Clearway Energy : Fourth Quarter 2024 Earnings Presentation

Published: 2025-02-24 17:04:13 ET CWEN.A

Clearway Energy, Inc.

Fourth Quarter 2024 Results Presentation

February 24, 2025

Agenda

Business Update

Craig Cornelius, Chief Executive Officer

Financial Summary

Sarah Rubenstein, Chief Financial Officer

Long-Term Growth Update and

Craig Cornelius, Chief Executive Officer

Closing Remarks

Business Update

▪ Full year CAFD results of $425 MM ahead of guidance of $395 MM

Reporting Excellent 2024 Results -

▪ Dividend increased 1.7% to $0.4312/share in 1Q25; $1.7248/share annualized

▪

Committed to ~$450 MM of accretive growth investments

Ahead of Guidance with All Goals Met

▪ Completed 1,157 MW of new capacity additions to fleet, including 334 MW of storage

▪ 96% of CWEN's total generation in 2024 was from emissions free electricity

Reaffirming 2025 Guidance

▪ Reaffirming 2025 CAFD guidance range of $400-440 MM with $420 MM midpoint

▪

Company and fleet are performing with excellence - aiming to deliver another strong year

Advancement of Accretive Growth

▪ Signed 3rd party M&A agreement for Tuolumne; ~$70-75 MM of est. corp. capital

▪

Committed to invest in Honeycomb Phase 1; ~$78 MM of est. corp. capital

Across Multiple Drivers

▪

Enhanced existing portfolio's visibility with new RA contracts and renewable PPA extension

Proving Fleet Investment Potential

▪ Continued fleet optimization with next accretive repowering partnership for Mt Storm

▪

Sponsor advancing 8.9 GW of late-stage projects positioned to support our growth plan

and Resilient Sponsor Pipeline

▪

Proactive planning for tax credit qualification, framework agreements with major equipment

suppliers, and policy-adaptive revenue contracting among key factors de-risking pipeline

Strong Position to Achieve Objectives

▪ Reaffirming CAFD per share target of $2.40-2.60 in 2027 with no external equity needed to

achieve midpoint; strong visibility to achieve the midpoint or better of target

In 2027 and Beyond

▪

Reaffirming long-term objectives of CAFD per share growth of 5-8%+ beyond 2027 and

payout ratio at low end of 70-80%

Clearway Executed with Excellence in 2024, and is Setting the Gold Standard for

What It Means to be an All of the Above Energy Company

Advancing Growth Through Drop-Downs and 3rd Party M&A to Further Crystallize Growth Roadmap to 2027

($ millions)

Pending Acquisition of Tuolumne Wind, Commitment to Invest in Honeycomb Phase 1 and Identified

Storage Drop-Downs Illustrates Clearway Enterprise's Multi-Faceted Growth Levers

Est. Target

Generation

Target

Est. Corp.

5-Year Avg. Annual Asset

Project

Location

BESS MW

COD

Status

Capital

CAFD Yield

Tuolumne

137

Operational

1H25 Closing

~$70-75

~12%

Honeycomb Phase 1

320

2026

Committed

~$78

~11-13%

CA/WECC Storage

West

~492

2026/2027

Potential Drop-Down

Accretive 3rd Party M&A With Tuolumne Wind Project.…

….Along With Commitment to Phase 1 of the Honeycomb Battery Hybridization Project…

…And ~492 MW of CAISO/WECC Storage Projects Added to the Future Identified Drop-Down Opportunities List

Continued Progress in Fleet Optimization With Cedro Hill COD and Announced Mt. Storm Repowering

($ millions)

Cedro Hill Completed, Continuing Clearway's Track Record

of Accretive and Value Enhancing Repowerings…

Location

Webb County, TX

Repower COD

2H24

Est. Long-Term Net Corporate Capital

~$26 MM

Est. Incremental Asset CAFD Yield1

~10%

…With Mt. Storm Next In Our Repower Program,

Proving Value of Repowered Wind to Datacenter Demand

Location

Grant County, WV

Initial COD/Acquisition

2008 (CWEN acquired in '21)

