Clearway Energy, Inc. (NYSE:CWEN) Q2 2023 Earnings Conference Call August 8, 2023 8:00 AM ET Company Participants Chris Sotos - President and Chief Executive Officer Sarah Rubenstein - Executive Vice President and Chief Financial Officer Conference Call Participants Julien Dumoulin-Smith - Bank of America Mark Jarvi - CIBC Angie Storozynski - Seaport Research Partners Noah Kaye - Oppenheimer Operator Good day and thank you for standing by. Welcome to the Clearway Energy, Inc. Second Quarter 2023 Earnings Co ...

Fair Value of Derivative Instruments 24 Impact of Derivative Instruments on the Consolidated Statements of Income 25 (a) (b) (c) As of June 30, 2023, S+ equals SOFR plus x% and L+ equals 3 month LIBOR plus x%. Applicable rate is determined by the borrower leverage ratio, as defined in the credit agreement. Premiums relate to the 2028 Senior Notes. Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility Rosamond Central (Rosie Class B LLC) On March 30, 2023, when the Waiawa solar proj ...

Clearway Energy, Inc. (NYSE:CWEN) Q1 2023 Results Conference Call May 4, 2023 8:00 AM ET Company Participants Chris Sotos - President and Chief Executive Officer Craig Cornelius - President and Chief Executive Officer, Clearway Energy Group Conference Call Participants Noah Kaye - Oppenheimer & Co. Angie Storozynski - Seaport Research Partners Mark Jarvi - CIBC Julien Dumoulin-Smith - Bank of America William Grippin - UBS Operator Good day, and thank you for standing by. Welcome to the Clearway Energy, Inc. ...

[PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements and Notes](index=6&type=section&id=ITEM%201%20%E2%80%94%20FINANCIAL%20STATEMENTS%20AND%20NOTES) For Q1 2023, Clearway Energy reported increased operating revenues and improved operating income, with total assets of $12.7 billion and long-term debt of $6.8 billion, driven by strategic acquisitions and refinancing [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2023 saw operating revenues rise to $288 million, reversing a prior-year operating loss to a $42 million income, with net loss attributable to the company at zero Consolidated Statements of Operations (Millions USD) | Financial Metric | Three months ended March 31, 2023 (Millions USD) | Three months ended March 31, 2022 (Millions USD) | | :--- | :--- | :--- | | **Total operating revenues** | $288 | $214 | | **Operating Income (Loss)** | $42 | $(53) | | **Net Loss** | $(40) | $(97) | | **Net Loss Attributable to Clearway Energy, Inc.** | $0 | $(32) | | **Loss per Share (Basic and Diluted)** | $0.00 | $(0.28) | | **Dividends Per Class A/C Share** | $0.3745 | $0.3468 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets reached $12.75 billion and total liabilities $8.59 billion, with long-term debt increasing to $6.77 billion Consolidated Balance Sheets (Millions USD) | Balance Sheet Item | March 31, 2023 (Unaudited, Millions USD) | December 31, 2022 (Millions USD) | | :--- | :--- | :--- | | **Total Assets** | $12,749 | $12,312 | | Cash and cash equivalents | $576 | $657 | | Property, plant and equipment, net | $7,863 | $7,421 | | **Total Liabilities** | $8,587 | $8,279 | | Current portion of long-term debt | $366 | $322 | | Long-term debt | $6,769 | $6,491 | | **Total Stockholders' Equity** | $4,153 | $4,026 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 operating cash flow decreased to $75 million, while financing activities provided $28 million, a significant shift from the prior year's cash usage Consolidated Statements of Cash Flows (Millions USD) | Cash Flow Activity | Three months ended March 31, 2023 (Millions USD) | Three months ended March 31, 2022 (Millions USD) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $75 | $93 | | **Net Cash Used in Investing Activities** | $(86) | $(92) | | **Net Cash Provided by (Used in) Financing Activities** | $28 | $(184) | | **Net Increase (Decrease) in Cash** | $17 | $(188) | [Note 3 — Acquisitions and Dispositions](index=16&type=section&id=Note%203%20%E2%80%94%20Acquisitions%20and%20Dispositions) The company acquired the 300 MW Daggett 3 solar project for $21 million, accounted for as an asset acquisition under common control - The company acquired the Daggett 3 solar project, a 300 MW solar and storage facility under construction, for **$21 million** in cash consideration from its sponsor, CEG[56](index=56&type=chunk) - The acquisition was accounted for as a transfer of assets under common control, with the net assets acquired recorded at a historical cost of **$15 million**[56](index=56&type=chunk) [Note 7 — Long-term Debt](index=24&type=section&id=Note%207%20%E2%80%94%20Long-term%20Debt) Total debt increased to $7.19 billion, with the company refinancing its revolving credit facility to $700 million and extending its maturity to 2028 Long-term Debt (Millions USD) | Debt Component | March 31, 2023 (Millions USD) | December 31, 2022 (Millions USD) | | :--- | :--- | :--- | | Senior Notes | $2,125 | $2,125 | | Revolving Credit Facility | $0 | $0 | | Non-recourse project-level debt | $5,069 | $4,745 | | **Total debt** | **$7,194** | **$6,870** | - On March 15, 2023, the company refinanced its credit agreement, increasing revolving commitments to **$700 million**, extending maturity to March 2028, and transitioning from LIBOR to SOFR[87](index=87&type=chunk) - As part of the Daggett 3 acquisition, the company assumed a financing agreement including a **$181 million** construction loan, a **$229 million** tax equity bridge loan, and a **$75 million** sponsor equity bridge loan (repaid at acquisition)[90](index=90&type=chunk) [Note 9 — Segment Reporting](index=26&type=section&id=Note%209%20%E2%80%94%20Segment%20Reporting) Q1 2023 segment performance shows Renewables with $193 million revenue and Conventional Generation with $95 million revenue, reflecting a shift from prior year Segment Reporting (Q1 2023, Millions USD) | Segment (Q1 2023) | Operating Revenues (Millions USD) | Net Income (Loss) (Millions USD) | Total Assets (Millions USD) | | :--- | :--- | :--- | :--- | | Conventional Generation | $95 | $24 | $2,203 | | Renewables | $193 | $(48) | $10,055 | | Corporate | $0 | $(16) | $491 | | **Total** | **$288** | **$(40)** | **$12,749** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202%20%E2%80%94%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes revenue growth to mark-to-market gains and lower fuel costs, with strong liquidity and continued investment in renewable assets like Daggett 3 [Executive Summary](index=30&type=section&id=Executive%20Summary) Clearway Energy, a major U.S. renewable energy owner, expanded its portfolio with the Daggett 3 solar project and plans to repower the Cedro Hill wind project - The company is one of the largest renewable energy owners in the U.S. with over **5,500 net MW** of installed wind and solar generation projects[109](index=109&type=chunk) - On February 17, 2023, the company acquired the Daggett 3 solar project (**300 MW** solar with matching storage) for **$21 million**[119](index=119&type=chunk) - On May 3, 2023, the company agreed to repower the Cedro Hill wind project, expecting to invest approximately **$63 million** to extend its PPA for an additional **15 years** to 2045[119](index=119&type=chunk) [Consolidated Results of Operations](index=33&type=section&id=Consolidated%20Results%20of%20Operations) Q1 2023 operating revenues increased by $74 million, driven by favorable mark-to-market changes and reduced operating costs post-Thermal Business sale Consolidated Results of Operations (Millions USD) | Line Item | Q1 2023 (Millions USD) | Q1 2022 (Millions USD) | Change (Millions USD) | | :--- | :--- | :--- | :--- | | **Total operating revenues** | $288 | $214 | $74 | | *Mark-to-market for economic hedges* | *$19* | *($126)* | *$145* | | **Total operating costs and expenses** | $246 | $267 | ($21) | | **Operating Income (Loss)** | $42 | ($53) | $95 | | **Interest expense** | $99 | $47 | $52 | | **Net Loss** | ($40) | ($97) | $57 | - The increase in operating revenue was primarily driven by a **$145 million** positive change in mark-to-market for economic hedges in the ERCOT and PJM markets, offset by a **$59 million** revenue decrease from the sale of the Thermal Business[121](index=121&type=chunk) - Operations and maintenance expense increased by **$7 million**, driven by the acquisition of the Capistrano Wind Portfolio and maintenance activities at wind and conventional facilities[123](index=123&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity increased to $1.57 billion, supported by a refinanced revolving credit facility and $88 million in capital expenditures for growth projects Liquidity and Capital Resources (Millions USD) | Liquidity Component | March 31, 2023 (Millions USD) | December 31, 2022 (Millions USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $576 | $657 | | Restricted cash | $437 | $339 | | Revolving credit facility availability | $561 | $370 | | **Total liquidity** | **$1,574** | **$1,366** | - The company refinanced its revolving credit facility on March 15, 2023, increasing its size to **$700 million** and extending the maturity to March 2028[133](index=133&type=chunk) - Capital expenditures for Q1 2023 totaled **$88 million**, including **$81 million** for growth, primarily for the Daggett 3 (**$74 million**) and Waiawa (**$7 million**) solar projects[141](index=141&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=ITEM%203%20%E2%80%94%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages commodity price and interest rate risks, with a $0.50/MWh power price change impacting derivatives by $7 million and a 1% interest rate change affecting expense by $1 million - A hypothetical **$0.50 per MWh** increase or decrease in power prices would change the net value of power derivatives by approximately **$7 million** as of March 31, 2023[174](index=174&type=chunk) - A **1% (100 basis points)** change in interest rates would result in an approximately **$1 million** change in market interest expense on a rolling twelve-month basis[178](index=178&type=chunk) - The fair value of the company's debt was **$6.76 billion**, while its carrying value was **$7.20 billion** as of March 31, 2023[179](index=179&type=chunk) [Controls and Procedures](index=43&type=section&id=ITEM%204%20%E2%80%94%20CONTROLS%20AND%20PROCEDURES) Management confirmed the effectiveness of disclosure controls and procedures, with no material changes to internal control over financial reporting in Q1 2023 - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[182](index=182&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2023, that materially affected, or are reasonably likely to materially affect, these controls[183](index=183&type=chunk) [PART II — OTHER INFORMATION](index=44&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=ITEM%201%20%E2%80%94%20LEGAL%20PROCEEDINGS) The company is in litigation with the City of Georgetown over the Buckthorn Westex solar project PPA, with a trial expected in October 2023 - The company's subsidiary, Buckthorn Westex, is in a legal dispute with the City of Georgetown, Texas, over the PPA for the Buckthorn solar project[104](index=104&type=chunk) - Georgetown alleges fraud and breach of contract, seeking to terminate the PPA. Buckthorn Westex denies the claims and has counterclaimed for non-payment[104](index=104&type=chunk) - A court denied Georgetown's motion for summary judgment and granted Buckthorn Westex's motion regarding the fraud claim. The case is expected to go to trial in October 2023[104](index=104&type=chunk) [Risk Factors](index=44&type=section&id=ITEM%201A%20%E2%80%94%20RISK%20FACTORS) No material changes to the company's risk factors have occurred since those reported in its 2022 Annual Report on Form 10-K - No material changes in the Company's risk factors have occurred since those reported in its 2022 Form 10-K[187](index=187&type=chunk)

Financial Performance & Outlook - Clearway Energy's 2022 full year CAFD was $326 million[3], impacted by wind resource and forced outages[3] - The company is reaffirming its 2023 CAFD guidance of $410 million[22] - The company anticipates achieving the upper range of its 5-8% DPS growth target through 2026[14] - An increase in Pro Forma CAFD Outlook from $390 million to $410 million for Victory Pass/Arica[13] Capital Allocation & Investments - Clearway Energy committed to approximately $348 million of new long-term corporate capital investments in 2022[4] - The company raised over $1.3 billion of corporate level capital through Thermal disposition[10] - Approximately $228 million of corporate capital is committed to invest in Victory Pass/Arica projects[23] - $750 million of excess Thermal proceeds are fully allocated, supporting over $2.15 of CAFD per share[24] Growth & Pipeline - The sponsor's renewable pipeline grows to 27.7 GW, including 7.2 GW of late-stage projects[11] - The company has a repowering pipeline containing over 1 GW of projects targeting CODs over the next 4 years[6]

Part I [Item 1 — Business](index=6&type=section&id=Item%201%20%E2%80%94%20Business) Clearway Energy, Inc. is a major US renewable energy owner with over 8,000 net MW of wind, solar, and natural gas assets, emphasizing long-term contracts and dividend growth - The company is one of the largest renewable energy owners in the U.S. with a portfolio of over **5,500 net MW** of installed wind and solar generation projects and a total of over **8,000 net MW** including natural gas facilities[17](index=17&type=chunk) - The majority of revenues are derived from long-term offtake agreements with a weighted average remaining contract duration of approximately **11 years** as of December 31, 2022[17](index=17&type=chunk) - On May 1, 2022, the company completed the sale of 100% of its interests in the Thermal Business to KKR[18](index=18&type=chunk) - The company is sponsored by GIP and TotalEnergies through Clearway Energy Group LLC (CEG), which became equally owned by both entities on September 12, 2022[16](index=16&type=chunk) [Business Strategy and Competitive Strengths](index=7&type=section&id=Business%20Strategy%20and%20Competitive%20Strengths) The company's strategy focuses on acquiring assets with predictable, long-term cash flows to support dividend growth, leveraging stable contracts and significant scale - The primary business strategy is to acquire and own assets with predictable, long-term cash flows to increase dividends over time[24](index=24&type=chunk) Committed Investments with CEG | Asset | Technology | Gross Capacity (MW) | State | COD | Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Daggett Solar 3 | Solar/Storage | 300 | CA | 1H23 | Committed | | Daggett Solar 2 | Solar/Storage | 182 | CA | 2H23 | Committed | | Arica | Solar/Storage | 263 | CA | 2H23 | Committed | | Victory Pass | Solar/Storage | 200 | CA | 2H23 | Committed | - Competitive strengths include stable cash flows from long-term contracts (**11-year** weighted-average remaining duration), an environmentally well-positioned portfolio, and significant scale as one of the largest renewable energy owners in the U.S.[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) [Segment Review](index=9&type=section&id=Segment%20Review) The company operates in Conventional Generation, Renewables, and Corporate segments, with 2022 results significantly impacted by the Thermal Business sale Segment Financial Summary (Year ended December 31, 2022) | Segment | Operating Revenues (in millions) | Net Income (Loss) (in millions) | Total Assets (in millions) | | :--- | :--- | :--- | :--- | | Conventional Generation | $417 | $161 | $2,251 | | Renewables | $696 | $(58) | $9,515 | | Thermal | $77 | $17 | $— | | Corporate | $— | $940 | $546 | | **Total** | **$1,190** | **$1,060** | **$12,312** | - The Corporate segment's net income for 2022 includes a **$1.29 billion** gain from the sale of the Thermal Business to KKR, which was completed on May 1, 2022[35](index=35&type=chunk) [Regulatory and Environmental Matters](index=10&type=section&id=Regulatory%20and%20Environmental%20Matters) The company's operations are subject to extensive federal and state regulations, including environmental laws, with most facilities qualifying for certain exemptions - The company's U.S. generating facilities are subject to regulation by agencies like FERC and PUCT, and qualify as either an Exempt Wholesale Generator (EWG) or a Qualifying Facility (QF)[39](index=39&type=chunk)[40](index=40&type=chunk) - The company is monitoring proposed federal regulations concerning the incidental take of migratory birds (MBTA) and eagles, which could impact operations[48](index=48&type=chunk)[49](index=49&type=chunk) - During 2022, approximately **33%** of consolidated revenue was derived from Southern California Edison (SCE) and **25%** from Pacific Gas and Electric Company (PG&E)[51](index=51&type=chunk) [Human Capital and ESG](index=12&type=section&id=Human%20Capital%20and%20ESG) The company, with 58 employees, emphasizes human capital, diversity, and ESG, having issued **$2.1 billion** in green bonds for renewable projects - The company had **58 employees** as of year-end 2022 and also depends on personnel from its sponsor, CEG, for asset management and O&M services[52](index=52&type=chunk) - The company's Equity, Partnership & Inclusion Council (EPIC) focuses on diversity and inclusion across three areas: Our People, Our Product & Customers, and Our Purchasing[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - The company has issued **$2.1 billion** in corporate green bonds to finance or refinance new and existing renewable energy projects, primarily solar and wind[61](index=61&type=chunk) [Item 1A — Risk Factors](index=14&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) The company faces significant risks across business operations, sponsor relationships, regulation, common