Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported full year
2023 financial results, including Net Loss of $14 million, Adjusted
EBITDA of $1,058 million, Cash from Operating Activities of $702
million, and Cash Available for Distribution (CAFD) of $342
million.
"While 2023 financial results were impacted by
weaker wind performance throughout the year, the long-term outlook
for Clearway remains positive. In 2023, the Company committed to
approximately $215 million of new long-term corporate capital
investments and signed new Resource Adequacy contracts at Marsh
Landing and El Segundo further enhancing visibility into long-term
growth,” said Christopher Sotos, Clearway Energy, Inc.’s President
and Chief Executive Officer. “Clearway continues to be on track to
deliver at the upper range of its dividend growth target through
2026 without external capital.”
Adjusted EBITDA and Cash Available for
Distribution used in this press release are non-GAAP measures and
are explained in greater detail under “Non-GAAP Financial
Information” below.
Overview of Financial and Operating
Results
Segment Results
Table 1: Net Income/(Loss)
($
millions) |
|
Three Months Ended |
|
Twelve Months Ended |
Segment |
|
12/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
Conventional |
|
|
10 |
|
|
|
40 |
|
|
|
109 |
|
|
|
161 |
|
Renewables |
|
|
(124 |
) |
|
|
(84 |
) |
|
|
(12 |
) |
|
|
(58 |
) |
Thermal |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Corporate |
|
|
41 |
|
|
|
(10 |
) |
|
|
(111 |
) |
|
|
940 |
|
Net Income/(Loss) |
|
$ |
(73 |
) |
|
$ |
(54 |
) |
|
$ |
(14 |
) |
|
$ |
1,060 |
|
Table 2: Adjusted EBITDA
($
millions) |
|
Three Months Ended |
|
Twelve Months Ended |
Segment |
|
12/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
Conventional |
|
|
65 |
|
|
|
89 |
|
|
|
301 |
|
|
|
366 |
|
Renewables |
|
|
142 |
|
|
|
127 |
|
|
|
787 |
|
|
|
802 |
|
Thermal |
|
|
— |
|
|
|
0 |
|
|
|
— |
|
|
|
23 |
|
Corporate |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(30 |
) |
|
|
(31 |
) |
Adjusted EBITDA |
|
$ |
201 |
|
|
$ |
212 |
|
|
$ |
1,058 |
|
|
$ |
1,160 |
|
Table 3: Cash from Operating Activities and Cash
Available for Distribution (CAFD)
|
|
Three Months Ended |
|
Twelve Months Ended |
($ millions) |
|
12/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
Cash from Operating Activities |
|
$ |
206 |
|
|
$ |
180 |
|
|
$ |
702 |
|
|
$ |
787 |
|
Cash Available for Distribution (CAFD) |
|
$ |
53 |
|
|
$ |
(2 |
) |
|
$ |
342 |
|
|
$ |
326 |
|
For the fourth quarter of 2023, the Company
reported Net Loss of $73 million, Adjusted EBITDA of $201 million,
Cash from Operating Activities of $206 million, and CAFD of $53
million. Net Loss increased versus 2022 primarily due to additional
interest expense associated with growth investments. Adjusted
EBITDA for the fourth quarter of 2023 was lower than in 2022 due to
the expiration of certain tolling agreements in the Conventional
fleet, partially offset by the contribution from growth
investments. CAFD results in the fourth quarter of 2023 were higher
than 2022 primarily due to lower debt service in the Conventional
fleet coinciding with the expiration of the tolling agreements.
For the full year 2023, the Company reported Net
Loss of $14 million, Adjusted EBITDA of $1,058 million, Cash from
Operating Activities of $702 million, and CAFD of $342 million. Net
Income decreased versus 2022 primarily due to the one-time gain
from the sale of the Thermal Business. Adjusted EBITDA results were
lower than 2022 primarily due to the expiration of certain tolling
agreements in the Conventional fleet, the divestiture of the
Thermal Business, and lower renewable production, partially offset
by the contribution of growth investments. CAFD results were higher
than 2022 despite lower renewable production, primarily due to
lower debt service in the Conventional fleet, partially offset by
the disposition of the Thermal Business.
Operational Performance
Table 4: Selected Operating
Results1
(MWh in
thousands) |
|
Three Months Ended |
|
Twelve Months Ended |
|
|
12/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
Conventional Equivalent Availability Factor |
|
98.0 |
% |
|
91.2 |
% |
|
90.2 |
% |
|
92.2 |
% |
Solar MWh generated/sold |
|
1,193 |
|
|
920 |
|
|
5,425 |
|
|
4,991 |
|
Wind MWh generated/sold |
|
2,152 |
|
|
2,312 |
|
|
9,414 |
|
|
9,343 |
|
Renewables MWh generated/sold2 |
|
3,345 |
|
|
3,232 |
|
|
14,839 |
|
|
14,334 |
|
In the fourth quarter of 2023, availability at the Conventional
segment was higher than the fourth quarter of 2022 primarily from
lower availability at the Walnut Creek and El Segundo Energy Center
facilities in 2022. Generation in the Renewables segment during the
fourth quarter of 2023 was 3% higher than the fourth quarter of
2022 primarily due to the contribution of growth investments,
partially offset by lower resource across the fleet.
