Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Investor Presentation (May 2021)
32 slides from Clearway Energy's investor presentation, May 2021
Slide 1: Clearway Energy, Inc. Investor Presentation May 2021
Clearway Energy, Inc. Investor Presentation May 2021
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. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identi
Slide 3: Clearway Energy Value Proposition
Clearway Energy Value Proposition Leading Publicly-Traded Energy Infrastructure Investor Focused on modern, income-producing energy infrastructure assets across North America Strong Sponsor Backed by GIP, one of the largest infrastructure funds in the world High-Quality, Sustainable & Environmentall
Slide 4: Clearway Energy Corporate Structure
Clearway Energy Corporate Structure “GIP” Public Investors “Clearway Group” Class B & D Shares Class A & C Shares 42.35% Economic1 57.65% Economic1 54.93% Voting 45.07% Voting NYSE: CWEN, CWEN.A • All related party transactions between GIP and CWEN must be reviewed and approved by the Corporate Gove
Slide 5: Experienced and Supportive Sponsor in GIP
Experienced and Supportive Sponsor in GIP GIP’s Investment in an Integrated Platform Aligns Clearway Energy with a Large, Well-Capitalized Development Company Experienced sponsor of publicly traded vehicles and owner of renewable energy assets ⎯ Over $9B of commitments in the renewables sector ⎯ O
Slide 6: Clearway Energy, Inc.'s Diversified Asset Portfolio
Clearway Energy, Inc.’s Diversified Asset Portfolio1 Clearway Energy’s +8 GW Asset Portfolio Represents the Future of Energy Infrastructure in North America Renewables Wind Solar Conventional Thermal • 11th largest onshore wind • 9th largest solar portfolio • 2,472 MW • One of the largest district p
Slide 7: CWEN Pure Play On U.S. De-Carbonization Trend
CWEN Pure Play On U.S. De-Carbonization Trend Low Carbon Operational Footprint Safety: Key Goal for Management Performance 83% of electricity MWh from renewables1 with Safety performance goals part of annual incentive one of the lowest carbon intensities in the US compensation plan for managemen
Slide 8: Clearway Group Development Pipeline Update
Clearway Group Development Pipeline Update Clearway Group Development Highlights 10.0 GW Pipeline Owned or Controlled by Clearway Group • Diversified, increased, and restructured 5.8 GW late-stage pipeline to optimize offtake, financing, and capital deployment across eight By Project Type (MW) By Pr
Slide 9: Long Term Financial Objectives
Long Term Financial Objectives Prudent Capital Allocation Favorable Tax Attributes1 $350MM+ ~10-Year of Annual Deleveraging Tax Runway Robust Dividend Coverage Conservative Capital Structure 80-85% BB / Ba2 Payout Ratio Target Stable Ratings Disciplined Financial Management Provides Flexibility For
Slide 10: Investor Relations Contact
Investor Relations Contact Akil Marsh 609.608.1500 investor.relations@clearwayenergy.com investor.clearwayenergy.com
Slide 11: First Quarter 2021 Results Presentation
Clearway Energy, Inc. First Quarter 2021 Results Presentation May 6, 2021
Slide 12: 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. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identi
Slide 13: Agenda
Agenda Business Update Christopher Sotos, Chief Executive Officer Financial Summary Chad Plotkin, Chief Financial Officer Closing Remarks and Q&A Christopher Sotos, Chief Executive Officer 13
Slide 14: Business Update
Business Update Financial Update – 1st quarter CAFD of ($15 MM); includes the impact from the February weather event in Texas, accelerated accrued interest from the refinancing of the 2025 senior notes, and strong renewable energy performance on the West coast – Maintaining full year CAFD guidance
Slide 15: Balance Sheet Optimization Leads to Improved Pro Forma CAFD and Dividend Outlook
Balance Sheet Optimization Leads to Improved Pro Forma CAFD and Dividend Outlook ($ millions) Sustaining Long Term DPS Growth ~$1.85 CAFD per Share1 Increase in the outlook for CAFD per share driven by interest savings from the refinancing of the ‘25 Senior Notes ~$1.80 Supports 5-8% annual DPS
Slide 16: Financial Summary
@)] Clearway Energy Financial Summary
Slide 17: Financial Update
