Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Q2 2024 Earnings Presentation
27 slides from Clearway Energy's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Results Presentation
Clearway Energy, Inc. Second Quarter 2024 Results Presentation August 1, 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 Business Update Craig Cornelius, Chief Executive Officer Financial Summary Sarah Rubenstein, Chief Financial Officer Closing Remarks and Q&A Craig Cornelius, Chief Executive Officer 3
Slide 4: Business Update
Business Update ▪ Solid 2Q24 results with CAFD of $187 MM Delivered Solid 2nd Quarter; ▪ Dividend increased 1.7% to $0.4171/share in 3Q24; $1.6684/share annualized Reaffirming 2024 Guidance ▪ Reaffirming 2024 CAFD guidance of $395MM ▪ Upsized commitment to Luna Valley and Daggett 1; now ~$143 MM of
Slide 5: Commitment to Luna Valley and Daggett and Enhanced Pine Forest Offer
Commitment to Luna Valley and Daggett 1 And Enhanced Pine Forest Offer Gives Visibility Beyond $2.15 CAFD Per Share ($ millions) Luna Valley + Daggett Storage 1 and Pine Forest Provide for Accretive Growth that Can Be Funded With Existing Funding Sources Est. Target 5-Year Avg. Target Est. Corp. Ann
Slide 6: CWEN Well Placed to Meet its 2026 Objectives; Visibility into 2027
CWEN Well Placed to Meet its 2026 Objectives; Increasing Visibility into CAFD per Share Growth in 2027 ($ millions, except per share figures) Drop-Downs and Resource Adequacy Contracting (RA) Are Drivers to Growth Beyond $2.15 of CAFD Per Share, and May Also Be Supplemented by Accretive 3rd Party M&
Slide 7: Further Extension and Enhancement of Value in Gas Fleet With New RA Contract at Marsh Landing
Further Extension and Enhancement of Value in Gas Fleet With New RA Contract at Marsh Landing Resource Adequacy (RA) Contracted Position for New Contract at Marsh Landing Disclosed Today… El Segundo, Marsh Landing, and Walnut Creek1 ✓ Marsh Landing: New 195 MW contract for 2026-2028 7% …Builds Upon
Slide 8: Clearway's Sponsor Pipeline Continues to Advance
Clearway's Sponsor Pipeline Continues to Advance With Project Staging & Diversification Optimized for CWEN 30 GW Pipeline Owned or Controlled by Clearway Group Clearway Group Development Highlights • Achieved COD at Rosamond Central BESS (588 MWhrs), By Project Type (MW) By Project Stage (MW) adding
Slide 9: Financial Summary
@]I Clearway Energy Financial Summary
Slide 10: Delivering Financial Results Above Expectations and Reaffirming Guidance
Delivering Financial Results Above Expectations and Reaffirming the Company is On Track to Meet Guidance ($ millions) Financial Results Reaffirming 2024 CAFD Guidance 2nd Quarter YTD Full Year Adjusted EBITDA $353 $564 CAFD $187 $239 CAFD $395 ▪ 2Q24 Financial Highlights ▪ 2024 CAFD Guidance Factors
Slide 11: Continuing to Maintain Strong Balance Sheet and Accretive Funding Sources
Continuing to Maintain Strong Balance Sheet and Ensuring Accretive Funding Sources for Growth ($ millions) ▪ Continue to Target BB/Ba Corporate Rating Range Pro Forma Corporate Debt Metrics CAFD – Rating stable and target 4.0-4.5x corporate leverage Corporate Debt (as of 6/30/24)1 2,125 A ▪ Pro Form
Slide 12: Closing Remarks and Q&A
Closing Remarks and Q&A Closing Remarks and Q&A
Slide 13: Focused on Meeting 2024 Objectives and Building a Roadmap to 2027