Est. Long-Term Net Corporate Capital

~$220 - 230 MM

Est. Incremental Annual Asset CAFD2

~$26 - 28 MM

Est. Incremental Asset CAFD Yield

~11 - 13%

Clearway's Repowering Initiatives Continue to Improve Fleet Value and Longevity

While Increasing Visibility into Growth Targets in 2027 and Beyond

1 Based on average annual asset CAFD in 2027-2032 as disclosed in the CWEN 1Q23 earnings presentation; 2 Based on average annual asset CAFD in 2028-2032

Further Extension and Enhancement of Value in Existing Fleet Optimization Initiatives

New Contracts at El Segundo Cap Off Strong Year of RA Capacity Marketing in CA with 2026 Now Fully Contracted

Contract Extension at Wildorado a Strong First Step in Campaign to Market Open Positions at Increasing Value

Contracted RA Capacity for ESEC, Marsh Landing, and Walnut Creek1

2026-2030 Wind Fleet Initial PPA Expirations (MW)

22%

337

64%

299

100%

78%

505

299

344

36%

299

2026

2027

2028

2026

2027

2028

2029

2030

Percent of Contracted Capacity

Percent of Uncontracted Capacity

Potential PPA Extension

Targeted Repowering

Fleet Optimization Initiatives Strengthen Our Ability to Achieve Our Long-Term CAFD Per Share Growth Goals Via Revenue Enhancement From Assets in Our Operating Fleet That Exhibit Growing Scarcity Value

1 Percentages as of February 2025 and based on net qualifying capacity; reflects annual averages; contract expiration dates vary.

Increasing Visibility into Achieving the Midpoint or Better of the 2027 CAFD Per Share Target Range

2027 CAFD Per Share Target Represents ~7.5-12% Annual Growth Rate in

CAFD Per Share from Midpoint of 2025 Guidance

Key Drivers2

▪ Wildorado extension firms up base portfolio expectations

▪

Prior committed growth

▪ Additional growth opportunities at sponsor

▪

Levelized RA value expectations

beyond existing growth commitments

$2.40-2.60 of

~$2.40 of

CAFD per share1

~$2.08 of

CAFD per share1

+$350 MM of committed

growth commitments

2025

Execution of Prior

Bottom End of 2027

Tuolumne,

Additional

2027

CAFD Guidance

Committed Growth &

CAFD per Share

Honeycomb &

Growth Investments &

CAFD per Share

Midpoint

Portfolio Improvements

Target Range

Mt. Storm3

Portfolio Improvements

Target Range

Key Assumptions for '27 Target

CWEN's Committed Growth, Fleet Optimizations, Sponsor's Late-Stage Pipeline, and Funding Capacity Provide

Line of Sight into Targeting the Top Half of Our 2027 CAFD per Share Target Range

1 Based on approx. 202 MM shares outstanding as of 1/31/25; 2 Refer to Slide 6 of the CWEN 3Q24 Earnings Presentation and Slide 6 of the CWEN 2Q24 Earnings Presentation; 3 Mt. Storm expected to materially

contribute incremental CAFD after 2027; refer to slide 6

Financial Summary

Exceeded 2024 Guidance While Remaining on Track to Meet 2025 Guidance Range

($ millions)

Financial Results

4th Quarter

Full Year

Adjusted EBITDA

$228

$1,146

CAFD

$40

$425

Reaffirming 2025 CAFD Guidance

Full Year

CAFD

$400-440

CWEN Has Delivered Strong Execution in 2024 and is Reiterating its 2025 Guidance Range;

We Continue to Maintain Balance Sheet Flexibility to Prudently Fund Our Growth

Long-Term Growth Update and

Closing Remarks

Closing Remarks and Q&A

Disclaimer

Clearway Energy Inc. published this content on February 24, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 24, 2025 at 22:03:14.298.