Core Viewpoint - The CEO of AES Corporation, Andrés Gluski, believes that the excitement surrounding nuclear energy for data centers is exaggerated, emphasizing that renewable energy is the future, with natural gas serving as a transitional fuel [1][2]. Group 1: Nuclear Energy Perspective - Gluski argues that the current enthusiasm for nuclear energy is "a little overblown," citing limitations in existing nuclear energy contracts for data centers and the high costs and long lead times associated with new nuclear projects [2][3]. - The Vogtle Plant in Georgia, which recently brought online its second nuclear reactor, faced significant delays and cost overruns, highlighting the challenges of nuclear energy development in the U.S. [3]. Group 2: Renewable Energy Commitment - AES Corporation currently generates 54% of its power from renewables, with plans for 89% of its gross power generation under construction to come from renewable sources [3]. - A recent agreement between Microsoft and Brookfield Asset Management for 10.5 gigawatts of renewable energy is seen as a significant indicator of the future direction of energy sourcing [4]. Group 3: Natural Gas and Renewable Energy Synergy - The natural gas sector views data centers as a key growth area, suggesting that natural gas will be necessary to support renewables until battery technology becomes more affordable and widespread [5][6]. - Goldman Sachs projects that power demand from data centers will more than double to 8% of total U.S. electricity consumption by 2030, with natural gas expected to supply 60% of this demand growth [5]. Group 4: Battery Storage and Renewable Integration - Gluski notes that battery prices are decreasing, and there is significant battery storage capacity awaiting grid connection, indicating a shift towards renewable energy solutions [6]. - At the end of 2023, solar, storage, and wind accounted for about 95% of the power capacity waiting for grid connection, demonstrating a strong pipeline for renewable energy integration [6]. Group 5: Corporate Agreements and Future Outlook - AES has secured long-term contracts with major tech companies, including Google and Amazon, to provide carbon-free energy, showcasing the company's commitment to renewable energy solutions [7]. - AES stock has seen a 26% increase over the past three months, with a majority of Wall Street analysts rating the company as a buy, reflecting positive market sentiment towards its renewable energy strategy [8].

While artificial intelligence is all the rage these days, investors need to think about the darker side of this narrative, which brings us to energy stocks to buy. You didn’t think that AI is “free,” did you?According to The Washington Post, the blistering demand for various digital innovations is sapping America’s power infrastructure. The news agency wrote that the country’s 2,700 data centers have sapped more than 4% of the national electricity output in 2022. If this trend continues, the energy consumed ...

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ARLINGTON, Va., May 16, 2024 /PRNewswire/ -- The AES Corporation (NYSE: AES) ("AES" or the "Company") announced today the pricing of $950,000,000 million aggregate principal amount of its 7.600% fixed-to-fixed rate reset junior subordinated green notes due 2055 (the "Notes"). The closing of the offering of the Notes is expected to occur, subject to certain customary closing conditions, on May 21, 2024 (T+3).AES intends to allocate an amount equal to the net proceeds from this offering to one or more eligibl ...

ARLINGTON, Va., May 16, 2024 /PRNewswire/ -- The AES Corporation (NYSE: AES) ("AES" or the "Company") announced today its intention to offer, subject to market and other conditions, fixed-to-fixed rate reset junior subordinated green notes (the "Notes") in a registered public offering.AES intends to allocate an amount equal to the net proceeds from this offering to one or more eligible green projects, which may include the development or redevelopment of such projects. Pending such allocation, AES intends t ...

Proceeds to be Used to Fund AES' Robust Growth in Renewables & US UtilitiesARLINGTON, Va., May 15, 2024 /PRNewswire/ -- The AES Corporation (NYSE: AES) announced today that it has agreed to sell its 47.3% equity interest in AES Brasil to Auren Energia for approximately $640 million in proceeds to AES.  This sale will be completed in conjunction with a merger between AES Brasil and Auren Energia, with AES Brasil shares valued at approximately 11.55 Brazilian Real per share, before purchase price adjustments. ...

