Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Q3 2022 Earnings Presentation
24 slides from Clearway Energy's earnings presentation, Nov 2, 2022
Slide 1: Third Quarter 2022 Results Presentation
Clearway Energy, Inc. Third Quarter 2022 Results Presentation November 2, 2022
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: Business Update
Business Update ▪ CAFD of $154 MM in 3Q22 and $328 MM YTD; results impacted by forced outages at Conventional 3Q22 and YTD Results ▪ Announcing dividend increase of 2.0% to $0.3672/share in 4Q22; $1.469/share annualized ▪ Revising 2022 CAFD guidance from $365 MM to $350 MM to reflect the forced outa
Slide 4: Financial Update
Financial Update ($ millions) Financial Results Revising 2022 CAFD Guidance 3rd Quarter YTD Full Year Adjusted EBITDA $322 $948 CAFD $154 $328 CAFD $350 ▪ 3Q22 Financial Highlights ▪ Revised 2022 CAFD Guidance Continues to Factor In… Conventional: Forced outages at El Segundo and Walnut − P50 medi
Slide 5: Initiating 2023 CAFD Guidance and Updating Pro Forma CAFD Outlook
Initiating 2023 CAFD Guidance and Updating Pro Forma CAFD Outlook ($ millions) Updated budgetary projections at Renewables Timing of committed Merchant energy gross margins at 2023 Guidance and growth investments after conventional in ‘2H23’ during high Inflationary impacts on broader portfo
Slide 6: Recent Drop-Down Offers Further Enhance Visibility into Long-Term Growth
Recent Drop-Down Offers Further Enhance Visibility into Long-Term Growth Drop-Down Offers Provide Diversification in ...at Attractive Economics Technology and Offtake… Backed by Long-Term Contracts Est. Corporate Capital ~$410 MM Gross Capacity COD/ Est. Asset CAFD Yield ~9.5% Asset Technology (MW)1
Slide 7: Full Allocation of Thermal Proceeds Enhances Visibility into Long-Term Growth
Full Allocation of Thermal Proceeds Enhances Visibility into Long-Term Growth ($ millions, except per share figures) Potential Potential Committed Committed Asset/Portfolio Capital Asset/Portfolio Capital October ’22 Drop-Down Offers1 ~$410 1H23 Drop-Down Offers2 ~$220 >$2.15 CAFD per Share3 Full Al
Slide 8: Advancing on 2022 Goals
Advancing on 2022 Goals ▪ Meet 2022 Financial and Operational Commitments – Closed sale of Thermal Business providing for funding of committed growth – Achieved upper range of 5-8% long term DPS growth target in 2022 ▪ Continue to Increase Long-Term CAFD Per Share Through New Growth – Closed on Capi
Slide 9: Appendix
@)]] Clearway Energy Appendix
Slide 10: Appendix: Clearway Group Development Pipeline Update
Draft –Confidential and Proprietary Appendix: Clearway Group Development Pipeline Update 26.8 GW Pipeline Owned or Controlled by Clearway Group Clearway Group Development Highlights By Project Type (MW) By Project Stage (MW) • Achieved commercial operations on Mililani I (39 MW solar + 156 MWh stora
Slide 11: 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 Estimated Asset Technology Gross Capacity (MW)1 State COD/Funding Status2 Highlights Utility Solar + Mililani I 39 HI Operational Commit
Slide 12: Appendix: Summary Allocation of ~$1.35 BN in Est. Net Thermal Proceeds
Appendix: Summary Allocation of ~$1.35 BN in Est. Net Thermal Proceeds ($ millions) Est. Long-Term Corp. Funding Corp. Capital Corp. Capital Remaining Capital Investment /Target COD Commitment1 Funded to Date To be Funded Allocation of $600 MM In Prior Commitments2 50% Interest in Utah Solar Portfol
Slide 13: Appendix: Renewable Portfolio Performance in 2022
Appendix: Renewable Portfolio Performance in 2022 Production Index Availability 2022 2022 3rd Quarter Q1 Q2 Q3 YTD YTD Wind Portfolio Net MW Jul Aug Sep California 947 98% 108% 101% 94% 87% 95% 102% 98% Other West 217 91% 100% 65% 84% 81% 77% 90% 94% Texas 744 97% 108% 90% 71% 84% 82% 97% 92% Midwes
Slide 14: Appendix: 2022 Portfolio CAFD Sensitivity and Seasonality
Appendix: 2022 Portfolio CAFD Sensitivity and Seasonality Variability of Expected Financial Performance: Based on Portfolio as of May 1, 20221 ▪ Production variability based on +/- 5% for both wind and solar Renewable Production Variability: for full year Annual CAFD Sensitivity – Approximates ~P75
Slide 15: Appendix: Cash Flow Profile for Growth Investments
Appendix: Cash Flow Profile for Growth Investments To increase visibility and assist in forecasting, the following table summarizes the expected changes in CAFD associated with growth investments relative to 5-year average estimates: • Schedule is based on the following closed or committed growth in
Slide 16: Appendix: Non-Recourse Project Debt Amortization
Appendix: Non-Recourse Project Debt Amortization Forecasted principal payments1 on non-recourse project debt as of December 31, 2021, pro forma for sale of Thermal business: Fiscal Year ($ millions) 2022 2023 2024 2025 2026 Thereafter Total Conventional: Carlsbad Energy Holdings & Carlsbad Holdco, d
Slide 17: Appendix: Operating Assets As of September 30, 2022
Appendix: Operating Assets1 As of September 30, 2022 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% 72
Slide 18: Appendix: Adjusted EBITDA and CAFD by Asset Class
Appendix: Adjusted EBITDA and CAFD by Asset Class1 ($ millions) 2021 Adj. EBITDA and CAFD by Asset Class Pro Forma Adj EBITDA and CAFD by Asset Class 2021 Adj. EBITDA by Asset Class Pro Forma Adj. EBITDA by Asset Class (61% From Renewables) (83% From Renewables) 6% 17% 40% 33% 48% 35% 21% 2021 CAFD
Slide 19: Reg. G Schedules
@)]] Clearway Energy Reg. G Schedules
Slide 20: Reg. G: Actuals
Reg. G: Actuals Three Months Ended Nine Months Ended ($ millions) 9/30/2022 9/30/2021 9/30/2022 9/30/2021 Net Income (Loss) $62 $25 $1,114 $(19) Income Tax Expense / (Benefit) 13 1 237 (12) Interest Expense, net 45 84 137 232 Depreciation, Amortization, and ARO 129 131 379 387 Contract Amortization
Slide 21: Reg. G: 2022 CAFD Guidance
Reg. G: 2022 CAFD Guidance ($ millions) Prior 2022 Full 2022 Full Year CAFD Year CAFD Guidance Guidance Net Income1 $110 $95 Income Tax Expense 20 20 Interest Expense, net 445 445 Depreciation, Amortization, Contract Amortization, and ARO Expense 585 585 Adjustments to reflect Clearway Energy’s pro-
Slide 22: Reg. G: 2023 CAFD Guidance
Reg. G: 2023 CAFD Guidance ($ millions) 2023 Full Year CAFD Guidance Net Income1 $165 Income Tax Expense 30 Interest Expense, net 300 Depreciation, Amortization, Contract Amortization, and ARO Expense 620 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted 50 EBITDA from Unconsolidat
Slide 23: Reg. G: Pro Forma CAFD Outlook
Reg. G: Pro Forma CAFD Outlook ($ millions) Prior Pro Forma Pro Forma CAFD Outlook CAFD Outlook Net Income1 $100 $90 Income Tax Expense 20 20 Interest Expense, net 395 395 Depreciation, Amortization, Contract Amortization, and ARO Expense 545 545 Adjustments to reflect Clearway Energy’s pro-rata sha
Slide 24: 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