Lawsuit filed for Investors who lost money with shares of XPLR Infrastructure, LP (NYSE: XIFR)

An investor, who purchased shares of XPLR Infrastructure, LP (NYSE: XIFR), filed a lawsuit over alleged violations of Federal Securities Laws by XPLR Infrastructure, LP in connection with certain allegedly false and misleading statements.

Investors who purchased shares of XPLR Infrastructure, LP (NYSE: XIFR) have certain options and for certain investors are short and strict deadlines running. Deadline: May 9, 2025. NYSE: XIFR investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Juno Beach, FL based XPLR Infrastructure, LP acquires, owns, and manages contracted clean energy projects in the United States. The Company also owns contracted natural gas pipeline assets. The Company changed its name from "NextEra Energy Partners, LP" to "XPLR Infrastructure, LP" in January 2025.

XPLR Infrastructure, LP (NYSE: XIFR) reported that its annual Total Revenue rose from over $1.07 billion in 2023 to over $1.23 billion in 2024, and that its Net Income of $200 million trned into a Net Loss of $23 million in 2024.

Between January 26, 2021, and January 27, 2025 XPLR Infrastructure, LP operated as a "yieldco"-that is, a business that owns and operates fully built and operational power generating projects, focused on delivering large cash distributions to investors. Following the failures of other high-profile yieldcos, XPLR Infrastructure, LP was one of the last remaining yieldcos on the market. Indeed, the Company maintained its yieldco business model while championing its ability to do so, consistently increasing the amount of its cash distributions to investors between January 26, 2021, and January 27, 2025.

In addition, from January 2021 to September 2023, XPLR Infrastructure, LP continually asserted that it expected 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024.
Key to XPLR Infrastructure, LP's (temporary) survival as a yieldco were the various private convertible equity portfolio financing ("CEPF") arrangements to which it was a party. Under these CEPF arrangements, the Company would issue convertible securities, such as convertible notes or convertible debt, to large investors, which would later convert into equity in the Company based on a specified triggering event, such as automatically converting upon the CEPF's maturity date. To avoid these triggering events, the Company would need to exercise its option to purchase, or buy out, the outstanding equity interests in each CEPF. In return for entering into a CEPF, XPLR Infrastructure, LP received new equity capital, which it used to support its acquisition of additional cash-generating assets, thereby increasing its cash flows and, ultimately, its cash distribution to its unitholders.

On April 25, 2023, KeyBanc Capital Markets ("KeyBanc") cut its recommendation on XPLR Infrastructure, LP to sector weight from overweight, citing "impending equity dilution in an unfavorable financial landscape." KeyBanc's downgrade focused on XPLR's CEPF arrangements, expressing concern "that upcoming conversions would create a medium-term overhang in the higher capital cost environment[.]" Accordingly, KeyBanc concluded that although XPLR Infrastructure, LP "has several levers it can pull to fund growth and continue to deliver on its 12%-15% DPU [distribution per unit] growth target, we think that overcoming circularity in the cost of capital/dilution equation in the current market is likely to be challenging, even for a premier developer like [XPLR]."

On September 27, 2023 XPLR Infrastructure, LP issued a press release announcing that it "is revising its limited partner distribution per unit growth rate to 5% to 8% per year through at least 2026, with a target growth rate of 6%."

On November 9, 2023, Seaport Global Securities ("Seaport") downgraded XPLR Infrastructure, LP units to sell from neutral with a $15.50 price target, having determined that the Company's revised cash distribution outlook was still likely too high. Seaport further predicted that a "dividend cut should become clear in Q1 2024," while citing "growing unease" over the Company's financing structure.

Then, on January 28, 2025, XPLR Infrastructure, LP issued a press release announcing that it was abandoning its yieldco business model and indefinitely suspending its cash distribution to unitholders, stating it would redirect those funds to execute on several priorities, the first of which was to buy out its remaining CEPF obligations. The same press release also revealed that the Company had appointed a new chief executive officer.
On a subsequent conference call that XPLR hosted with investors and analysts the same day, Defendants further revealed, inter alia, that the Company was revamping its entire management team and had appointed a new chief financial officer.

Shares of XPLR Infrastructure, LP (NYSE: XIFR) declined from $35.15 per share on May 22, 2024, to as low as $7.97 per share on February 11, 2025.

The plaintiff claims that between January 26, 2021, and January 27, 2025, the Defendants made false and/or misleading statements and/or failed to disclose that XPLR was struggling to maintain its operations as a yieldco, that the Defendants temporarily relieved this issue by entering into CEPF arrangements while downplaying the attendant risks, that XPLR could not buy out CEPFs before their maturity date without risking significant unitholder dilution, that as a result, Defendants planned to halt cash distributions to investors and instead redirect those funds to, inter alia, buy out the Company's CEPFs, that as a result of all the foregoing, XPLR's yieldco business model and distribution growth rate was unsustainable, and that as a result, Defendants' public statements were materially false and misleading at all relevant times.

Those who purchased shares of XPLR Infrastructure, LP (NYSE: XIFR) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.