Renewable Energy Giant Makes $1B Bet on Natural Gas

One of America’s biggest renewable-energy companies is making a bet on natural gas. NextEra Energy Partners LP agreed to buy Meade Pipeline Co., an owner of a pipeline that provides gas from Pennsylvania, in a deal valued at about $1.37 billion, according to a statement Monday. While NextEra Energy Partners already owns pipelines in Texas, it’s viewed by many investors as a wind and solar company, owning 5 gigawatts of renewables as of mid-June. The move to buy a pipeline comes as utilities and cities across the U.S. are pushing to drastically cut back on burning fossil fuel. “It is slightly surprising that NEP doubled-down on gas exposure,” Pavel Molchanov, an analyst at Raymond James, said in an interview Monday. “This is not what the company has generally been focused on.” Shares of NextEra Energy Partners gained as much as 1.7% Monday. NextEra Energy Partners expects the deal to yield a double-digit return. Plus, the pipeline will help balance any “potential resource volatility” in the company’s existing portfolio, Jim Robo, chairman and chief executive officer, said in the statement.