stock, and taxation, including reliance on acquisitions and substantial debt [Risks Related to the Company's Business](index=16&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Business) Business risks include limited internal funding for growth, acquisition challenges, counterparty defaults, substantial indebtedness, and operational hazards - The company relies primarily on external financing for acquisitions and growth, as its policy is to distribute a significant amount of Cash Available for Distribution (CAFD)[73](index=73&type=chunk) - A significant portion of revenue comes from long-term offtake agreements, with major customers SCE and PG&E representing **33%** and **25%** of 2022 consolidated revenues, respectively. Counterparty failure to fulfill obligations is a key risk[77](index=77&type=chunk) - As of December 31, 2022, the company had approximately **$6.87 billion** of total consolidated indebtedness, which could limit its ability to raise capital, pay dividends, and react to market changes[82](index=82&type=chunk) [Risks Related to the Company's Relationships with GIP, TotalEnergies and CEG](index=26&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Relationships%20with%20GIP%2C%20TotalEnergies%20and%20CEG) The company is highly dependent on its sponsors, GIP and TotalEnergies, through CEG, which holds **54.91%** voting power and provides essential services - CEG owns **54.91%** of the combined voting power of the company's common stock, giving its owners, GIP and TotalEnergies, substantial influence over the company's affairs[122](index=122&type=chunk) - The company is highly dependent on services provided by CEG under the CEG Master Services Agreement, which is perpetual and can only be terminated under specific circumstances[123](index=123&type=chunk)[127](index=127&type=chunk) - As a "controlled company," the company is exempt from certain NYSE corporate governance requirements, such as having a majority of independent directors[132](index=132&type=chunk) [Risks Related to Regulation](index=28&type=section&id=Risks%20Related%20to%20Regulation) The company faces risks from extensive and evolving governmental regulations, including environmental laws, changes in market rules, and reliance on renewable energy incentives - The business is subject to extensive federal, state, and local environmental, health, and safety laws, including potential liabilities for hazardous material releases and increasing costs related to GHG emissions[133](index=133&type=chunk)[134](index=134&type=chunk) - Changes in government regulations, including the potential loss of market-based rate authority from FERC or failure to maintain EWG/QF status, could materially impact profitability[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - The growth strategy depends on government incentives for renewable power (e.g., ITCs, PTCs, RPS programs), and the reduction or elimination of these incentives could decrease acquisition opportunities and project viability[143](index=143&type=chunk)[144](index=144&type=chunk) [Risks Related to the Company's Common Stock](index=31&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Common%20Stock) Risks to common stock include dividend sustainability, dependence on subsidiary distributions, market volatility, and potential dilution from future stock sales - The ability to pay dividends is not guaranteed and depends on fluctuating cash flow from operations, debt service requirements, and restrictions in debt agreements[147](index=147&type=chunk)[148](index=148&type=chunk) - The company is a holding company, dependent on distributions from its subsidiary Clearway Energy LLC to pay dividends and other expenses[151](index=151&type=chunk) - Future sales of Class A or Class C common stock by CEG could cause the market price of the stock to fall due to increased supply or the perception of such sales[162](index=162&type=chunk) [Risks Related to Taxation](index=34&type=section&id=Risks%20Related%20to%20Taxation) Taxation risks include potential limitations on Net Operating Losses (NOLs) and the possibility of distributions being treated as taxable dividends - Future tax liability may be greater than expected if the company does not generate sufficient NOLs to offset taxable income. The company estimates it will not pay material federal income tax through **2027** but expects to pay material state income tax beginning in **2023**[164](index=164&type=chunk) - The ability to use NOLs could be substantially limited by an "ownership change" as defined under Section 382 of the Internal Revenue Code[166](index=166&type=chunk) - Due to the gain on the Thermal Disposition in 2022, the company anticipates being in a cumulative earnings and profits surplus position, which may cause a portion of distributions in **2023** and beyond to be treated as taxable dividends for U.S. federal income tax purposes[169](index=169&type=chunk) [Item 2 — Properties](index=38&type=section&id=Item%202%20%E2%80%94%20Properties) As of December 31, 2022, Clearway Energy's portfolio includes **8,078 MW** of conventional, solar, and wind assets across the U.S Portfolio Summary by Asset Type (as of Dec 31, 2022) | Asset Type | Rated MW | Net MW | Number of Projects/Portfolios | | :--- | :--- | :--- | :--- | | Conventional | 2,662 | 2,472 | 6 | | Utility Scale Solar | 2,307 | 1,616 | 16 | | Distributed Solar | 332 | 332 | 3 Portfolios | | Wind | 4,157 | 3,658 | 27 | | **Total** | **9,458** | **8,078** | **52** | [Item 3 — Legal Proceedings](index=40&type=section&id=Item%203%20%E2%80%94%20Legal%20Proceedings) The company is involved in a legal dispute with the City of Georgetown, Texas, concerning a PPA, with trial expected in June 2023 - The City of Georgetown, Texas filed a petition against the company's subsidiary, Buckthorn Westex, LLC, alleging fraud and breach of contract related to a PPA[521](index=521&type=chunk) - Buckthorn Westex has filed counterclaims, denying the allegations and alleging Georgetown has breached the contract by failing to pay amounts due. The case is expected to proceed to trial in **June 2023**[521](index=521&type=chunk) Part II [Item 5 — Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%205%20%E2%80%94%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A and C common stock trade on the NYSE, with a declared quarterly dividend of **$0.3745** per share, showing strong historical performance - The company's Class A and Class C common stock are listed on the NYSE under symbols "CWEN.A" and "CWEN," respectively[183](index=183&type=chunk) - On February 15, 2023, the company declared a quarterly dividend of **$0.3745** per share on its Class A and Class C common stock[184](index=184&type=chunk) Stock Performance Comparison (Cumulative Total Return) | Investment | Dec 31, 2017 | Dec 31, 2022 | | :--- | :--- | :--- | | Clearway Energy, Inc. Class A | $100.00 | $198.47 | | Clearway Energy, Inc. Class C | $100.00 | $209.85 | | S&P 500 | $100.00 | $155.59 | | UTY (Philadelphia Utility Sector Index) | $100.00 | $161.83 | [Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%207%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 2022 financial results were significantly impacted by the **$1.29 billion** gain from the Thermal Business sale, leading to **$1.06 billion** net income and improved liquidity [Executive Summary and Significant Events](index=44&type=section&id=Executive%20Summary%20and%20Significant%20Events) Key 2022 events included the **$1.46 billion** Thermal Business sale, the **413 MW** Capistrano Wind Portfolio acquisition, and strategic debt repayments - Completed the sale of the Thermal Business to KKR on May 1, 2022, for net proceeds of approximately **$1.46 billion**, resulting in a gain on sale of **$1.29 billion**[195](index=195&type=chunk) - Acquired the **413 MW** Capistrano Wind Portfolio from a CEG subsidiary on August 22, 2022, for net consideration of approximately **$239 million**[196](index=196&type=chunk) - Executed several drop-down transactions with CEG, acquiring interests in the Waiawa and Mililani I solar projects in Hawaii[198](index=198&type=chunk) - Utilized proceeds from the Thermal Disposition to repay **$335 million** on its Bridge Loan Agreement and **$305 million** on its revolving credit facility on May 3, 2022[199](index=199&type=chunk) [Consolidated Results of Operations (2022 vs. 2021)](index=46&type=section&id=Consolidated%20Results%20of%20Operations%20%282022%20vs.