Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported second
quarter 2024 financial results, including Net Income of $4 million,
Adjusted EBITDA of $353 million, Cash from Operating Activities of
$196 million, and Cash Available for Distribution (CAFD) of $187
million.
"Following another solid quarter that benefited
from our operating fleet's diversification, Clearway remains well
positioned to achieve its 2024 financial objectives,” said Craig
Cornelius, Clearway Energy, Inc.’s President and Chief Executive
Officer. “With the upsized growth investment commitment to the Luna
Valley and Daggett 1 projects, we have now committed to deploying
all of the excess proceeds received from the sale of our district
thermal business and established our path to achieve the financial
objectives we had set through 2026. We are also pleased to be
continuing our path towards realizing CAFD per share growth
contributions from our natural gas assets with the announcement of
our latest resource adequacy contract for Marsh Landing. As we look
further ahead, we have in view a number of levers for increased
long-term CAFD per share growth. Among these are potential future
growth investments in the Pine Forest and Honeycomb project
complexes and targeted 3rd party M&A opportunities – each of
which can be funded accretively with current liquidity and organic
cash flow received from our portfolio over time.”
Adjusted EBITDA and Cash Available for
Distribution used in this press release are non-GAAP measures and
are explained in greater detail under “Non-GAAP Financial
Information” below.
Overview of Financial and Operating
Results
Segment Results
Table 1: Net Income/(Loss)
| ($ millions) |
|
Three Months
Ended |
|
Six Months
Ended |
|
Segment |
|
6/30/24 |
|
6/30/23 |
|
6/30/24 |
|
6/30/23 |
|
Conventional |
|
|
9 |
|
|
|
37 |
|
|
|
25 |
|
|
|
61 |
|
| Renewables |
|
|
38 |
|
|
|
98 |
|
|
|
(6 |
) |
|
|
50 |
|
|
Corporate |
|
|
(43 |
) |
|
|
(51 |
) |
|
|
(61 |
) |
|
|
(67 |
) |
|
Net Income/(Loss) |
|
$ |
4 |
|
|
$ |
84 |
|
|
$ |
(42 |
) |
|
$ |
44 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2: Adjusted EBITDA
| ($ millions) |
|
Three Months Ended |
|
Six Months Ended |
|
Segment |
|
6/30/24 |
|
6/30/23 |
|
6/30/24 |
|
6/30/23 |
|
Conventional |
|
|
57 |
|
|
|
76 |
|
|
|
108 |
|
|
|
152 |
|
| Renewables |
|
|
306 |
|
|
|
248 |
|
|
|
475 |
|
|
|
399 |
|
|
Corporate |
|
|
(10 |
) |
|
|
(8 |
) |
|
|
(19 |
) |
|
|
(17 |
) |
|
Adjusted EBITDA |
|
$ |
353 |
|
|
$ |
316 |
|
|
$ |
564 |
|
|
$ |
534 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3: Cash from Operating Activities and Cash
Available for Distribution (CAFD)
| |
|
Three Months Ended |
|
Six Months Ended |
|
($ millions) |
|
6/30/24 |
|
6/30/23 |
|
6/30/24 |
|
6/30/23 |
|
Cash from Operating Activities |
|
$ |
196 |
|
$ |
134 |
|
$ |
277 |
|
$ |
209 |
|
Cash Available for Distribution (CAFD) |
|
$ |
187 |
|
$ |
137 |
|
$ |
239 |
|
$ |
133 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
For the second quarter of 2024, the Company
reported Net Income of $4 million, Adjusted EBITDA of $353 million,
Cash from Operating Activities of $196 million, and CAFD of $187
million. Net Income decreased versus 2023 primarily due to
non-cash impacts from the mark to market impact of economic hedges.
Adjusted EBITDA results in the second quarter were higher than 2023
primarily due to higher renewable production at certain facilities
and the contribution of growth investments. CAFD results in the
second quarter of 2024 were higher than 2023 primarily due to
higher EBITDA and lower debt service in the Conventional fleet
coinciding with the expiration of the tolling agreements.
Operational Performance
Table 4: Selected Operating
Results1
| (MWh in thousands) |
|
Three Months Ended |
|
Six Months Ended |
|
|
|
6/30/24 |
|
6/30/23 |
|
6/30/24 |
|
6/30/23 |
|
Conventional Equivalent Availability Factor |
|
97.1 |
% |
|
90.1 |
% |
|
91.7 |
% |
|
82.3 |
% |
|
Solar MWh generated/sold |
|
2,613 |
|
|
1,544 |
|
|
4,056 |
|
|
2,410 |
|
|
Wind MWh generated/sold |
|
2,947 |
|
|
2,433 |
|
|
5,466 |
|
|
5,177 |
|
|
Renewables generated/sold2 |
|
5,560 |
|
|
3,977 |
|
|
9,522 |
|
|
7,587 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
In the second quarter of 2024, availability at
the Conventional segment was higher than the second quarter of 2023
primarily due to longer planned maintenance in 2023 and strong
operational performance in 2024. Generation in the Renewables
segment during the second quarter of 2024 was 40% higher than the
second quarter of 2023 primarily due to the contribution of growth
investments as well as higher wind resource at certain
facilities.
Liquidity and Capital
Resources
Table 5: Liquidity
|
($ millions) |
|
6/30/2024 |
|
12/31/2023 |
| Cash and Cash
Equivalents: |
|
|
|
|
|
Clearway Energy, Inc. and Clearway Energy LLC, excluding
subsidiaries |
|
$ |
35 |
|
$ |
410 |
|
Subsidiaries |
|
|
191 |
|
|
125 |
| Restricted
Cash: |
|
|
|
|
|
Operating accounts |
|
|
169 |
|
|
176 |
|
Reserves, including debt service, distributions, performance
obligations and other reserves |
|
|
175 |
|
|
340 |
| Total Cash |
|
$ |
570 |
|
$ |
1,051 |
| Revolving credit facility availability |
|
|
495 |
|
|
454 |
| Total
Liquidity |
|
$ |
1,065 |
|
$ |
1,505 |
| |
|
|
|
|
|
|
Total liquidity as of June 30, 2024, was
$1,065 million, which was $440 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 June 30, 2024, the Company's
liquidity included $344 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 June 30,
2024, these restricted funds were comprised of $169 million
designated to fund operating expenses, approximately $42 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 $44 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
Resource Adequacy Agreement at Marsh
Landing
On July 31, 2024, the Company contracted with a
load serving entity to sell approximately 195 MW of Marsh Landing’s
RA commencing in October 2026 and ending in December 2028. Marsh
Landing is now contracted for approximately 99% of its capacity
through 2027 at terms providing for higher project level CAFD in
2027 relative to current run-rate expectations.
Pine Forest Offer
On July 19, 2024, Clearway Group offered the
Company the opportunity to enter into partnership arrangements to
own cash equity interests in a 500 MW solar plus storage project
that is expected to reach commercial operations in 2025. The
potential corporate capital commitment for the investment is
expected to be approximately $155 million. The investment is
subject to negotiation both with Clearway Group, and the review and
approval by the Company’s Independent Directors.
Luna Valley and Daggett 1
Storage
On June 27, 2024, the Company, through an
indirect subsidiary, entered into an agreement to acquire cash
equity interests in Luna Valley, a 200 MW solar facility currently
under construction in Fresno County, California, and Daggett 1, a
114 MW BESS facility currently under construction in San
Bernardino, California, for $143 million in cash consideration,
subject to closing adjustments. Upon achieving commercial
operations, the projects are underpinned by power purchase
agreements with creditworthy counterparties with a weighted average
contract duration of over 16 years. The consummation of the
transaction is 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 $14
million beginning January 1, 2026.
Financing Update
NIMH Solar Refinancing
On June 11, 2024, NIMH Solar LLC refinanced the
amended and restated credit agreement, which included the issuance
of a $137 million term loan facility, as well as $17 million in
letters of credit in support of debt service and facility
obligations. The obligations under the financing arrangement are
supported by the Company’s interests in the Alpine, Blythe and
Roadrunner solar facilities. The Company utilized the proceeds from
the term loan and existing sources of liquidity to pay off the
existing debt in the amount of $146 million. The refinancing
resulted in no material change to the Company's run-rate CAFD
expectations for the underlying projects.
Natural Gas CA Holdco LLC LC
Facility
On July 25, 2024, the Company, through its
indirect subsidiary, Natural Gas CA Holdco LLC, entered into a
financing agreement that provides for a $200 million letter of
credit facility, which will be utilized to support the collateral
needs of the Company’s merchant conventional facilities and will
free up capacity on the Company’s corporate revolving credit
facility.
Quarterly
Dividend
On August 1, 2024, Clearway Energy, Inc.’s
Board of Directors declared a quarterly dividend on Class A and
Class C common stock of $0.4171 per share payable on
September 16, 2024, to stockholders of record as of
September 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 August 1, 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. The Company's
fleet comprises approximately 9,000 MW of net owned generating
capacity in 26 states, including over 6,500 MW of wind, solar, and
energy storage assets, and approximately 2,500 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,
August 1, 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(Unaudited)
| |
Three months ended June 30, |
|
Six months ended June 30, |
|
(In millions, except per share amounts) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Operating
Revenues |
|
|
|
|
|
|
|
|
Total operating revenues |
$ |
366 |
|
|
$ |
406 |
|
|
$ |
629 |
|
|
$ |
694 |
|
| Operating Costs and
Expenses |
|
|
|
|
|
|
|
|
Cost of operations, exclusive of depreciation, amortization and
accretion shown separately below |
|
117 |
|
|
|
118 |
|
|
|
243 |
|
|
|
226 |
|
|
Depreciation, amortization and accretion |
|
153 |
|
|
|
128 |
|
|
|
307 |
|
|
|
256 |
|
|
General and administrative |
|
9 |
|
|
|
9 |
|
|
|
20 |
|
|
|
19 |
|
|
Transaction and integration costs |
|
3 |
|
|
|
2 |
|
|
|
4 |
|
|
|
2 |
|
|
Total operating costs and expenses |
|
282 |
|
|
|
257 |
|
|
|
574 |
|
|
|
503 |
|
| Operating
Income |
|
84 |
|
|
|
149 |
|
|
|
55 |
|
|
|
191 |
|
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates |
|
8 |
|
|
|
3 |
|
|
|
20 |
|
|
|
— |
|
|
Other income, net |
|
12 |
|
|
|
9 |
|
|
|
28 |
|
|
|
17 |
|
|
Loss on debt extinguishment |
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
Interest expense |
|
(88 |
) |
|
|
(55 |
) |
|
|
(145 |
) |
|
|
(154 |
) |
|
Total other expense, net |
|
(70 |
) |
|
|
(43 |
) |
|
|
(100 |
) |
|
|
(137 |
) |
| Income (Loss) Before
Income Taxes |
|
14 |
|
|
|
106 |
|
|
|
(45 |
) |
|
|
54 |
|
|
Income tax expense (benefit) |
|
10 |
|
|
|
22 |
|
|
|
(3 |
) |
|
|
10 |
|
| Net Income
(Loss) |
|
4 |
|
|
|
84 |
|
|
|
(42 |
) |
|
|
44 |
|
|
Less: Net (loss) income attributable to noncontrolling interests
and redeemable noncontrolling interests |
|
(47 |
) |
|
|
46 |
|
|
|
(91 |
) |
|
|
6 |
|
| Net Income
Attributable to Clearway Energy, Inc. |
$ |
51 |
|
|
$ |
38 |
|
|
$ |
49 |
|
|
$ |
38 |
|
| 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 |
|
82 |
|
|
|
82 |
|
|
|
82 |
|
|
|
82 |
|
| Earnings Per Weighted
Average Class A and Class C Common Share - Basic and
Diluted |
$ |
0.43 |
|
|
$ |
0.33 |
|
|
$ |
0.41 |
|
|
$ |
0.32 |
|
| Dividends Per Class A
Common Share |
$ |
0.4102 |
|
|
$ |
0.3818 |
|
|
$ |
0.8135 |
|
|
$ |
0.7563 |
|
| Dividends Per Class C
Common Share |
$ |
0.4102 |
|
|
$ |
0.3818 |
|
|
$ |
0.8135 |
|
|
$ |
0.7563 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLEARWAY ENERGY,
INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME(Unaudited)
| |
Three months ended June 30, |
|
Six months ended June 30, |
|
(In millions) |
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
| Net Income
(Loss) |
$ |
4 |
|
|
$ |
84 |
|
$ |
(42 |
) |
|
$ |
44 |
| Other Comprehensive
Income |
|
|
|
|
|
|
|
|
Unrealized gain on derivatives and changes in accumulated OCI, net
of income tax benefit, of $—, $1, $—, and $— |
|
1 |
|
|
|
3 |
|
|
— |
|
|
|
— |
|
Other comprehensive income |
|
1 |
|
|
|
3 |
|
|
— |
|
|
|
— |
| Comprehensive Income
(Loss) |
|
5 |
|
|
|
87 |
|
|
(42 |
) |
|
|
44 |
|
Less: Comprehensive (loss) income attributable to noncontrolling
interests and redeemable noncontrolling interests |
|
(46 |
) |
|
|
48 |
|
|
(89 |
) |
|
|
6 |
| Comprehensive Income
Attributable to Clearway Energy, Inc. |
$ |
51 |
|
|
$ |
39 |
|
$ |
47 |
|
|
$ |
38 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
CLEARWAY ENERGY,
INC.CONSOLIDATED BALANCE SHEETS
| (In millions, except
shares) |
June 30, 2024 |
|
December 31, 2023 |
|
ASSETS |
(Unaudited) |
|
|
| Current
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
226 |
|
$ |
535 |
|
Restricted cash |
|
344 |
|
|
516 |
|
Accounts receivable — trade |
|
255 |
|
|
171 |
|
Accounts receivable — affiliates |
|
1 |
|
|
— |
|
Inventory |
|
60 |
|
|
55 |
|
Derivative instruments |
|
51 |
|
|
41 |
|
Note receivable — affiliate |
|
— |
|
|
174 |
|
Prepayments and other current assets |
|
84 |
|
|
68 |
|
Total current assets |
|
1,021 |
|
|
1,560 |
| Property, plant and
equipment, net |
|
9,952 |
|
|
9,526 |
| Other
Assets |
|
|
|
|
Equity investments in affiliates |
|
321 |
|
|
360 |
|
Intangible assets for power purchase agreements, net |
|
2,214 |
|
|
2,303 |
|
Other intangible assets, net |
|
71 |
|
|
71 |
|
Derivative instruments |
|
117 |
|
|
82 |
|
Right-of-use assets, net |
|
597 |
|
|
597 |
|
Other non-current assets |
|
224 |
|
|
202 |
|
Total other assets |
|
3,544 |
|
|
3,615 |
| Total
Assets |
$ |
14,517 |
|
$ |
14,701 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| Current
Liabilities |
|
|
|
|
Current portion of long-term debt |
$ |
412 |
|
$ |
558 |
|
Accounts payable — trade |
|
86 |
|
|
130 |
|
Accounts payable — affiliates |
|
12 |
|
|
31 |
|
Derivative instruments |
|
59 |
|
|
51 |
|
Accrued interest expense |
|
55 |
|
|
57 |
|
Accrued expenses and other current liabilities |
|
77 |
|
|
79 |
|
Total current liabilities |
|
701 |
|
|
906 |
| Other
Liabilities |
|
|
|
|
Long-term debt |
|
6,797 |
|
|
7,479 |
|
Deferred income taxes |
|
35 |
|
|
127 |
|
Derivative instruments |
|
336 |
|
|
281 |
|
Long-term lease liabilities |
|
626 |
|
|
627 |
|
Other non-current liabilities |
|
305 |
|
|
286 |
|
Total other liabilities |
|
8,099 |
|
|
8,800 |
| Total
Liabilities |
|
8,800 |
|
|
9,706 |
| Redeemable
noncontrolling interest in subsidiaries |
|
6 |
|
|
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);
202,143,697 shares issued and outstanding (Class A 34,613,853,
Class B 42,738,750, Class C 82,829,344, Class D 41,961,750) at
June 30, 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 |
|
1,830 |
|
|
1,732 |
|
Retained earnings |
|
314 |
|
|
361 |
|
Accumulated other comprehensive income |
|
5 |
|
|
7 |
|
Noncontrolling interest |
|
3,561 |
|
|
2,893 |
| Total Stockholders’
Equity |
|
5,711 |
|
|
4,994 |
| Total Liabilities and
Stockholders’ Equity |
$ |
14,517 |
|
$ |
14,701 |
| |
|
|
|
|
|
CLEARWAY ENERGY,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)
| |
Six months ended June 30, |
|
(In millions) |
|
2024 |
|
|
|
2023 |
|
| Cash Flows from
Operating Activities |
|
|
|
|
Net (Loss) Income |
$ |
(42 |
) |
|
$ |
44 |
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
Equity in earnings of unconsolidated affiliates |
|
(20 |
) |
|
|
— |
|
|
Distributions from unconsolidated affiliates |
|
15 |
|
|
|
11 |
|
|
Depreciation, amortization and accretion |
|
307 |
|
|
|
256 |
|
|
Amortization of financing costs and debt discounts |
|
7 |
|
|
|
6 |
|
|
Amortization of intangibles |
|
91 |
|
|
|
94 |
|
|
Loss on debt extinguishment |
|
3 |
|
|
|
— |
|
|
Reduction in carrying amount of right-of-use assets |
|
8 |
|
|
|
8 |
|
|
Changes in deferred income taxes |
|
(1 |
) |
|
|
9 |
|
|
Changes in derivative instruments and amortization of accumulated
OCI |
|
49 |
|
|
|
(51 |
) |
|
Cash used in changes in other working capital: |
|
|
|
|
Changes in prepaid and accrued liabilities for tolling
agreements |
|
(16 |
) |
|
|
(56 |
) |
|
Changes in other working capital |
|
(124 |
) |
|
|
(112 |
) |
| Net Cash Provided by
Operating Activities |
|
277 |
|
|
|
209 |
|
| Cash Flows from
Investing Activities |
|
|
|
|
Acquisition of Drop Down Assets, net of cash acquired |
|
(671 |
) |
|
|
(7 |
) |
|
Capital expenditures |
|
(202 |
) |
|
|
(109 |
) |
|
Return of investment from unconsolidated affiliates |
|
35 |
|
|
|
10 |
|
|
Decrease in note receivable — affiliate |
|
184 |
|
|
|
— |
|
|
Investments in unconsolidated affiliates |
|
— |
|
|
|
(10 |
) |
|
Other |
|
7 |
|
|
|
— |
|
| Net Cash Used in
Investing Activities |
|
(647 |
) |
|
|
(116 |
) |
| Cash Flows from
Financing Activities |
|
|
|
|
Contributions from noncontrolling interests, net of
distributions |
|
1,399 |
|
|
|
275 |
|
|
Payments of dividends and distributions |
|
(164 |
) |
|
|
(153 |
) |
|
Tax-related distributions |
|
— |
|
|
|
(19 |
) |
|
Proceeds from the issuance of long-term debt |
|
236 |
|
|
|
42 |
|
|
Payments of debt issuance costs |
|
(4 |
) |
|
|
(8 |
) |
|
Payments for long-term debt |
|
(1,577 |
) |
|
|
(306 |
) |
|
Other |
|
(1 |
) |
|
|
(2 |
) |
| Net Cash Used in
Financing Activities |
|
(111 |
) |
|
|
(171 |
) |
| Net Decrease in Cash,
Cash Equivalents and Restricted Cash |
|
(481 |
) |
|
|
(78 |
) |
| Cash, Cash Equivalents
and Restricted Cash at Beginning of Period |
|
1,051 |
|
|
|
996 |
|
| Cash, Cash Equivalents
and Restricted Cash at End of Period |
$ |
570 |
|
|
$ |
918 |
|
| |
|
|
|
|
|
|
|
CLEARWAY ENERGY,
INC.CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITYFor the Six Months Ended June 30,
2024(Unaudited)
| (In
millions) |
Preferred Stock |
|
Common Stock |
|
AdditionalPaid-InCapital |
|
Retained Earnings |
|
AccumulatedOtherComprehensive
Income |
|
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 |
|
|
Net income (loss) |
|
— |
|
|
— |
|
|
— |
|
|
|
51 |
|
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
|
Unrealized gain on derivatives and changes in accumulated OCI, net
of tax |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
Contributions from CEG, net of distributions, cash |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
222 |
|
|
|
222 |
|
|
Contributions from noncontrolling interests, net of distributions,
cash |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
988 |
|
|
|
988 |
|
|
Distributions to noncontrolling interests, net of contributions,
non-cash |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
Transfers of assets under common control |
|
— |
|
|
— |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
(549 |
) |
|
|
(544 |
) |
|
Non-cash adjustments for change in tax basis |
|
— |
|
|
— |
|
|
85 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
85 |
|
|
Stock-based compensation |
|
— |
|
|
— |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
Common stock dividends and distributions to CEG unit holders |
|
— |
|
|
— |
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
|
|
(35 |
) |
|
|
(83 |
) |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
| Balances at June 30,
2024 |
$ |
— |
