XPLR Infrastructure Suspends Dividend, Shares Plunge on Reinvestment Shift
XPLR Infrastructure, a subsidiary of NextEra Energy, has announced the indefinite suspension of its dividend. This decision sent the company's shares plummeting 23% in premarket trading.
The move is motivated by XPLR's strategic shift towards reinvesting a larger portion of its cash flow into renewable energy investments. Previously, the company prioritized capital raising for asset acquisitions and shareholder dividends.
"These changes eliminate the need for equity issuance," explained Chairman John Ketchum.
Alan Liu, a NextEra executive, has been appointed as XPLR's CEO. The company's new name, adopted last week, reflects its focus on renewable energy infrastructure.
Meanwhile, NextEra Energy confirmed its long-term financial projections and stated that its funding plan from 2024-2027 remains unaltered.