.99 is trading above the 200-day MA of $78.57.

Peers on Argus

NEE fell 3.28% while key regulated electric peers were roughly flat with small m...

NEE fell 3.28% while key regulated electric peers were roughly flat with small mixed moves (e.g., DUK -0.03%, SO +0.06%, D -0.69%). The decline appears company-specific rather than sector-driven.

Historical Context

5 past events · Latest: Feb 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 13	Transmission project update	Positive	-1.2%	PJM Board advanced a major 765‑kV transmission project spanning several states.
Feb 13	Dividend increase	Positive	+2.0%	Board declared a higher quarterly dividend and reiterated multi‑year growth plan.
Feb 04	Strategic partnership MOU	Positive	+1.3%	MOU with Xcel Energy to develop generation, storage and transmission for large loads.
Jan 27	Earnings results posted	Neutral	+2.0%	Q4 and full-year 2025 financial results and webcast details were released online.
Jan 13	Earnings date announcement	Neutral	+0.6%	Announced timing and access details for upcoming Q4 and full‑year 2025 results.

Pattern Detected

Recent news has generally seen modest positive price reactions, with one instance where seemingly positive transmission news was followed by a decline.

Recent Company History

Over recent months, NextEra Energy has reported several developments, including a PJM-backed ~220-mile transmission project, a 10% dividend increase to $0.6232 per share, a generation and storage MOU with Xcel, and posting its Q4 and full-year 2025 financial results. Most of these updates were followed by modest gains of around 1–2%, though the transmission project coincided with a small decline. Today’s equity units offering adds a capital-raising step to this backdrop of expansion and shareholder-return actions.

Market Pulse Summary

This announcement details a sizable $2.00 billion equity units offering with an additional $0.30 bil...

Analysis

This announcement details a sizable $2.00 billion equity units offering with an additional $0.30 billion over-allotment option, combining stock purchase contracts and debentures paying 7.375% annually on a $50 unit. Holders must ultimately buy common stock within a $91.99–$115.00 range by Feb. 15, 2029. Investors may track how this capital raise supports energy and power investments, the impact on future share count, and how it integrates with recent debt issuance and dividend growth plans.

Key Terms

equity units, over-allotments, debentures, stock purchase contracts, +3 more

7 terms

equity units financial

"priced its public offering of $2.00 billion of equity units."

A package sold to investors that bundles one or more company shares with the right to buy additional shares later, like a combo meal that pairs an entrée with a coupon for a future purchase. It gives immediate ownership plus a built‑in option to increase that ownership if the business does well. Investors care because units can offer extra upside but also signal future share dilution and affect trading liquidity and risk.

over-allotments financial

"additional aggregate stated amount of $0.30 billion, solely for the purpose of covering over-allotments."

An over-allotment is a temporary extra batch of shares that the underwriters of a stock offering are allowed to sell beyond the original amount, with the right to buy those shares back later. Think of it as spare tickets sold to meet demand and then reclaimed if needed to keep the market orderly; it helps stabilize the stock price after an offering and can affect short-term supply and potential dilution, which matters to investors tracking price and ownership stakes.

debentures financial

"interests in two series of debentures issued by NextEra Energy Capital Holdings"

A debenture is a company’s long-term IOU sold to investors that promises regular interest payments and repayment of principal at a set date; unlike equity, it represents debt rather than ownership. Think of it like lending money to a business in exchange for a fixed stream of payments, so investors watch a debenture’s interest rate and the borrower’s financial health to judge income reliability and risk of not being repaid.

stock purchase contracts financial

"payments under the stock purchase contracts."

A stock purchase contract is a signed agreement that sets out the terms for buying or selling shares, including how many shares, the price, payment timing and any conditions that must be met before the trade closes. For investors it matters because these contracts create firm commitments that can change ownership, dilute existing holdings, bring in new capital or impose obligations; think of it like a detailed receipt and delivery plan that determines who ends up owning what and when.

diluted earnings per share financial

"reflected in NextEra Energy's diluted earnings per share calculations using the treasury stock method."

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

treasury stock method financial

"earnings per share calculations using the treasury stock method."

A bookkeeping technique used to estimate how many additional shares would exist if all outstanding stock options, warrants and convertible securities were exercised, assuming the company uses the cash received to buy back shares at the current market price. Investors use it to calculate diluted earnings per share and to gauge potential ownership and profit dilution—like figuring out how a pie would be divided if more people claimed slices and some money was used to buy slices back.

prospectus supplement regulatory

"The offering may be made only by means of a prospectus and the related prospectus supplement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

AI-generated analysis. Not financial advice.

