Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported first
quarter 2024 financial results, including Net Loss of $(46)
million, Adjusted EBITDA of $211 million, Cash from Operating
Activities of $81 million, and Cash Available for Distribution
(CAFD) of $52 million.
"Clearway remains well positioned to achieve its
2024 financial objectives. We reported solid first quarter results
highlighting the benefits of our fleet's geographic and
technological diversification,” said Craig Cornelius, Clearway
Energy, Inc.’s incoming President and Chief Executive Officer.
“Furthermore, we have made additional progress on the execution
toward our long-term objectives with the commitments to invest in
Dan's Mountain and Rosamond South and new resource adequacy
contracts for our Conventional fleet. CWEN continues to expect to
achieve the upper range of its 5% to 8% annual dividend growth
objective without needing external capital through at least 2026.
In 2027 we continue to see the potential for CAFD per share growth
to be in that same range if the balance of our gas fleet contracts
its capacity to deliver resource adequacy at the same or better
pricing as recently disclosed contract awards.”
Adjusted EBITDA and Cash Available for
Distribution used in this press release are non-GAAP measures and
are explained in greater detail under “Non-GAAP Financial
Information” below.
Overview of Financial and Operating
Results
Segment Results
Table 1: Net Income/(Loss)
($ millions) |
|
Three Months
Ended |
Segment |
|
3/31/24 |
|
3/31/23 |
Conventional |
|
|
16 |
|
|
|
24 |
|
Renewables |
|
|
(44 |
) |
|
|
(48 |
) |
Corporate |
|
|
(18 |
) |
|
|
(16 |
) |
Net Income/(Loss) |
|
$ |
(46 |
) |
|
$ |
(40 |
) |
Table 2: Adjusted EBITDA
($ millions) |
|
Three Months Ended |
Segment |
|
3/31/24 |
|
3/31/23 |
Conventional |
|
|
51 |
|
|
|
76 |
|
Renewables |
|
|
169 |
|
|
|
151 |
|
Corporate |
|
|
(9 |
) |
|
|
(9 |
) |
Adjusted EBITDA |
|
$ |
211 |
|
|
$ |
218 |
|
Table 3: Cash from Operating Activities and Cash
Available for Distribution (CAFD)
|
|
Three Months Ended |
($ millions) |
|
3/31/24 |
|
3/31/23 |
Cash from Operating Activities |
|
$ |
81 |
|
|
$ |
75 |
|
Cash Available for Distribution (CAFD) |
|
$ |
52 |
|
|
$ |
(4 |
) |
For the first quarter of 2024, the Company
reported Net Loss of $(46) million, Adjusted EBITDA of $211
million, Cash from Operating Activities of $81 million, and CAFD of
$52 million. Net Loss increased versus 2023 primarily due to higher
depreciation expense from growth projects achieving commercial
operations. Adjusted EBITDA results in the first quarter of 2024
were lower than 2023 primarily due to the expiration of certain
tolling agreements in the Conventional fleet, partially offset by
the contribution from growth investments. Cash from Operating
Activities increased versus 2023 primarily due to higher
distributions from unconsolidated affiliates and lower interest
payments related to the Conventional fleet. CAFD results in the
first quarter of 2024 were higher than 2023 primarily due to lower
debt service in the Conventional fleet coinciding with the
expiration of the tolling agreements as well as higher wind
generation for certain facilities during the first quarter.
Operational Performance
Table 4: Selected Operating
Results1
(MWh in thousands) |
|
Three Months Ended |
|
|
3/31/24 |
|
3/31/23 |
Conventional Equivalent Availability Factor |
|
86.3 |
% |
|
74.4 |
% |
Solar MWh generated/sold |
|
1,443 |
|
|
866 |
|
Wind MWh generated/sold |
|
2,519 |
|
|
2,744 |
|
Renewables generated/sold |
|
3,962 |
|
|
3,610 |
|
In the first quarter of 2024, availability at the Conventional
segment was higher than the first quarter of 2023 primarily due to
the timing and duration of maintenance outages in the segment in
2023. Generation in the Renewables segment during the first quarter
of 2024 was 10% higher than the first quarter of 2023 primarily due
to the contribution of growth investments.