Liquidity and Capital
Resources
Table 5: Liquidity
($
millions) |
|
12/31/2023 |
|
12/31/2022 |
Cash and Cash Equivalents: |
|
|
|
|
Clearway Energy, Inc. and Clearway Energy LLC, excluding
subsidiaries |
|
$ |
410 |
|
|
$ |
536 |
|
Subsidiaries |
|
|
125 |
|
|
|
121 |
|
Restricted
Cash: |
|
|
|
|
Operating accounts |
|
|
176 |
|
|
|
109 |
|
Reserves, including debt service, distributions, performance
obligations and other reserves |
|
|
340 |
|
|
|
230 |
|
Total
Cash |
|
$ |
1,051 |
|
|
$ |
996 |
|
Revolving credit facility availability |
|
|
454 |
|
|
|
370 |
|
Total
Liquidity |
|
$ |
1,505 |
|
|
$ |
1,366 |
|
Total liquidity as of December 31, 2023 was
$1,505 million, which was $139 million higher than the
same period ended December 31, 2022, primarily due to the
refinancing of the revolving credit facility which increased its
total capacity to $700 million from $495 million and additional
project level restricted cash associated with growth investments,
partially offset by the execution of growth investments.
As of December 31, 2023, the Company's
liquidity included $516 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 December 31,
2023, these restricted funds were comprised of $176 million
designated to fund operating expenses, approximately $178 million
designated for current debt service payments, and $85 million of
reserves for debt service, performance obligations and other items
including capital expenditures. The remaining $77 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
Texas Solar Nova 1
On December 28, 2023, the Company, through an
indirect subsidiary, acquired an ownership interest in Texas Solar
Nova 1, a 252 MW operational solar project that is located in Kent
County, Texas for cash consideration of $23 million. The project is
underpinned by power purchase agreements with creditworthy
counterparties with a weighted average contract duration of
approximately 18 years.
Quarterly Dividend
On February 14, 2024, Clearway Energy,
Inc.’s Board of Directors declared a quarterly dividend on Class A
and Class C common stock of $0.4033 per share payable on
March 15, 2024, to stockholders of record as of March 1,
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 and Pro Forma CAFD
Outlook
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.
Earnings Conference Call
On February 22, 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
renewable energy owners in the US with approximately 6,000 net MW
of installed wind, solar and energy storage projects. The Company's
approximately 8,500 net MW of assets also include approximately
2,500 net MW of environmentally-sound, highly efficient natural gas
generation facilities. Through this environmentally-sound
diversified and primarily contracted portfolio, Clearway Energy
endeavors to provide its 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 its
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 the Company’s dividend expectations and
its operations, its facilities and its financial results, the
anticipated consummation of the transactions described above, the
anticipated benefits, opportunities, and results with respect to
the transactions, including the Company’s future relationship and
arrangements with Clearway Energy Group and its owners, 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 Clearway Energy, Inc. believes that the
expectations are reasonable, 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,
risks relating to the Company's relationships with its sponsors,
the Company’s ability to successfully identify, evaluate,
consummate or implement acquisitions or dispositions (including
receipt of third party consents and regulatory approvals), the
Company's ability to acquire assets 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 production
industry and power generation operations, weather conditions,
including wind and solar conditions, 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 contracts to
sell power and procure fuel on acceptable terms and prices,
government regulation, including compliance with regulatory
requirements and changes in law, 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, cyber terrorism and inadequate cybersecurity.
Furthermore, any dividends are subject to available capital, market
conditions, and compliance with associated laws and
regulations.
Clearway Energy, Inc. 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,
February 22, 2024, and are based on assumptions believed to be
reasonable as of this date. Clearway Energy, Inc. expressly
disclaims any current intention to update such guidance. The
foregoing review of factors that could cause Clearway Energy,
Inc.’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 Clearway Energy, Inc.’s future
results included in Clearway Energy, Inc.’s filings with the
Securities and Exchange Commission at www.sec.gov. In addition,
Clearway Energy, Inc. 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 |
|
investor.relations@clearwayenergy.com |
media@clearwayenergy.com |
|
609-608-1500 |
202-836-5754 |
CLEARWAY ENERGY, INC.CONSOLIDATED
STATEMENTS OF INCOME |
|
|
Year ended December 31, |
