Why NextEra Energy Shares Are Sliding Tuesday

NextEra Energy Inc NEE shares are trading lower Tuesday after the company announced plans to sell $2 billion of equity units.

What To Know: Late Monday, NextEra Energy said it intends to sell $2 billion of equity units consisting of a contract to purchase NextEra Energy common stock and a 5% undivided beneficial ownership interest in a NextEra Energy Capital Holdings debenture due June 1, 2029. Each unit will be issued for $50. 

NextEra anticipates net proceeds of approximately $1.94 billion. The company said it would add the funds into NextEra Energy Capital Holdings' general funds. NextEra Energy Capital Holdings expects to use some of the proceeds for investments in energy and power projects, as well as for other general corporate purposes.

On Tuesday morning, NextEra announced that members of its senior management team will participate in various investor meetings throughout June. The company reaffirmed its long-term growth rate expectations provided in April and set the stage for management to discuss long-term targets in the upcoming investor meetings.

NetEra Energy is due to report earnings next month. The company is expected to report earnings of 96 cents per share and revenue of $7.416 billion, according to estimates from Benzinga Pro.

NextEra Energy owns Florida Power & Light Company, which sells more power than any other utility company, providing clean electricity to more than 12 million people across Florida.

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NEE Price Action: NextEra Energy shares were down 4.76% at $68.87 at the time of publication, according to Benzinga Pro.

Photo: 3844328 from Pixabay.