____________________________________
1 Excludes equity method investments2 Generation sold excludes
MWh that are reimbursable for economic curtailment
Liquidity and Capital
Resources
Table 5: Liquidity
($ millions) |
|
3/31/2024 |
|
12/31/2023 |
Cash and Cash Equivalents: |
|
|
|
|
Clearway Energy, Inc. and Clearway Energy LLC, excluding
subsidiaries |
|
$ |
337 |
|
$ |
410 |
Subsidiaries |
|
|
141 |
|
|
125 |
Restricted
Cash: |
|
|
|
|
Operating accounts |
|
|
173 |
|
|
176 |
Reserves, including debt service, distributions, performance
obligations and other reserves |
|
|
312 |
|
|
340 |
Total Cash |
|
$ |
963 |
|
$ |
1,051 |
Revolving credit facility
availability |
|
|
472 |
|
|
454 |
Total
Liquidity |
|
$ |
1,435 |
|
$ |
1,505 |
Total liquidity as of March 31, 2024, was
$1,435 million, which was $70 million lower than as of December 31,
2023, primarily due to the repayment of debt and execution of
growth investments.
As of March 31, 2024, the Company's
liquidity included $485 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 March 31,
2024, these restricted funds were comprised of $173 million
designated to fund operating expenses, approximately $187 million
designated for current debt service payments, and $87 million of
reserves for debt service, performance obligations and other items
including capital expenditures. The remaining $38 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
Cedar Creek Wind
On April 16, 2024, the Company, through an
indirect subsidiary, acquired the Cedar Creek wind project, a 160
MW project located in Bingham County, Idaho, for $117 million in
cash. The project achieved commercial operations in the second
quarter of 2024 and sells its power under a 25-year PPA with an
investment grade utility. The Company expects the project to
contribute asset CAFD on a five-year average annual basis of
approximately $13 million beginning January 1, 2025.
Dan's Mountain Wind
On May 3, 2024, the Company, through an indirect
subsidiary, committed to acquire 50% cash equity interest in the
Dan's Mountain wind project, a 55 MW project located in Allegany
County, Maryland, for $44 million in cash, subject to closing
adjustments. The project is expected to achieve commercial
operations in the first half of 2025 and sell its power primarily
under a 12-year PPA with an investment grade offtaker. The Company
expects the project to contribute asset CAFD on a five-year average
annual basis of approximately $4 million beginning January 1,
2026.
Rosamond South I
On May 7, 2024, the Company, through an indirect
subsidiary, committed to acquire 50% cash equity interest in the
Rosamond South I solar plus storage project, a 257 MW project
located in Rosamond, California, for approximately $21 million in
cash, subject to closing adjustments. The project is expected to
achieve commercial operations in the first half of 2025 and sell
its power, RECs, and capacity under agreements with creditworthy
counterparties with a weighted average contract duration of
approximately 15 years. The Company expects the project to
contribute asset CAFD on a five-year average annual basis of
approximately $2 million beginning January 1, 2026.
Strategic Announcements
Resource Adequacy Agreement at Walnut
Creek
On May 6, 2024, the Company contracted with a
load serving entity to sell approximately 97 MW of Resource
Adequacy commencing January 2027 and ending December 2027. With
this transaction, approximately 20% of Walnut Creek's net
qualifying capacity is contracted through 2027 at terms providing
for higher project level CAFD in 2027 relative to current run-rate
expectations.
Resource Adequacy Agreement at Marsh
Landing
On March 28, 2024, the Company contracted with a
load serving entity to sell approximately 90 MW of Resource
Adequacy commencing September 2026 and ending December 2030. With
this transaction, approximately 74% of Marsh Landing's net
qualifying capacity is contracted through 2027 at terms providing
for higher project level CAFD in 2027 relative to current run-rate
expectations.