(In millions, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating
Revenues |
|
|
|
|
|
Total operating revenues |
$ |
1,314 |
|
|
$ |
1,190 |
|
|
$ |
1,286 |
|
Operating Costs and
Expenses |
|
|
|
|
|
Cost of operations, exclusive of depreciation, amortization and
accretion shown separately below |
|
473 |
|
|
|
435 |
|
|
|
451 |
|
Depreciation, amortization and accretion |
|
526 |
|
|
|
512 |
|
|
|
509 |
|
Impairment losses |
|
12 |
|
|
|
16 |
|
|
|
6 |
|
General and administrative |
|
36 |
|
|
|
40 |
|
|
|
40 |
|
Transaction and integration costs |
|
4 |
|
|
|
7 |
|
|
|
7 |
|
Development costs |
|
— |
|
|
|
2 |
|
|
|
6 |
|
Total operating costs and expenses |
|
1,051 |
|
|
|
1,012 |
|
|
|
1,019 |
|
Gain on sale of business |
|
— |
|
|
|
1,292 |
|
|
|
— |
|
Operating
Income |
|
263 |
|
|
|
1,470 |
|
|
|
267 |
|
Other Income
(Expense) |
|
|
|
|
|
Equity in earnings of unconsolidated affiliates |
|
12 |
|
|
|
29 |
|
|
|
32 |
|
Other income, net |
|
52 |
|
|
|
17 |
|
|
|
3 |
|
Loss on debt extinguishment |
|
(6 |
) |
|
|
(2 |
) |
|
|
(53 |
) |
Interest expense |
|
(337 |
) |
|
|
(232 |
) |
|
|
(312 |
) |
Total other expense, net |
|
(279 |
) |
|
|
(188 |
) |
|
|
(330 |
) |
(Loss) Income Before
Income Taxes |
|
(16 |
) |
|
|
1,282 |
|
|
|
(63 |
) |
Income tax (benefit) expense |
|
(2 |
) |
|
|
222 |
|
|
|
12 |
|
Net (Loss)
Income |
|
(14 |
) |
|
|
1,060 |
|
|
|
(75 |
) |
Less: Net (loss) income
attributable to noncontrolling interests and redeemable
noncontrolling interests |
|
(93 |
) |
|
|
478 |
|
|
|
(126 |
) |
Net Income
Attributable to Clearway Energy, Inc. |
$ |
79 |
|
|
$ |
582 |
|
|
$ |
51 |
|
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 |
|
Weighted average number of Class C common shares outstanding -
basic and diluted |
|
82 |
|
|
|
82 |
|
|
|
82 |
|
Earnings per Weighted
Average Class A and Class C Common Share - Basic and
Diluted |
$ |
0.67 |
|
|
$ |
4.99 |
|
|
$ |
0.44 |
|
Dividends Per Class A
Common Share |
$ |
1.54 |
|
|
$ |
1.43 |
|
|
$ |
1.33 |
|
Dividends Per Class C
Common Share |
$ |
1.54 |
|
|
$ |
1.43 |
|
|
$ |
1.33 |
|
CLEARWAY ENERGY, INC.CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME |
|
|
Year ended December 31, |
(In millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Net (Loss)
Income |
$ |
(14 |
) |
|
$ |
1,060 |
|
|
$ |
(75 |
) |
Other Comprehensive
(Loss) Income, net of tax |
|
|
|
|
|
Unrealized (loss) gain on
derivatives and changes in accumulated OCI/OCL, net of income tax
(benefit) expense of $(1), $5 and $(3) |
|
(6 |
) |
|
|
28 |
|
|
|
19 |
|
Other comprehensive (loss) income |
|
(6 |
) |
|
|
28 |
|
|
|
19 |
|
Comprehensive (Loss)
Income |
|
(20 |
) |
|
|
1,088 |
|
|
|
(56 |
) |
Less: Comprehensive (loss) income attributable to noncontrolling
interests and redeemable noncontrolling interests |
|
(97 |
) |
|
|
495 |
|
|
|
(115 |
) |
Comprehensive Income
Attributable to Clearway Energy, Inc. |
$ |
77 |
|
|
$ |
593 |
|
|
$ |
59 |
|
CLEARWAY ENERGY, INC.CONSOLIDATED BALANCE
SHEETS |
|
(In millions, except
shares) |
December 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
Current
Assets |
|
|
|
Cash and cash equivalents |
$ |
535 |
|
|
$ |
657 |
|
Restricted cash |
|
516 |
|
|
|
339 |
|
Accounts receivable — trade |
|
171 |
|
|
|
153 |
|
Inventory |
|
55 |
|
|
|
47 |
|
Derivative instruments |
|
41 |
|
|
|
26 |
|
Note receivable — affiliate |
|
174 |
|
|
|
— |
|
Prepayments and other current assets |
|
68 |
|
|
|
54 |
|
Total current assets |
|
1,560 |
|
|
|
1,276 |
|
Property, plant and
equipment, net |
|
9,526 |
|
|
|
7,421 |
|
Other
Assets |
|
|
|
Equity investments in affiliates |
|
360 |
|
|
|
364 |
|
Intangible assets for power purchase agreements, net |
|
2,303 |
|
|
|
2,488 |
|
Other intangible assets, net |
|
71 |
|
|
|
77 |
|
Derivative instruments |
|
82 |
|
|
|
63 |
|
Right-of-use assets, net |
|
597 |
|
|
|
527 |
|
Other non-current assets |
|
202 |
|
|
|
96 |
|
Total other assets |
|
3,615 |
|
|
|
3,615 |
|
Total
Assets |
$ |
14,701 |
|
|
$ |
12,312 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
Liabilities |
|
|
|
Current portion of long-term debt |
$ |
558 |
|
|
$ |
322 |
|
Accounts payable — trade |
|
130 |
|
|
|
55 |
|
Accounts payable — affiliates |
|
31 |
|
|
|
22 |
|
Derivative instruments |
|
51 |
|
|
|
50 |
|
Accrued interest expense |
|
57 |
|
|
|
54 |
|
Accrued expenses and other current liabilities |
|
79 |
|
|
|
114 |
|
Total current liabilities |
|
906 |
|
|
|
617 |
|
Other
Liabilities |
|
|
|
Long-term debt |
|
7,479 |
|
|
|
6,491 |
|
Deferred income taxes |
|
127 |
|
|
|
119 |
|
Derivative instruments |
|
281 |
|
|
|
303 |
|
Long-term lease liabilities |
|
627 |
|
|
|
548 |
|
Other non-current liabilities |
|
286 |
|
|
|
201 |
|
Total other liabilities |
|
8,800 |
|
|
|
7,662 |
|
Total
Liabilities |
|
9,706 |
|
|
|
8,279 |
|
Redeemable
noncontrolling interest in subsidiaries |
|
1 |
|
|
|
7 |
|
Commitments and
Contingencies |
|
|
|
Stockholders’
Equity |
|
|
|
Preferred stock, $0.01 par
value; 10,000,000 shares authorized; none issued |
|
— |
|
|
|
— |
|
Class A, Class B, Class C and
Class D common stock, $0.01 par value; 3,000,000,000 shares
authorized (Class A 500,000,000, Class B 500,000,000, Class C
