Clearway Energy, Inc. (CWEN) Q1 2022 Earnings Call Transcript

CWEN earnings call for the period ending March 31, 2022.

Image source: The Motley Fool. Clearway Energy, Inc. ( CWEN -2.28%) Q1 2022 Earnings Call May 05, 2022, 8:00 a.m. ET Contents:

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Clearway Energy Inc. first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode.

After the speakers’ presentation, there will be a question-and-answer session. [Operator instruction] Please be advised that today’s conference may be recorded. [Operator instruction] I would now like to turn the conference over to your host today, Chris Sotos, president, and CEO of Clearway Energy Inc. Please go ahead.

Chris Sotos — President and Chief Executive Officer

Good morning. First, thank you for taking the time to join today’s call. Joining me this morning is Akil Marsh, director of investor relations; Chad Plotkin, chief financial officer; and Craig Cornelius, president, and CEO of Clearway Energy Group. So they’ll be available for the Q&A portion of our presentation.

Before we begin, I’d like to quickly note that today’s discussion will contain forward-looking statements, which are based on assumptions that we believe to be reasonable as of this date. Actual results may differ materially. Please review the Safe Harbor in today’s presentation, as well as the risk factors in our [inaudible]. In addition, we refer to both GAAP and non-GAAP financial measures.

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For information regarding our non-GAAP financial measures, and reconciliations to the most directly comparable GAAP measures, please refer today’s presentation. Turning to page 4. First quarter results, which on a seasonal basis is the smallest contributor for the full year worthiness of three range, with CAFD of -2 million for the quarter, which is historically our latest quarter for CAFD degeneration, due to the timing of debt payments and low renewable generation. So we also increased its dividend by 2%, 2.3536 per share, or 1.414 on annualized basis, thereby keeping us on track to deliver the upper end of our range in dividend growth objectives for the year.

Importantly our sale thermal business closed on May 1st with $1.35 billion of expected net proceeds, which after accounting for $600 million of previously committed growth investments, leaves Clearway with $750 million in capital available to be allocated. As a result of the thermal sale, we’re revising our CAFD guidance for 2022 to $365 million. Through this performance, the outlook remains on track. With less than $56 million of previously announced committed investments to fund, and with COD on track for 2022, and 2023 as previously planned.

When completed, these renewable assets will put Clearway performer CAFD at $385 million or $1.90 per share, with $750 million of unallocated capital remaining to be deployed. In working with a Clearway group of colleagues, we continue to advance the development projects that we’ve announced previously. I want to take a moment to address some of the concerns in the market generally, regarding supply chain challenges and other risks. The broader economy here in our country is, of course, grappling with dislocations in supply, an increase in the cost of labor, commodities, and freight.

Electric power industry is no different. Uncertainties in the policy environment for renewable power, certainly add to that damage but businesses like ours have to address. But, admits those pressures, we look at the business we have seen for Clearway Energy Inc. as one that is very well insulated from complexities.Leaving us very confident in our ability to fulfill the upper range of our long-term future growth strategy of 5% to 8% through 2026. But Clearway enterprise as a whole has the benefit during these times of having tremendous scale, diversification, and financial flexibility, which together put our integrated enterprise in a sweet spot generally, and especially in working conditions like these. We see this in the fact, that Clearway Group has a pipeline that is large enough, diversified enough. It can provide Clearway Energy Inc with […]

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