Quarterly Dividend
On May 9, 2024, Clearway Energy, Inc.’s
Board of Directors declared a quarterly dividend on Class A and
Class C common stock of $0.4102 per share payable on June 17,
2024, to stockholders of record as of June 3, 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.
Earnings Conference Call
On May 9, 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 6,200 net MW
of installed wind, solar, and battery energy storage systems. The
Company's approximately 8,700 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,
statements regarding 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
Global Infrastructure Partners, TotalEnergies, and Clearway Energy
Group, 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,
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), 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 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.
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,
May 9, 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 OPERATIONS |
(Unaudited) |
|
|
Three months ended March 31, |
(In millions, except
per share amounts) |
2024 |
|
2023 |
Operating
Revenues |
|
|
|
Total operating revenues |
$ |
263 |
|
|
$ |
288 |
|
Operating Costs and
Expenses |
|
|
|
Cost of operations, exclusive of depreciation, amortization and
accretion shown separately below |
|
126 |
|
|
|
108 |
|
Depreciation, amortization and accretion |
|
154 |
|
|
|
128 |
|
General and administrative |
|
11 |
|
|
|
10 |
|
Transaction and integration costs |
|
1 |
|
|
|
— |
|
Total operating costs and expenses |
|
292 |
|
|
|
246 |
|
Operating (Loss)
Income |
|
(29 |
) |
|
|
42 |
|
Other Income
(Expense) |
|
|
|
Equity in earnings (losses) of unconsolidated affiliates |
|
12 |
|
|
|
(3 |
) |
Other income, net |
|
16 |
|
|
|
8 |
|
Loss on debt extinguishment |
|
(1 |
) |
|
|
— |
|
Interest expense |
|
(57 |
) |
|
|
(99 |
) |
Total other expense, net |
|
(30 |
) |
|
|
(94 |
) |
Loss Before Income
Taxes |
|
(59 |
) |
|
|
(52 |
) |
Income tax benefit |
|
(13 |
) |
|
|
(12 |
) |
Net Loss |
|
(46 |
) |
|
|
(40 |
) |
Less: Net loss attributable to noncontrolling interests and
redeemable noncontrolling interests |
|
(44 |
) |
|
|
(40 |
) |
Net Loss Attributable
to Clearway Energy, Inc. |
$ |
(2 |
) |
|
$ |
— |
|
Loss 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 |
|
Weighted average number of Class C common shares outstanding -
basic and diluted |
|
82 |
|
|
|
82 |
|
Loss Per Weighted
Average Class A and Class C Common Share - Basic and
Diluted |
$ |
(0.02 |
) |
|
$ |
— |
|
Dividends Per Class A
Common Share |
$ |
0.4033 |
|
|
$ |
0.3745 |
|
Dividends Per Class C
Common Share |
$ |
0.4033 |
|
|
$ |
0.3745 |
|
CLEARWAY
ENERGY, INC. |
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS |
(Unaudited) |
|
|
|
Three months ended March 31, |
(In
millions) |
2024 |
|
2023 |
Net Loss |
$ |
(46 |
) |
|
$ |
(40 |
) |
Other Comprehensive
Loss |
|
|
|
Unrealized loss on derivatives and changes in accumulated OCI, net
of income tax benefit, of $—, and $1 |
|
(1 |
) |
|
|
(3 |
) |
Other comprehensive loss |
|
(1 |
) |
|
|
(3 |
) |
Comprehensive
Loss |
|
(47 |
) |
|
|
(43 |
) |
Less: Comprehensive loss attributable to noncontrolling interests
and redeemable noncontrolling interests |
|
(43 |
) |
|
|
(42 |
) |
Comprehensive Loss
Attributable to Clearway Energy, Inc. |
$ |
(4 |
) |
|
$ |
(1 |
) |
CLEARWAY ENERGY, INC. |
