Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Q3 2024 Earnings Presentation
29 slides from Clearway Energy's earnings presentation, Oct 30, 2024
Slide 1: Third Quarter 2024 Results Presentation
Clearway Energy, Inc. Third Quarter 2024 Results Presentation October 30, 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 Growth Plan, Capital Allocation Craig Cornelius, Chief Executive Officer Framework and Closing Remarks 3
Slide 4: Business Update
Business Update 3Q24 results of CAFD of $146 MM, bringing YTD CAFD to $385 MM Delivered Another Solid Quarter; Dividend increased 1.7% to $0.4240/share in 4Q24; $1.696/share annualized Tracking to Fulfill 2024 Guidance Reaffirming expectation to meet or exceed 2024 CAFD guidance of $395MM Adva
Slide 5: Advanced Latest Identified Dropdown Investments, Further Crystallizing Growth Roadmap to 2027
Advanced Latest Identified Dropdown Investments, Further Crystallizing Growth Roadmap to 2027 ($ millions) Continued Progress on Previously Disclosed Growth Opportunities With Commitment to Invest in Pine Forest and Offer Received and Under Evaluation for Honeycomb Phase 1 Est. Target Target 5-Year
Slide 6: Latest Growth Investment, Fleet Improvements, and Higher RA Value Make A Strong Foundation For Growth Into 2027
Latest Growth Investment, Fleet Improvements, and Higher RA Value Make A Strong Foundation For Growth Into 2027 Funded with retained CAFD Uplift reflects the net impact of: Levelized RA value expectations consistent with recent contract levels Improved, but still conservative, fleet performance
Slide 7: Financial Summary
@)]I Clearway Energy Financial Summary
Slide 8: Reaffirming the Company is On Track to Meet or Exceed 2024 Guidance
Reaffirming the Company is On Track to Meet or Exceed 2024 Guidance After Another Strong Quarter ($ millions) Financial Results Reaffirming 2024 CAFD Guidance 3rd Quarter YTD Full Year Adjusted EBITDA $354 $918 CAFD $146 $385 CAFD $395 3Q24 Financial Highlights 2024 CAFD Guidance Factors In… − R
Slide 9: Establishing 2025 CAFD Guidance at $420MM Midpoint with +/- $20M Range
Establishing 2025 CAFD Guidance at $420MM Midpoint with +/- $20M Range ($ millions) Full year Capistrano debt service Fleet improvements executed over 2024 CAFD from previously funded investments in ’23-’24 $400-440 ~$15 ~$20 ~$395 ~($10) Key 2025 CAFD Guidance Range Assumptions and Factors:
Slide 10: Retained CAFD and Excess Debt Capacity Will Be Primary Funding Sources to Meet 2027 CAFD Target Range
Retained CAFD and Excess Debt Capacity Will Be Primary Funding Sources to Meet 2027 CAFD Target Range ($ millions) Retained CAFD Generation Source of Equity Funding – At the low end of the targeted CAFD per share growth outlook, expect to generate ~$220 MM of retained CAFD cumulatively between 202
Slide 11: Growth Plan, Capital Allocation Framework and Closing Remarks
Growth Plan, Capital Allocation Framework and Closing Remarks Closing Remarks and Q&A
Slide 12: Establishment of 2027 CAFD Per Share Target Continues Value-Accretive Growth Trajectory
Establishment of 2027 CAFD Per Share Target Continues Value-Accretive Growth Trajectory 2027 CAFD Per Share Target Represents ~7.5-12% Annual Growth Rate in CAFD Per Share from Midpoint of 2025 Guidance Key factors: Committed growth, including Pine Forest, sets path to growth beyond previous Pro-F
Slide 13: Clearway Group's Late-Stage Projects Well-Positioned To Support CWEN's Growth into 2027 and Beyond
Clearway Group's Late-Stage Projects Well-Positioned To Support CWEN’s Growth into 2027 and Beyond Sponsor Advancing 9.1 GW of Late-Stage Projects Clearway's Sponsor late-stage pipeline is well-positioned to Until End of the Decade support Clearway’s long-term growth and CAFD goals… Early investme
Slide 14: Our Refreshed Capital Allocation Framework Positions CWEN for Sustainable Long-Term Growth
