Clearway Energy, Inc. Reports Third Quarter 2024 Financial Results
Signed agreement with Clearway Group to commit to invest in a 500 MW solar plus storage project
Received offer from Clearway Group to invest in a 320 MW storage hybridization project
Reaffirming 2024 financial guidance and initiating 2025 financial guidance
Increasing the quarterly dividend by 1.7% to $0.4240 per share in the fourth quarter of 2024, or $1.6960 per share annualized
PRINCETON, N.J., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE:CWEN, CWEN.A)) today reported third quarter 2024 financial results, including Net Income of $27 million, Adjusted EBITDA of $354 million, Cash from Operating Activities of $301 million, and Cash Available for Distribution (CAFD) of $146 million.
"Clearway remains well positioned to meet or exceed its 2024 financial objectives, has initiated a 2025 financial guidance range providing for robust growth, and remains committed to the financial objectives previously outlined through 2026," said Craig Cornelius, Clearway Energy, Inc.'s President and Chief Executive Officer. "With the commitment to Pine Forest and offer to invest in Honeycomb Phase 1, we have further set the stage for sustainable long-term growth. Based on our growth outlook and updated assumptions for levelized resource adequacy pricing, we are targeting CAFD per share of $2.40-2.60 in 2027, which represents approximately 7.5% to 12% annual growth from the midpoint of our 2025 financial guidance. While there is work ahead to achieve the 2027 targets and long-term framework outlined today, the team at Clearway has built a solid foundation for our future as we reach towards the goals we've laid out for the years ahead."
Adjusted EBITDA and Cash Available for Distribution used in this press release are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information" below.
Overview of Financial and Operating Results
Segment Results
Table 1: Net Income/(Loss)
($ millions)
Three Months Ended
Nine Months Ended
Segment
9/30/24
9/30/23
9/30/24
9/30/23
Conventional
25
38
50
99
Renewables
66
62
60
112
Corporate
(64
)
(85
)
(125
)
(152
)
Net Income/(Loss)
$
27
$
15
$
(15
)
$
59
Table 2: Adjusted EBITDA
($ millions)
Three Months Ended
Nine Months Ended
Segment
9/30/24
9/30/23
9/30/24
9/30/23
Conventional
66
84
174
236
Renewables
295
246
770
645
Corporate
(7
)
(7
)
(26
)
(24
)
Adjusted EBITDA
$
354
$
323
$
918
$
857
Table 3: Cash from Operating Activities and Cash Available for Distribution (CAFD)
Three Months Ended
Nine Months Ended
($ millions)
9/30/24
9/30/23
9/30/24
9/30/23
Cash from Operating Activities
$
301
$
287
$
578
$
496
Cash Available for Distribution (CAFD)
$
146
$
156
$
385
$
289
For the third quarter of 2024, the Company reported Net Income of $27 million, Adjusted EBITDA of $354 million, Cash from Operating Activities of $301 million, and CAFD of $146 million. Net Income increased versus 2023 primarily due to non-cash impacts from the mark to market impact of economic hedges and lower tax expenses partially offset by higher interest expense related to interest rate swaps. Adjusted EBITDA results in the third quarter were higher than 2023 primarily due to the contribution of growth investments partially offset by the expiration of El Segundo's tolling agreement in the third quarter of 2023. CAFD results in the third quarter of 2024 were lower than 2023 primarily due to the expiration of El Segundo's tolling agreement partially offset by the contribution of growth investments.
Operational Performance
Table 4: Selected Operating Results1
(MWh in thousands)
Three Months Ended
Nine Months Ended
9/30/24
9/30/23
9/30/24
9/30/23
Conventional Equivalent Availability Factor
87.5
%
97.9
%
90.3
%
87.5
%
Solar MWh generated/sold
2,943
1,822
6,999
4,232
Wind MWh generated/sold
2,012
2,085
7,478
7,262
Renewables generated/sold2
4,955
3,907
14,477
11,494
In the third quarter of 2024, availability at the Conventional segment was lower than the third quarter of 2023 primarily due to outages at certain facilities. Generation in the Renewables segment during the third quarter of 2024 was 27% higher than the third quarter of 2023 primarily due to the contribution of growth investments partially offset by lower wind resource at certain facilities.