CONSOLIDATED BALANCE SHEETS |
|
(In millions, except
shares) |
March 31, 2024 |
|
December 31, 2023 |
ASSETS |
(Unaudited) |
|
|
Current
Assets |
|
|
|
Cash and cash equivalents |
$ |
478 |
|
$ |
535 |
Restricted cash |
|
485 |
|
|
516 |
Accounts receivable — trade |
|
184 |
|
|
171 |
Inventory |
|
58 |
|
|
55 |
Derivative instruments |
|
54 |
|
|
41 |
Note receivable — affiliate |
|
178 |
|
|
174 |
Prepayments and other current assets |
|
60 |
|
|
68 |
Total current assets |
|
1,497 |
|
|
1,560 |
Property, plant and
equipment, net |
|
9,746 |
|
|
9,526 |
Other
Assets |
|
|
|
Equity investments in affiliates |
|
349 |
|
|
360 |
Intangible assets for power purchase agreements, net |
|
2,259 |
|
|
2,303 |
Other intangible assets, net |
|
72 |
|
|
71 |
Derivative instruments |
|
111 |
|
|
82 |
Right-of-use assets, net |
|
615 |
|
|
597 |
Other non-current assets |
|
213 |
|
|
202 |
Total other assets |
|
3,619 |
|
|
3,615 |
Total
Assets |
$ |
14,862 |
|
$ |
14,701 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
Liabilities |
|
|
|
Current portion of long-term debt |
$ |
565 |
|
$ |
558 |
Accounts payable — trade |
|
123 |
|
|
130 |
Accounts payable — affiliates |
|
28 |
|
|
31 |
Derivative instruments |
|
52 |
|
|
51 |
Accrued interest expense |
|
42 |
|
|
57 |
Accrued expenses and other current liabilities |
|
64 |
|
|
79 |
Total current liabilities |
|
874 |
|
|
906 |
Other
Liabilities |
|
|
|
Long-term debt |
|
7,579 |
|
|
7,479 |
Deferred income taxes |
|
111 |
|
|
127 |
Derivative instruments |
|
309 |
|
|
281 |
Long-term lease liabilities |
|
642 |
|
|
627 |
Other non-current liabilities |
|
300 |
|
|
286 |
Total other liabilities |
|
8,941 |
|
|
8,800 |
Total
Liabilities |
|
9,815 |
|
|
9,706 |
Redeemable
noncontrolling interest in subsidiaries |
|
2 |
|
|
1 |
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
March 31, 2024 and 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 |
|
1 |
|
|
1 |
Additional paid-in capital |
|
1,741 |
|
|
1,732 |
Retained earnings |
|
311 |
|
|
361 |
Accumulated other comprehensive income |
|
5 |
|
|
7 |
Noncontrolling interest |
|
2,987 |
|
|
2,893 |
Total Stockholders’
Equity |
|
5,045 |
|
|
4,994 |
Total Liabilities and
Stockholders’ Equity |
$ |
14,862 |
|
$ |
14,701 |
CLEARWAY ENERGY, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Three months ended March 31, |
(In
millions) |
2024 |
|
2023 |
Cash Flows from
Operating Activities |
|
|
|
Net Loss |
$ |
(46 |
) |
|
$ |
(40 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Equity in (earnings) losses of unconsolidated affiliates |
|
(12 |
) |
|
|
3 |
|
Distributions from unconsolidated affiliates |
|
9 |
|
|
|
6 |
|
Depreciation, amortization and accretion |
|
154 |
|
|
|
128 |
|
Amortization of financing costs and debt discounts |
|
4 |
|
|
|
3 |
|
Amortization of intangibles |
|
46 |
|
|
|
47 |
|
Loss on debt extinguishment |
|
1 |
|
|
|
— |
|
Reduction in carrying amount of right-of-use assets |
|
4 |
|
|
|
4 |
|
Changes in deferred income taxes |
|
(10 |
) |
|
|
(11 |
) |
Changes in derivative instruments and amortization of accumulated
OCI |
|
2 |
|
|
|
3 |
|
Cash used in changes in other working capital: |
|
|
|
Changes in prepaid and accrued liabilities for tolling
agreements |
|
(10 |
) |
|
|
(39 |
) |
Changes in other working capital |
|
(61 |
) |
|
|
(29 |
) |
Net Cash Provided by
Operating Activities |
|
81 |
|
|
|
75 |
|
Cash Flows from