%202021%29) Net income attributable to Clearway Energy, Inc. increased to **$582 million** in 2022, driven by a **$1.29 billion** gain on the Thermal Business sale Consolidated Financial Highlights | Metric (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Total operating revenues | $1,190 | $1,286 | | Gain on sale of business | $1,292 | $— | | Operating Income | $1,470 | $267 | | Net Income (Loss) | $1,060 | $(75) | | Net Income Attributable to Clearway Energy, Inc. | $582 | $51 | - The **$96 million** decrease in operating revenues was primarily driven by a **$130 million** reduction from the sale of the Thermal Business and a **$23 million** decrease in Conventional segment revenue, partially offset by revenue increases from renewable asset acquisitions[205](index=205&type=chunk) - Interest expense decreased by **$80 million**, largely due to a **$47 million** favorable change in the fair value of interest rate swaps and lower principal balances on debt[214](index=214&type=chunk) - Income tax expense increased by **$210 million** to **$222 million**, primarily due to taxable earnings from the gain on the sale of the Thermal Business[215](index=215&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity increased to approximately **$1.37 billion** as of December 31, 2022, primarily due to proceeds from the Thermal Business sale Liquidity Position (as of Dec 31) | Component (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash | $996 | $654 | | Revolving credit facility availability | $370 | $167 | | **Total liquidity** | **$1,366** | **$821** | - Principal uses of liquidity include debt service, capital expenditures (**$112 million** in 2022), acquisitions (e.g., Capistrano Wind Portfolio for ~**$239 million**), and dividends[228](index=228&type=chunk)[234](index=234&type=chunk)[244](index=244&type=chunk) Debt Principal Maturities (as of Dec 31, 2022) | Period | Amount (in millions) | | :--- | :--- | | 2023 | $419 | | 2024 | $410 | | 2025 | $382 | | 2026 | $361 | | 2027 | $399 | | Thereafter | $4,899 | | **Total** | **$6,870** | [Cash Flow Discussion](index=55&type=section&id=Cash%20Flow%20Discussion) Net cash from investing activities was a source of **$1.065 billion** in 2022, primarily due to **$1.46 billion** in proceeds from the Thermal Business sale Consolidated Cash Flow Summary | Cash Flow Activity (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $787 | $701 | | Net cash provided by (used in) investing activities | $1,065 | $(865) | | Net cash (used in) provided by financing activities | $(1,510) | $367 | - The positive swing in investing cash flow was primarily due to **$1.46 billion** in proceeds from the sale of the Thermal Business[251](index=251&type=chunk) - The increase in cash used for financing activities was driven by decreased contributions from noncontrolling interests, net repayments on the revolving credit facility, and net payments on long-term debt[252](index=252&type=chunk) [Item 7A — Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%207A%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks including commodity price, interest rate, liquidity, and counterparty credit through derivatives and diversified portfolios - The company manages commodity price risk for its merchant generation operations by using derivative instruments to hedge future cash flows from power sales[276](index=276&type=chunk) - A sensitivity analysis shows a **$0.50** per MWh change in power prices would alter the net value of power derivatives by approximately **$7 million**[277](index=277&type=chunk) - The company uses interest rate swaps to mitigate exposure to interest rate fluctuations on its variable rate debt. A **1%** change in interest rates would result in an approximate **$1 million** change in annual interest expense[278](index=278&type=chunk)[281](index=281&type=chunk) [Item 9A — Controls and Procedures](index=61&type=section&id=Item%209A%20%E2%80%94%20Controls%20and%20Procedures) Management and independent auditors concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (December 31, 2022)[287](index=287&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2022, based on the COSO framework (2013)[291](index=291&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, issued an unqualified opinion, stating that the company maintained effective internal control over financial reporting as of December 31, 2022[294](index=294&type=chunk) Part III [Item 10 — Information about Directors, Executive Officers and Corporate Governance](index=64&type=section&id=Item%2010%20%E2%80%94%20Information%20about%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section provides biographical information for directors and executive officers, including the CEO, and details the company's Code of Business Conduct and Ethics - The Board of Directors is chaired by Jonathan Bram, a founding partner of GIP, and includes representatives from GIP and TotalEnergies, as well as independent directors[304](index=304&type=chunk) - The executive officers include Christopher S. Sotos (President and CEO), Sarah Rubenstein (SVP and Chief Accounting Officer), and Kevin P. Malcarney (EVP, General Counsel and Corporate Secretary)[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk) - The company has adopted a Code of Business Conduct and Ethics, which is available on its website[316](index=316&type=chunk) [Item 11, 13, 14 — Executive Compensation and Other Matters](index=67&type=section&id=Item%2011%2C%2013%2C%2014%20%E2%80%94%20Executive%20Compensation%20and%20Other%20Matters) Information on executive compensation, related party transactions, and accounting fees is incorporated by reference from the 2023 Proxy Statement - Details regarding executive compensation, related party transactions, director independence, and principal accounting fees are not included directly in this 10-K but are incorporated by reference from the **2023** Proxy Statement[319](index=319&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk) [Item 12 — Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=67&type=section&id=Item%2012%20%E2%80%94%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details securities authorized for issuance under equity compensation plans, with **3,110,282** securities available for future issuance Securities Authorized for Issuance under Equity Compensation Plan | Plan Category | Number of Securities to be Issued Upon Exercise | Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 585,813 | 3,110,282 | | Equity compensation plans not approved by security holders | 0 | 0 | | **Total** | **585,813** | **3,110,282** | Part IV [Item 15 — Exhibits, Financial Statement Schedules](index=68&type=section&id=Item%2015%20%E2%80%94%20Exhibits%2C%20Financial%20Statement%20Schedules) This section includes consolidated financial statements, independent auditor reports, detailed notes, and an index of all exhibits filed [Consolidated Financial Statements](index=72&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show **$1.06 billion** net income and **$1.19 billion** operating revenues for 2022, driven by the Thermal Business sale Key Financial Statement Data (Year Ended Dec 31, 2022) | Metric (in millions) | Amount | | :--- | :--- | | **Income Statement:** | | | Total Operating Revenues | $1,190 | | Operating Income | $1,470 | | Net Income | $1,060 | | Net Income Attributable to Clearway Energy, Inc. | $582 | | **Balance Sheet (End of Period):** | | | Total Assets | $12,312 | | Total Liabilities | $8,279 | | Total Stockholders' Equity | $4,026 | [Notes to Consolidated Financial Statements](index=77&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, significant acquisitions and dispositions, **$6.87 billion** in long-term debt, segment reporting, and income tax specifics - **Note 3 (Acquisitions & Dispositions):** Details the sale of the Thermal Business for net proceeds of ~**$1.46 billion** and a gain of ~**$1.29 billion**. Also covers the acquisition of the Capistrano Wind Portfolio and drop-downs of the Waiawa and Mililani I solar projects[415](index=415&type=chunk)[417](index=417&type=chunk)[418](index=418&type=chunk)[430](index=430&type=chunk) - **Note 10 (Long-term Debt):** As of Dec 31, 2022, total long-term debt was **$6.87 billion**, comprising **$2.13 billion** in corporate-level senior notes and **$4.75 billion** in non-recourse project-level debt[470](index=470&type=chunk) - **Note 13 (Segment Reporting):** For 2022, major customers SCE and PG&E accounted for **34%** and **25%** of total revenues, respectively, across the Conventional and Renewables segments[501](index=501&type=chunk) - **Note 14 (Income Taxes):** The company recorded income tax expense of **$222 million** in 2022, primarily due to the taxable gain on the sale of the Thermal Business. It has federal NOL carryforwards of **$100 million** (tax-effected)[505](index=505&type=chunk)[511](index=511&type=chunk)

Clearway Energy, Inc. (NYSE:CWEN) Q3 2022 Earnings Conference Call November 2, 2022 8:00 AM ET Company Participants Christopher Sotos - President and CEO Craig Cornelius - President and CEO, Clearway Energy Group Conference Call Participants Julien Dumoulin-Smith - Bank of America Noah Kaye - Oppenheimer Mark Jarvi - CIBC Justin Clare - ROTH Capital Partners Keith Stanley - Wolfe Research Michael Lapides - Goldman Sachs Angie Storozynski - Seaport Antoine Aurimond - Bank of America Operator Good day, and th ...