|
$ |
1 |
|
$ |
1,830 |
|
|
$ |
314 |
|
|
$ |
5 |
|
|
$ |
3,561 |
|
|
$ |
5,711 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLEARWAY ENERGY,
INC.CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITYFor the Six Months Ended June 30,
2023(Unaudited)
| (In
millions) |
Preferred Stock |
|
Common Stock |
|
AdditionalPaid-InCapital |
|
Retained Earnings |
|
AccumulatedOtherComprehensive
Income |
|
NoncontrollingInterest |
|
TotalStockholders’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 |
|
|
Net income |
|
— |
|
|
— |
|
|
— |
|
|
|
38 |
|
|
|
— |
|
|
|
40 |
|
|
|
78 |
|
|
Unrealized gain on derivatives and changes in accumulated OCI, net
of tax |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
Distributions to CEG, net of contributions, cash |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
|
Distributions to noncontrolling interests, net of contributions,
cash |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(5 |
) |
|
Tax-related distribution |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
|
(19 |
) |
|
Stock based compensation |
|
— |
|
|
— |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
Common stock dividends and distributions to CEG unit holders |
|
— |
|
|
— |
|
|
— |
|
|
|
(45 |
) |
|
|
— |
|
|
|
(32 |
) |
|
|
(77 |
) |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
| Balances at June 30,
2023 |
$ |
— |
|
$ |
1 |
|
$ |
1,718 |
|
|
$ |
412 |
|
|
$ |
9 |
|
|
$ |
1,987 |
|
|
$ |
4,127 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-1: Three Months Ended June 30, 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) |
|
$ |
9 |
|
$ |
38 |
|
$ |
(43 |
) |
|
$ |
4 |
|
| Plus: |
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
|
— |
|
|
— |
|
|
10 |
|
|
|
10 |
|
|
Interest Expense, net |
|
|
7 |
|
|
49 |
|
|
21 |
|
|
|
77 |
|
|
Depreciation, Amortization, and ARO |
|
|
27 |
|
|
126 |
|
|
— |
|
|
|
153 |
|
|
Contract Amortization |
|
|
4 |
|
|
42 |
|
|
— |
|
|
|
46 |
|
|
Loss on Debt Extinguishment |
|
|
— |
|
|
2 |
|
|
— |
|
|
|
2 |
|
|
Mark to Market (MtM) Losses on economic hedges |
|
|
6 |
|
|
37 |
|
|
— |
|
|
|
43 |
|
|
Transaction and integration costs |
|
|
— |
|
|
— |
|
|
3 |
|
|
|
3 |
|
|
Other non-recurring |
|
|
1 |
|
|
— |
|
|
— |
|
|
|
1 |
|
|
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
3 |
|
|
12 |
|
|
— |
|
|
|
15 |
|
|
Non-Cash Equity Compensation |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
|
(1 |
) |
|
Adjusted EBITDA |
|
$ |
57 |
|
$ |
306 |
|
$ |
(10 |
) |
|
$ |
353 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-2: Three Months Ended June 30, 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 |
|
Corporate |
|
Total |
|
Net Income (Loss) |
|
$ |
37 |
|
|
$ |
98 |
|
|
$ |
(51 |
) |
|
$ |
84 |
|
| Plus: |
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
22 |
|
|
Interest Expense, net |
|
|
7 |
|
|
|
21 |
|
|
|
18 |
|
|
|
46 |
|
|
Depreciation, Amortization, and ARO |
|
|
32 |
|
|
|
96 |
|
|
|
— |
|
|
|
128 |
|
|
Contract Amortization |
|
|
5 |
|
|
|
42 |
|
|
|
— |
|
|
|
47 |
|
|
Mark to Market (MtM) Gains on economic hedges |
|
|
— |
|
|
|
(26 |
) |
|
|
— |
|
|
|
(26 |
) |
|
Transaction and integration costs |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Other non-recurring |
|
|
(8 |
) |
|
|
1 |
|
|
|
— |
|
|
|
(7 |
) |
|
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 |
|
|
$ |
248 |
|
|
$ |
(8 |
) |
|
$ |
316 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-3: Six Months Ended June 30, 2024,
