Clearway Energy(CWEN) - 2024 Q1 - Quarterly Results

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