[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](index=3&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This section provides a standard cautionary statement regarding forward-looking information, identifying common forward-looking terms and listing various known and unknown risks that could cause the Company's actual results to differ materially from those projected - Forward-looking statements are identified by words such as 'believes,' 'projects,' 'anticipates,' 'plans,' 'expects,' 'intends,' and 'estimates'[7](index=7&type=chunk) - Key risks include the Company's ability to maintain and grow its quarterly dividend, potential risks related to COVID-19, relationships with GIP, TotalEnergies and CEG, successful identification and consummation of acquisitions/dispositions, ability to raise additional capital, changes in law, hazards customary to the power production industry, operational efficiency, counterparty obligations, government regulation, operating/financial restrictions, cybersecurity, and access to capital markets[7](index=7&type=chunk) [GLOSSARY OF TERMS](index=4&type=section&id=GLOSSARY%20OF%20TERMS) This section provides definitions for key terms and abbreviations used throughout the report, covering financial metrics (e.g., Adjusted EBITDA, CAFD), company entities (e.g., CEG, GIP, KKR, TotalEnergies), debt instruments (e.g., Senior Notes), and project types (e.g., Distributed Solar, Utility Scale Solar, Thermal Business) [PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This part presents Clearway Energy, Inc.'s unaudited consolidated financial statements, including income, comprehensive income, balance sheets, cash flows, and stockholders' equity, along with detailed notes. It also includes management's discussion and analysis of financial condition and results of operations, market risk disclosures, and controls and procedures [ITEM 1 — FINANCIAL STATEMENTS AND NOTES](index=6&type=section&id=ITEM%201%20%E2%80%94%20FINANCIAL%20STATEMENTS%20AND%20NOTES) This item presents the unaudited consolidated financial statements for Clearway Energy, Inc. for the three and nine months ended September 30, 2022 and 2021, and the balance sheets as of September 30, 2022 and December 31, 2021. It includes detailed notes on the nature of business, accounting policies, acquisitions, dispositions, investments, fair value measurements, derivatives, long-term debt, earnings per share, segment reporting, income taxes, related party transactions, and legal contingencies [CONSOLIDATED STATEMENTS OF INCOME](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Presents the company's consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 **Three Months Ended September 30 (in millions, except per share amounts):** | Metric | 2022 | 2021 | Change (YoY) | | :----------------------------------- | :--- | :--- | :----------- | | Total operating revenues | $340 | $351 | $(11) | | Total operating costs and expenses | $235 | $262 | $(27) | | Operating Income | $105 | $89 | $16 | | Net Income (Loss) | $62 | $25 | $37 | | Net Income Attributable to Clearway Energy, Inc. | $32 | $21 | $11 | | Earnings per Weighted Average Class A and Class C Common Share | $0.28 | $0.18 | $0.10 | | Dividends Per Class A Common Share | $0.3604 | $0.3345 | $0.0259 | | Dividends Per Class C Common Share | $0.3604 | $0.3345 | $0.0259 | **Nine Months Ended September 30 (in millions, except per share amounts):** | Metric | 2022 | 2021 | Change (YoY) | | :----------------------------------- | :--- | :--- | :----------- | | Total operating revenues | $922 | $968 | $(46) | | Total operating costs and expenses | $755 | $760 | $(5) | | Gain on sale of business | $1,291 | — | $1,291 | | Operating Income | $1,458 | $208 | $1,250 | | Net Income (Loss) | $1,114 | $(19) | $1,133 | | Net Income Attributable to Clearway Energy, Inc. | $570 | $59 | $511 | | Earnings per Weighted Average Class A and Class C Common Share | $4.89 | $0.51 | $4.38 | | Dividends Per Class A Common Share | $1.0608 | $0.9875 | $0.0733 | | Dividends Per Class C Common Share | $1.0608 | $0.9875 | $0.0733 | [CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Presents the company's consolidated statements of comprehensive income for the three and nine months ended September 30, 2022 and 2021 **Three Months Ended September 30 (in millions):** | Metric | 2022 | 2021 | Change (YoY) | | :----------------------------------- | :--- | :--- | :----------- | | Net Income (Loss) | $62 | $25 | $37 | | Other Comprehensive Income | $11 | $3 | $8 | | Comprehensive Income (Loss) | $73 | $28 | $45 | | Comprehensive Income Attributable to Clearway Energy, Inc. | $36 | $22 | $14 | **Nine Months Ended September 30 (in millions):** | Metric | 2022 | 2021 | Change (YoY) | | :----------------------------------- | :--- | :--- | :----------- | | Net Income (Loss) | $1,114 | $(19) | $1,133 | | Other Comprehensive Income | $31 | $14 | $17 | | Comprehensive Income (Loss) | $1,145 | $(5) | $1,150 | | Comprehensive Income Attributable to Clearway Energy, Inc. | $582 | $65 | $517 | [CONSOLIDATED BALANCE SHEETS](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Presents the company's consolidated balance sheets as of September 30, 2022, and December 31, 2021 **Consolidated Balance Sheet Highlights (in millions):** | Metric | Sep 30, 2022 | Dec 31, 2021 | Change | | :----------------------------------- | :----------- | :----------- | :----- | | Total Assets | $12,596 | $12,813 | $(217) | | Total Liabilities | $8,480 | $9,513 | $(1,033) | | Total Stockholders' Equity | $4,109 | $3,300 | $809 | | Cash and cash equivalents | $793 | $179 | $614 | | Restricted cash | $363 | $475 | $(112) | | Current assets held-for-sale | — | $631 | $(631) | | Current portion of long-term debt | $493 | $772 | $(279) | | Current liabilities held-for-sale | — | $494 | $(494) | | Long-term debt | $6,519 | $6,939 | $(420) | [CONSOLIDATED STATEMENTS OF CASH FLOWS](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Presents the company's consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 **Nine Months Ended September 30 (in millions):** | Metric | 2022 | 2021 | Change (YoY) | | :----------------------------------- | :--- | :--- | :----------- | | Net Cash Provided by Operating Activities | $607 | $529 | $78 | | Net Cash Provided by (Used in) Investing Activities | $1,100 | $(430) | $1,530 | | Net Cash Used in Financing Activities | $(1,205) | $(9) | $(1,196) | | Net Increase in Cash, Cash Equivalents and Restricted Cash | $502 | $90 | $412 | | Cash, Cash Equivalents and Restricted Cash at end of period | $1,156 | $555 | $601 | [CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) Presents the company's consolidated statements of stockholders' equity for the nine months ended September 30, 2022 and 2021 - Total Stockholders' Equity increased from **$3,300 million** at December 31, 2021, to **$4,109 million** at September 30, 2022[26](index=26&type=chunk) - Net income attributable to Clearway Energy, Inc. was **$570 million** for the nine months ended September 30, 2022, contributing to the increase in retained earnings[26](index=26&type=chunk) [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](index=12&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed disclosures and explanations for the financial statements, covering the company's business nature, significant accounting policies, recent acquisitions and dispositions, equity method investments, fair value measurements, derivative instruments, long-term debt, earnings per share calculations, segment performance, income taxes, related party transactions, and legal contingencies [Note 1 — Nature of Business](index=12&type=section&id=Note%201%20%E2%80%94%20Nature%20of%20Business) Describes Clearway Energy, Inc.'s business as an energy infrastructure investor, its sponsorship, asset portfolio, and key transactions - Clearway Energy, Inc. is a publicly-traded energy infrastructure investor in modern, sustainable, and long-term contracted assets across North America[32](index=32&type=chunk) - The Company is sponsored by GIP and TotalEnergies through Clearway Energy Group LLC (CEG), which became equally owned by GIP and TotalEnergies as of September 12, 2022[32](index=32&type=chunk)[39](index=39&type=chunk) - The Company is one of the largest renewable energy owners in the U.S. with over **5,500 net MW** of installed wind and solar generation projects, and also includes approximately **2,500 net MW** of natural gas-fired generation facilities, totaling over **8,000 net MW** of assets[33](index=33&type=chunk) - On May 1, 2022, the Company completed the sale of **100%** of its interests in the Thermal Business to KKR[34](index=34&type=chunk) - As of September 30, 2022, the Company owned **57.86%** of the economic interests of Clearway Energy LLC, with CEG owning **42.14%**[36](index=36&type=chunk) [Note 2 — Summary of Significant Accounting Policies](index=13&type=section&id=Note%202%20%E2%80%94%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the company's significant accounting policies, including cash, dividends, revenue recognition, and segment reporting **Cash, Cash Equivalents and Restricted Cash (in millions):** | Metric | Sep 30, 2022 | Dec 31, 2021 | | :----------------------------------- | :----------- | :----------- | | Cash and cash equivalents | $793 | $179 | | Restricted cash | $363 | $475 | | Total Cash, cash equivalents and restricted cash | $1,156 | $654 | - Restricted cash includes **$144 million** for operating expenses, **$66 million** for current debt service, **$124 million** for reserves (debt service, performance obligations, capital expenditures), and **$29 million** in distribution reserve accounts as of September 30, 2022[44](index=44&type=chunk) **Dividends Per Share (Class A & C):** | Quarter | 2022 (per share) | | :----------------------------------- | :--------------- | | Third Quarter | $0.3604 | | Second Quarter | $0.3536 | | First Quarter | $0.3468 | *Note: On November 2, 2022, the Company declared quarterly dividends of $0.3672 per share payable on December 15, 2022.