XPLR Infrastructure, LP — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported third-quarter 2026 net income attributable to XPLR Infrastructure of $51 million, compared to a net loss of $37 million in the same period in 2025.
• Reported third-quarter 2026 adjusted EBITDA of $471 million, an increase from $455 million in the third quarter of 2025.
• Reported third-quarter 2026 free cash flow before growth (FCFBG) of $164 million, down from $179 million in the third quarter of 2025.
• Operating revenues for the three months ended September 30, 2026, were $332 million, up from $315 million in the prior year period.
• Operating revenues for the nine months ended September 30, 2026, were $971 million, up from $939 million in the prior year period.
• Net income attributable to XPLR for the nine months ended September 30, 2026, was $122 million, compared to a net loss of $56 million in the same period in 2025.
• Nine-month 2026 adjusted EBITDA was $1,429 million, down from $1,482 million in the nine months of 2025.
• Nine-month 2026 FCFBG was $510 million, down from $634 million in the nine months of 2025.
• Cash and cash equivalents were $505 million as of September 30, 2026, compared to $960 million as of December 31, 2025.
• Total assets were $18,846 million as of September 30, 2026, compared to $19,595 million as of December 31, 2025.
• Total debt (current and long-term) was $6,097 million as of September 30, 2026, compared to $6,202 million as of December 31, 2025.

Guidance and Future Outlook

• Updated full-year 2026 adjusted EBITDA guidance to the lower half of the prior range of $1.75 billion to $1.95 billion.
• Updated full-year 2026 FCFBG guidance to come in at or near the low end of the prior range of $600 million to $700 million.
• Introduced 2027 financial expectations, projecting adjusted EBITDA of $1.56 billion to $1.70 billion and FCFBG of $525 million to $600 million.
• Expects 2028 FCFBG to be in line with 2027 levels.
• Management stated the underlying business characteristics support a durable profile over the longer term.

Business Segments and Product Lines

• Completed approximately 85% of planned 2026 repowerings to date.
• Completed sales of approximately 400 megawatts of additional interconnection assets and rights to NextEra Energy Resources.
• Retired the remaining balance of its 2026 unsecured notes.
• Portfolio includes contracted clean energy assets diversified across wind, solar, and battery storage projects in the U.S.

Market and Competitive Landscape

• Management highlighted the optionality embedded within the portfolio and the ability to unlock incremental value and redeploy capital.
• The company positions itself to benefit from expected growth in the U.S. power sector.

Risks and Challenges

• Business results are affected by renewable energy project performance, including wind and solar conditions and market power prices.
• Significant risks include unplanned power outages, reduced output, property damage, and environmental pollution.
• Operations depend on third-party interconnection and transmission facilities; unavailability could prevent energy delivery.
• Business is subject to risks from new or revised laws, regulations, and executive orders, including changes to government incentives and subsidies.
• Reliance on a limited number of customers and vendors exposes the company to credit and performance risks.
• Substantial indebtedness and restrictions on cash distributions from subsidiaries could adversely affect liquidity and operations.
• Financial condition is highly dependent on NextEra Energy Resources' (NEER) performance regarding credit support and fund returns.
• Potential conflicts of interest exist with XPLR Infrastructure Partners GP, Inc. and its affiliates.
• Forward-looking statements assume normal weather, positive macroeconomic conditions, and no changes to governmental policies.

Management Commentary and Tone

• Alan Liu, President and CEO, described the third-quarter results as "solid" and noted progress across key priorities.
• Management expressed confidence in the portfolio's optionality to unlock incremental value.
• The tone indicates a focus on strong execution, maintaining financial flexibility through disciplined capital allocation, and pursuing opportunities to enhance long-term value.
• Management provided an updated view of the 2026 outlook with greater clarity as the year-end approaches.

Other Key Points

• The company is a limited partnership with an ownership interest in a clean energy infrastructure portfolio generating long-term, stable cash flows.
• Adjusted EBITDA and FCFBG are non-GAAP measures used internally and for reporting to the board, analysts, and investors.
• A reconciliation of net income to adjusted EBITDA and FCFBG is provided in the financial statements.
• The company does not provide a quantitative reconciliation of forward-looking adjusted EBITDA to GAAP net income due to the inherent difficulty in forecasting certain items like unrealized gains/losses on derivatives.
• The third-quarter 2026 financial results conference call was scheduled for 9 a.m. ET on November 3, 2026, with a webcast available on the company's website.
• Financial results and presentation slides were made available for download on the company's website starting at 7:30 a.m. ET on November 3, 2026.