Financial Performance - Total operating revenues for Q3 2023 reached $371 million, a 9.1% increase from $340 million in Q3 2022[20] - Operating income for Q3 2023 was $94 million, compared to $105 million in Q3 2022, reflecting a decrease of 10.5%[20] - Net income attributable to Clearway Energy, Inc. for Q3 2023 was $4 million, down from $32 million in Q3 2022, representing a decline of 87.5%[20] - Net income for the three months ended September 30, 2023, was $15 million, a decrease of 76.2% compared to $62 million in the same period of 2022[22] - Comprehensive income attributable to Clearway Energy, Inc. for the nine months ended September 30, 2023, was $44 million, down 25.0% from $582 million in the same period of 2022[22] - Basic and diluted earnings per share for the nine months ended September 30, 2023, were $0.36, a decrease from $4.89 for the same period in 2022[104] - Basic earnings per share for the three months ended September 30, 2023, was $0.03, compared to $0.28 for the same period in 2022, indicating a decrease of approximately 89.3%[104] Operating Costs and Expenses - Total operating costs and expenses for Q3 2023 were $277 million, up from $235 million in Q3 2022, marking an increase of 17.9%[20] - The company incurred total expenses of $18 million for operation and maintenance services in Q3 2023, compared to $19 million in Q3 2022[113] - For the nine months ended September 30, 2023, the company reported interest expenses of $202 million, an increase from $143 million in the same period of 2022[108] - The company’s total operating costs and expenses for the nine months ended September 30, 2023, were $360 million, compared to $338 million for the same period in 2022, reflecting an increase of 6.5%[108] Cash Flow and Liquidity - Cash Available for Distribution (CAFD) is defined as Adjusted EBITDA plus cash distributions from unconsolidated affiliates, with specific adjustments for the period ending September 30, 2023[17] - Cash and cash equivalents decreased to $566 million as of September 30, 2023, from $657 million at the end of 2022, a decline of 13.9%[25] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $496 million, down 18.3% from $607 million in the same period of 2022[27] - Net cash used in investing activities was $271 million for the nine months ended September 30, 2023, compared to a net cash provided of $1,100 million in the same period of 2022[27] - Total cash, cash equivalents, and restricted cash amounted to $1,156 million as of September 30, 2023, up from $996 million as of December 31, 2022[42] Debt and Liabilities - The company has substantial indebtedness, including $850 million in 2028 Senior Notes and $925 million in 2031 Senior Notes[17] - Long-term debt increased to $6,995 million as of September 30, 2023, from $6,491 million at the end of 2022, an increase of 7.8%[25] - Current liabilities rose to $844 million as of September 30, 2023, up 36.8% from $617 million at the end of 2022[25] - The company's long-term debt, including the current portion, was recorded at $7,581 million, with a fair value of $6,874 million as of September 30, 2023[72] Investments and Acquisitions - The Company acquired Class A membership interests in VP-Arica TargetCo LLC, which owns two solar projects (Victory Pass: 200 MW, Arica: 263 MW) for an initial cash consideration of $46 million, with an additional $182 million due at substantial completion expected in H1 2024[55] - The acquisition of Daggett 2 TargetCo LLC, which owns a 182 MW solar project, was completed for $13 million, with commercial operations expected in Q4 2023[56] - The Company also acquired Daggett TargetCo LLC, owner of a 300 MW solar project, for $21 million, with commercial operations achieved for most assets in Q3 2023[59] - The Company invested $28 million in Rosie Central BESS, a 147 MW battery energy storage system, with an expected completion in H1 2024[61] Equity and Shareholder Returns - The company declared dividends of $0.3891 per Class A and Class C common share for Q3 2023, an increase from $0.3604 in Q3 2022[20] - The Company declared quarterly dividends of $0.3964 per share on November 1, 2023, payable on December 15, 2023[46] - The majority of the company's revenues are derived from long-term contractual arrangements, ensuring stable and growing dividend income for investors[34] - Clearway Energy, Inc. aims to provide its investors with stable and growing dividend income through its diversified and primarily contracted portfolio[34] Assets and Financial Position - Total assets increased to $13,370 million as of September 30, 2023, compared to $12,312 million at the end of 2022, reflecting a growth of 8.6%[25] - Accounts receivable, net from contracts with customers increased to $67 million as of September 30, 2023, from $37 million as of December 31, 2022[53] - The balance of redeemable noncontrolling interests increased to $18 million as of September 30, 2023, from $7 million at the end of 2022[49] Risk Factors and Future Outlook - Future outlook includes potential risks related to relationships with partners and the ability to identify and consummate acquisitions[15] - The company is currently involved in ongoing settlement negotiations regarding the Buckthorn Solar Litigation, which may impact future financial results[119] Derivatives and Fair Value - Derivative assets included $180 million in interest rate contracts classified as Level 2, while derivative liabilities totaled $325 million in commodity contracts[75] - The fair value of Level 3 positions included $325 million in energy-related commodity contracts, reflecting significant unobservable inputs[79] - The company reported total losses for the period included in earnings of $39 million for Level 3 instruments during the three months ended September 30, 2023[76] - The Company had a total of $151 million in derivatives not designated as cash flow hedges as of September 30, 2023, compared to $64 million as of December 31, 2022[88]
Clearway Energy(CWEN_A) - 2023 Q3 - Quarterly Report