* - The majority of the Company's revenues are obtained through Power Purchase Agreements (PPAs) or similar contractual agreements, often accounted for as operating leases[54](index=54&type=chunk) **Total Operating Revenues by Segment (in millions):** | Period | Conventional Generation | Renewables | Thermal | Total | | :----------------------------------- | :---------------------- | :--------- | :------ | :---- | | Three months ended Sep 30, 2022 | $102 | $238 | — | $340 | | Three months ended Sep 30, 2021 | $118 | $179 | $54 | $351 | | Nine months ended Sep 30, 2022 | $313 | $532 | $77 | $922 | | Nine months ended Sep 30, 2021 | $329 | $487 | $152 | $968 | [Note 3 — Acquisitions and Dispositions](index=19&type=section&id=Note%203%20%E2%80%94%20Acquisitions%20and%20Dispositions) Details the company's recent acquisitions and dispositions, including solar and wind projects and the sale of the Thermal Business - On October 3, 2022, the Company acquired the Waiawa solar project (**36 MW** with matching storage) for **$20 million** cash[73](index=73&type=chunk) - On August 22, 2022, the Company acquired the Capistrano Wind Portfolio (five wind projects, **413 MW**) for approximately **$239 million** net consideration[74](index=74&type=chunk) - On March 25, 2022, the Company acquired the Mililani I solar project (**39 MW** with matching storage) for **$22 million** cash[77](index=77&type=chunk) - On August 1, 2022, the Company sold **100%** of its Class A interests in the Kawailoa Partnership for **$9 million** cash[79](index=79&type=chunk) - On May 1, 2022, the Company completed the sale of **100%** of its interests in the Thermal Business to KKR for net proceeds of approximately **$1.46 billion**, resulting in a gain on sale of business of approximately **$1.29 billion**[81](index=81&type=chunk) [Note 4 — Investments Accounted for by the Equity Method and Variable Interest Entities](index=21&type=section&id=Note%204%20%E2%80%94%20Investments%20Accounted%20for%20by%20the%20Equity%20Method%20and%20Variable%20Interest%20Entities) Discusses the company's accounting for equity method investments and variable interest entities, including exposure to loss - The Company consolidates certain entities identified as Variable Interest Entities (VIEs), primarily related to tax equity arrangements for wind and solar facilities[82](index=82&type=chunk) - The Company's maximum exposure to loss in unconsolidated entities (equity method investments) is limited to its equity investment balance, which was **$377 million** as of September 30, 2022[89](index=89&type=chunk) [Note 5 — Fair Value of Financial Instruments](index=23&type=section&id=Note%205%20%E2%80%94%20Fair%20Value%20of%20Financial%20Instruments) Provides fair value disclosures for financial instruments, including long-term debt and derivatives, and their valuation hierarchy **Long-term Debt Carrying Amount and Fair Value (in millions):** | Metric | Sep 30, 2022 | Dec 31, 2021 | | :----------------------------------- | :----------- | :----------- | | Carrying Amount | $7,077 | $7,782 | | Fair Value | $6,297 | $7,997 | **Fair Value Hierarchy for Long-term Debt (in millions):** | Level | Sep 30, 2022 | Dec 31, 2021 | | :----------------------------------- | :----------- | :----------- | | Level 2 | $1,752 | $2,159 | | Level 3 | $4,545 | $5,838 | **Derivative Assets and Liabilities Fair Value (in millions):** | Metric | Sep 30, 2022 | Dec 31, 2021 | | :----------------------------------- | :----------- | :----------- | | Derivative assets | $94 | $6 | | Derivative liabilities | $370 | $179 | - Significant unobservable inputs for Level 3 commodity contracts include forward market prices (per MWh) ranging from **$23.33 to $129.06**, with a weighted average of **$41.69** as of September 30, 2022[101](index=101&type=chunk) - A significant portion of commodity contracts are with utilities with strong credit quality, but PG&E, a significant counterparty, has a credit rating below investment-grade[103](index=103&type=chunk) [Note 6 — Derivative Instruments and Hedging Activities](index=26&type=section&id=Note%206%20%E2%80%94%20Derivative%20Instruments%20and%20Hedging%20Activities) Describes the company's use of derivative instruments for hedging interest rate and commodity price risks, and their financial impact - The Company uses interest rate swap agreements to hedge the variability of expected future cash interest payments, with instruments extending through 2031[106](index=106&type=chunk) - Energy-related derivative instruments extend through 2033 but are not designated as cash flow or fair value hedges[107](index=107&type=chunk) **Total Derivatives Fair Value (in millions):** | Metric | Sep 30, 2022 | Dec 31, 2021 | | :----------------------------------- | :----------- | :----------- | | Total Derivative Assets | $94 | $6 | | Total Derivative Liabilities | $370 | $242 | **Impact of Derivative Instruments on Consolidated Statements of Income (in millions):** | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Interest Rate Contracts (Interest expense) | $33 | $6 | $110 | $42 | | Commodity Contracts (Mark-to-market for economic hedging activities) | $(17) | $(36) | $(191) | $(86) | [Note 7 — Long-term Debt](index=29&type=section&id=Note%207%20%E2%80%94%20Long-term%20Debt) Details the company's long-term debt, including changes in balances, repayments, and new debt acquired **Total Debt (in millions):** | Metric | Sep 30, 2022 | Dec 31, 2021 | Change | | :----------------------------------- | :----------- | :----------- | :----- | | Total debt | $7,073 | $7,778 | $(705) | | Less current maturities | $(493) | $(772) | $279 | | Total long-term debt | $6,519 | $6,939 | $(420) | - The Company had no outstanding borrowings under the revolving credit facility as of September 30, 2022, having repaid **$325 million** during the nine months ended September 30, 2022, primarily using proceeds from the Thermal Disposition[123](index=123&type=chunk) - The **$335 million** outstanding borrowings under the Bridge Loan Agreement were repaid on May 3, 2022, utilizing proceeds from the Thermal Disposition[124](index=124&type=chunk) - As part of the Capistrano Wind Portfolio acquisition, the Company acquired **$164 million** in non-recourse project-level debt[125](index=125&type=chunk) - The Company recorded a loss on debt extinguishment of **$2 million** during the nine months ended September 30, 2022, related to the write-off of deferred finance costs for Viento Funding II, LLC[127](index=127&type=chunk) [Note 8 — Earnings Per Share](index=31&type=section&id=Note%208%20%E2%80%94%20Earnings%20Per%20Share) Presents the calculation of earnings per share attributable to Clearway Energy, Inc. for the reported periods **Earnings Per Share Attributable to Clearway Energy, Inc. (in millions, except per share amounts):** | Period | Net Income | Weighted Average Common Shares Outstanding | Earnings Per Share | | :----------------------------------- | :--------- | :----------------------------------------- | :----------------- | | Three Months Ended Sep 30, 2022 | $32 | 117 | $0.28 | | Three Months Ended Sep 30, 2021 | $21 | 117 | $0.18 | | Nine Months Ended Sep 30, 2022 | $570 | 117 | $4.89 | | Nine Months Ended Sep 30, 2021 | $59 | 117 | $0.51 | [Note 9 — Segment Reporting](index=32&type=section&id=Note%209%20%E2%80%94%20Segment%20Reporting) Provides financial information by operating segment, including revenues and operating income, reflecting the impact of the Thermal Business sale **Operating Revenues by Segment (in millions):** | Segment | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Conventional Generation | $102 | $118 | $313 | $329 | | Renewables | $238 | $179 | $532 | $487 | | Thermal | — | $54 | $77 | $152 | | Total Operating Revenues | $340 | $351 | $922 | $968 | **Operating Income (Loss) by Segment (in millions):** | Segment | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Conventional Generation | $146 | $160 | | Renewables | $32 | $54 | | Thermal | $23 | $26 | | Corporate | $1,257 | $(32) | | Total Operating Income | $1,458 | $208 | *Note: The Corporate segment's operating income in 2022 includes the $1.291 billion gain on the sale of the Thermal Business.