Investing Activities |
|
|
|
Acquisition of Drop Down Assets, net of cash acquired |
|
(111 |
) |
|
|
(7 |
) |
Capital expenditures |
|
(98 |
) |
|
|
(88 |
) |
Return of investment from unconsolidated affiliates |
|
4 |
|
|
|
9 |
|
Other |
|
2 |
|
|
|
— |
|
Net Cash Used in
Investing Activities |
|
(203 |
) |
|
|
(86 |
) |
Cash Flows from
Financing Activities |
|
|
|
Contributions from noncontrolling interests, net of
distributions |
|
207 |
|
|
|
273 |
|
Payments of dividends and distributions |
|
(81 |
) |
|
|
(76 |
) |
Proceeds from the issuance of long-term debt |
|
74 |
|
|
|
42 |
|
Payments of debt issuance costs |
|
— |
|
|
|
(7 |
) |
Payments for long-term debt |
|
(166 |
) |
|
|
(204 |
) |
Net Cash Provided by
Financing Activities |
|
34 |
|
|
|
28 |
|
Net (Decrease)
Increase in Cash, Cash Equivalents and Restricted
Cash |
|
(88 |
) |
|
|
17 |
|
Cash, Cash Equivalents
and Restricted Cash at Beginning of Period |
|
1,051 |
|
|
|
996 |
|
Cash, Cash Equivalents
and Restricted Cash at End of Period |
$ |
963 |
|
|
$ |
1,013 |
|
CLEARWAY
ENERGY, INC. |
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions) |
PreferredStock |
|
CommonStock |
|
AdditionalPaid-InCapital |
|
RetainedEarnings |
|
AccumulatedOtherComprehensiveIncome |
|
NoncontrollingInterest |
|
TotalStockholders’Equity |
Balances at December 31, 2023 |
$ |
— |
|
$ |
1 |
|
$ |
1,732 |
|
$ |
361 |
|
|
$ |
7 |
|
|
$ |
2,893 |
|
|
$ |
4,994 |
|
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
|
— |
|
|
|
(45 |
) |
|
|
(47 |
) |
Unrealized (loss) gain on derivatives and changes in accumulated
OCI, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
1 |
|
|
|
(1 |
) |
Distributions to CEG, net of contributions, cash |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Contributions from noncontrolling interests, net of distributions,
cash |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
215 |
|
|
|
215 |
|
Transfers of assets under common control |
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
|
— |
|
|
|
(42 |
) |
|
|
(40 |
) |
Non-cash adjustments for change in tax basis |
|
— |
|
|
— |
|
|
6 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Stock-based compensation |
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Common stock dividends and distributions to CEG unit holders |
|
— |
|
|
— |
|
|
— |
|
|
(47 |
) |
|
|
— |
|
|
|
(34 |
) |
|
|
(81 |
) |
Other |
|
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Balances at March 31,
2024 |
$ |
— |
|
$ |
1 |
|
$ |
1,741 |
|
$ |
311 |
|
|
$ |
5 |
|
|
$ |
2,987 |
|
|
$ |
5,045 |
|
(In
millions) |
Preferred Stock |
|
Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive
Income |
|
Noncontrolling Interest |
|
Total Stockholders’ Equity |
Balances at December 31, 2022 |
$ |
— |
|
$ |
1 |
|
$ |
1,761 |
|
|
$ |
463 |
|
|
$ |
9 |
|
|
$ |
1,792 |
|
|
$ |
4,026 |
|
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43 |
) |
|
|
(43 |
) |
Unrealized loss on derivatives and changes in accumulated OCI, net
of tax |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
Contributions from CEG, net of distributions, cash |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
30 |
|
Contributions from noncontrolling interests, net of distributions,
cash |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
215 |
|
|
|
215 |
|
Transfers of assets under common control |
|
— |
|
|
— |
|
|
(52 |
) |
|
|
— |
|
|
|
— |
|
|
|
46 |
|
|
|
(6 |
) |
Non-cash adjustments for change in tax basis |
|
— |
|
|
— |
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
Stock based compensation |
|
— |
|
|
— |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Common stock dividends and distributions to CEG unit holders |
|
— |
|
|
— |
|
|
— |
|
|
|
(44 |
) |
|
|
— |
|
|
|
(32 |
) |
|
|
(76 |
) |
Balances at March 31,
2023 |
$ |
— |
|
$ |
1 |
|
$ |
1,719 |
|
|
$ |
419 |
|
|
$ |
8 |
|
|
$ |
2,006 |
|
|
$ |
4,153 |
|
Appendix Table A-1: Three Months Ended
March 31, 2024, Segment Adjusted EBITDA
ReconciliationThe following table summarizes the
calculation of Adjusted EBITDA and provides a reconciliation to Net
Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions) |
|
Conventional |
|
Renewables |
|
Corporate |
|
Total |
Net Income (Loss) |
|
$ |
16 |
|
|
$ |
(44 |
) |
|
$ |
(18 |
) |
|
$ |
(46 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
(13 |
) |
Interest Expense, net |
|
|
6 |
|
|
|
14 |
|
|
|
20 |
|
|
|
40 |
|
Depreciation, Amortization, and ARO |
|
|
32 |
|
|
|
122 |
|
|
|
— |
|
|
|
154 |
|
Contract Amortization |
|
|
5 |
|
|
|
41 |
|
|
|
— |
|
|
|
46 |
|
Loss on Debt Extinguishment |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Mark to Market (MtM) Losses/(Gains) on economic hedges |
|
|
(11 |
) |
|
|
35 |
|
|
|
— |
|
|
|
24 |
|
Transaction and integration costs |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Other non-recurring |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
4 |
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Adjusted EBITDA |
|
$ |
51 |
|
|
$ |
169 |
|
|
$ |
(9 |
) |
|
$ |
211 |
|
Appendix Table A-2: Three Months Ended
March 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 |
|
|
|
Corporate |
|
|
|
Total |
|
Net Income (Loss) |
|
$ |
24 |
|
|
$ |
(48 |
) |
|
$ |
(16 |
) |
|
$ |
(40 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
— |
|
|
|
— |
|
|
|
(12 |
) |
|
|
(12 |
) |
Interest Expense, net |
|
|
10 |
|
|
|
62 |
|
|
|
18 |
|
|
|
90 |
|
Depreciation, Amortization, and ARO |
|
|
33 |
|
|
|
95 |
|
|
|
— |
|
|
|
128 |
|
Contract Amortization |
|
|
6 |
|
|
|
41 |
|
|
|
— |
|
|
|
47 |
|
Mark to Market (MtM) Gains on economic hedges |
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
(19 |
) |
Other non-recurring |
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
3 |
|
|
|
16 |
|
|
|
— |
|
|
|
19 |
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Adjusted EBITDA |
|
$ |
76 |
|
|
$ |
151 |
|
|
$ |
(9 |
) |
|
$ |
218 |
|
Appendix Table A-3: Cash Available for Distribution
Reconciliation The following table summarizes the
calculation of Cash Available for Distribution and provides a
reconciliation to Cash from Operating Activities:
|
Three Months
Ended |
($ in millions) |
3/31/24 |
|
3/31/23 |
Adjusted EBITDA |
$ |
211 |
|
|
$ |
218 |
|
Cash interest paid |
|
(90 |
) |
|
|
(93 |
) |
Changes in prepaid and accrued liabilities for tolling
agreements |
|
(10 |
) |
|
|
(39 |
) |
Adjustments to reflect sale-type leases and payments for lease
expenses |
|
3 |
|
|
|
1 |
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates |
|
(17 |
) |
|
|
(15 |
) |
Distributions from unconsolidated affiliates |
|
9 |
|
|
|
6 |
|
Changes in working capital and other |
|
(25 |
) |
|
|
(3 |
) |
Cash from Operating Activities |
|
81 |
|
|
|
75 |
|
Changes in working capital and other |
|
25 |
|
|
|
3 |
|
Return of investment from unconsolidated affiliates |
|
4 |
|
|
|
9 |
|
Net distributions (to)/from non-controlling interest3 |
|
(5 |
) |
|
|
(10 |
) |
Maintenance capital expenditures |
|
(2 |
) |
|
|
(7 |
) |
Principal amortization of indebtedness4 |
|
(51 |
) |
|
|
(74 |
) |
Cash Available for Distribution |
$ |
52 |
|
|
$ |
(4 |
) |
Appendix Table A-4: Three Months Ended
March 31, 2024, Sources and Uses of
Liquidity The following table summarizes the sources
and uses of liquidity in 2024:
|
|
|
Three Months Ended |
|
($ in millions) |
|
|
3/31/24 |
|
Sources: |
|
|
|
|
Contributions from noncontrolling interests, net of
distributions |
|
|
207 |
|
Net cash provided by operating activities |
|
|
81 |
|
Proceedsfrom the issuance of long-term debt |
|
|
74 |
|
Return of investment from unconsolidated affiliates |
|
|
4 |
|
Other net cash inflows |
|
|
2 |
|
|
|
|
|
|
Uses: |
|
|
|
|
Payments for long-term debt |
|
|
(166 |
) |
Acquisition of Drop Down Assets, net of cash acquired |
|
|
(111 |
) |
Capital expenditures |
|
|
(98 |
) |
Payments of dividends and distributions |
|
|
(81 |
) |
|
|
|
|
|
Change in
total cash, cash equivalents, and restricted cash |
|
$ |
(88 |
) |
____________________________________
3 2024 excludes $224 million of contributions related to Texas
Solar Nova 2; 2023 excludes $224 million of contributions related
to the funding of Waiawa and Daggett 34 2024 excludes $115 for the
repayment of bridge loans in connection with Texas Solar Nova 2;
2023 excludes $55 million for the repayment of bridge loans in
connection with Waiawa
Appendix Table A-5: Adjusted EBITDA and Cash Available
for Distribution Guidance
($ 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 affiliates5 |
45 |
|
Cash from Operating Activities |
830 |
|
Net distributions to non-controlling interest6 |
(100 |
) |
Maintenance capital expenditures |
(40 |
) |
Principal amortization of indebtedness7 |
(295 |
) |
Cash Available for Distribution |
395 |
|
Appendix Table A-6: Adjusted EBITDA and Cash Available
for Distribution Growth Projects
($ in
millions) |
|
Cedar Creek Wind5 Year Ave.
2025-2029 |
Dan's Mountain Wind5 Year Ave.
2026-2030 |
Rosamond South I5 Year Ave.
2026-2030 |
Net Income |
|
3 |
|
1 |
|
— |
|
Interest Expense, net |
|
5 |
|
— |
|
12 |
|
Depreciation, Amortization, and ARO Expense |
|
8 |
|
8 |
|
17 |
|
Adjusted EBITDA |
|
16 |
|
9 |
|
29 |
|
Cash interest paid |
|
(5 |
) |
— |
|
(12 |
) |
Cash from Operating Activities |
|
11 |
|
9 |
|
17 |
|
Net distributions (to)/from non-controlling interest |
|
3 |
|
(5 |
) |
(6 |
) |
Network Upgrade Reimbursements |
|
2 |
|
— |
|
— |
|
Maintenance capital expenditures |
|
— |
|
— |
|
(1 |
) |
Principal amortization of indebtedness |
|
(3 |
) |
— |
|
(8 |
) |
Estimated Cash Available for Distribution |
|
13 |
|
4 |
|
2 |
|
____________________________________
5 Distribution from unconsolidated affiliates
can be classified as Return of Investment on Unconsolidated
Affiliates when actuals are reported. This is below cash from
operating activities6 Includes tax equity proceeds and
distributions to tax equity partners7 2024 excludes maturities
assumed to be refinanced
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 March 31, 2024 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.
Grafico Azioni Clearway Energy (NYSE:CWEN)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Clearway Energy (NYSE:CWEN)
Storico
Da Dic 2023 a Dic 2024