Liquidity and Capital Resources
Table 5: Liquidity
($ millions)
9/30/2024
12/31/2023
Cash and Cash Equivalents:
Clearway Energy, Inc. and Clearway Energy LLC, excluding subsidiaries
$
90
$
410
Subsidiaries
202
125
Restricted Cash:
Operating accounts
183
176
Reserves, including debt service, distributions, performance obligations and other reserves
199
340
Total Cash
$
674
$
1,051
Revolving credit facility availability
592
454
Total Liquidity
$
1,266
$
1,505
Total liquidity as of September 30, 2024, was $1,266 million, which was $239 million lower than as of December 31, 2023, primarily due to the execution of growth investments including payments for Cedar Creek, Victory Pass, Arica and the Rosie BESS assets.
As of September 30, 2024, the Company's liquidity included $382 million of restricted cash. Restricted cash consists primarily of funds to satisfy the requirements of certain debt arrangements and funds held within the Company's projects that are restricted in their use. As of September 30, 2024, these restricted funds were comprised of $183 million designated to fund operating expenses, approximately $71 million designated for current debt service payments, and $89 million of reserves for debt service, performance obligations and other items including capital expenditures. The remaining $39 million is held in distribution reserve accounts.
Potential future sources of liquidity include excess operating cash flow, availability under the revolving credit facility, asset dispositions, and, subject to market conditions, new corporate debt and equity financings.
Growth Investments and Strategic Announcements
Pine Forest
On October 28, 2024, the Company, through an indirect subsidiary, entered into agreements to acquire cash and tax equity interests in a 500 MW solar plus storage project currently under construction in Hopkins County, Texas that is expected to reach commercial operations in 2025 for a total investment of $155 million, subject to closing adjustments. Upon achieving commercial operations, the project's solar output is underpinned by power purchase agreements with creditworthy counterparties with a weighted average contract duration of approximately 20 years. The consummation of the transactions are subject to customary closing conditions and certain third-party approvals and is expected in the second half of 2025. The Company expects the projects to contribute asset CAFD on a five-year average annual basis of approximately $16 million beginning January 1, 2026.
Honeycomb Phase 1 Offer
On October 18, 2024, Clearway Group offered the Company the opportunity to enter into partnership arrangements to own cash equity interests in a portfolio of 320 MW storage hybridization projects that is expected to reach commercial operations in 2026. The potential corporate capital commitment for the investment is expected to be approximately $85 million. The investment is subject to negotiation both with Clearway Group, and the review and approval by the Company's Independent Directors.
Financing Update
Capistrano Wind Refinancing
On October 23, 2024, the Company, through its indirect subsidiary, Capistrano Portfolio Holdco LLC, entered into a financing agreement which included the issuance of a $121 million term loan as well as $42 million in letters of credit in support of debt service and facility obligations, supported by the Company's interests in the Broken Bow, Crofton Bluffs, Mountain Wind 1 and Mountain Wind 2 wind facilities. The term loan matures on September 28, 2033. The Company utilized the proceeds from the term loan to pay off the existing debt in the amount of $63 million related to Broken Bow and Crofton Bluffs and to pay related financing costs.
Quarterly Dividend
On October 29, 2024, Clearway Energy, Inc.'s Board of Directors declared a quarterly dividend on Class A and Class C common stock of $0.4240 per share payable on December 16, 2024, to stockholders of record as of December 2, 2024.
Seasonality
Clearway Energy, Inc.'s quarterly operating results are impacted by seasonal factors, as well as weather variability which can impact renewable energy resource throughout the year. Most of the Company's revenues are generated from the months of May through September, as contracted pricing and renewable resources are at their highest levels in the Company's portfolio. Factors driving the fluctuation in Net Income, Adjusted EBITDA, Cash from Operating Activities, and CAFD include the following:
Higher summer capacity and energy prices from conventional assets;
Higher solar insolation during the summer months;
Higher wind resources during the spring and summer months;
Renewable energy resource throughout the year
Debt service payments which are made either quarterly or semi-annually;
Timing of maintenance capital expenditures and the impact of both unforced and forced outages; and
Timing of distributions from unconsolidated affiliates
The Company takes into consideration the timing of these factors to ensure sufficient funds are available for distributions and operating activities on a quarterly basis.
Financial Guidance
The Company is reaffirming its 2024 full year CAFD guidance of $395 million. The Company's 2024 financial guidance factors in the contribution of committed growth investments based on current expected closing timelines and estimates for merchant energy gross margin at the conventional fleet. 2024 CAFD guidance does not factor in the timing of when CAFD is realized from new growth investments pursuant to 5-year averages beyond 2024. Financial guidance is based on median renewable energy production estimates for the full year.