* [Note 10 — Income Taxes](index=34&type=section&id=Note%2010%20%E2%80%94%20Income%20Taxes) Discusses the company's income tax expense, effective tax rate, and the impact of the Thermal Business sale and tax legislation **Effective Income Tax Rate:** | Period | Income (Loss) Before Income Taxes (Millions) | Income Tax Expense (Benefit) (Millions) | Effective Income Tax Rate | | :----------------------------------- | :------------------------------------------- | :-------------------------------------- | :------------------------ | | Three Months Ended Sep 30, 2022 | $75 | $13 | 17.3% | | Three Months Ended Sep 30, 2021 | $26 | $1 | 3.8% | | Nine Months Ended Sep 30, 2022 | $1,351 | $237 | 17.5% | | Nine Months Ended Sep 30, 2021 | $(31) | $(12) | 38.7% | - The primary driver for the difference in the effective tax rate from the statutory rate of **21%** is the allocation of taxable earnings and losses, including the gain on the sale of the Thermal Business[141](index=141&type=chunk) - The sale of the Thermal Business was treated as a discrete event, and associated income taxes were recorded during the nine months ended September 30, 2022[143](index=143&type=chunk) [Note 11 — Related Party Transactions](index=34&type=section&id=Note%2011%20%E2%80%94%20Related%20Party%20Transactions) Details transactions with related parties, including O&M services and administrative services - Expenses for O&M services from Clearway Renewable Operation & Maintenance LLC (RENOM) were **$19 million** for Q3 2022 (vs. **$13 million** in Q3 2021) and **$49 million** for YTD 2022 (vs. **$40 million** in YTD 2021)[145](index=145&type=chunk) - Expenses for administrative services from CEG subsidiaries were **$3 million** for Q3 2022 (vs. **$3 million** in Q3 2021) and **$11 million** for YTD 2022 (vs. **$10 million** in YTD 2021)[146](index=146&type=chunk) - Net expenses under CEG Master Services Agreements were **$1 million** for Q3 2022 (vs. **$1 million** in Q3 2021) and **$4 million** for YTD 2022 (vs. **$3 million** in YTD 2021)[148](index=148&type=chunk) [Note 12 — Contingencies](index=35&type=section&id=Note%2012%20%E2%80%94%20Contingencies) Discusses legal contingencies, specifically the Buckthorn Solar Litigation, and the company's policy for recording estimated losses - The Company is involved in the Buckthorn Solar Litigation, where the City of Georgetown, Texas, alleges fraud and breach of contract related to the Buckthorn Westex solar project and PPA[152](index=152&type=chunk) - Buckthorn Westex denies the allegations, claims Georgetown breached its contracts, and is vigorously defending its rights, with the case expected to proceed to trial in June 2023[152](index=152&type=chunk) - The Company records reserves for estimated losses from contingencies when a loss is probable and the amount can be reasonably estimated[150](index=150&type=chunk) [ITEM 2 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=36&type=section&id=ITEM%202%20%E2%80%94%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This item provides management's perspective on the company's financial performance, condition, and future outlook. It includes an executive summary, detailed analysis of operating results for both three and nine-month periods, liquidity and capital resources, cash flow discussion, tax implications, fair value of derivatives, and critical accounting policies [Executive Summary](index=37&type=section&id=Executive%20Summary) Provides an overview of Clearway Energy, Inc.'s business, asset portfolio, recent strategic transactions, and key operational considerations - Clearway Energy, Inc. is a publicly-traded energy infrastructure investor in sustainable and long-term contracted assets across North America, with over **8,000 net MW** of assets, including **5,500 net MW** of wind and solar and **2,500 net MW** of natural gas-fired generation[159](index=159&type=chunk)[160](index=160&type=chunk) - The weighted average remaining contract duration of offtake agreements was approximately **11 years** as of September 30, 2022[160](index=160&type=chunk) - On May 1, 2022, the Company completed the sale of its Thermal Business to KKR for **$1.46 billion** net proceeds, resulting in a **$1.29 billion** gain[166](index=166&type=chunk) - Recent acquisitions include the Capistrano Wind Portfolio (**413 MW** for **$239 million**), Waiawa solar project (**36 MW** for **$20 million**), and Mililani I solar project (**39 MW** for **$22 million**)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - The Company repaid **$305 million** on its revolving credit facility and a **$335 million** bridge loan using proceeds from the Thermal Disposition[174](index=174&type=chunk) - The U.S. Fish and Wildlife Service (FWS) proposed reclassifying the northern long-eared bat as endangered, which could impact renewable energy facility siting and operations[177](index=177&type=chunk) - The Company has not experienced any material financial or operational impacts related to COVID-19, with all facilities remaining operational[182](index=182&type=chunk) [Consolidated Results of Operations](index=42&type=section&id=Consolidated%20Results%20of%20Operations) Presents selected consolidated financial information and business metrics for the three and nine months ended September 30, 2022 and 2021 **Selected Financial Information (in millions):** | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total Operating Revenues | $340 | $351 | $922 | $968 | | Total Operating Costs and Expenses | $235 | $262 | $755 | $760 | | Gain on sale of business | — | — | $1,291 | — | | Operating Income | $105 | $89 | $1,458 | $208 | | Net Income Attributable to Clearway Energy, Inc. | $32 | $21 | $570 | $59 | **Business Metrics:** | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Renewables MWh generated/sold | 11,102 | 8,640 | | Thermal MWt sold | 835 | 1,577 | | Conventional MWh generated | 912 | 897 | | Conventional equivalent availability factor | 92.5% | 93.4% | [Management's Discussion of the Results of Operations for the Three Months Ended September 30, 2022 and 2021](index=43&type=section&id=Management%27s%20Discussion%20of%20the%20Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20September%2030%2C%202022%20and%202021) Analyzes the company's operating results for the three months ended September 30, 2022 and 2021, highlighting key revenue and expense drivers - Operating revenues decreased by **$11 million** YoY, primarily due to a **$55 million** decrease from the Thermal Segment sale, partially offset by a **$37 million** increase from Renewables acquisitions and repowering[186](index=186&type=chunk) - Cost of fuels decreased by **$20 million** YoY due to the sale of the Thermal Business[187](index=187&type=chunk) - Operations and maintenance expense increased by **$2 million** YoY, driven by Renewables acquisitions and higher material costs, partially offset by the Thermal Business sale[188](index=188&type=chunk) - Interest expense decreased by **$35 million** YoY, primarily due to a **$27 million** change in the fair value of interest rate swaps and reduced principal balances[191](index=191&type=chunk) - Income tax expense increased by **$12 million** YoY to **$13 million**, driven by increased taxable earnings[192](index=192&type=chunk) [Management's Discussion of the Results of Operations for the Nine Months Ended September 30, 2022 and 2021](index=45&type=section&id=Management%27s%20Discussion%20of%20the%20Results%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202022%20and%202021) Analyzes the company's operating results for the nine months ended September 30, 2022 and 2021, focusing on significant changes and their causes - Operating revenues decreased by **$46 million** YoY, primarily due to a **$78 million** decrease from the Thermal Segment sale and a **$68 million** increase in unrealized losses from economic hedging, partially offset by a **$104 million** increase from Renewables acquisitions and repowering[195](index=195&type=chunk) - A gain on sale of business of **$1.29 billion** was recorded from the Thermal Business sale on May 1, 2022[199](index=199&type=chunk) - Loss on debt extinguishment was **$2 million** in 2022 (write-off of finance costs for Viento Funding II, LLC) compared to **$42 million** in 2021 (redemption of 2025 Senior Notes)[202](index=202&type=chunk)[203](index=203&type=chunk) - Interest expense decreased by **$89 million** YoY, driven by a **$68 million** change in the fair value of interest rate swaps and decreased principal balances[204](index=204&type=chunk) - Income tax expense increased by **$249 million** YoY to **$237 million**, primarily due to increased taxable earnings, including the gain from the Thermal Business sale[205](index=205&type=chunk) - Income attributable to noncontrolling interests increased by **$622 million** YoY to **$544 million**, primarily driven by CEG's economic interest in Clearway Energy LLC, including the gain on sale of the Thermal Business[206](index=206&type=chunk)[207](index=207&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's liquidity position, capital resources, credit ratings, capital expenditures, and debt obligations **Current Liquidity Position (in millions) as of September 30, 2022:** | Metric | Amount | | :----------------------------------- | :----- | | Cash and cash equivalents | $793 | | Restricted cash | $363 | | Revolving credit facility availability | $383 | | Total liquidity | $1,539 | - The **$1.46 billion** net proceeds from the Thermal Disposition were utilized to repay certain borrowings and invested in short-term investments[215](index=215&type=chunk) **Credit Ratings as of September 30, 2022:** | Entity/Notes | S&P | Moody's | | :----------------------------------- | :-- | :------ | | Clearway Energy, Inc. | BB | Ba2 | | 4.750% Senior Notes, due 2028 | BB | Ba2 | | 3.750% Senior Notes, due 2031 | BB | Ba2 | | 3.750% Senior Notes, due 2032 | BB | Ba2 | - Capital expenditures for the nine months ended September 30, 2022, totaled **$95 million**, including **$75 million** in growth