JUNO BEACH, Fla., Feb. 26, 2026 /PRNewswire/ -- NextEra Energy, Inc. (NYSE: NEE) announced today that it has priced its public offering of $2.00 billion of equity units. The transaction is expected to close on March 3, 2026.

NextEra Energy, Inc. has granted the underwriters an option to purchase during the 13-day period beginning on, and including, the closing date up to an additional aggregate stated amount of $0.30 billion, solely for the purpose of covering over-allotments.

The net proceeds from the sale of the equity units, which are expected to be approximately $1.97 billion (or approximately $2.27 billion if the over-allotment option is exercised in full), after deducting the underwriting discount but before deducting other offering expenses, will be added to the general funds of NextEra Energy Capital Holdings, Inc., a wholly owned subsidiary of NextEra Energy. NextEra Energy Capital Holdings expects to use its general funds to fund investments in energy and power projects and for other general corporate purposes, including the repayment of a portion of its outstanding commercial paper obligations.

Each equity unit will be issued in a stated amount of $50. Each equity unit will consist of a contract to purchase NextEra Energy common stock in the future, and undivided beneficial ownership interests in two series of debentures issued by NextEra Energy Capital Holdings, consisting of a Series P Debenture due March 1, 2031, and a Series Q Debenture due March 1, 2034, each with a principal amount of $1,000. The debentures will be guaranteed by NextEra Energy. Total annual distributions on the equity units will be at the rate of 7.375% on the stated amount of $50 per unit, consisting of interest on the debentures and payments under the stock purchase contracts.

In approximately three years, each stock purchase contract will require the holder to purchase NextEra Energy common stock for cash, based on a per-share price range of $91.99 to $115.00. The higher end of this price range reflects a premium of approximately 25% over the New York Stock Exchange closing price of NextEra Energy common stock on Feb. 26, 2026, which was $91.99. The holders of the equity units must complete the stock purchase by no later than Feb. 15, 2029, with the required purchase price of stock purchased on that date determined based on the average closing price of NextEra Energy's common stock over the 20 consecutive trading day period ending on Feb. 12, 2029. The holders may satisfy their purchase obligations with proceeds raised from remarketing the debentures that comprise part of their equity units.

Upon settlement of the purchase contract, NextEra Energy will receive cash and will issue the requisite number of shares of its common stock. Before the issuance of NextEra Energy common stock upon settlement of the purchase contracts, the purchase contracts will be reflected in NextEra Energy's diluted earnings per share calculations using the treasury stock method.

Wells Fargo Securities, BofA Securities, Citigroup and Mizuho will be joint book-running managers for the offering.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities to which this communication relates in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and the related prospectus supplement, copies of which may be obtained from Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, Minnesota 55402, by telephone toll free at 800-645-3751 (option #5) or by email at WFScustomerservice@wellsfargo.com; BofA Securities at NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001 Attn: Prospectus Department, or by email at dg.prospectus_requests@bofa.com; Citigroup, c/o Broadridge Financial Solutions,1155 Long Island Avenue, Edgewood, New York 11717, by telephone toll free at 800-831-9146; and Mizuho Securities USA LLC, 1271 Avenue of the Americas, 3rd Floor, New York New York 10020 Attn: Equity Capital Markets, by telephone at 212-205-7600 or by email at US-ECM@mizuhogroup.com.

NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns the largest energy infrastructure development company in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage. 

Cautionary Statements and Risk Factors That May Affect Future Results

This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (together with its subsidiaries, NextEra Energy) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's control. In some cases, you can identify the forward-looking statements by words or phrases such as "will," "may result," "expect," "anticipate," "believe," "intend," "plan," "seek," "potential," "projection," "forecast," "predict," "goals," "target," "outlook," "should," "would" or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and its business and financial condition are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, or may require it to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, those discussed in this news release and the following: effects of extensive regulation of NextEra Energy's business operations; inability of NextEra Energy to recover in a timely manner any significant amount of costs, a return on certain assets or a reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory, operational and economic factors on regulatory decisions important to NextEra Energy; effect of any reductions or modifications to, or elimination of, governmental incentives or policies that support clean energy or changes in or the imposition of additional tax laws, tariffs, duties, policies or other costs or assessments on clean energy or equipment necessary to generate, store or deliver it; impact of new or revised laws, regulations, executive orders, interpretations or constitutional ballot and regulatory initiatives on NextEra Energy; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy; effects on NextEra Energy of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal, state and local government regulation of its operations and businesses; effect on NextEra Energy of changes in tax laws, guidance or policies as well as in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy of adverse results of litigation; impacts of NextEra Energy of allegations of violations of law; effect on NextEra Energy of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities and other facilities on schedule or within budget; impact on development and operating activities of NextEra Energy resulting from risks related to project siting, construction, permitting, governmental approvals and the negotiation of project development agreements, as well as supply chain disruptions; risks involved in the operation and maintenance of electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities, and other facilities; effect on NextEra Energy of a lack of growth, slower growth or a decline in the number of customers or in customer usage; planned productivity increases and competitive advantages through the use of artificial intelligence technologies may not be realized and the use of and reliance on artificial intelligence may present certain risks; impact on NextEra Energy of severe weather and other weather conditions; threats of terrorism and catastrophic events that could result from geopolitical factors, terrorism, cyberattacks or other attempts to disrupt NextEra Energy's business or the businesses of third parties; inability to obtain adequate insurance coverage for protection of NextEra Energy against significant losses and risk that insurance coverage does not provide protection against all significant losses; a prolonged period of low natural gas and oil prices, disrupted production or unsuccessful drilling efforts could impact NextEra Energy's natural gas and oil production and transportation operations and cause NextEra Energy to delay or cancel certain natural gas and oil production projects and could result in certain assets becoming impaired; risk of increased operating costs resulting from unfavorable supply costs necessary to provide full energy and capacity requirements services; inability or failure to manage properly or hedge effectively the commodity risk within its portfolio; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's risk management tools associated with its hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; impact of unavailability or disruption of power transmission or commodity transportation operations on sale and delivery of power or natural gas; exposure of NextEra Energy to credit and performance risk from customers, hedging counterparties and vendors; failure of counterparties to perform under derivative contracts or of requirement for NextEra Energy to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's information technology systems, or implementation challenges; risks to NextEra Energy's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of derivative instruments and limited liquidity in over-the-counter markets; impact of negative publicity; inability to maintain, negotiate or renegotiate acceptable franchise agreements; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; environmental, health and financial risks associated with ownership and operation of nuclear generation facilities; liability of NextEra Energy for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures and/or reduced revenues at nuclear generation facilities resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy's owned nuclear generation units through the end of their respective operating licenses or planned license extensions; effect of disruptions, uncertainty or volatility in the credit and capital markets or actions by third parties in connection with project-specific or other financing arrangements on NextEra Energy's ability to fund its liquidity and capital needs and meet its growth objectives; defaults or noncompliance related to project-specific, limited-recourse financing agreements; inability to maintain current credit ratings; reduced liquidity from the inability of credit providers to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's assets and investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends, make distributions or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; the fact that the amount and timing of dividends payable on NextEra Energy's common stock, as well as the dividend policy approved by NextEra Energy's board of directors from time to time, and changes to that policy, are within the sole discretion of NextEra Energy's board of directors and, if declared and paid, dividends may be in amounts that are less than might be expected by shareholders; effects of disruptions, uncertainty or volatility in the credit and capital markets on the market price of NextEra Energy's common stock; and the ultimate severity and duration of public health crises, epidemics and pandemics, and its effects on NextEra Energy's business. NextEra Energy discusses these and other risks and uncertainties in its annual report on Form 10-K for the year ended December 31, 2025 and other Securities and Exchange Commission (SEC) filings, and this news release should be read in conjunction with such SEC filings. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy undertakes no obligation to update any forward-looking statements.

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SOURCE NextEra Energy

FAQ

What size equity unit offering did NextEra Energy (NEE) price on Feb. 27, 2026?

NextEra Energy priced a $2.00 billion equity unit offering, with a $0.30 billion over-allotment option. According to the company, net proceeds are expected to be approximately $1.97 billion, or $2.27 billion if the option is exercised.

How will NextEra Energy (NEE) use the proceeds from the $2.00 billion equity units offering?

Proceeds will be added to NextEra Energy Capital Holdings' general funds for investments and corporate use. According to the company, uses include funding energy projects and repaying portions of outstanding commercial paper obligations.

What are the terms and payout features of the NextEra Energy (NEE) equity units?

Each unit has a $50 stated amount and pays total annual distributions at 7.375% on that amount. According to the company, units include stock purchase contracts and Series P and Q debentures due in 2031 and 2034.

When must holders complete stock purchases under the NextEra Energy (NEE) equity units?

Holders must complete stock purchases no later than Feb. 15, 2029, with price set by a 20-day average ending Feb. 12, 2029. According to the company, the per-share range is $91.99 to $115.00.

What shareholder impact should investors expect from NextEra Energy's (NEE) equity unit sale?

Investors should expect possible dilution when purchase contracts settle and new shares are issued. According to the company, purchase contracts will be included in diluted EPS using the treasury stock method until settlement.