Acquisitions (Tables)

9 Months Ended

Sep. 30, 2023

The following table summarizes the final amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the 2023 acquisition:


	(millions)
Total consideration transferred	$	598
Identifiable assets acquired and liabilities assumed
Cash	$	15
Accounts receivable, inventory and prepaid expenses	17
Current derivative assets	4
Property, plant and equipment – net	764
Intangible assets – PPAs – net	141
Goodwill	21
Noncurrent derivative assets	8
Noncurrent other assets	5
Accounts payable, accrued expenses and current other liabilities	(5)
Long-term debt	(153)
Asset retirement obligation	(12)
Intangible liabilities – PPAs – net	(37)
Noncurrent other liabilities	(5)
Noncontrolling interest	(165)
Total net identifiable assets, at fair value	$	598

Supplemental Unaudited Pro forma Results of Operations

NEP’s pro forma results of operations in the combined entity had the 2023 acquisition been completed on January 1, 2022 are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(millions)
Unaudited pro forma results of operations:
Pro forma revenues	$	367	$	324	$	1,059	$	1,010
Pro forma operating income	$	73	$	59	$	159	$	249
Pro forma net income	$	132	$	243	$	77	$	1,144
Pro forma net income attributable to NEP	$	53	$	82	$	98	$	455

The unaudited pro forma consolidated results of operations include adjustments to:

•reflect the historical results of the business acquired beginning on January 1, 2022 assuming consistent operating performance over all periods;

•reflect the estimated depreciation and amortization expense based on the estimated fair value of property, plant and equipment – net, intangible assets – PPAs – net and intangible liabilities – PPAs – net;

•reflect assumed interest expense related to funding the acquisition; and

•reflect related income tax effects.