Our Refreshed Capital Allocation Framework Positions CWEN for Sustainable Long-Term Growth Capital Allocation Framework Aims For Greater Flexibility to Drive Accretive, Sustainable CAFD Per Share Growth An increasing fraction of CAFD is invested in growth over time, while dividends are compounded at
Slide 15: Clearway Is Delivering on its Objectives for 2024 and Has Built a Roadmap for Long-Term Growth
Clearway Is Delivering on its Objectives for 2024 and Has Built a Roadmap for Long-Term Value-Accretive Growth Meeting the Financial Commitments We Made for 2024 Delivered strong year to date results, while driving operational improvements enabled by capex plan On track to meet or exceed 2024
Slide 16: Appendix
@)]I Clearway Energy Appendix
Slide 17: Clearway's Sponsor Pipeline Continues to Advance With Project Staging & Diversification Optimized for CWEN
Clearway's Sponsor Pipeline Continues to Advance With Project Staging & Diversification Optimized for CWEN Clearway Group Development Highlights 30 GW Pipeline Owned or Controlled by Clearway Group • On track to achieve operations at Repower Cedro Hill, with a total of >1.3 By Project Type (MW) By P
Slide 18: 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 • Under construction Cedro Hill Repower3 Utility Wi
Slide 19: Appendix: Renewable Portfolio Performance in 2024
Appendix: Renewable Portfolio Performance in 2024 Production Index Availability 2024 2024 3rd Quarter Q1 Q2 Q3 YTD YTD Wind Portfolio Net MW Jul Aug Sep California 947 123% 101% 82% 108% 107% 97% 105% 95% Other West 377 78% 105% 80% 98% 87% 89% 90% 92% Texas 1,074 100% 90% 100% 107% 70% 92% 94% 95%
Slide 20: 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 21: 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 22: Appendix: Operating Assets as of September 30, 2024
Appendix: Operating Assets1 as of September 30, 2024 Solar & Paired Storage Wind Net PV Net BESS Net Percentage Capacity Capacity Contract Percentage Capacity Contract Projects Ownership (MW) (MW) Offtake Counterparty Expiration Projects Ownership (MW) Offtake Counterparty Expiration Agua Caliente 5
Slide 23: 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 2025 Est. Adj EBITDA and CAFD by Asset Class 2023 Adj. EBITDA by Asset Class 2025 Est. Adj. EBITDA by Asset Class (72% From Renewables) (83% From Renewables) 17% 28% 46% 53% 30% 26% 2023 CAFD by
Slide 24: Reg. G Schedules
@)]I Clearway Energy Reg. G Schedules
Slide 25: Reg. G: Actuals
Reg. G: Actuals Three Months Ended Nine Months Ended ($ millions) 9/30/2024 9/30/2023 9/30/2024 9/30/2023 Net Income (Loss) $27 $15 $(15) $59 Income Tax Expense / (Benefit) 33 57 30 67 Interest Expense, net 131 34 248 170 Depreciation, Amortization, and ARO 164 133 471 389 Contract Amortization 46 4
Slide 26: Reg. G: 2024 CAFD Guidance
Reg. G: 2024 CAFD Guidance ($ millions) 2024 Full Year CAFD Guidance Net Income $90 Income Tax Expense 20 Interest Expense, net 330 Depreciation, Amortization, Contract Amortization, and ARO Expense 680 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA from 50 Unconsolidated
Slide 27: Reg. G: 2025 CAFD Guidance Range
Reg. G: 2025 CAFD Guidance Range ($ millions) 2025 Full Year CAFD Guidance Range Net Income ($40) – 0 Income Tax Expense (4) Interest Expense, net 335 Depreciation, Amortization, Contract Amortization, and ARO Expense 840 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA fro
Slide 28: Reg. G: Growth Investments
Reg. G: Growth Investments ($ millions) Pine Forest 5 Year Ave. 2026-2030 Net Income 13 Interest Expense, net 6 Depreciation, Amortization, and ARO Expense 22 Adjusted EBITDA 41 Cash interest paid (6) Cash from Operating Activities 35 Net distributions from non-controlling interest (18) Principal am
Slide 29: 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