Clearway Is Focused on Meeting the Objectives We Articulated for 2024 and Building a Roadmap to 2027 and Beyond ▪ Meet the Financial Commitments We Made for 2024 – Delivered solid first half results while reaffirming 2024 CAFD guidance – Remain focused on delivering CAFD within expected sensitivitie
Slide 14: Appendix
@]I Clearway Energy Appendix
Slide 15: 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 Rosamond Central Operational/ • Operational Utility
Slide 16: 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 $110-130
Slide 17: Renewable Portfolio Performance in 2024
Appendix: Renewable Portfolio Performance in 2024 Production Index Availability 2024 2024 2nd Quarter Q1 Q2 YTD YTD Wind Portfolio Net MW Apr May Jun California 947 123% 98% 105% 99% 101% 108% 95% Other West 377 78% 102% 120% 93% 105% 91% 92% Texas 1,074 100% 99% 80% 92% 90% 95% 95% Midwest 447 87%
Slide 18: 2024 Portfolio CAFD Sensitivity and Seasonality
Appendix: 2024 Portfolio CAFD Sensitivity and Seasonality Variability of Expected Financial Performance: Estimates as of November 2, 2023 ▪ Estimates include projects reaching COD in 2024 Renewable Production Variability: Annual CAFD Sensitivity Based on 2024 Guidance ▪ Production variability based
Slide 19: Non-Recourse Project Debt Amortization
Appendix: Non-Recourse Project Debt Amortization Forecasted principal payments1,2 on non-recourse project debt as of December 31, 2023. Fiscal Year 2024 2025 2026 2027 2028 Thereafter Total Conventional: Carlsbad Energy Holdings & Holdco, due 2037 and 2038 25 27 35 38 34 536 695 Total Conventional A
Slide 20: Operating Assets as of June 30, 2024
Appendix: Operating Assets1 as of June 30, 2024 Solar & Paired Storage Wind Net PV Net BESS Net Percentage Capacity Capacity PPA Percentage Capacity PPA Projects Ownership (MW) (MW) Offtake Counterparty Expiration Projects Ownership (MW) Offtake Counterparty Expiration Agua Caliente 51% 148 Pacific
Slide 21: Adjusted EBITDA and CAFD by Asset Class
Appendix: Adjusted EBITDA and CAFD by Asset Class1 ($ 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 22: Reg. G Schedules
@]I Clearway Energy Reg. G Schedules
Slide 23: Reg. G: Actuals
Reg. G: Actuals Three Months Ended Six Months Ended ($ millions) 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Net Income (Loss) 4 84 (42) 44 Income Tax Expense / (Benefit) 10 22 (3) 10 Interest Expense, net 77 46 117 136 Depreciation, Amortization, and ARO 153 128 307 256 Contract Amortization 46 47 92 9
Slide 24: Reg. G: 2024 CAFD Guidance
Reg. G: 2024 CAFD Guidance ($ millions) 2024 Full Year CAFD Guidance Net Income $90 Income Tax Expense 20 Interest Expense, net 330 Depreciation, Amortization, Contract Amortization, and ARO Expense 680 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA from 50 Unconsolidated
Slide 25: Reg. G: Pro Forma CAFD Outlook
Reg. G: Pro Forma CAFD Outlook ($ millions) Prior Pro Forma Pro Forma CAFD Outlook CAFD Outlook Net Income $160 $175 Income Tax Expense 30 35 Interest Expense, net 390 390 Depreciation, Amortization, Contract Amortization, and ARO Expense 620 645 Adjustments to reflect Clearway Energy’s pro-rata sha
Slide 26: Reg. G: Growth Investments
Reg. G: Growth Investments ($ millions) Luna Valley and Daggett 1 5 Year Ave. 2026-2030 Net Income 3 Interest Expense, net 18 Depreciation, Amortization, and ARO Expense 24 Adjusted EBITDA 45 Cash interest paid (18) Cash from Operating Activities 27 Net distributions from non-controlling interest (6
Slide 27: 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