Clearway Energy Inc. (CWEN) recorded a first-quarter 2024 loss of 2 cents per share, which surpassed the Zacks Consensus Estimate of a loss of 27 cents. In the year-ago quarter, the company reported break-even earnings.RevenuesTotal revenues of $263 million missed the Zacks Consensus Estimate of $270 million by 2.6%. The top line also declined 8.7% from the year-ago quarter’s figure of $288 million.Highlights of the ReleaseAdjusted EBITDA for the quarter totaled $211 million compared with $218 million in th ...

Signed agreements with Clearway Group to commit to invest in 55 MW of wind and 257 MW of solar plus storage projectsEntered into new Resource Adequacy Contracts for Marsh Landing and Walnut CreekReaffirming 2024 financial guidanceIncreasing the quarterly dividend by 1.7% to $0.4102 per share in the second quarter of 2024, or $1.64 per share annualizedContinue to target annual dividend per share growth in the upper range of 5% to 8% through 2026 PRINCETON, N.J., May 09, 2024 (GLOBE NEWSWIRE) -- Clearway Ener ...

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) [Q1 2024 Financial Performance](index=1&type=section&id=Q1%202024%20Financial%20Performance) Clearway Energy reported a net loss of **$(46) million** and Adjusted EBITDA of **$211 million** in Q1 2024, with CAFD improving to **$52 million** | Financial Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Loss | $(46) million | $(40) million | | Adjusted EBITDA | $211 million | $218 million | | Cash from Operating Activities | $81 million | $75 million | | Cash Available for Distribution (CAFD) | $52 million | $(4) million | - Net Loss increased due to higher **depreciation expenses** from growth projects achieving commercial operations[6](index=6&type=chunk) - Adjusted EBITDA decreased due to **expiration of tolling agreements** in the Conventional fleet, partially offset by growth investments[6](index=6&type=chunk) - CAFD significantly improved due to **lower debt service** in the Conventional segment and **higher wind generation**[6](index=6&type=chunk) [Operational Performance](index=2&type=section&id=Operational%20Performance) Q1 2024 operational performance showed improved Conventional availability and **10% increase** in Renewables generation from growth investments | Operating Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Conventional Equivalent Availability Factor | 86.3% | 74.4% | | Solar MWh generated/sold | 1,443k | 866k | | Wind MWh generated/sold | 2,519k | 2,744k | | Total Renewables generated/sold | 3,962k | 3,610k | - Renewables generation increased primarily due to **growth investments**[7](index=7&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity as of March 31, 2024, was **$1,435 million**, a **$70 million** decrease from year-end 2023 due to debt and growth investments | Liquidity Component | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Cash | $963 million | $1,051 million | | Revolving credit facility availability | $472 million | $454 million | | **Total Liquidity** | **$1,435 million** | **$1,505 million** | - Total liquidity decreased primarily due to **debt repayment** and **growth investments**[8](index=8&type=chunk) [Strategic Developments and Outlook](index=3&type=section&id=Strategic%20Developments%20and%20Outlook) [Growth Investments](index=3&type=section&id=Growth%20Investments) Clearway expanded its portfolio with **Cedar Creek Wind**, **Dan's Mountain Wind**, and **Rosamond South I**, adding **$19 million** in average annual CAFD - Acquired **160 MW Cedar Creek wind project** for **$117 million**, projected to contribute **~$13 million** in average annual asset CAFD from 2025[12](index=12&type=chunk) - Committed to acquire **50% stake** in **55 MW Dan's Mountain wind project** for **$44 million**, expected to contribute **~$4 million** in average annual asset CAFD from 2026[13](index=13&type=chunk) - Committed to acquire **50% stake** in **257 MW Rosamond South I solar plus storage project** for **~$21 million**, expected to contribute **~$2 million** in average annual asset CAFD from 2026[14](index=14&type=chunk) [Strategic Agreements](index=3&type=section&id=Strategic%20Agreements) New Resource Adequacy contracts for **Walnut Creek** and **Marsh Landing** enhance future CAFD visibility and stability - New RA contract for **Walnut Creek** to sell **~97 MW** capacity for 2027, contracting approximately **20%** of its net qualifying capacity[15](index=15&type=chunk) - New RA contract for **Marsh Landing** to sell **~90 MW** capacity from September 2026 to December 2030, contracting approximately **74%** through 2027[16](index=16&type=chunk) [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns) Clearway increased quarterly dividend by **1.7%** to **$0.4102 