XPLR Infrastructure, LP SEC 10-Q Report
XPLR Infrastructure, LP, a leading provider of energy solutions through long-term Power Purchase Agreements (PPAs), has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial and operational performance, reflecting both challenges and strategic initiatives undertaken during the period.
Financial Highlights
Operating Revenues: $342 million, a decrease of $18 million compared to the same period in 2024, primarily due to unfavorable wind resources and the absence of prior year impacts from an amendment to a derivative contract.
Operating Income (Loss): $90 million, an increase from $66 million in the same period in 2024, reflecting lower operating expenses.
Net Income (Loss) Attributable to XPLR: $79 million, an increase from $62 million in the same period in 2024, primarily due to lower net income attributable to noncontrolling interests.
Earnings (loss) per common unit attributable to XPLR – basic: $0.84, an increase from $0.66 in the same period in 2024, reflecting improved net income attributable to XPLR.
Business Highlights
Revenue Segments: XPLR's operating revenues are primarily derived from the sale of energy under long-term Power Purchase Agreements (PPAs). The revenue is partly offset by the net amortization of intangible assets and liabilities related to these PPAs.
Operational Performance: The decrease in operating revenues for the three months ended June 30, 2025, was primarily due to unfavorable wind resources and the absence of prior year impacts from an amendment to a derivative contract. However, there was additional revenue from higher prices for wind and increased revenues from battery storage.
Operations and Maintenance: There was a significant decrease in operations and maintenance expenses during the three and six months ended June 30, 2025, primarily due to vendor credits for unplanned O&M expenses.
Goodwill Impairment: A non-cash goodwill impairment charge of $253 million was recognized in March 2025, reflecting a decline in the fair value of the reporting unit.
Gains on Disposal: The company recognized net gains on the disposal of businesses/assets, including insurance recoveries on damaged wind turbines and a working capital adjustment related to a business disposal.
Interest Expense: There was a substantial increase in interest expense due to unfavorable mark-to-market activity and higher average debt outstanding.
Equity in Earnings: The equity in earnings of equity method investees decreased, primarily due to the impairment of the investment in Meade in December 2024.
Future Outlook: XPLR plans to continue assessing the implications of the One Big Beautiful Bill Act (OBBBA) and other regulatory developments on its business. The company intends to pursue additional repowering opportunities and exercise buyout rights related to noncontrolling Class B members' interests.
Liquidity and Capital Resources: XPLR's liquidity position is strong, with cash on hand and cash generated from operations expected to be adequate to meet operational and capital needs. The company plans to fund investment opportunities and buyout rights through various financing structures.
Capital Expenditures: Capital expenditures for the six months ended June 30, 2025, were primarily related to the repowering of wind facilities, reflecting the company's focus on enhancing operational capacity.
SEC Filing: XPLR Infrastructure, LP [ NEP ] - 10-Q - Aug. 07, 2025