Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Q2 2023 Earnings Presentation
27 slides from Clearway Energy's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Results Presentation
Clearway Energy, Inc. Second Quarter 2023 Results Presentation August 8, 2023
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 $137 MM in 2Q23; primarily impacted by weak wind resource; lowest quarterly wind Revising 2023 Guidance Primarily production index reading in the Company’s history Due To Weak Renewable Resource ▪ Announcing dividend increase of 2% to $0.3891/share in 3Q23; $1.5564/share an
Slide 5: Recent Growth Commitments Further Advance Long Term CAFD Per Share Growth
Recent Growth Commitments Further Advance Long Term CAFD Per Share Growth ($ millions) Cedar Creek Wind Rosamond Central Battery Storage Addition Corporate Capital $107 MM Corporate Capital $32 MM Est. Five Yr. Average Annual CAFD $10 MM Est. Five Yr. Average Annual CAFD $3.5 MM Est. Asset CAFD Yiel
Slide 6: Full Allocation of Thermal Proceeds Leads to No External Equity Needs
Full Allocation of Thermal Proceeds Continues to Lead to No External Equity Needs to Meet 2026 DPS Growth Target ($ millions, except per share figures) Potential Potential Committed Est. Committed Est. Asset/Portfolio Capital CAFD Yield Asset/Portfolio Capital CAFD Yield Texas Solar Nova1 ~$40 ~9.5%
Slide 7: Financial Summary
@)]] Clearway Energy Financial Summary
Slide 8: Financial Update
Financial Update ($ millions) Financial Results 2nd Quarter YTD Adjusted EBITDA $316 $534 CAFD $137 $133 ▪ 2Q23 Financial Highlights $30MM impact from historically low wind production; refer to appendix slide 16 Conventional: Lower than expected merchant energy margin due to mild weather ▪ Balan
Slide 9: 2023 Guidance Update
2023 Guidance Update ($ millions) Above average rainfall leading to lower solar $30MM impact from historically low wind production; irradiance for impacted projects refer to appendix slide 16 Wind performance below median Conventional: Lower than expected merchant energy expectations margin
Slide 10: Closing Remarks and Q&A
Closing Remarks and Q&A Closing Remarks and Q&A
Slide 11: Remain on Track to Achieve Long-Term Objectives Despite 2023 Guidance Revision
Remain on Track to Achieve Long-Term Objectives Despite 2023 Guidance Revision ▪ 2023 CAFD Guidance Revised Due To 1H23 Actual Results ▪ Achieve DPS Growth to Support Upper Range of 5-8% Objective ▪ Commit to Next Drop-Downs with Capital on Hand at Value-Accretive Economics – Committed to Cedar Cree
Slide 12: Appendix
@)]] Clearway Energy Appendix
Slide 13: Appendix: Clearway Group Development Pipeline Update
Draft –Confidential and Proprietary Appendix: Clearway Group Development Pipeline Update Clearway Group Development Highlights 30.3 GW Pipeline Owned or Controlled by Clearway Group • 3.6+ GW of CWEN committed investments, expected drop- By Project Type (MW) By Project Stage (MW) down opportunities,
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 Funded/ • Construction nearing completion Daggett S
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 $110-130
Slide 16: Appendix: Renewable Portfolio Performance in 2023
Appendix: Renewable Portfolio Performance in 2023 Production Index Availability 2023 2023 2nd Quarter Q1 Q2 YTD YTD Wind Portfolio Net MW Apr May Jun California 947 97% 96% 75% 82% 83% 88% 97% Other West 377 80% 83% 68% 60% 71% 76% 94% Texas 1,064 104% 79% 60% 64% 68% 85% 93% Midwest 447 96% 112% 64
Slide 17: Appendix: 2023 Portfolio CAFD Sensitivity and Seasonality
Appendix: 2023 Portfolio CAFD Sensitivity and Seasonality Variability of Expected Financial Performance: Based on Portfolio as of December 31, 2022 ▪ Production variability based on +/- 5% for both wind and solar Renewable Production Variability: for full year Annual CAFD Sensitivity Based on Origin
Slide 18: Appendix: Cash Flow Profile for Growth Investments and Portfolio Moves
Appendix: Cash Flow Profile for Growth Investments and Portfolio Moves To increase visibility and assist in forecasting, the following table summarizes the expected changes in CAFD associated with growth investments relative to 5-year average estimates and other portfolio moves from the original 202
Slide 19: Appendix: Non-Recourse Project Debt Amortization
Appendix: Non-Recourse Project Debt Amortization Forecasted principal payments1 on non-recourse project debt as of December 31, 2022. Fiscal Year ($ millions) 2023 2024 2025 2026 2027 Thereafter Total Conventional: Carlsbad Energy Holdings & Carlsbad Holdco, due 2027 and 2038 24 25 28 35 37 570 719
Slide 20: Appendix: Operating Assets as of June 30, 2023
Appendix: Operating Assets1 as of June 30, 2023 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% 720 Sou
Slide 21: Appendix: Adjusted EBITDA and CAFD by Asset Class
Appendix: Adjusted EBITDA and CAFD by Asset Class1 ($ millions) 2022 Adj. EBITDA and CAFD by Asset Class Pro Forma Adj EBITDA and CAFD by Asset Class 2022 Adj. EBITDA by Asset Class Pro Forma Adj. EBITDA by Asset Class (67% From Renewables) (84% From Renewables) 2% 16% 31% 43% 48% 36% 24% 2022 CAFD
Slide 22: Reg. G Schedules
@)]] Clearway Energy Reg. G Schedules
Slide 23: Reg. G: Actuals
Reg. G: Actuals Three Months Ended Six Months Ended ($ millions) 6/30/2023 6/30/2022 6/30/2023 6/30/2022 Net Income (Loss) $84 $1,149 $44 $1,052 Income Tax Expense / (Benefit) 22 225 10 224 Interest Expense, net 46 45 136 92 Depreciation, Amortization, and ARO 128 126 256 250 Contract Amortization 4
Slide 24: Reg. G: 2023 CAFD Guidance
Reg. G: 2023 CAFD Guidance ($ millions) Prior 2023 Full Year 2023 Full Year CAFD Guidance CAFD Guidance Net Income $165 $95 – 120 Income Tax Expense 30 20 – 25 Interest Expense, net 300 300 Depreciation, Amortization, Contract Amortization, and ARO Expense 620 620 Adjustments to reflect Clearway Ene
Slide 25: Reg. G: Pro Forma CAFD Outlook
Reg. G: Pro Forma CAFD Outlook ($ millions) Prior Pro Forma Pro Forma CAFD Outlook CAFD Outlook Net Income $125 $145 Income Tax Expense 25 25 Interest Expense, net 395 395 Depreciation, Amortization, Contract Amortization, and ARO Expense 555 580 Adjustments to reflect Clearway Energy’s pro-rata sha
Slide 26: Reg. G: Growth Investments
Reg. G: Growth Investments ($ millions) Rosamond Central Cedar Creek Battery Storage 5 Year Average 5 Year Average from 2025-2029 from 2025-2029 Net Income $2 $10.0 Interest Expense, net 6 8.0 Depreciation, Amortization, and ARO Expense 8 15.0 Adjusted EBITDA 16 33.0 Cash interest paid (6) (8.0) Cas
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