Financial Data and Key Metrics Changes - The company reported first quarter adjusted EBITDA of $252 million and CAFD of $77 million, reflecting strong wind resource in California and contributions from 2024 growth investments [22][23] - Capacity factors for the renewable and storage segment improved by 4.7% to 25.7% for solar and by 2.9% to 33.9% for wind [22] - Flexible generation availability improved by 3% to 89.3%, continuing the trend of strong availability and grid reliability in California [22] Business Line Data and Key Metrics Changes - The company continued to advance repowering opportunities, with significant projects like Mount Storm and Goat Mountain on track for completion in 2026 and 2027 [7][12] - The acquisition of Tuolumne Wind and a solar project in California are expected to contribute positively to CAFD growth [10][19] - The company is on pace to complete safe harbor investments for approximately 13 gigawatts of projects that could achieve COD through 2029 [8] Market Data and Key Metrics Changes - The company noted a supportive market for energy value from its gas plants in California, with expected appreciation in energy gross margin creation potential [91] - The late-stage pipeline grew over a gigawatt sequentially, indicating strong project development despite market uncertainties [85] Company Strategy and Development Direction - The company aims to achieve the top half of its 2025 CAFD guidance range through committed investments and operational efficiencies [6][20] - The strategy includes a focus on battery storage projects, with plans to continue executing these projects beyond 2026 [36] - The company is committed to maintaining a disciplined approach to capital allocation, targeting a long-term payout ratio trending towards 70% [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the high end of the 2027 CAFD per share growth targets, supported by recent acquisitions and ongoing project developments [11][20] - The company is actively evaluating further third-party M&A opportunities to enhance its growth strategy [21] - Management highlighted the importance of adapting to changes in policy and market conditions to ensure project viability and profitability [68] Other Important Information - The company has implemented a hedging strategy to mitigate interest rate risk associated with refinancing corporate bonds maturing in 2028 [27] - The company is focused on enhancing its wind fleet through capital light contract extensions and repowering initiatives [14] Q&A Session Summary Question: Thoughts on battery storage as part of the pipeline going forward - Management expressed strong confidence in battery technology and its revenue-generating potential, indicating plans to continue executing battery projects beyond 2026 [36] Question: 2025 guidance and potential revisions - Management reiterated the 2025 guidance and indicated that any revisions would depend on the confidence gained from ongoing execution and acquisitions [40][42] Question: Battery supply sourcing outside of China - Management confirmed that they are exploring sourcing options beyond China and are confident in managing tariff impacts through various strategies [49][53] Question: Expected CAFD yields from repowering opportunities - Management indicated that they aim for CAFD yields of at least 10% for repowering investments, aligning with their capital allocation strategy [58] Question: Current M&A market conditions - Management noted a balanced market between buyers and sellers, emphasizing the importance of unique synergies in recent acquisitions [60] Question: Risks associated with permitting for wind projects - Management acknowledged potential risks related to permitting but expressed confidence in their existing permits and project timelines [91]

Financial Data and Key Metrics Changes - The company reported first quarter adjusted EBITDA of $252 million and CAFD of $77 million, reflecting strong wind resource in California and contributions from 2024 growth investments [22][23] - Capacity factors for the renewable and storage segment improved by 4.7% to 25.7% for solar and by 2.9% to 33.9% for wind [22] - Flexible generation availability improved by 3% to 89.3%, continuing the trend of strong availability and grid reliability in California [22] Business Line Data and Key Metrics Changes - The company continued to advance repowering opportunities, with significant projects like Mount Storm and Goat Mountain on track for completion in 2026 and 2027 [9][14] - The acquisition of Tuolumne Wind and a solar project in California are expected to contribute positively to the company's growth and CAFD yield [11][19] - The company is on pace to complete safe harbor investments for approximately 13 gigawatts of projects that could achieve COD through 2029 [10] Market Data and Key Metrics Changes - The company noted a supportive market for energy value from its gas plants in California, with expected appreciation in energy gross margin creation potential [88] - The late-stage pipeline grew over a gigawatt sequentially, indicating strong project development despite market uncertainties [83] Company Strategy and Development Direction - The company aims to achieve the top half of its 2025 guidance range and is focused on long-term growth through fleet enhancements, dropdown investments, and asset-centered M&A [7][8] - The capital allocation framework emphasizes funding high-return investments and maintaining a disciplined approach to equity issuance [25][70] - The company is committed to increasing self-funding growth and targeting a long-term payout ratio trending towards 70% [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the high end of the 2027 CAFD per share growth targets due to strong execution across growth pathways [12][20] - The company is actively evaluating third-party M&A opportunities and pursuing additional fleet optimization improvements [21][60] - Management highlighted the importance of collaboration with customers and suppliers to adapt to changes in policy and ensure project viability [66] Other Important Information - The company has implemented a hedging strategy to mitigate interest rate risk for refinancing corporate bonds maturing in 2028 [26] - The company is focused on maintaining a strong balance sheet and liquidity while pursuing growth investments [26] Q&A Session Summary Question: Thoughts on battery storage as part of the pipeline going forward - Management expressed strong confidence in battery technology and its reliability, indicating plans to continue executing battery projects without slowing down [34][35] Question: Potential for sourcing batteries outside of China - Management acknowledged the increased capital expense due to tariffs but emphasized the ability to manage costs through various strategies, including sourcing from domestic suppliers [48][50] Question: Expectations for CAFD yields on repowering opportunities - Management indicated that they aim for CAFD yields of at least 10% for repowering investments, assessing the additional cash flow generated from such projects [56] Question: Current state of the M&A market - Management noted a balanced market between buyers and sellers, emphasizing the unique synergistic benefits Clearway can bring to acquisitions [58][59] Question: Risks associated with permitting for repowering projects - Management expressed confidence in the current permitting environment and the ability to manage risks associated with repowering projects [88]