The Company is initiating a 2025 full year CAFD guidance at a $420 million midpoint and a range of $400 million to $440 million. The midpoint of the 2025 financial guidance range is based on median renewable energy production estimates for the full year, while the range reflects a range of potential distributions of outcomes on resource and performance in the fiscal year. The guidance range also factors in completing committed growth investments on currently forecasted schedules.
Earnings Conference Call
On October 30, 2024, Clearway Energy, Inc. will host a conference call at 8:00 a.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to Clearway Energy, Inc.'s website at http://www.clearwayenergy.com and clicking on "Presentations & Webcasts" under "Investor Relations."
About Clearway Energy, Inc.
Clearway Energy, Inc. is one of the largest owners of clean energy generation assets in the US and is leading the transition to a world powered by clean energy. Our portfolio comprises approximately 11.7 GW of gross capacity in 26 states, including 9 GW of wind, solar, and energy storage and over 2.7 GW of dispatchable power generation providing critical grid reliability services. Through our diversified and primarily contracted clean energy portfolio, Clearway Energy endeavors to provide our investors with stable and growing dividend income. Clearway Energy, Inc.'s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by our controlling investor, Clearway Energy Group LLC. For more information, visit investor.clearwayenergy.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as "expect," "estimate," "target," "anticipate," "forecast," "plan," "outlook," "believe" and similar terms. Such forward-looking statements include, but are not limited to, statements regarding, Clearway Energy, Inc.'s (the "Company's") dividend expectations and its operations, its facilities and its financial results, statements regarding the likelihood, terms, timing and/or consummation of the transactions described above, the potential benefits, opportunities, and results with respect to the transactions, including the Company's future relationship and arrangements with Global Infrastructure Partners, TotalEnergies, and Clearway Energy Group (collectively and together with their affiliates, "Related Persons"), as well as the Company's Net Income, Adjusted EBITDA, Cash from Operating Activities, Cash Available for Distribution, the Company's future revenues, income, indebtedness, capital structure, strategy, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.
Although the Company believes that the expectations are reasonable at this time, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, the Company's ability to maintain and grow its quarterly dividend, impacts related to COVID-19 (including any variant of the virus) or any other pandemic, risks relating to the Company's relationships with its sponsors, the failure to identify, execute or successfully implement acquisitions or dispositions (including receipt of third party consents and regulatory approvals), risks related to the Company's ability to acquire assets, including risks that offered or committed transactions from Related Persons may not be approved, on the terms proposed or otherwise, by the Corporate Governance, Conflicts, and Nominating Committee of the Company's Board of Directors (the "GCN"), or if approved, timely consummated; from its sponsors, the Company's ability to borrow additional funds and access capital markets due to its indebtedness, corporate structure, market conditions or otherwise, hazards customary in the power industry, weather conditions, including wind and solar performance, the Company's ability to operate its businesses efficiently, manage maintenance capital expenditures and costs effectively, and generate earnings and cash flows from its asset-based businesses in relation to its debt and other obligations, the willingness and ability of counterparties to the Company's offtake agreements to fulfill their obligations under such agreements, the Company's ability to enter into new contracts as existing contracts expire, changes in government regulations, operating and financial restrictions placed on the Company that are contained in the project-level debt facilities and other agreements of the Company and its subsidiaries, and cyber terrorism and inadequate cybersecurity. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations.
In addition, this release contains reference to certain offered and committed transactions with Related Persons, which transactions are subject to the review, negotiation and approval of the GCN. Transactions referred to as "offered" (or any variation thereof) have been presented to the Company by the Related Persons, but the terms remain subject to review and negotiation by the GCN. Transactions may have been recently offered or undergone more extensive negotiations. Unless otherwise noted, no assumptions should be made with respect to the stage of negotiation of an offered transaction, nor should any assumptions be made that any offered transaction will be approved, committed or ultimately consummated on the terms described herein. Transactions referred to as "committed" or "signed" (or any variation thereof) represent transactions which have been approved by the GCN and for which definitive agreements have been delivered; however, such transactions have not yet been consummated and remain subject to various risks and uncertainties (including financing, third party consents and arrangements and regulatory approvals). The Company provides information regarding offered and committed transactions believing that such information is useful to an understanding of the Company's business and operations; however, given the uncertainty of such transactions, undue reliance should not be placed on any expectations regarding such transactions and the Company can give no assurance that such expectations will prove to be correct, as actual results may vary materially.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Cash Available for Distribution are estimates as of today's date, October 30, 2024, and are based on assumptions believed to be reasonable as of this date. The Company expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause The Company's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect The Company's future results included in The Company's filings with the Securities and Exchange Commission at www.sec.gov. In addition, The Company makes available free of charge at www.clearwayenergy.com, copies of materials it files with, or furnishes to, the Securities and Exchange Commission.
