NextEra to send teasers on gas plants in two to three weeks

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NextEra Energy (NYSE: NEE), the electric power company based in Juno Beach, Florida, is expected to send out teasers in two to three weeks for the sale of several gas-fired power plants, a source familiar with the situation told mergermarket.

The process is in the early stages, and Citigroup and Credit Suisse have been retained to advise NextEra, the source said.

The company plans to put six of its plants up for sale. The expected total valuation of the assets is USD 1.5bn to USD 2bn, the source said. The plants for sale include four combined-cycle, one simple-cycle and one other gas-fired plant, including the Blythe Energy plant in California.

Six or seven financial sponsors make up the field of logical buyers, the source said. However, a handful of other players will be approached to gauge interest.

Another source familiar with the situation said NextEra has hired outside consultants to conduct a valuation analysis on a portfolio of power plants.

NextEra declined to comment for this report.

An industry source said NextEra appeared to have been gauging interest in its gas-fired plants for some time. The industry source was aware of NextEra approaching at least one potential buyer for its three southeastern gas-fired plants, as well as the Blythe plant, as much as a year ago. At that time, there was no formal sale process under way, said the industry source. The Southeast plants are located in Alabama, South Carolina and Virginia.

The industry source predicted those same southeastern plants would be among the locations to be put up for sale. He agreed with the first source’s suggestion the field of logical buyers would be limited, and he opined that NextEra had rather high price expectations by some buyers’ standards.

In particular, the industry source mentioned an investment fund within JP Morgan or perhaps an energy company such as Constellation as potentially interested buyers.

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