Financial Update ($ millions) 1st Quarter Results Maintaining 2021 CAFD Guidance 1st Quarter Full Year Adjusted EBITDA $198 CAFD ($15) CAFD $325 1Q21 Financial Highlights: 2021 CAFD Guidance Continues to Factor In1… Strong performance at Alta, West coast utility scale solar, and − P50 median r
Slide 18: Closing Remarks and Q&A
Closing Remarks and Q&A Closing Remarks and Q&A
Slide 19: Progressing on 2021 Goals
Progressing on 2021 Goals Meet 2021 Financial Commitments – Maintaining 2021 CAFD Guidance – On track to achieve DPS growth at upper end of 5-8% long term range through 2021 Increase Pro Forma CAFD Per Share Outlook Through New Growth – Balance sheet optimization through the issuance of the 2031
Slide 20: Appendix
@)] Clearway Energy Appendix
Slide 21: Appendix: Clearway Group Development Pipeline Update
Appendix: Clearway Group Development Pipeline Update Clearway Group Development Highlights 10.0 GW Pipeline Owned or Controlled by Clearway Group • Diversified, increased, and restructured 5.8 GW late-stage pipeline to optimize offtake, financing, and capital deployment across eight By Project Type
Slide 22: Appendix: Clearway Energy ROFO and Committed Renewable Investments
Appendix: Clearway Energy ROFO and Committed Renewable Investments Clearway Energy Committed Investments and ROFO Assets Gross Capacity Estimated Asset Technology (MW)1 State COD Status Highlights Pinnacle Wind Repowering 55 WV 2H21 Committed • Plant life extension and O&M cost reduction with new tu
Slide 23: Appendix: Renewable Portfolio Performance in 2021
Appendix: Renewable Portfolio Performance in 2021 Production Index Availability 2021 2021 1st Quarter YTD YTD Wind Portfolio MW Jan Feb Mar California 947 140% 178% 107% 134% 97% Other West 73 90% 69% 95% 85% 94% Texas 534 84% 58% 110% 85% 93% Midwest 380 87% 67% 108% 89% 94% East 67 89% 83% 98% 90%
Slide 24: Appendix: 2021 Portfolio CAFD Sensitivity and Seasonality
Appendix: 2021 Portfolio CAFD Sensitivity and Seasonality Variability of Expected Financial Performance: Based on Portfolio as of February 28, 2021 Production variability based on +/- 5 % for both wind and Renewable Production Variability: solar for full year Annual CAFD Sensitivity – Approximates
Slide 25: Appendix: Cash Flow Profile for Growth Investments
Appendix: Cash Flow Profile for Growth Investments To increase visibility and assist in forecasting, the following table summarizes the expected changes in CAFD associated with growth investments relative to 5-year average estimates: • Schedule is based on the following closed or committed growth in
Slide 26: Appendix: Non-Recourse Project Debt Amortization
Appendix: Non-Recourse Project Debt Amortization Forecasted principal payments1 on non-recourse project debt as of December 31, 2020: Fiscal Year ($ millions) 2021 2022 2023 2024 2025 Thereafter Total Conventional: Carlsbad Energy Holdings & Carlsbad Holdco, due 2027 and 2038 26 28 24 25 28 642 773
Slide 27: Appendix: Current Operating Assets
Appendix: Current Operating Assets1 (As of Mar 31, 2021) Solar Wind Percentage Net Capacity PPA Percentage Net Capacity PPA Projects Ownership (MW) Offtake Counterparty Expiration Projects Ownership (MW) Offtake Counterparty Expiration Agua Caliente 51% 148 Pacific Gas and Electric 2039 Alta I-V 100
Slide 28: Reg. G Schedules
@)] Clearway Energy Reg. G Schedules
Slide 29: Reg. G: Actuals
Reg. G: Actuals ($ millions) Three Months Ended 3/31/2021 3/31/2020 Net Income (Loss) (76) (107) Income Tax Benefit (20) (22) Interest Expense, net 45 167 Depreciation, Amortization, and ARO 128 102 Contract Amortization 32 22 Loss on Debt Extinguishment 42 3 Mark to Market (MtM) Losses on economic
Slide 30: Reg. G: 2021 Guidance
Reg. G: 2021 Guidance ($ millions) 2021 Full Year Guidance Net Income1 $120 Income Tax Expense 20 Interest Expense, net 365 Depreciation, Amortization, Contract Amortization, and ARO Expense 600 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted 75 EBITDA from Unconsolidated Affilia
Slide 31: Reg. G: Pro Forma CAFD Outlook
Reg. G: Pro Forma CAFD Outlook ($ millions) Prior Pro Forma Pro Forma CAFD Outlook CAFD Outlook Net Income1 $255 $265 Income Tax Expense 45 45 Interest Expense, net 355 345 Depreciation, Amortization, Contract Amortization, and ARO Expense 600 600 Adjustments to reflect Clearway Energy’s pro-rata sh
Slide 32: 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