Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Q1 2024 Earnings Presentation
28 slides from Clearway Energy's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Results Presentation
Clearway Energy, Inc. First Quarter 2024 Results Presentation May 9, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be
Slide 3: Agenda
Agenda Christopher Sotos, Outgoing CWEN Chief Executive Officer Business Update Craig Cornelius, Incoming CWEN Chief Executive Officer Financial Summary Sarah Rubenstein, Chief Financial Officer Closing Remarks and Q&A Craig Cornelius, Incoming CWEN Chief Executive Officer 3
Slide 4: Business Update
Business Update ▪ Solid 1Q24 results with CAFD of $52 MM Solid 1st Quarter Results; ▪ Dividend increased 1.7% to $0.4102/share in 2Q24; $1.6408/share annualized Reaffirming 2024 Guidance ▪ Reaffirming 2024 CAFD guidance of $395MM ▪ Achieved COD at Cedar Creek and Texas Solar Nova 2 ▪ Committed to Da
Slide 5: Recent Growth Commitments Further Advance Long Term CAFD Per Share Growth
Recent Growth Commitments Further Advance Long Term CAFD Per Share Growth ($ millions) Dan’s Mountain Wind Rosamond South I Solar Plus Storage Corporate Capital ~$44 MM Corporate Capital ~$21 MM Est. Five Yr. Average Annual CAFD ~$4 MM Est. Five Yr. Average Annual CAFD ~$2 MM Est. Asset CAFD Yield ~
Slide 6: Full Allocation of Thermal Proceeds Continues to Lead to No External Capital Needs
Full Allocation of Thermal Proceeds Continues to Lead to No External Capital Needs to Meet 2026 DPS Growth Target ($ millions, except per share figures) Includes commitment to Remaining Est. Target Dan’s Mountain and Target Thermal Proceeds 5-Year Avg. Rosamond South I Future Projects1 COD Available
Slide 7: Additional Commitments Expected in 2024 to Further Enhance Visibility into Growth
Additional Commitments Expected in 2024 to Further Enhance Visibility into Growth ($ millions) Additional Progress on Remaining Projects Allocated to the Thermal Proceeds in 2Q24/2H24 Remaining Est. Target Thermal 5-Year Avg. Target Proceeds Annual Asset Project Location Solar MW BESS MW COD Status
Slide 8: Extension and Enhancement of Value in Gas Fleet RA Contracts
Extension and Enhancement of Value in Gas Fleet RA Contracts Points to Potential 2027 CAFD Per Share Growth CAISO Gas Fleet Value Enhancements • Strong RA Marsh Landing contract pricing Generating Station ▪ Tight capacity conditions in the Western US and California regulatory over last twelve market
Slide 9: Substantial Opportunity Set For Further Investments for CAFD Per Share Growth
With Substantial Opportunity Set For Further Investments for CAFD Per Share Growth Coming Into View for 2027+ Further Growing CAFD Per Share Starts with Making the …While Making Further Investments from Pipeline Most of CWEN’s Well-Positioned Fleet… Of 4.4 GW in Late-Stage Projects at Methodical Pac
Slide 10: Financial Summary
@)]I Clearway Energy Financial Summary
Slide 11: Financial Update
Financial Update ($ millions) Financial Results Reaffirming 2024 CAFD Guidance 1st Quarter Full Year Adjusted EBITDA $211 CAFD $52 CAFD $395 ▪ 1Q24 Financial Highlights ▪ 2024 CAFD Guidance Factors In… Wind: Strong resource at Alta and timing of cap ex − P50 median renewable energy production for
Slide 12: Closing Remarks and Q&A
Closing Remarks and Q&A Closing Remarks and Q&A
Slide 13: Clearway Remains Focused on Advancing 2024 and Long-Term Objectives
Clearway Remains Focused on Advancing 2024 and Long-Term Objectives ▪ Meet 2024 Financial Commitments – Delivered solid first quarter results while reaffirming 2024 CAFD guidance – Remain focused on delivering CAFD within expected sensitivities, achievement of DPS growth of 7% in 2024, and benefit f
Slide 14: Appendix
@)]I Clearway Energy Appendix
Slide 15: Appendix: Clearway Group Development Pipeline Update
Draft –Confidential and Proprietary Appendix: Clearway Group Development Pipeline Update 30.1 GW Pipeline Owned or Controlled by Clearway Group Clearway Group Development Highlights • Achieved COD on >1 GW of assets (Texas Solar Nova 2, Victory Pass, By Project Type (MW) By Project Stage (MW) Arica,