per share**, targeting **5-8% annual growth** through 2026 without external capital - Board declared a quarterly dividend of **$0.4102 per share**, a **1.7% increase**, payable June 17, 2024[5](index=5&type=chunk)[17](index=17&type=chunk) - Company targets annual dividend per share growth in the upper range of **5% to 8%** through 2026[3](index=3&type=chunk)[5](index=5&type=chunk) - Management expects to achieve dividend growth objective without external capital through at least 2026[3](index=3&type=chunk) [2024 Financial Guidance](index=4&type=section&id=2024%20Financial%20Guidance) Company reaffirmed full-year 2024 CAFD guidance of **$395 million**, incorporating growth investments and renewable energy production estimates - Clearway reaffirms **2024 full-year CAFD guidance** of **$395 million**[20](index=20&type=chunk) - Guidance accounts for **committed growth investments** and **merchant energy gross margin** estimates at the conventional fleet[20](index=20&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 total operating revenues decreased to **$263 million**, leading to an operating loss of **$(29) million** and a net loss of **$(46) million** | (In millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total operating revenues | $263 | $288 | | Operating (Loss) Income | $(29) | $42 | | Net Loss | $(46) | $(40) | | Loss Per Share | $(0.02) | $— | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were **$14.86 billion**, liabilities **$9.82 billion**, and stockholders' equity **$5.05 billion** | (In millions) | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total current assets | $1,497 | $1,560 | | Total Assets | $14,862 | $14,701 | | Total current liabilities | $874 | $906 | | Total Liabilities | $9,815 | $9,706 | | Total Stockholders' Equity | $5,045 | $4,994 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash from operating activities was **$81 million**, investing activities used **$(203) million**, resulting in a net **$(88) million** cash decrease | (In millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $81 | $75 | | Net Cash Used in Investing Activities | $(203) | $(86) | | Net Cash Provided by Financing Activities | $34 | $28 | | Net (Decrease) Increase in Cash | $(88) | $17 | [Appendix: Non-GAAP Reconciliations](index=11&type=section&id=Appendix%3A%20Non-GAAP%20Reconciliations) [Reconciliation of Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Q1 2024 Net Loss of **$(46) million** reconciled to **Adjusted EBITDA of $211 million**, adjusted for depreciation and interest expense | Reconciliation to Adjusted EBITDA (Q1 2024, $M) | Amount | | :--- | :--- | | Net Loss | $(46) | | Plus: Income Tax Benefit | $(13) | | Plus: Interest Expense, net | $40 | | Plus: Depreciation, Amortization, and ARO | $154 | | Plus: Contract Amortization | $46 | | Plus: Other Adjustments | $30 | | **Adjusted EBITDA** | **$211** | [Reconciliation of Cash Available for Distribution (CAFD)](index=12&type=section&id=Reconciliation%20of%20Cash%20Available%20for%20Distribution%20%28CAFD%29) Q1 2024 Cash from Operating Activities of **$81 million** reconciled to **CAFD of $52 million**, primarily adjusted by **$51 million** for debt amortization | Reconciliation to CAFD (Q1 2024, $M) | Amount | | :--- | :--- | | Cash from Operating Activities | $81 | | Plus: Changes in working capital and other | $25 | | Plus: Return of investment from unconsolidated affiliates | $4 | | Less: Net distributions to non-controlling interest | $(5) | | Less: Maintenance capital expenditures | $(2) | | Less: Principal amortization of indebtedness | $(51) | | **Cash Available for Distribution** | **$52** | [Guidance Reconciliation](index=13&type=section&id=Guidance%20Reconciliation) Full-year 2024 guidance reconciles Net Income of **$90 million** to reaffirmed CAFD of **$395 million**, adjusted for depreciation and debt amortization | 2024 Full Year Guidance Reconciliation ($M) | Amount | | :--- | :--- | | Net Income | 90 | | Adjustments to reach Adjusted EBITDA | +1,085 | | **Adjusted EBITDA** | **1,175** | | Adjustments to reach Cash from Operating Activities | -345 | | **Cash from Operating Activities** | **830** | | Adjustments to reach CAFD | -435 | | **Cash Available for Distribution** | **395** | [Growth Project Financial Projections](index=13&type=section&id=Growth%20Project%20Financial%20Projections) Five-year average projections for **Cedar Creek Wind**, **Dan's Mountain Wind**, and **Rosamond South I** estimate combined annual Adjusted EBITDA of **$54 million** and CAFD of **$19 million** | 5-Year Avg. Projections ($M) | Cedar Creek Wind | Dan's Mountain Wind | Rosamond South I | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 16 | 9 | 29 | | Estimated CAFD | 13 | 4 | 2 |