1,000,000,000, Class D 1,000,000,000); 202,080,794 shares issued
and outstanding (Class A 34,613,853, Class B 42,738,750, Class C
82,391,441, Class D 42,336,750) at December 31, 2023 and
201,972,813 shares issued and outstanding (Class A 34,613,853,
Class B 42,738,750, Class C 82,283,460, Class D 42,336,750) at
December 31, 2022 |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
1,732 |
|
|
|
1,761 |
|
Retained earnings |
|
361 |
|
|
|
463 |
|
Accumulated other comprehensive income |
|
7 |
|
|
|
9 |
|
Noncontrolling interest |
|
2,893 |
|
|
|
1,792 |
|
Total Stockholders’
Equity |
|
4,994 |
|
|
|
4,026 |
|
Total Liabilities and
Stockholders’ Equity |
$ |
14,701 |
|
|
$ |
12,312 |
|
CLEARWAY ENERGY, INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash Flows from
Operating Activities |
(In millions) |
Net (loss) income |
$ |
(14 |
) |
|
$ |
1,060 |
|
|
$ |
(75 |
) |
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
Equity in earnings of unconsolidated affiliates |
|
(12 |
) |
|
|
(29 |
) |
|
|
(32 |
) |
Distributions from unconsolidated affiliates |
|
30 |
|
|
|
37 |
|
|
|
38 |
|
Depreciation, amortization and accretion |
|
526 |
|
|
|
512 |
|
|
|
509 |
|
Amortization of financing costs and debt discounts |
|
13 |
|
|
|
14 |
|
|
|
14 |
|
Amortization of intangibles |
|
185 |
|
|
|
172 |
|
|
|
146 |
|
Loss on debt extinguishment |
|
6 |
|
|
|
2 |
|
|
|
53 |
|
Reduction in carrying amount of right-of-use assets |
|
15 |
|
|
|
14 |
|
|
|
11 |
|
Gain on sale of business |
|
— |
|
|
|
(1,292 |
) |
|
|
— |
|
Impairment losses |
|
12 |
|
|
|
16 |
|
|
|
6 |
|
Change in deferred income taxes |
|
13 |
|
|
|
194 |
|
|
|
12 |
|
Changes in derivative instruments and amortization of accumulated
OCI/OCL |
|
(2 |
) |
|
|
69 |
|
|
|
28 |
|
Cash (used in) provided by changes in other working capital |
|
|
|
|
|
Changes in prepaid and accrued liabilities for tolling
agreements |
|
(32 |
) |
|
|
10 |
|
|
|
5 |
|
Changes in other working capital |
|
(38 |
) |
|
|
8 |
|
|
|
(14 |
) |
Net Cash Provided by
Operating Activities |
|
702 |
|
|
|
787 |
|
|
|
701 |
|
Cash Flows from
Investing Activities |
|
|
|
|
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(533 |
) |
Acquisition of Drop Down Assets, net of cash acquired |
|
(45 |
) |
|
|
(71 |
) |
|
|
(229 |
) |
Acquisition of Capistrano Wind Portfolio, net of cash acquired |
|
— |
|
|
|
(223 |
) |
|
|
— |
|
Capital expenditures |
|
(212 |
) |
|
|
(112 |
) |
|
|
(151 |
) |
Payment for equipment deposit |
|
(27 |
) |
|
|
— |
|
|
|
— |
|
Payment for equipment deposit and asset purchase from
affiliate |
|
(55 |
) |
|
|
— |
|
|
|
(21 |
) |
Return of investments from unconsolidated affiliates |
|
14 |
|
|
|
13 |
|
|
|
47 |
|
Increase in note receivable — affiliate |
|
(174 |
) |
|
|
— |
|
|
|
— |
|
Investments in unconsolidated affiliates |
|
(28 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from sale of business |
|
— |
|
|
|
1,457 |
|
|
|
— |
|
Other |
|
4 |
|
|
|
1 |
|
|
|
22 |
|
Net Cash (Used in)
Provided by Investing Activities |
|
(523 |
) |
|
|
1,065 |
|
|
|
(865 |
) |
Cash Flows from
Financing Activities |
|
|
|
|
|
Contributions from noncontrolling interests, net of
distributions |
|
1,028 |
|
|
|
60 |
|
|
|
967 |
|
Payments of dividends and distributions |
|
(311 |
) |
|
|
(289 |
) |
|
|
(268 |
) |
Distributions to CEG of escrowed amounts |
|
— |
|
|
|
(64 |
) |
|
|
— |
|
Tax-related distributions |
|
(21 |
) |
|
|
(8 |
) |
|
|
— |
|
Buyout of noncontrolling interest and redeemable noncontrolling
interest |
|
(13 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from the revolving credit facility |
|
— |
|
|
|
80 |
|
|
|
622 |
|
Payments for the revolving credit facility |
|
— |
|
|
|
(325 |
) |
|
|
(377 |
) |
Proceeds from issuance of long-term debt |
|
563 |
|
|
|
244 |
|
|
|
1,728 |
|
Payments of debt issuance costs |
|
(18 |
) |
|
|
(4 |
) |
|
|
(20 |
) |
Payments for long-term debt |
|
(1,349 |
) |
|
|
(1,198 |
) |
|
|
(2,292 |
) |
Other |
|
(3 |
) |
|
|
(6 |
) |
|
|
7 |
|
Net Cash (Used in)
Provided by Financing Activities |
|
(124 |
) |
|
|
(1,510 |
) |
|
|
367 |
|
Reclassification of
Cash to Assets Held-for-Sale |
|
— |
|
|
|
— |
|
|
|
(14 |
) |
Net Increase in Cash,
Cash Equivalents and Restricted Cash |
|
55 |
|
|
|
342 |
|
|
|
189 |
|
Cash, Cash Equivalents
and Restricted Cash at Beginning of Period |
|
996 |
|
|
|
654 |
|
|
|
465 |
|
Cash, Cash Equivalents
and Restricted Cash at End of Period |
$ |
1,051 |
|
|
$ |
996 |
|
|
$ |
654 |
|
|
|
|
|
|
|
Supplemental
Disclosures: |
|
|
|
|
|
Interest paid, net of amount capitalized |
$ |
(304 |
) |
|
$ |
(317 |
) |
|
$ |
(337 |
) |
Income taxes paid |
|
(31 |
) |
|
|
(9 |
) |
|
|
— |
|
Non-cash investing and
financing activities: |
|
|
|
|
|
Non-cash adjustment for change in tax basis |
|
4 |
|
|
|
(1 |
) |
|
|
(7 |
) |
Non-cash (distributions to), contributions from noncontrolling
interests |
|
(7 |
) |
|
|
(4 |
) |
|
|
31 |
|
CLEARWAY ENERGY, INC.CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY |
|
(In
millions) |
Preferred Stock |
|
Common Stock |
|
AdditionalPaid-InCapital |
|
(Accumulated Deficit) Retained Earnings |
|
AccumulatedOtherComprehensive
(Loss) Income |
