Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Q4 2023 Earnings Presentation
26 slides from Clearway Energy's earnings presentation, Feb 22, 2024
Slide 1: Fourth Quarter 2023 Results Presentation
Clearway Energy, Inc. Fourth Quarter 2023 Results Presentation February 22, 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 Christopher Sotos, Chief Executive Officer Financial Summary Sarah Rubenstein, Chief Financial Officer Closing Remarks and Q&A Christopher Sotos, Chief Executive Officer 3
Slide 4: Business Update
Business Update ▪ CAFD of $53 MM in 4Q23 within sensitivity range 4Q23 and 2023 Results Within ▪ 2023 FY CAFD of $342 MM within revised guidance range of $330-360MM Sensitivity and Guidance Ranges ▪ Achieved COD at Daggett 2 and Texas Solar Nova 1 2023 Commitments Further ▪ Committed to ~$215 MM of
Slide 5: Committed Growth Announced in 2023 Improves Visibility into Long-Term Outlook
Committed Growth Announced in 2023 Improves Visibility into CWEN’s Long-Term Outlook ($ millions) CWEN Committed to ~$215 MM of Growth Investments in 2023 ▪ Committed growth announced in 2023 expected to generate 5-year weighted average Transaction Est. annual CAFD yields of ~10% Close / Target Proj
Slide 6: Full Allocation of Thermal Proceeds Leads to No External Capital Needs
Full Allocation of Thermal Proceeds Continues to Lead to No External Capital Needs to Meet 2026 DPS Growth Target ($ millions, except per share figures) Est. Est. 5-Year Target Committed Avg. CAFD Offered Projects1 COD Capital Yield Dan’s Mountain 1H25 Luna Valley + 1H25 Daggett I Storage ~$200 ~10%
Slide 7: Continued Advancement of Growth Outlook Through Sponsor's Late-Stage Pipeline
Continued Advancement of CWEN’s Growth Outlook Through Sponsor’s Late-Stage Pipeline Additional Opportunities Advancing for CWEN Fleet Growth & Optimization Investments In 2026-20271 ▪ Commercial engagement and later-stage development spans CAISO, HECO, WECC, ERCOT, SPP, MISO, PJM, enabling diversif
Slide 8: Financial Summary
@)]I Clearway Energy Financial Summary
Slide 9: Financial Update
Financial Update ($ millions) 2023 Financial Results Reaffirming 2024 CAFD Guidance 4th Quarter Full Year Full Year Adjusted EBITDA $201 $1,058 CAFD $53 $342 CAFD $395 ▪ 4Q23 Financial Highlights ▪ 2024 CAFD Guidance Factors In… Conventional: Strong availability − P50 median renewable energy produ
Slide 10: Closing Remarks and Q&A
Closing Remarks and Q&A Closing Remarks and Q&A
Slide 11: Clearway Remains Focused on Advancing 2024 and Long-Term Objectives
Clearway Remains Focused on Advancing 2024 and Long-Term Objectives Meet 2024 Financial Commitments Achieve $2.15 of CAFD Per Share Focus on delivery of CAFD within expected sensitivities, Commit to offers for next potential drop-downs from achievement of DPS growth of 7% in 2024, and benefit from C
Slide 12: Appendix
@)]I Clearway Energy Appendix
Slide 13: Appendix: Clearway Group Development Pipeline Update
Draft –Confidential and Proprietary Appendix: Clearway Group Development Pipeline Update 29 GW Pipeline Owned or Controlled by Clearway Group Clearway Group Development Highlights • Achieved COD at Daggett 2 and Texas Solar Nova 1, with COD at By Project Type (MW) By Project Stage (MW) Victory Pass,
Slide 14: 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/ • Operational Daggett Solar 3 Utility
Slide 15: 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 $110-130
Slide 16: Appendix: Renewable Portfolio Performance in 2023
Appendix: Renewable Portfolio Performance in 2023 Production Index Availability 2023 2023 4th Quarter Q1 Q2 Q3 Q4 YTD YTD Wind Portfolio Net MW Oct Nov Dec California 947 97% 83% 95% 99% 77% 83% 87% 89% 97% Other West 377 80% 71% 80% 60% 65% 64% 63% 73% 95% Texas 1,064 104% 68% 92% 73% 71% 80% 75% 8
Slide 17: Appendix: 2024 Portfolio CAFD Sensitivity and Seasonality
Appendix: 2024 Portfolio CAFD Sensitivity and Seasonality Variability of Expected Financial Performance: Estimates as of November 2, 2023 ▪ Estimates include projects reaching COD in 2024 Renewable Production Variability: Annual CAFD Sensitivity Based on 2024 Guidance ▪ Production variability based
Slide 18: Appendix: Non-Recourse Project Debt Amortization
Appendix: Non-Recourse Project Debt Amortization Forecasted principal payments1 on non-recourse project debt as of December 31, 2023. Fiscal Year 2024 2025 2026 2027 2028 Thereafter Total Conventional: Carlsbad Energy Holdings & Holdco, due 2037 and 2038 25 27 35 38 34 536 695 Total Conventional Ass
Slide 19: Appendix: Operating Assets as of December 31, 2023
Appendix: Operating Assets1 as of December 31, 2023 Solar & Paired Storage Wind Net PV Net BESS Net Percentage Capacity Capacity PPA Percentage Capacity PPA Projects Ownership (MW) (MW) Offtake Counterparty Expiration Projects Ownership (MW) Offtake Counterparty Expiration Agua Caliente 51% 148 Paci
Slide 20: Appendix: Adjusted EBITDA and CAFD by Asset Class
Appendix: Adjusted EBITDA and CAFD by Asset Class1 ($ 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 21: Reg. G Schedules
@)]I Clearway Energy Reg. G Schedules
Slide 22: Reg. G: Actuals
Reg. G: Actuals Three Months Ended Twelve Months Ended ($ millions) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Net (Loss) Income $(73) $(54) $(14) $1,060 Income Tax Expense / (Benefit) (69) (15) (2) 222 Interest Expense, net 115 81 285 218 Depreciation, Amortization, and ARO 137 133 526 512 Contrac
Slide 23: Reg. G: 2023 CAFD Guidance
Reg. G: 2023 CAFD Guidance ($ millions) 2023 Full Year CAFD Guidance Net Income $95 – 120 Income Tax Expense 20 – 25 Interest Expense, net 300 Depreciation, Amortization, Contract Amortization, and ARO Expense 620 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA from 50 Unc
Slide 24: Reg. G: 2024 CAFD Guidance
Reg. G: 2024 CAFD Guidance ($ 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) Pro Forma CAFD Outlook Net Income $145 Income Tax Expense 30 Interest Expense, net 390 Depreciation, Amortization, Contract Amortization, and ARO Expense 595 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA 45 from Unconsolidated
Slide 26: 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