# # #
Contacts:
Investors:
Media:
Akil Marsh
Zadie Oleksiw
609-608-1500
202-836-5754
CLEARWAY ENERGY, INC.CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
Three months ended September 30,
Nine months ended September 30,
(In millions, except per share amounts)
2024
2023
2024
2023
Operating Revenues
Total operating revenues
$
486
$
371
$
1,115
$
1,065
Operating Costs and Expenses
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below
135
134
378
360
Depreciation, amortization and accretion
164
133
471
389
General and administrative
9
9
29
28
Transaction and integration costs
—
1
4
3
Total operating costs and expenses
308
277
882
780
Operating Income
178
94
233
285
Other Income (Expense)
Equity in earnings of unconsolidated affiliates
13
11
33
11
Other income, net
8
15
36
32
Loss on debt extinguishment
—
—
(3
)
—
Interest expense
(139
)
(48
)
(284
)
(202
)
Total other expense, net
(118
)
(22
)
(218
)
(159
)
Income Before Income Taxes
60
72
15
126
Income tax expense
33
57
30
67
Net Income (Loss)
27
15
(15
)
59
Less: Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests
(9
)
11
(100
)
17
Net Income Attributable to Clearway Energy, Inc.
$
36
$
4
$
85
$
42
Earnings Per Share Attributable to Clearway Energy, Inc. Class A and Class C Common Stockholders
Weighted average number of Class A common shares outstanding - basic and diluted
35
35
35
35
Weighted average number of Class C common shares outstanding - basic and diluted
83
82
83
82
Earnings Per Weighted Average Class A and Class C Common Share - Basic and Diluted
$
0.31
$
0.03
$
0.72
$
0.36
Dividends Per Class A Common Share
$
0.4171
$
0.3891
$
1.2306
$
1.1454
Dividends Per Class C Common Share
$
0.4171
$
0.3891
$
1.2306
$
1.1454
CLEARWAY ENERGY, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Unaudited)
Three months ended September 30,
Nine months ended September 30,
(In millions)
2024
2023
2024
2023
Net Income (Loss)
$
27
$
15
$
(15
)
$
59
Other Comprehensive (Loss) Income
Unrealized (loss) gain on derivatives and changes in accumulated OCI, net of income tax (benefit) expense of $(2), $1, $(2), and $1
(13
)
8
(13
)
8
Other comprehensive (loss) income
(13
)
8
(13
)
8
Comprehensive Income (Loss)
14
23
(28
)
67
Less: Comprehensive (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests
(18
)
17
(107
)
23
Comprehensive Income Attributable to Clearway Energy, Inc.
$
32
$
6
$
79
$
44
CLEARWAY ENERGY, INC.CONSOLIDATED BALANCE SHEETS
(In millions, except shares)
September 30, 2024
December 31, 2023
ASSETS
(Unaudited)
Current Assets
Cash and cash equivalents
$
292
$
535
Restricted cash
382
516
Accounts receivable, trade
199
171
Inventory
63
55
Derivative instruments
34
41
Note receivable, affiliate
—
174
Prepayments and other current assets
81
68
Total current assets
1,051
1,560
Property, plant and equipment, net
9,895
9,526
Other Assets
Equity investments in affiliates
322
360
Intangible assets for power purchase agreements, net
2,170
2,303
Other intangible assets, net
70
71
Derivative instruments
70
82
Right-of-use assets, net
548
597
Other non-current assets
123
202
Total other assets
3,303
3,615
Total Assets
$
14,249
$
14,701
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt
$
412
$
558
Accounts payable, trade
78
130
Accounts payable, affiliates
14
31
Derivative instruments
51
51
Accrued interest expense
35
57
Accrued expenses and other current liabilities
71
79
Total current liabilities
661
906
Other Liabilities
Long-term debt
6,732
7,479
Deferred income taxes
58
127
Derivative instruments
279
281
Long-term lease liabilities
570
627
Other non-current liabilities
316
286
Total other liabilities
7,955
8,800
Total Liabilities
8,616
9,706
Redeemable noncontrolling interest in subsidiaries
9
1
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued