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) |
|
$ |
25 |
|
|
$ |
(6 |
) |
|
$ |
(61 |
) |
|
$ |
(42 |
) |
| Plus: |
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(3 |
) |
|
Interest Expense, net |
|
|
13 |
|
|
|
63 |
|
|
|
41 |
|
|
|
117 |
|
|
Depreciation, Amortization, and ARO |
|
|
59 |
|
|
|
248 |
|
|
|
— |
|
|
|
307 |
|
|
Contract Amortization |
|
|
9 |
|
|
|
83 |
|
|
|
— |
|
|
|
92 |
|
|
Loss on Debt Extinguishment |
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
Mark to Market (MtM) (Gain)/Loss on economic hedges |
|
|
(5 |
) |
|
|
72 |
|
|
|
— |
|
|
|
67 |
|
|
Transaction and Integration costs |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
|
Other Non-recurring |
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
6 |
|
|
|
13 |
|
|
|
— |
|
|
|
19 |
|
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted EBITDA |
|
$ |
108 |
|
|
$ |
475 |
|
|
$ |
(19 |
) |
|
$ |
564 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-4: Six Months Ended June 30, 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 |
|
Corporate |
|
Total |
|
Net Income (Loss) |
|
$ |
61 |
|
|
$ |
50 |
|
|
$ |
(67 |
) |
|
$ |
44 |
|
| Plus: |
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
|
Interest Expense, net |
|
|
17 |
|
|
|
83 |
|
|
|
36 |
|
|
|
136 |
|
|
Depreciation, Amortization, and ARO |
|
|
65 |
|
|
|
191 |
|
|
|
— |
|
|
|
256 |
|
|
Contract Amortization |
|
|
11 |
|
|
|
83 |
|
|
|
— |
|
|
|
94 |
|
|
Mark to Market (MtM) (Gain)/Loss on economic hedges |
|
|
— |
|
|
|
(45 |
) |
|
|
— |
|
|
|
(45 |
) |
|
Transaction and Integration costs |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Other Non-recurring |
|
|
(8 |
) |
|
|
5 |
|
|
|
— |
|
|
|
(3 |
) |
|
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates |
|
|
6 |
|
|
|
32 |
|
|
|
— |
|
|
|
38 |
|
|
Non-Cash Equity Compensation |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Adjusted EBITDA |
|
$ |
152 |
|
|
$ |
399 |
|
|
$ |
(17 |
) |
|
$ |
534 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Six Months
Ended |
|
($ in millions) |
6/30/24 |
|
6/30/23 |
|
6/30/24 |
|
6/30/23 |
|
Adjusted EBITDA |
$ |
353 |
|
|
$ |
316 |
|
|
$ |
564 |
|
|
$ |
534 |
|
|
Cash interest paid |
|
(66 |
) |
|
|
(55 |
) |
|
|
(156 |
) |
|
|
(148 |
) |
|
Changes in prepaid and accrued liabilities for tolling
agreements |
|
(6 |
) |
|
|
(17 |
) |
|
|
(16 |
) |
|
|
(56 |
) |
|
Adjustments to reflect sale-type leases and payments for lease
expenses |
|
2 |
|
|
|
2 |
|
|
|
5 |
|
|
|
3 |
|
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates |
|
(22 |
) |
|
|
(21 |
) |
|
|
(39 |
) |
|
|
(36 |
) |
|
Distributions from unconsolidated affiliates |
|
6 |
|
|
|
5 |
|
|
|
15 |
|
|
|
11 |
|
|
Changes in working capital and other |
|
(71 |
) |
|
|
(96 |
) |
|
|
(96 |
) |
|
|
(99 |
) |
|
Cash from Operating Activities |
|
196 |
|
|
|
134 |
|
|
|
277 |
|
|
|
209 |
|
|
Changes in working capital and other |
|
71 |
|
|
|
96 |
|
|
|
96 |
|
|
|
99 |
|
|
Return of investment from unconsolidated affiliates3 |
|
3 |
|
|
|
1 |
|
|
|
7 |
|
|
|
10 |
|
|
Net contributions (to)/from non-controlling interest4 |
|
(24 |
) |
|
|
(10 |
) |
|
|
(29 |
) |
|
|
(20 |
) |
|
Maintenance capital expenditures |
|
(2 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(13 |
) |
|
Principal amortization of indebtedness5 |
|
(67 |
) |
|
|
(78 |
) |
|
|
(118 |
) |
|
|
(152 |
) |
|
Cash Available for Distribution before
Adjustments |
$ |
177 |
|
|
$ |
137 |
|
|
$ |
229 |
|
|
$ |
133 |
|
|
2024 Net Impact of drop downs from timing of construction debt
service |
|
10 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
Cash Available for Distribution6 |
$ |
187 |
|
|
$ |
137 |
|
|
$ |
239 |
|
|
$ |
133 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-6: Six Months Ended June 30, 2024,
Sources and Uses of LiquidityThe following table
summarizes the sources and uses of liquidity in 2024:
| |
|
Six Months Ended |
|
($ in millions) |
|
6/30/24 |
| Sources: |
|
|
|
Contributions from noncontrolling interests, net of
distributions |
|
|
1,399 |
|
|
Net cash provided by operating activities |
|
|
277 |
|
|
Proceeds from issuance of long-term debt |
|
|
236 |
|
|
Decrease in note receivable — affiliate |
|
|
184 |
|
|
Return of investments from unconsolidated affiliates |
|
|
35 |
|
|
Other net cash inflows |
|
|
2 |
|
|
|
|
|
| Uses: |
|
|
|
Payments for long-term debt |
|
|
(1,577 |
) |
|
Acquisition of Drop Down Assets, net of cash acquired |
|
|
(671 |
) |
|
Capital expenditures |
|
|
(202 |
) |
|
Payments of dividends and distributions |
|
|
(164 |
) |
|
|
|
|
| Change in
total cash, cash equivalents, and restricted cash |
|
$ |
(481 |
) |
| |
|
|
|
|
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 affiliates7 |
45 |
|
|
Cash from Operating Activities |
830 |
|
|
Net distributions to non-controlling interest8 |
(100 |
) |
|
Maintenance capital expenditures |
(40 |
) |
|
Principal amortization of indebtedness9 |
(295 |
) |
|
Cash Available for Distribution |
395 |
|
Appendix Table A-8: Adjusted EBITDA and Cash Available
for Distribution Growth Projects
| |
|
|
| ($ in
millions) |
|
Luna Valley and Daggett 15 Year Ave.
2026-2030 |
|
Net Income |
|
3 |
|
|
Interest Expense, net |
|
18 |
|
|
Depreciation, Amortization, and ARO Expense |
|
24 |
|
|
Adjusted EBITDA |
|
45 |
|
|
Cash interest paid |
|
(18 |
) |
|
Cash from Operating Activities |
|
27 |
|
|
Net distributions (to)/from non-controlling interest |
|
(6 |
) |
|
Network Upgrade Reimbursements |
|
5 |
|
|
Maintenance capital expenditures |
|
(1 |
) |
|
Principal amortization of indebtedness |
|
(11 |
) |
|
Estimated Cash Available for Distribution |
|
14 |
|
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 June 30, 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.
1 Excludes equity method investments
2 Generation sold excludes MWh that are reimbursable for
economic curtailment
3 2024 excludes $28 million related to Rosamond Central
BESS return of capital at substantial completion funding
4 2024 excludes $1,230 million of contributions related to
the funding of Texas Solar Nova 2, Rosamond Central Battery
Storage, Victory Pass, Arica & Cedar Creek; 2023 excludes $229
million of contributions related to the funding of Rosamond Central
Battery Storage, Waiawa, and Daggett
5 2024 excludes $2,545 million for the repayment of bridge
loans in connection with Texas Solar Nova 2, Victory Pass, Arica
& Cedar Creek and $137 million due to repayment of NIMH
balloon; 2023 excludes $130 million for the repayment of
construction loans in connection with Waiawa and Daggett, and $24
million for the repayment of balloon at Walnut Creek Holdings;
6 Excludes income tax payments related to Thermal sale
7 Distribution from unconsolidated affiliates can be classified
as Return of Investment on Unconsolidated Affiliates when actuals
are reported. This is below cash from operating activities
8 Includes tax equity proceeds and distributions to tax equity
partners
9 2024 excludes maturities assumed to be refinanced