The AES Corporation First Quarter 2024 Financial Review May 3, 2024 CONTAINS FORWARD-LOOKING STATEMENTS Safe Harbor Disclosure ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA with tax attributes of $863 million for Q1 2024, up from $641 million in the same quarter last year, driven primarily by contributions from new renewables [17] - Adjusted EPS for the quarter was $0.50, compared to $0.22 last year, reflecting similar drivers as adjusted EBITDA [18] - The company reaffirmed its 2024 adjusted EBITDA guidance of $3.6 billion to $4 billion and adjusted EPS guidance of $1.87 to $1.97 [21][22] Business Line Data and Key Metrics Changes - The renewables strategic business unit (SBU) saw higher EBITDA driven by new business contributions, although partially offset by lower renewable resource performance in Panama and Brazil [19] - The utilities SBU experienced higher adjusted total contribution costs (TTC) due to favorable weather and increased revenues from investments in the rate base [20] - The energy infrastructure SBU showed relatively flat EBITDA, reflecting prior year higher LNG transaction margins and the sell-down of gas and LNG businesses [20] Market Data and Key Metrics Changes - Power demand in the U.S. is forecasted to increase significantly over the next decade, driven by data center growth, onshoring of manufacturing, and electrification of mobility [9] - Renewables are expected to provide the lowest levelized cost of energy (LCOE) for new builds on an unsubsidized basis, with 95% of capacity additions in the U.S. in 2024 expected to come from solar energy storage and wind [10][9] Company Strategy and Development Direction - The company signed a 15-year contract with Amazon for the Bellefield project, which will provide 2 gigawatts of combined solar and storage, marking a significant milestone in renewable energy [7][8] - The company has a pipeline of 66 gigawatts of projects, emphasizing a strategic approach to building its pipeline in high-demand markets [12] - The company aims to increase its U.S. project return expectations by 200 basis points to 12% to 15% on a levered, after-tax cash basis [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute plans and maintain resilience against high interest rates and inflation [6] - The company sees strong and accelerating demand for renewables in core markets, particularly from data centers [29] - Management highlighted the importance of supply chain management in delivering renewable projects on time and on budget [29] Other Important Information - The company achieved a critical milestone with the approval of its rate case by the Indiana Utility Regulatory Commission, allowing for a $71 million rate case increase [14] - The company closed on the acquisition of the 106-megawatt Hoosier wind project, adding to its renewable portfolio [15] - The company reported nearly 100% increase in Q1 investment in utilities compared to last year, driven by new rate structures [16] Q&A Session Summary Question: Can you expand on the asset sale programs and future equity issuance? - Management indicated a strong track record of overachieving asset sale targets and expressed confidence in potentially eliminating future equity issuance depending on asset sales and growth programs [34] Question: What are the thoughts on data center opportunities and partnerships? - Management noted that they have established strong relationships with technology companies and are focused on meeting their needs through innovative solutions [36][38] Question: How does the company position itself regarding potential tariffs? - Management expressed confidence in their preparedness for potential tariffs, stating that they have secured necessary materials for upcoming projects [42][44] Question: What is the outlook on the pace of renewable deployment? - Management acknowledged the accelerating demand for data centers and emphasized the importance of having advanced pipelines to meet this demand [50] Question: Can you discuss transmission constraints and interconnection perspectives? - Management highlighted the use of dynamic line rating and battery projects to optimize existing transmission capacity and avoid costs [52][54] Question: What is the current focus on hydrogen projects? - Management confirmed progress on a significant green hydrogen project in Texas, awaiting final regulations [57] Question: How is the company addressing the demand for renewables? - Management reported strong demand for renewables and a robust pipeline, with significant contracts signed in the first quarter [60][61]