|
Non-controllingInterest |
|
TotalStockholders’Equity |
Balances at December 31, 2020 |
$ |
— |
|
|
$ |
1 |
|
|
$ |
1,922 |
|
|
$ |
(84 |
) |
|
$ |
(14 |
) |
|
$ |
890 |
|
|
$ |
2,715 |
|
Net income (loss) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
|
— |
|
|
|
(130 |
) |
|
|
(79 |
) |
Unrealized gain on derivatives and changes in accumulated OCL, net
of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
11 |
|
|
|
19 |
|
Contributions from CEG, net of distributions, non-cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
|
|
31 |
|
Contributions from CEG, net of distributions, cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
296 |
|
|
|
296 |
|
Contributions from noncontrolling interests, net of distributions,
cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
676 |
|
|
|
676 |
|
Lighthouse Partnership Yield Protection Agreement Amendment |
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Agua Caliente Acquisition |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
273 |
|
|
|
273 |
|
Transfer of assets under common control |
|
— |
|
|
|
— |
|
|
|
94 |
|
|
|
— |
|
|
|
— |
|
|
|
(468 |
) |
|
|
(374 |
) |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Non-cash adjustment for change in tax basis |
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
Common stock dividends and distributions to CEG |
|
— |
|
|
|
— |
|
|
|
(155 |
) |
|
|
— |
|
|
|
— |
|
|
|
(113 |
) |
|
|
(268 |
) |
Balances at December
31, 2021 |
|
— |
|
|
|
1 |
|
|
|
1,872 |
|
|
|
(33 |
) |
|
|
(6 |
) |
|
|
1,466 |
|
|
|
3,300 |
|
Net income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
582 |
|
|
|
— |
|
|
|
467 |
|
|
|
1,049 |
|
Unrealized gain on derivatives and changes in accumulated OCL, net
of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
17 |
|
|
|
28 |
|
Distributions to CEG, net of contributions, non-cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
Contributions from CEG, net of distributions, cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
16 |
|
Contributions from noncontrolling interests, net of distributions,
cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
|
51 |
|
Transfer of assets under common control |
|
— |
|
|
|
— |
|
|
|
(29 |
) |
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
|
|
(58 |
) |
Capistrano Wind Portfolio Acquisition |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
7 |
|
|
|
11 |
|
Kawailoa Sale to Clearway Renew |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(69 |
) |
|
|
(69 |
) |
Tax-related distributions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(8 |
) |
Non-cash adjustments for change in tax basis |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock dividends and distributions to CEG unit holders |
|
— |
|
|
|
— |
|
|
|
(82 |
) |
|
|
(85 |
) |
|
|
— |
|
|
|
(122 |
) |
|
|
(289 |
) |
Balances at December
31, 2022 |
|
— |
|
|
|
1 |
|
|
|
1,761 |
|
|
|
463 |
|
|
|
9 |
|
|
|
1,792 |
|
|
|
4,026 |
|
Net income (loss) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
79 |
|
|
|
— |
|
|
|
(110 |
) |
|
|
(31 |
) |
Unrealized loss on derivatives and changes in accumulated OCI, net
of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
Distributions to CEG, net of contributions, cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(78 |
) |
|
|
(78 |
) |
Contributions from noncontrolling interests, net of distributions,
cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,123 |
|
|
|
1,123 |
|
Distributions to noncontrolling interests, non-cash |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
(7 |
) |
Tax-related distributions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
|
(21 |
) |
Transfer of assets under common control |
|
— |
|
|
|
— |
|
|
|
(62 |
) |
|
|
— |
|
|
|
— |
|
|
|
348 |
|
|
|
286 |
|
Buyout of noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
|
(26 |
) |
|
|
(10 |
) |
Buyout of redeemable noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
17 |
|
Non-cash adjustments for change in tax basis |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Common stock dividends and distributions to CEG unit holders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(180 |
) |
|
|
— |
|
|
|
(131 |
) |
|
|
(311 |
) |
Balances at December
31, 2023 |
$ |
— |
|
|
$ |
1 |
|
|
$ |
1,732 |
|
|
$ |
361 |
|
|
$ |
7 |
|
|
$ |
2,893 |
|
|
$ |
4,994 |
|
Appendix Table A-1: Three Months Ended
December 31, 2023, Segment Adjusted EBITDA
ReconciliationThe following table summarizes the
calculation of Adjusted EBITDA and provides a reconciliation to Net
Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
($ in
millions) |
|
Conventional |
|
Renewables |
|
Thermal |
|
Corporate |
|
Total |
Net Income (Loss) |
|
$ |
10 |
|
|
$ |
(124 |
) |
|
$ |
— |
|
|
$ |
41 |
|
|
$ |
(73 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(67 |
) |
|
|
(69 |
) |
Interest Expense, net |
|
|
7 |
|
|
|
90 |
|
|
|
— |
|
|
|
18 |
|
|
|
115 |
|
Depreciation, Amortization, and ARO |
|
|
31 |
|
|
|
106 |
|
|
|
— |
|
|
|
— |
|
|
|
137 |
|
Contract Amortization |
|
|
5 |
|
|
|
41 |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
Impairment Losses |
|
|
— |
|
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
Loss on Debt Extinguishment |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Mark to Market (MtM) Losses on economic hedges |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Transaction and Integration Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Other non-recurring |
|
|
2 |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
4 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Adjusted EBITDA |
|
$ |
65 |
|
|
$ |
142 |
|
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
201 |
|
Appendix Table A-2: Three Months Ended
December 31, 2022, Segment Adjusted EBITDA
ReconciliationThe following table summarizes the
calculation of Adjusted EBITDA and provides a reconciliation to Net
Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
($ in
millions) |
|
Conventional |
|
Renewables |
|
Thermal |
|
Corporate |
|
Total |
Net Income (Loss) |
|
$ |
40 |
|
|
$ |
(84 |
) |
|
$ |
— |
|
|
$ |
(10 |
) |
|
$ |
(54 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
|
Income Tax (Benefit)/Expense |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
(17 |
) |
|
|
(15 |
) |
Interest Expense, net |
|
|
10 |
|
|
|
51 |
|
|
|
— |
|
|
|
20 |
|
|
|
81 |
|
Depreciation, Amortization, and ARO |
|
|
32 |
|
|
|
101 |
|
|
|
— |
|
|
|
— |
|
|
|
133 |
|
Contract Amortization |
|
|
6 |
|
|
|
44 |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
Impairment Losses and Impairment on Equity Investment |
|
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
Mark to Market (MtM) Gains on economic hedges |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
Transaction and Integration Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
1 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Adjusted EBITDA |
|
$ |
89 |
|
|
$ |
127 |
|
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
212 |
|
Appendix Table A-3: Twelve Months Ended
December 31, 2023, Segment Adjusted EBITDA
Reconciliation The following table summarizes the
calculation of Adjusted EBITDA and provides a reconciliation to Net
Income/(Loss):
($ in
millions) |
|
Conventional |
|
Renewables |
|
Thermal |
|
Corporate |
|
Total |
Net Income (Loss) |
|
$ |
109 |
|
|
$ |
(12 |
) |
|
$ |
— |
|
|
$ |
(111 |
) |
|
$ |
(14 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Interest Expense, net |
|
|
31 |
|
|
|
181 |
|
|
|
— |
|
|
|
73 |
|
|
|
285 |
|
Depreciation, Amortization, and ARO |
|
|
129 |
|
|
|
397 |
|
|
|
— |
|
|
|
— |
|
|
|
526 |
|
Contract Amortization |
|
|
21 |
|
|
|
166 |
|
|
|
— |
|
|
|
— |
|
|
|
187 |
|
Impairment Losses |
|
|
— |
|
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
Loss on Debt Extinguishment |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Mark to Market (MtM) Losses/(Gains) on economic hedges |
|
|
3 |
|
|
|
(24 |
) |
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
Transaction and Integration Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Other Non-recurring Items |
|
|
(5 |
) |
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
13 |
|
|
|
55 |
|
|
|
— |
|
|
|
— |
|
|
|
68 |
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Adjusted EBITDA |
|
$ |
301 |
|
|
$ |
787 |
|
|
$ |
— |
|
|
$ |
(30 |
) |
|
$ |
1,058 |
|
Appendix Table A-4: Twelve Months Ended
December 31, 2022, Segment Adjusted EBITDA
ReconciliationThe following table summarizes the
calculation of Adjusted EBITDA and provides a reconciliation to Net
Income/(Loss):
($ in
millions) |
|
Conventional |
|
Renewables |
|
Thermal |
|
Corporate |
|
Total |
Net Income (Loss) |
|
$ |
161 |
|
|
$ |
(58 |
) |
|
$ |
17 |
|
|
$ |
940 |
|
|
$ |
1,060 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
220 |
|
|
|
222 |
|
Interest Expense, net |
|
|
39 |
|
|
|
83 |
|
|
|
6 |
|
|
|
90 |
|
|
|
218 |
|
Depreciation, Amortization, and ARO |
|
|
131 |
|
|
|
381 |
|
|
|
— |
|
|
|
— |
|
|
|
512 |
|
Contract Amortization |
|
|
24 |
|
|
|
151 |
|
|
|
— |
|
|
|
— |
|
|
|
175 |
|
Impairment Losses and Impairment on Equity Investment |
|
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
Loss on Debt Extinguishment |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Mark to Market (MtM) Losses on economic hedges |
|
|
— |
|
|
|
182 |
|
|
|
— |
|
|
|
— |
|
|
|
182 |
|
Transaction and Integration Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
Other Non-recurring Items3 |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
(1,291 |
) |
|
|
(1,289 |
) |
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
10 |
|
|
|
42 |
|
|
|
— |
|
|
|
— |
|
|
|
52 |
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
Adjusted EBITDA |
|
$ |
366 |
|
|
$ |
802 |
|
|
$ |
23 |
|
|
$ |
(31 |
) |
|
$ |
1,160 |
|
Appendix Table A-5: Cash Available for Distribution
ReconciliationThe following table summarizes the
calculation of Cash Available for Distribution and provides a
reconciliation to Cash from Operating Activities:
|
Three Months Ended |
|
Twelve Months Ended |
($ in millions) |
12/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
Adjusted EBITDA |
$ |
201 |
|
|
$ |
212 |
|
|
$ |
1,058 |
|
|
$ |
1,160 |
|
Cash interest paid |
|
(67 |
) |
|
|
(63 |
) |
|
|
(304 |
) |
|
|
(317 |
) |
Changes in prepaid and accrued liabilities for tolling
agreements |
|
(9 |
) |
|
|
(14 |
) |
|
|
(32 |
) |
|
|
10 |
|
Adjustments to reflect sale-type leases and payments for lease
expenses |
|
3 |
|
|
|
1 |
|
|
|
8 |
|
|
|
5 |
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates |
|
(13 |
) |
|
|
(11 |
) |
|
|
(77 |
) |
|
|
(80 |
) |
Distributions from unconsolidated affiliates |
|
13 |
|
|
|
12 |
|
|
|
30 |
|
|
|
37 |
|
Changes in working capital and other |
|
78 |
|
|
|
43 |
|
|
|
19 |
|
|
|
(28 |
) |
Cash from Operating Activities |
|
206 |
|
|
|
180 |
|
|
|
702 |
|
|
|
787 |
|
Changes in working capital and other |
|
(78 |
) |
|
|
(43 |
) |
|
|
(19 |
) |
|
|
28 |
|
Development expenses4 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Return of investment from unconsolidated affiliates |
|
— |
|
|
|
1 |
|
|
|
14 |
|
|
|
13 |
|
Net contributions (to)/from non-controlling interest5 |
|
(4 |
) |
|
|
(18 |
) |
|
|
(32 |
) |
|
|
(50 |
) |
Maintenance capital expenditures |
|
— |
|
|
|
(9 |
) |
|
|
(22 |
) |
|
|
(25 |
) |
Principal amortization of indebtedness6 |
|
(72 |
) |
|
|
(113 |
) |
|
|
(302 |
) |
|
|
(434 |
) |
Cash Available for Distribution before
Adjustments |
$ |
52 |
|
|
$ |
(2 |
) |
|
$ |
341 |
|
|
$ |
321 |
|
2023 Impact of drop down from timing of construction debt service;
2022 Net Impact of Capistrano from timing of project debt
service |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
5 |
|
Cash Available for
Distribution7 |
$ |
53 |
|
|
$ |
(2 |
) |
|
$ |
342 |
|
|
$ |
326 |
|
Appendix Table A-6: Twelve Months Ended
December 31, 2023, Sources and Uses of
LiquidityThe following table summarizes the sources and
uses of liquidity in 2023:
|
Twelve Months Ended |
($ in millions) |
12/31/23 |
Sources: |
|
Contributions from noncontrolling interests, net of
distributions |
|
1,028 |
|
Net Cash Provided by Operating Activities |
|
702 |
|
Proceeds from issuance of long-term debt |
|
563 |
|
Return of investments from unconsolidated affiliates |
|
14 |
|
|
|
Uses: |
|
Payments for long-term debt |
|
(1,349 |
) |
Payments of dividends and distributions |
|
(311 |
) |
Capital expenditures |
|
(212 |
) |
Increase in note receivable — affiliate |
|
(174 |
) |
Payment for equipment deposit and asset purchase from
affiliate |
|
(55 |
) |
Acquisition of Drop Down Assets, net of cash acquired |
|
(45 |
) |
Payment for equipment deposit |
|
(27 |
) |
Other net cash outflows |
|
(79 |
) |
|
|
Change in total cash, cash equivalents, and restricted
cash |
$ |
55 |
|
Appendix Table A-7: Adjusted EBITDA and Cash Available
for Distribution Guidance
($ in
millions) |
2024 Full Year Guidance |
Net Income |
|
90 |
|
Income Tax Expense |
|
20 |
|
Interest Expense, net |
|
330 |
|
Depreciation, Amortization, and ARO Expense |
|
680 |
|
Adjustment to reflect CWEN share of Adjusted EBITDA in
unconsolidated affiliates |
|
50 |
|
Non-Cash Equity Compensation |
|
5 |
|
Adjusted EBITDA |
|
1,175 |
|
Cash interest paid |
|
(310 |
) |
Changes in prepaid and accrued liabilities for tolling
agreements |
|
(5 |
) |
Adjustments to reflect sale-type leases and payments for lease
expenses |
|
10 |
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates |
|
(85 |
) |
Cash distributions from unconsolidated affiliates8 |
|
45 |
|
Cash from Operating Activities |
|
830 |
|
Net distributions to non-controlling interest9 |
|
(100 |
) |
Maintenance capital expenditures |
|
(40 |
) |
Principal amortization of indebtedness10 |
|
(295 |
) |
Cash Available for Distribution |
|
395 |
|
Non-GAAP Financial
Information
EBITDA and Adjusted EBITDA
EBITDA, Adjusted EBITDA, and Cash Available for
Distribution (CAFD) are non-GAAP financial measures. These
measurements are not recognized in accordance with GAAP and should
not be viewed as an alternative to GAAP measures of performance.
The presentation of non-GAAP financial measures should not be
construed as an inference that Clearway Energy’s future results
will be unaffected by unusual or non-recurring items.
EBITDA represents net income before interest
(including loss on debt extinguishment), taxes, depreciation and
amortization. EBITDA is presented because Clearway Energy considers
it an important supplemental measure of its performance and
believes debt and equity holders frequently use EBITDA to analyze
operating performance and debt service capacity. EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for analysis of our operating
results as reported under GAAP. Some of these limitations are:
- EBITDA does not reflect cash
expenditures, or future requirements for capital expenditures, or
contractual commitments;
- EBITDA does not reflect changes in,
or cash requirements for, working capital needs;
- EBITDA does not reflect the
significant interest expense, or the cash requirements necessary to
service interest or principal payments, on debt or cash income tax
payments;
- Although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized will often have to be replaced in the future, and EBITDA
does not reflect any cash requirements for such replacements;
and
- Other companies in this industry
may calculate EBITDA differently than Clearway Energy does,
limiting its usefulness as a comparative measure.