expenditures for Renewables and **$16 million** in maintenance expenditures[220](index=220&type=chunk) - The Company's pro-rata share of non-recourse debt held by unconsolidated affiliates was approximately **$333 million** as of September 30, 2022[232](index=232&type=chunk) [Cash Flow Discussion](index=51&type=section&id=Cash%20Flow%20Discussion) Provides an analysis of the company's cash flows from operating, investing, and financing activities for the nine months ended September 30, 2022 and 2021 **Cash Flow Summary (in millions):** | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :----- | | Net Cash Provided by Operating Activities | $607 | $529 | $78 | | Net Cash Provided by (Used in) Investing Activities | $1,100 | $(430) | $1,530 | | Net Cash Used in Financing Activities | $(1,205) | $(9) | $(1,196) | - The **$1,530 million** increase in net cash provided by investing activities was primarily driven by **$1,457 million** in proceeds from the sale of the Thermal Business[239](index=239&type=chunk) - The **$1,196 million** increase in net cash used in financing activities was mainly due to decreased proceeds from long-term debt issuance and revolving credit facility, and decreased contributions from noncontrolling interest members[240](index=240&type=chunk) [NOLs, Deferred Tax Assets and Uncertain Tax Position Implications, under ASC 740](index=52&type=section&id=NOLs%2C%20Deferred%20Tax%20Assets%20and%20Uncertain%20Tax%20Position%20Implications%2C%20under%20ASC%20740) Addresses the company's net operating losses (NOLs), deferred tax assets, and the implications of the Inflation Reduction Act of 2022 - As of December 31, 2021, the Company had a cumulative federal NOL carryforward balance of **$1.3 billion**, with an estimated **$837 million** utilized due to the taxable gain from the Thermal Business sale[241](index=241&type=chunk) - The Company estimates it will not pay material federal income tax through 2027 due to NOL utilization and benefits from renewable assets, but expects to pay approximately **$32 million** in state income taxes for 2022 and early 2023[241](index=241&type=chunk)[243](index=243&type=chunk) - The Company does not anticipate the **15%** corporate minimum tax from the Inflation Reduction Act of 2022 (IRA) applying to it or having a material impact on its consolidated financial statements[246](index=246&type=chunk) [Fair Value of Derivative Instruments](index=53&type=section&id=Fair%20Value%20of%20Derivative%20Instruments) Presents the fair value of the company's derivative instruments and their classification within the fair value hierarchy **Fair Value of Contracts (in millions):** | Metric | Sep 30, 2022 | Dec 31, 2021 | | :----------------------------------- | :----------- | :----------- | | Fair value of contracts | $(276) | $(236) | **Fair Value Hierarchy for Derivatives (in millions) as of September 30, 2022:** | Level | 1 Year or Less | 1 to 3 Years | 3 to 5 Years | Greater 5 Years | Total Fair Value | | :----------------------------------- | :------------- | :----------- | :----------- | :-------------- | :--------------- | | Level 2 | $23 | $44 | $15 | $12 | $94 | | Level 3 | $(79) | $(98) | $(72) | $(121) | $(370) | | Total | $(56) | $(54) | $(57) | $(109) | $(276) | [Critical Accounting Policies and Estimates](index=54&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Identifies the company's critical accounting policies and estimates that require significant management judgment - The Company's critical accounting policies, requiring significant judgment and estimates, include income taxes and valuation allowance for deferred tax assets, accounting utilizing Hypothetical Liquidation at Book Value (HLBV), and acquisition accounting[256](index=256&type=chunk) [Recent Accounting Developments](index=54&type=section&id=Recent%20Accounting%20Developments) Provides an overview of recent accounting pronouncements and their potential impact on the company's financial statements [ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=55&type=section&id=ITEM%203%20%E2%80%94%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This item discusses the company's exposure to various market risks, including interest rate risk, liquidity risk, commodity price risk, and counterparty credit risk, and outlines how these risks are managed - A **1%** change (**100 basis points**) in interest rates would result in an approximately **$1 million** change in market interest expense on a rolling twelve-month basis[263](index=263&type=chunk) - A **1%** decrease in market interest rates would have increased the fair value of the Company's long-term debt by approximately **$361 million** as of September 30, 2022[264](index=264&type=chunk) - A **$0.50 per MWh** increase or decrease in power prices across derivative contracts would cause an approximately **$7 million** change to the net value of power derivatives[267](index=267&type=chunk) - The Company manages counterparty credit risk through credit policies, including an established credit approval process and the use of credit mitigation measures[268](index=268&type=chunk) [ITEM 4 — CONTROLS AND PROCEDURES](index=56&type=section&id=ITEM%204%20%E2%80%94%20CONTROLS%20AND%20PROCEDURES) This item states that the company's disclosure controls and procedures were effective as of September 30, 2022, and reports no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were effective as of September 30, 2022[270](index=270&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarter ended September 30, 2022[271](index=271&type=chunk) [PART II — OTHER INFORMATION](index=57&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This part provides additional information including legal proceedings, risk factors, unregistered sales of equity securities, defaults upon senior securities, mine safety disclosures, other information (board changes), and a list of exhibits [ITEM 1 — LEGAL PROCEEDINGS](index=57&type=section&id=ITEM%201%20%E2%80%94%20LEGAL%20PROCEEDINGS) Refers to Note 12, Contingencies, for a discussion of material legal proceedings involving the company [ITEM 1A — RISK FACTORS](index=57&type=section&id=ITEM%201A%20%E2%80%94%20RISK%20FACTORS) States that there have been no material changes in the company's risk factors since its 2021 Form 10-K - There have been no material changes in the Company's risk factors since those reported in its 2021 Form 10-K[275](index=275&type=chunk) [ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=57&type=section&id=ITEM%202%20%E2%80%94%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Reports no unregistered sales of equity securities or use of proceeds during the period - None[276](index=276&type=chunk) [ITEM 3 — DEFAULTS UPON SENIOR SECURITIES](index=57&type=section&id=ITEM%203%20%E2%80%94%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Reports no defaults upon senior securities during the period - None[277](index=277&type=chunk) [ITEM 4 — MINE SAFETY DISCLOSURES](index=57&type=section&id=ITEM%204%20%E2%80%94%20MINE%20SAFETY%20DISCLOSURES) States that mine safety disclosures are not applicable to the company - Not applicable[278](index=278&type=chunk) [ITEM 5 — OTHER INFORMATION](index=57&type=section&id=ITEM%205%20%E2%80%94%20OTHER%20INFORMATION) Discloses changes to the Board of Directors, including the retirement of Ferrell P. McClean and the election of Guillaume Hédiard, Vincent Stoquart, and Emmanuel Barrois as new directors, effective October 27, 2022 - Ferrell P. McClean retired from the Board of Directors effective October 27, 2022[279](index=279&type=chunk) - Guillaume Hédiard, Vincent Stoquart, and Emmanuel Barrois were elected as new members of the Board, effective October 27, 2022[280](index=280&type=chunk) [ITEM 6 — EXHIBITS](index=58&type=section&id=ITEM%206%20%E2%80%94%20EXHIBITS) Lists the exhibits filed with the Form 10-Q, including amendments to credit agreements, certifications, and XBRL documents - Includes the Seventh Amendment to Amended and Restated Credit Agreement (Exhibit 10.1)[284](index=284&type=chunk) - Includes Rule 13a-14(a)/15d-14(a) certifications (Exhibits 31.1, 31.2) and Section 1350 Certification (Exhibit 32)[285](index=285&type=chunk) - Includes Inline XBRL Instance Document and related taxonomy extension files[285](index=285&type=chunk) [SIGNATURES](index=59&type=section&id=SIGNATURES) Contains the official signatures of the Company's principal executive and financial officers, certifying the report - The report is signed by Christopher S. Sotos, President and Chief Executive Officer, and Sarah Rubenstein, Senior Vice President and Chief Accounting Officer[288](index=288&type=chunk) - The report was dated November 2, 2022[289](index=289&type=chunk)

Clearway Energy, Inc. (NYSE:CWEN) Q2 2022 Earnings Conference Call August 2, 2022 8:00 AM ET Company Participants Christopher Sotos - President & Chief Executive Officer Craig Cornelius - Chief Executive Officer Conference Call Participants Anya Shelekhin - Bank of America Keith Stanley - Wolfe Research Colton Bean - TPH Michael Lapides - Goldman Sachs Mark Jarvi - CIBC Justin Clare - ROTH Noah Kaye - Oppenheimer Operator Ladies and gentlemen, thank you for standing by and welcome to the Clearway Energy, In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-36002 Clearway Energy, Inc. (Exact name of registrant as specified in its charter) Delaware 46-1777204 (State or other jurisdiction of incorporation or organization) (I.R.S. Em ...