NextEra Energy Resources LLC recorded an impairment charge of approximately $800 million, or $600 million after tax, in the first quarter of 2022, to completely write off its investment in the Mountain Valley Pipeline LLC project.

The natural gas project suffered double blows earlier in 2022 with the 4th U.S. Court of Appeals invalidating federal crossing permits and Endangered Species Act authorizations. Following favorable court decisions, environmental groups are asking the Federal Energy Regulatory Commission to promptly impose a stop-work order halting construction along the full route of the project.

Parent company NextEra Energy Inc. said these legal developments prompted the reevaluation of its investment in the 304-mile, 2-Bcf/d pipeline project for other-than-temporary impairment.

"As a result of this evaluation, it was determined that the continued legal and regulatory challenges have resulted in a very low probability of pipeline completion," NextEra Energy said in a Form 10-K filing.

The impairment charge will be excluded from NextEra's adjusted earnings for 2022. The company expects adjusted EPS of $2.75 to $2.85 for the year.