Because of these limitations, EBITDA should not
be considered as a measure of discretionary cash available to use
to invest in the growth of Clearway Energy’s business. Clearway
Energy compensates for these limitations by relying primarily on
our GAAP results and using EBITDA and Adjusted EBITDA only
supplementally. See the statements of cash flow included in the
financial statements that are a part of this news release.
Adjusted EBITDA is presented as a further
supplemental measure of operating performance. Adjusted EBITDA
represents EBITDA adjusted for mark-to-market gains or losses,
non-cash equity compensation expense, asset write offs and
impairments; and factors which we do not consider indicative of
future operating performance such as transition and integration
related costs. The reader is encouraged to evaluate each adjustment
and the reasons Clearway Energy considers it appropriate for
supplemental analysis. As an analytical tool, Adjusted EBITDA is
subject to all of the limitations applicable to EBITDA. In
addition, in evaluating Adjusted EBITDA, the reader should be aware
that in the future Clearway Energy may incur expenses similar to
the adjustments in this news release.
Management believes Adjusted EBITDA is useful to
investors and other users of our financial statements in evaluating
our operating performance because it provides them with an
additional tool to compare business performance across companies
and across periods. This measure is widely used by investors to
measure a company’s operating performance without regard to items
such as interest expense, taxes, depreciation and amortization,
which can vary substantially from company to company depending upon
accounting methods and book value of assets, capital structure and
the method by which assets were acquired.
Additionally, Management believes that investors
commonly adjust EBITDA information to eliminate the effect of
restructuring and other expenses, which vary widely from company to
company and impair comparability. As we define it, Adjusted EBITDA
represents EBITDA adjusted for the effects of impairment losses,
gains or losses on sales, non-cash equity compensation expense,
dispositions or retirements of assets, any mark-to-market gains or
losses from accounting for derivatives, adjustments to exclude
gains or losses on the repurchase, modification or extinguishment
of debt, and any extraordinary, unusual or non-recurring items plus
adjustments to reflect the Adjusted EBITDA from our unconsolidated
investments. We adjust for these items in our Adjusted EBITDA as
our management believes that these items would distort their
ability to efficiently view and assess our core operating
trends.
In summary, our management uses Adjusted EBITDA
as a measure of operating performance to assist in comparing
performance from period to period on a consistent basis and to
readily view operating trends, as a measure for planning and
forecasting overall expectations and for evaluating actual results
against such expectations, and in communications with our Board of
Directors, shareholders, creditors, analysts and investors
concerning our financial performance.
Cash Available for
Distribution
A non-GAAP measure, Cash Available for
Distribution is defined as of December 31, 2023 as Adjusted
EBITDA plus cash distributions/return of investment from
unconsolidated affiliates, cash receipts from notes receivable,
cash distributions from noncontrolling interests, adjustments to
reflect sales-type lease cash payments and payments for lease
expenses, less cash distributions to noncontrolling interests,
maintenance capital expenditures, pro-rata Adjusted EBITDA from
unconsolidated affiliates, cash interest paid, income taxes paid,
principal amortization of indebtedness, changes in prepaid and
accrued capacity payments, and adjusted for development expenses.
Management believes CAFD is a relevant supplemental measure of the
Company’s ability to earn and distribute cash returns to
investors.
We believe CAFD is useful to investors in
evaluating our operating performance because securities analysts
and other interested parties use such calculations as a measure of
our ability to make quarterly distributions. In addition, CAFD is
used by our management team for determining future acquisitions and
managing our growth. The GAAP measure most directly comparable to
CAFD is cash provided by operating activities.
However, CAFD has limitations as an analytical
tool because it does not include changes in operating assets and
liabilities and excludes the effect of certain other cash flow
items, all of which could have a material effect on our financial
condition and results from operations. CAFD is a non-GAAP measure
and should not be considered an alternative to cash provided by
operating activities or any other performance or liquidity measure
determined in accordance with GAAP, nor is it indicative of funds
available to fund our cash needs. In addition, our calculations of
CAFD are not necessarily comparable to CAFD as calculated by other
companies. Investors should not rely on these measures as a
substitute for any GAAP measure, including cash provided by
operating activities.
1 Excludes equity method investments2 Generation sold excludes
MWh that are reimbursable for economic curtailment3 Primarily
one-time gain due to the sale of the Thermal Business on May 1,
20224 Primarily relates to Thermal Development Expenses5 2023
excludes $1,025 million of contributions related to the funding of
Rosamond Central Battery Storage, Waiawa, Daggett, Victory Pass,
Arica and Texas Solar Nova 1; 2022 excludes $118 million of
contributions related to the funding of Mesquite Sky, Black Rock,
Mililani, and Waiawa, and $2 million of distributions related to
release of inverter reserves at Agua Caliente6 2023 excludes $1,024
million for the repayment of construction loans in connection with
Waiawa, Daggett, Cedro Hill, Victory Pass, Arica and Texas Solar
Nova 1, and $24 million for the repayment of balloon at Walnut
Creek Holdings; 2022 excludes $660 million for the repayment of the
Bridge Loan Facility and revolver payments, $186 million for the
refinancing of Tapestry Wind, Laredo Ridge, and Viento, $130
million for the repayment of El Segundo project level debt, and
$113 million for the repayment of bridge loans in connection with
Mililani and Waiawa7 Excludes income tax payments related to
Thermal sale8 Distribution from unconsolidated affiliates can be
classified as Return of Investment on Unconsolidated Affiliates
when actuals are reported. This is below cash from operating
activities9 Includes tax equity proceeds and distributions to tax
equity partners10 2024 excludes maturities assumed to be
refinanced
Grafico Azioni Clearway Energy (NYSE:CWEN)
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Da Nov 2024 a Dic 2024
Grafico Azioni Clearway Energy (NYSE:CWEN)
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Da Dic 2023 a Dic 2024