Clearway Energy(CWEN) - 2025 Q2 - Quarterly Report

PART I — FINANCIAL INFORMATION This section provides the unaudited consolidated financial statements and management's discussion and analysis for the first half of 2025 Financial Statements and Notes This section presents Clearway Energy, Inc.'s unaudited consolidated financial statements and detailed notes for Q2 2025 Consolidated Financial Statements The company reported $690 million in revenues, a $92 million net loss, and $16.03 billion in assets for H1 2025 Consolidated Statements of Operations Highlights (Six Months Ended June 30) | Metric (USD millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total operating revenues | $690 | $629 | | Operating Income | $85 | $55 | | Net Loss | $(92) | $(42) | | Net Income Attributable to Clearway Energy, Inc. | $37 | $49 | | Earnings Per Share (Class A & C) | $0.31 | $0.41 | Consolidated Balance Sheet Highlights | Metric (USD millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $16,033 | $14,329 | | Property, plant and equipment, net | $11,385 | $9,944 | | Total Liabilities | $10,453 | $8,765 | | Long-term debt | $8,251 | $6,750 | | Total Stockholders' Equity | $5,542 | $5,564 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric (USD millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $286 | $277 | | Net Cash Used in Investing Activities | $(398) | $(647) | | Net Cash Provided by (Used in) Financing Activities | $165 | $(111) | Note 1 — Nature of Business Clearway Energy, Inc. is a leading clean energy investor with a 12 GW portfolio, holding a 58.30% interest in Clearway Energy LLC - The company's portfolio consists of approximately 12 GW of gross capacity, including 9.2 GW of wind, solar, and BESS, and 2.8 GW of flexible generation assets[36] - As of June 30, 2025, the Company held a 58.30% economic interest in Clearway Energy LLC, with its sponsor CEG owning the remaining 41.70%[38] Note 3 — Acquisitions The company actively acquired new assets in H1 2025, including the Tuolumne wind facility and several solar and BESS projects - On July 16, 2025, acquired the 109 MW Catalina Solar facility from a third-party for approximately $127 million[56] - On April 29, 2025, acquired the 137 MW Tuolumne wind facility for approximately $210 million, with a net capital investment of $59 million after new financing[60] - Completed several drop-down acquisitions of assets under construction from sponsor CEG, including Pine Forest, Luna Valley, Daggett 1, and Rosamond South I, with substantial completion expected in the second half of 2025[57][62][65] Note 7 — Long-term Debt Total debt increased to $8.78 billion by June 30, 2025, driven by new acquisition-related facility-level debt and term loans Total Debt Summary | Metric (USD millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Senior Notes | $2,125 | $2,125 | | Revolving Credit Facility | $112 | $0 | | Non-recourse facility-level debt | $6,543 | $5,110 | | Total debt | $8,780 | $7,235 | - Assumed significant facility-level financing agreements in connection with the acquisitions of Pine Forest, Luna Valley, Daggett 1, and Rosamond South I[96][98][99][102] - Entered into a new $163 million term loan to partially fund the Tuolumne wind facility acquisition[100] Note 9 — Segment Reporting The Renewables & Storage segment generated $572 million in revenue and holds $14.1 billion in assets for H1 2025 Segment Performance (Six Months Ended June 30, 2025) | Segment (USD millions) | Operating Revenues | Net (Loss) Income | | :--- | :--- | :--- | | Flexible Generation | $118 | $(9) | | Renewables & Storage | $572 | $(7) | | Corporate | $0 | $(76) | | Total | $690 | $(92) | Total Assets by Segment (as of June 30, 2025) | Segment (USD millions) | Total Assets | | :--- | :--- | | Flexible Generation | $1,879 | | Renewables & Storage | $14,083 | | Corporate | $71 | | Total | $16,033 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses H1 2025 financial performance, highlighting revenue growth from new assets, increased costs, and a strong liquidity position Executive Summary Clearway's executive summary highlights key 2025 acquisitions, including Tuolumne and Catalina, and the sale of Mt. Storm for repowering - Acquired the Tuolumne wind facility (April 2025) and Catalina solar facility (July 2025) from third parties[125][127] - Executed several drop-down transactions with sponsor CEG for solar and BESS assets under construction, including Pine Forest, Luna Valley, Daggett 1, and Rosamond South I, with total capital investment commitments across these projects[126] - Entered an agreement to sell the Mt. Storm wind facility to CEG for $121 million to facilitate a repowering project, with an exclusive option for the Company to re-acquire the asset post-repowering[128] Consolidated Results of Operations Operating revenues increased by $61 million to $690 million in H1 2025, driven by new assets, while net loss widened to $92 million Change in Operating Revenues (Six Months Ended June 30, 2025 vs 2024) | Driver | Change (USD millions) | | :--- | :--- | | New Renewables & Storage Assets | $32 | | New Wind Acquisitions | $15 | | Favorable Mark-to-market on Hedges | $40 | | Lower Flexible Generation Revenue | $(20) | | Lower Wind Resource | $(11) | | Total Change | $61 | - Operations and maintenance expense increased by $25 million for the six-month period, driven by new assets from acquisitions and increased maintenance activities at various wind facilities[146] - Interest expense increased by $54 million for the six-month period, primarily due to changes in the fair value of interest rate swaps[147] Liquidity and Capital Resources The company maintained a strong liquidity position of approximately $1.3 billion as of June 30, 2025, with stable credit ratings Total Liquidity Position | Component (USD millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total cash, cash equivalents and restricted cash | $786 | $733 | | Revolving credit facility availability | $512 | $597 | | Total liquidity | $1,298 | $1,330 | - Capital expenditures for the six months ended June 30, 2025, were approximately $132 million, with $123 million dedicated to growth projects, primarily funded through construction-related financing[160] Corporate Credit Ratings (as of June 30, 2025) | Agency | Rating | | :--- | :--- | | S&P | BB | | Moody's | Ba2 | Quantitative and Qualitative Disclosures About Market Risk The company manages market risks, including commodity price and interest rate fluctuations, with sensitivity analyses showing potential impacts on derivatives and interest expense - A hypothetical $0.50 per MWh change in power prices would result in an approximate $4 million change to the net value of the company's long-term power commodity derivative contracts[195] - A 100 basis point (1%) change in interest rates would lead to an approximately $5 million change in market interest expense on a rolling twelve-month basis[199] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - 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[203] - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[204] PART II — OTHER INFORMATION This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits Legal Proceedings The company reported no legal proceedings during the period - The company reports no legal proceedings[207] Risk Factors No material changes occurred in the company's risk factors since the 2024 Form 10-K filing - No material changes have occurred in the Company's risk factors since the filing of its 2024 Form 10-K[208] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or use of proceeds during the period - The company reports no unregistered sales of equity securities[209] Other Information No director or officer adopted, modified, or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter[212] Exhibits This section lists exhibits filed with the Form 10-Q, including officer certifications and Inline XBRL data - Exhibits filed include certifications from the CEO and CFO, Section 1350 certification, and various Inline XBRL documents[213]