Financial Performance - The AES Corporation reported a diluted EPS of $0.60 for Q1 2024, an increase of 186% compared to $0.21 in Q1 2023[4] - Adjusted EPS for Q1 2024 was $0.50, up 127% from $0.22 in Q1 2023[4] - Net Income for Q1 2024 reached $278 million, a $89 million increase from $189 million in Q1 2023[6] - Total revenue for Q1 2024 was $3,085 million, a decrease of 4.8% from $3,239 million in Q1 2023[23] - Net income attributable to AES Corporation increased to $432 million in Q1 2024, compared to $151 million in Q1 2023, representing a growth of 186.1%[23] - Basic earnings per share rose to $0.62 in Q1 2024, up from $0.22 in Q1 2023, reflecting a 181.8% increase[23] - For the three months ended March 31, 2024, net income was $278 million, compared to $189 million for the same period in 2023, representing a 47% increase[32] - The diluted earnings per share (EPS) for Q1 2024 was $0.60, up from $0.21 in Q1 2023, marking a substantial increase of 185.7%[37] Adjusted Metrics - Adjusted EBITDA for Q1 2024 was $635 million, a slight increase of $7 million compared to $628 million in Q1 2023[7] - Adjusted EBITDA for Q1 2024 was $635 million, slightly up from $628 million in Q1 2023, indicating a stable performance year-over-year[32] - Adjusted EBITDA with Tax Attributes reached $863 million in Q1 2024, compared to $641 million in Q1 2023, reflecting a significant increase of 34.6%[32] - The company reaffirmed its 2024 guidance for Adjusted EPS of $1.87 to $1.97, driven by new renewables commissionings and rate base growth[12] - Adjusted EBITDA guidance for 2024 is reaffirmed at $2,600 to $2,900 million, with expectations of annualized growth of 5% to 7% through 2027[10] Project Development - The company signed an additional 1 GW of solar-plus-storage under a long-term contract with Amazon, totaling 2 GW at Bellefield, California[1] - The total backlog of projects signed under long-term contracts reached 12.7 GW, including 5.8 GW under construction[11] Capital and Assets - Cash and cash equivalents increased to $1,994 million as of March 31, 2024, compared to $1,426 million at the end of 2023, marking a growth of 39.7%[27] - Total assets grew to $47,045 million as of March 31, 2024, up from $44,799 million at the end of 2023, an increase of 5.0%[27] - Capital expenditures for Q1 2024 were $2,148 million, an increase from $1,551 million in Q1 2023, representing a rise of 38.5%[29] Liabilities and Cash Flow - Total current liabilities decreased to $9,211 million as of March 31, 2024, from $9,731 million at the end of 2023, a reduction of 5.3%[27] - Net cash provided by operating activities was $287 million in Q1 2024, down from $625 million in Q1 2023, a decrease of 54.1%[29] - Total subsidiary distributions to the Parent Company for Q1 2024 amounted to $1,577 million, a decrease from $1,602 million in Q4 2023[42] - The Parent Company liquidity at the end of Q1 2024 was $732 million, down from $1,409 million at the end of Q4 2023, indicating a reduction in available cash[42] Impairments and Gains - The company reported impairment losses of $26 million in Q1 2024, compared to $9 million in Q1 2023, highlighting an increase in asset impairments[40] - The company reported a gain on disposal and sale of business interests of $43 million in Q1 2024, compared to no gain in Q1 2023[29] - Unrealized derivative gains contributed $68 million, or $0.10 per share, to the financial results in Q1 2024, reflecting the impact of market fluctuations[39] - The company recognized a loss on extinguishment of debt and troubled debt restructuring amounting to $34 million in Q1 2024, compared to $4 million in Q1 2023[40] Strategic Initiatives - The company retired 276 MW of coal capacity in Chile, contributing to a total of 13.5 GW of coal exits since 2017[4] - AES Indiana received approval for a rate case settlement, allowing for investments in reliability and enhanced customer offerings[4] Revenue Segments - The Renewables Strategic Business Unit (SBU) revenue increased by 25.1% to $619 million in Q1 2024 from $495 million in Q1 2023[25] - The adjusted PTC for Q1 2024 was $336 million, compared to $204 million in Q1 2023, representing a 64.7% increase year-over-year[40]

Signed an Additional 1 GW of Solar-Plus-Storage Under a Long-Term Contract with Amazon, for a Total of 2 GW at Bellefield in California Strategic Accomplishments Signed 1.2 GW of renewables and energy storage under long-term contracts, bringing total backlog of projects signed under long-term contracts to 12.7 GW Includes an additional 1 GW under a 15-year contract with Amazon, for a total of 2 GW at Bellefield, the largest single solar-plus-storage facility in the US Completed the construction or acquis ...