Clearway Energy, Inc. · NYSE:CWEN
Clearway Energy — Investor Presentation (May 2023)
33 slides from Clearway Energy's investor presentation, May 2023
Slide 1: Clearway Energy, Inc. Investor Presentation May 2023
Clearway Energy, Inc. Investor Presentation May 2023
Slide 2: Safe Harbor
Safe Harbor This presentation 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
Slide 3: Clearway Energy Value Proposition
Clearway Energy Value Proposition Leading Publicly-Traded Clean Energy Infrastructure Investor Focused on modern, income-producing renewable energy and firm power assets in US High-Quality, Sustainable & Environmentally-Sound Portfolio Over 8 GW of wind, solar, natural gas-fired generation Contracte
Slide 4: Clearway Energy Corporate Structure
Clearway Energy Corporate Structure “GIP” Public Investors “Clearway Group” Class B & D Shares Class A & C Shares 42.12% Economic1 57.88% Economic1 54.91% Voting 45.09% Voting NYSE: CWEN, CWEN.A • All related party transactions between sponsor or Clearway Group and CWEN must be reviewed and approved
Slide 5: Clearway Energy, Inc.'s Diversified Asset Portfolio
Clearway Energy, Inc.’s Diversified Asset Portfolio1 Clearway Energy’s +8 GW Asset Portfolio Represents the Future of Energy Infrastructure in North America Renewables Wind Solar Conventional • 3,658 MW of utility-scale wind • 1,652 MW of utility-scale solar • 2,472 MW • Leading OEMs including GE, V
Slide 6: Clearway Enterprise: An Efficient Ecosystem
Clearway Enterprise: An Efficient Ecosystem Integrated Platform Drives Value for Clearway Energy, Inc. Investors • Ownership Structure: aligns interests between sponsor and CWEN to maximize shareholder value Public Investors • Capital Efficiency: CWEN dividends fund sponsor’s development spend incre
Slide 7: Clearway Group Development Pipeline Update
Draft –Confidential and Proprietary Clearway Group Development Pipeline Update Clearway Group Development Highlights 29.3 GW Pipeline Owned or Controlled by Clearway Group ▪ 3.5+ GW of CWEN committed investments, expected drop-down By Project Type (MW) By Project Stage (MW) opportunities, and ROFOs.
Slide 8: Premier Investment Opportunity for ESG and Energy Transition Investors
Clearway Energy is a Premier Investment Opportunity for ESG and Energy Transition Investors ($ millions) Attractive ESG Oriented Investment Aligned to …And a Growing Renewable Position that Will Increase With Clean Energy Transition… the Allocation of Remaining Thermal Proceeds ▪ One of the Lowest G
Slide 9: Long Term Financial Objectives
Long Term Financial Objectives Robust Dividend Coverage Robust DPS Growth Visibility 80-85% 5-8% Payout Ratio Target Upper End of Range Through 2026 Prudent Capital Allocation Conservative Capital Structure +$350MM BB / Ba2 of Annual Non-Recourse Debt Deleveraging1 Stable Ratings Disciplined Financi
Slide 10: Investor Relations Contact
Investor Relations Contact Akil Marsh 609.608.1500 [email protected] investor.clearwayenergy.com
Slide 11: First Quarter 2023 Results Presentation
Clearway Energy, Inc. First Quarter 2023 Results Presentation May 4, 2023
Slide 12: Safe Harbor
Safe Harbor This presentation 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
Slide 13: Business Update
Business Update ▪ CAFD of ($4) MM in 1Q23; primarily impacted by weak renewable results Remain On Track to Deliver on ▪ Announcing dividend increase of 2% to $0.3818/share in 2Q23; $1.5272/share annualized Financial Objectives ▪ Reaffirming 2023 CAFD Guidance and Pro Forma CAFD Outlook of $410 MM ▪
Slide 14: Financial Update
Financial Update ($ millions) Financial Results Reaffirming 2023 CAFD Guidance 1st Quarter Full Year Adjusted EBITDA $218 CAFD ($4) CAFD $410 ▪ 1Q23 Financial Highlights ▪ 2023 CAFD Guidance Factors In… Above average rainfall in California resulted in lower solar − P50 median renewable energy prod
Slide 15: Enhancing Existing Fleet With Commitment to Repower Cedro Hill
Enhancing Existing Fleet With Commitment to Repower Cedro Hill Cedro Hill Repowering Significantly Extends High Quality Customer Contract and Enhances Technology… Cedro Hill Cedro Hill (At Closing August 2022) (With Repowering) Net MW 150 Net MW 160 Net MW ~22 years Remaining PPA Tenor ~8 years (bus
Slide 16: Full Allocation of Thermal Proceeds Leads to No External Equity Needs
Full Allocation of Thermal Proceeds Continues to Lead to No External Equity Needs to Meet 2026 DPS Growth Target ($ millions, except per share figures) Potential Potential Committed Committed Asset/Portfolio Capital Asset/Portfolio Capital Remaining Oct. ’22 Drop-Down Offers1 ~$182 2H23 Expected Com
Slide 17: Continued Advancement of Clearway's Long-Term Growth Outlook
Continued Advancement of Clearway’s Long-Term Growth Outlook ($ millions) Increased Visibility into Line of Sights Drop-Downs Which …With Additional Long-Term CWEN Fleet Optimization Remain on Track for 2023 Commitments… Potential Through Repowerings and Storage Hybridization Potential Future Drop-D
Slide 18: Remain on Track to Deliver on 2023 Goals
Remain on Track to Deliver on 2023 Goals ▪ Deliver 2023 CAFD Guidance Within Expected Sensitivities ▪ Achieve DPS Growth to Support Upper Range of 5-8% Objective ▪ Commit to Next Drop-Downs with Capital on Hand at Value-Accretive Economics – On track to commit to remaining October 2022 drop-down off
Slide 19: Appendix
@)]] Clearway Energy Appendix
Slide 20: Appendix: Clearway Group Development Pipeline Update
Draft –Confidential and Proprietary Appendix: Clearway Group Development Pipeline Update Clearway Group Development Highlights 29.3 GW Pipeline Owned or Controlled by Clearway Group ▪ 3.5+ GW of CWEN committed investments, expected drop-down By Project Type (MW) By Project Stage (MW) opportunities,
Slide 21: Appendix: Committed Renewable Investments and Potential Future Drop-Down Opportunities
Appendix: Committed Renewable Investments and Potential Future Drop-Down Opportunities Committed Renewable Investments and Potential Future Drop-Down Opportunities Gross Capacity Estimated Asset Technology (MW)1 State COD/Funding Status2 Highlights Funded/ • Construction nearing completion Daggett S
Slide 22: Appendix: Summary Allocation of ~$1.35 BN in Est. Net Thermal Proceeds
Appendix: Summary Allocation of ~$1.35 BN in Est. Net Thermal Proceeds ($ millions) Est. Long-Term Corp. Funding Corp. Capital Corp. Capital Remaining Capital Investment /Target COD Commitment1 Funded to Date To be Funded Allocation of $600 MM In Prior Commitments2 50% Interest in Utah Solar Portfol
Slide 23: Appendix: Renewable Portfolio Performance in 2023
Appendix: Renewable Portfolio Performance in 2023 Production Index Availability 2023 2023 1st Quarter Q1 YTD YTD Wind Portfolio Net MW Jan Feb Mar California 947 131% 87% 89% 97% 97% 96% Other West 377 66% 98% 80% 80% 80% 93% Texas 1,064 115% 114% 89% 104% 104% 92% Midwest 447 92% 101% 94% 96% 96% 8
Slide 24: Appendix: 2023 Portfolio CAFD Sensitivity and Seasonality
Appendix: 2023 Portfolio CAFD Sensitivity and Seasonality Variability of Expected Financial Performance: Based on Portfolio as of December 31, 2022 ▪ Production variability based on +/- 5% for both wind and solar Renewable Production Variability: for full year Annual CAFD Sensitivity – Approximates
Slide 25: Appendix: Cash Flow Profile for Growth Investments and Portfolio Moves
Appendix: Cash Flow Profile for Growth Investments and Portfolio Moves To increase visibility and assist in forecasting, the following table summarizes the expected changes in CAFD associated with growth investments relative to 5-year average estimates and other portfolio moves: • Schedule is based
Slide 26: Appendix: Non-Recourse Project Debt Amortization
Appendix: Non-Recourse Project Debt Amortization Forecasted principal payments1 on non-recourse project debt as of December 31, 2022. Fiscal Year ($ millions) 2023 2024 2025 2026 2027 Thereafter Total Conventional: Carlsbad Energy Holdings & Carlsbad Holdco, due 2027 and 2038 24 25 28 35 37 570 719
Slide 27: Appendix: Operating Assets as of March 31, 2023
Appendix: Operating Assets1 as of March 31, 2023 Solar Wind Percentage Net Capacity PPA Percentage Net Capacity PPA Projects Ownership (MW) Offtake Counterparty Expiration Projects Ownership (MW) Offtake Counterparty Expiration Agua Caliente 51% 148 Pacific Gas and Electric 2039 Alta I-V 100% 720 So
Slide 28: Appendix: Adjusted EBITDA and CAFD by Asset Class
Appendix: Adjusted EBITDA and CAFD by Asset Class1 ($ millions) 2022 Adj. EBITDA and CAFD by Asset Class Pro Forma Adj EBITDA and CAFD by Asset Class 2022 Adj. EBITDA by Asset Class Pro Forma Adj. EBITDA by Asset Class (67% From Renewables) (83% From Renewables) 2% 17% 31% 43% 47% 36% 24% 2022 CAFD
Slide 29: Reg. G Schedules
@)]] Clearway Energy Reg. G Schedules
Slide 30: Reg. G: Actuals
Reg. G: Actuals Three Months Ended ($ millions) 3/31/2023 3/31/2022 Net (Loss) Income $(40) $(97) Income Tax Expense / (Benefit) (12) (1) Interest Expense, net 90 47 Depreciation, Amortization, and ARO 128 124 Contract Amortization 47 42 Loss on Debt Extinguishment — 2 Mark to Market (MtM) (Gains)/L
Slide 31: Reg. G: 2023 CAFD Guidance
Reg. G: 2023 CAFD Guidance ($ millions) 2023 Full Year CAFD Guidance Net Income $165 Income Tax Expense 30 Interest Expense, net 300 Depreciation, Amortization, Contract Amortization, and ARO Expense 620 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA from Unconsolidated 5
Slide 32: Reg. G: Pro Forma CAFD Outlook
Reg. G: Pro Forma CAFD Outlook ($ millions) Pro Forma CAFD Outlook Net Income $125 Income Tax Expense 25 Interest Expense, net 395 Depreciation, Amortization, Contract Amortization, and ARO Expense 555 Adjustments to reflect Clearway Energy’s pro-rata share of Adjusted EBITDA 45 from Unconsolidated
Slide 33: Reg. G: Non-GAAP Financial Information
Reg. G Non-GAAP Financial Information EBITDA and Adjusted EBITDA: EBITDA and Adjusted EBITDA 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 Adjusted EBITDA