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Investment Rating - The report maintains an "Outperform" rating for Clearway Energy, indicating an expectation of relative performance exceeding the market benchmark over the next 12-18 months [1][5][30]. Core Insights - Clearway Energy reported a GAAP net loss of $73 million for the fourth quarter, significantly below the expected net income of $6.1 million. Adjusted EBITDA was $201 million, also below the forecast of $230.6 million. Revenue for the quarter was $249 million, which was lower than market expectations due to reduced wind power generation [1][2][3]. - The company reaffirmed its cash flow guidance for fiscal year 2024 at $395 million and aims for a mid-term cash flow outlook of $420 million, targeting a 5-8% growth in dividends per share (DPS) by 2026 [2][3]. - Despite a challenging year, Clearway Energy increased its dividend by 2% from $0.3964 per share in Q3 2023 to $0.4033 per share, supporting its DPS growth target [2][3]. Summary by Sections Financial Performance - For Q4 2023, Clearway Energy's net operating revenue was $249 million, down 33% quarter-over-quarter and 7% year-over-year. The gross profit was $136 million, reflecting a 43% decline from the previous quarter [3]. - The adjusted EBITDA for Q4 2023 was $201 million, a decrease of 49% from the previous quarter and 20% year-over-year, while the net loss under GAAP was $73 million, compared to a profit of $4 million in Q3 2023 [3][2]. Capacity Expansion - The company is progressing with capacity expansion, including investments in the Texas Solar Nova and Dans Mountain Wind projects, which will add 452 MW to its solar portfolio. The commercial operation date (COD) for Texas Solar Nova 1 has been achieved, with Texas Solar Nova 2 expected to announce its COD in the first half of 2024 [7][1].

Financial Data and Key Metrics Changes - The company's 2023 CAFD was $342 million, within the revised guidance range of $330 million to $360 million, with a fourth quarter CAFD of $53 million [21][25] - Full year adjusted EBITDA was $1.058 billion, with fourth quarter adjusted EBITDA at $201 million [25] - The company reaffirmed its 2024 CAFD guidance at $395 million, factoring in current production estimates and maintenance capital expenditures [26] Business Line Data and Key Metrics Changes - The company committed approximately $215 million in new corporate capital deployments in 2023, with an expected average five-year annual CAFD yield of about 10% [8][9] - The company continues to execute its long-term growth targets of $2.15 of CAFD per share, reaffirming its ability to achieve 5% to 8% growth through 2026 without needing external capital [8][13] Market Data and Key Metrics Changes - The sponsor's 29 gigawatt renewable pipeline is developing, with approximately 7 gigawatts of late-stage projects targeting CODs over the next four years [22] - The company is focused on resource adequacy awards and pricing in 2027 and beyond, with strong pricing expected to drive value [23] Company Strategy and Development Direction - The company is transitioning to focus on growth beyond 2026, managing RA contracting positions and pursuing value and certainty to drive shareholder value [4] - The company plans to leverage additional drops from its sponsor and is exploring further growth opportunities through M&A and fleet optimization [10][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a difficult year in 2023 due to renewable resource impacts but remains optimistic about growth in 2024 and beyond [25][74] - The company is focused on improving availability from capital expenditures and executing its CAFD guidance while targeting a 7% dividend per share growth in 2024 [15][26] Other Important Information - The company has no external capital needs to fund growth through 2026, with remaining thermal sale proceeds available for committed investments [13] - The company is maintaining a strong balance sheet, with 99% of its consolidated long-term debt at fixed interest rates [25] Q&A Session Summary Question: Maintenance CapEx forecast for 2024 - Management explained that lower maintenance CapEx in 2023 was due to disappointing generation, and reiterated the forecast for 2024 maintenance CapEx [18] Question: Corporate debt to EBITDA leverage expectations - Management indicated that once thermal proceeds are deployed, they expect to be at the low end of the target leverage range of 4x to 4.5x [19][31] Question: M&A activity outlook for 2024 - Management expressed optimism about M&A activity in 2024, noting that market volatility in 2023 hindered execution [43] Question: Contracting open conventional capacity in 2027 - Management stated that major procurement initiatives would occur in late Q1 to early Q2, with binding awards expected in Q3 [51] Question: Domestic content guidance impact on project timelines - Management clarified that the shift of certain projects from 2026 to 2027 reflects a plan to utilize domestic content solutions and ensure project schedules are durable [74]

Clearway Energy Inc. (CWEN) recorded fourth-quarter 2023 earnings of 32 cents per share, which surpassed the Zacks Consensus Estimate of 16 cents by 100%. The bottom line also improved 220% from the year-ago quarter’s level of 10 cents.Full-year 2023 earnings were 67 cents per share, down 86.6% from the previous year’s level of $4.99.RevenuesTotal revenues of $249 million missed the Zacks Consensus Estimate of $284 million by 12.2%. The top line also declined 7.1% from the year-ago quarter’s figure of $268 ...

Clearway Energy (CWEN) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company created by NRG Energy to acquire and operate natural gas, solar and wind plants would post earnings of $0.55 per share when it actually produced earnings of $0 ...