Slide 16: Appendix: Committed Renewable Investments and Potential Future Drop-Down Opportunities
Appendix: Committed Renewable Investments and Potential Future Drop-Down Opportunities Committed Renewable Investments and Potential Future Drop-Down Opportunities Gross Capacity Estimated Asset Technology (MW)1 State COD/Funding Status2 Highlights Operational/ • TSN 1 & 2 operational Texas Solar No
Slide 17: Appendix: Summary Allocation of ~$750 MM in Est. Excess Thermal Proceeds
Appendix: Summary Allocation of ~$750 MM in Est. Excess Thermal Proceeds ($ millions) Est. Long-Term Corp. Funding Corp. Capital Corp. Capital Remaining Capital Investment /Target COD Commitment1 Funded to Date To be Funded Allocation of $750 MM in Excess Proceeds Capistrano Portfolio 2H22 $110-130
Slide 18: Appendix: Renewable Portfolio Performance in 2024
Appendix: Renewable Portfolio Performance in 2024 Production Index Availability 2024 2024 1st Quarter Q1 YTD YTD Wind Portfolio Net MW Jan Feb Mar California 947 213% 90% 108% 123% 123% 96% Other West 377 66% 86% 84% 78% 78% 92% Texas 1,074 86% 132% 89% 100% 100% 96% Midwest 447 78% 84% 99% 87% 87%
Slide 19: Appendix: 2024 Portfolio CAFD Sensitivity and Seasonality
Appendix: 2024 Portfolio CAFD Sensitivity and Seasonality Variability of Expected Financial Performance: Estimates as of November 2, 2023 ▪ Estimates include projects reaching COD in 2024 Renewable Production Variability: Annual CAFD Sensitivity Based on 2024 Guidance ▪ Production variability based
Slide 20: Appendix: Non-Recourse Project Debt Amortization
Appendix: Non-Recourse Project Debt Amortization Forecasted principal payments1,2 on non-recourse project debt as of December 31, 2023. Fiscal Year 2024 2025 2026 2027 2028 Thereafter Total Conventional: Carlsbad Energy Holdings & Holdco, due 2037 and 2038 25 27 35 38 34 536 695 Total Conventional A
Slide 21: Appendix: Operating Assets as of March 31, 2024
Appendix: Operating Assets1 as of March 31, 2024 Solar & Paired Storage Wind Net PV Net BESS Net Percentage Capacity Capacity PPA Percentage Capacity PPA Projects Ownership (MW) (MW) Offtake Counterparty Expiration Projects Ownership (MW) Offtake Counterparty Expiration Agua Caliente 51% 148 Pacific
Slide 22: Appendix: Adjusted EBITDA and CAFD by Asset Class
Appendix: Adjusted EBITDA and CAFD by Asset Class1 ($ millions) 2023 Adj. EBITDA and CAFD by Asset Class Pro Forma Adj EBITDA and CAFD by Asset Class 2023 Adj. EBITDA by Asset Class Pro Forma Adj. EBITDA by Asset Class (72% From Renewables) (83% From Renewables) 17% 28% 46% 53% 30% 26% 2023 CAFD by
Slide 23: Reg. G Schedules
@)]I Clearway Energy Reg. G Schedules
Slide 24: Reg. G: Actuals
Reg. G: Actuals Three Months Ended ($ millions) 3/31/2024 3/31/2023 Net (Loss) Income $(46) $(40) Income Tax Expense / (Benefit) (13) (12) Interest Expense, net 40 90 Depreciation, Amortization, and ARO 154 128 Contract Amortization 46 47 Loss on Debt Extinguishment 1 — Mark to Market (MtM) (Gains)/
Slide 25: Reg. G: 2024 CAFD Guidance
Reg. G: 2024 CAFD Guidance ($ millions) 2024 Full Year CAFD Guidance Net Income $90 Income Tax Expense 20 Interest Expense, net 330 Depreciation, Amortization, Contract Amortization, and ARO Expense 680 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA from 50 Unconsolidated
Slide 26: Reg. G: Pro Forma CAFD Outlook
Reg. G: Pro Forma CAFD Outlook ($ millions) Prior Pro Forma Pro Forma CAFD Outlook CAFD Outlook Net Income $145 $160 Income Tax Expense 30 30 Interest Expense, net 390 390 Depreciation, Amortization, Contract Amortization, and ARO Expense 595 620 Adjustments to reflect Clearway Energy’s pro-rata sha
Slide 27: Reg. G: Growth Investments
Reg. G: Growth Investments ($ millions) Dan’s Mountain Rosamond South 5 Year Ave. 2026-2030 5 Year Ave. 2026-2030 Net Income 1 - Interest Expense, net - 12 Depreciation, Amortization, and ARO Expense 8 17 Adjusted EBITDA 9 29 Cash interest paid - (12) Cash from Operating Activities 9 17 Net distribu
Slide 28: Reg. G: Non-GAAP Financial Information
Reg. G Non-GAAP Financial Information EBITDA and Adjusted EBITDA: EBITDA and Adjusted EBITDA are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of Adjusted EBITDA