XPLR Infrastructure, LP (XIFR) Earnings

Management highlights

### Capital Structure and Portfolio Optimization - Completed the first minimum buyout of SEPA 5 for approximately $150 million, increasing XPLR's equity ownership and portfolio assets - Fully repaid $500 million of convertible notes using available cash, simplifying the capital structure while maintaining balance sheet strength ### Repowering Execution - 50% of 2026 planned repowering work is completed to date, with the remaining program progressing on schedule - Completed repowerings are already enhancing portfolio generation and cash flow, with expected long-term portfolio value improvements ### Battery Storage Development - Formed the Mammoth Planes Energy Storage and Carousel Energy Storage joint ventures with NextEra Energy Resources in July 2026, completing the associated sale of interconnection assets and rights - The projects leverage XPLR's existing surplus interconnections and NextEra's development expertise, expected to generate attractive returns and incremental long-term contracted cash flows ### Contract Optimization - Most legacy long-term power contracts will expire in the 2030s and beyond, so most recontracting value is expected to emerge after 2030 - Management is actively evaluating near-term contract optimization opportunities where market conditions deliver value-enhancing outcomes ### Overall Strategic Focus - Management remains focused on strong operational execution and disciplined capital allocation to enhance financial and strategic flexibility, with the end goal of maximizing portfolio value

Guidance

XPLR Infrastructure maintained its full-year 2026 financial guidance, with no upward or downward revision: - Full-year 2026 adjusted EBITDA is still guided to a range of $1.75 billion to $1.95 billion - Full-year 2026 free cash flow before growth is still guided to a range of $600 million to $700 million - All guidance assumes normal weather and standard operating conditions - Long-term leverage guidance remains consistent with prior disclosures: management expects to maintain current leverage levels through 2030, aligned with contract profile and generated cash flows

Segment performance

XPLR Infrastructure as a whole reported Q2 2026 adjusted EBITDA of approximately $523 million and free cash flow before growth of $257 million. No separate segment-level financial results were provided in the transcript. Q2 results were impacted by $42 million higher year-over-year net operating expenses, driven by a $45 million vendor credit for unplanned O&M expenses that benefited Q2 2025, offset by improved wind resource (102% of long-term average, compared to 97% in Q2 2025) and enhanced generation from repowered assets. 2025 asset dispositions also reduced Q2 2026 results relative to the prior year. Full-year 2026 total O&M expenses are expected to be ~$500 million, consistent with historical averages.

Risks & headwinds

The call noted that all forward-looking statements are based on current assumptions, and actual results could differ materially if key assumptions prove incorrect or if unforeseen risks materialize. No specific new material risks or operational failures were discussed in the prepared remarks or Q&A section.

Analyst Q&A

• Q: When does management expect construction to start on the two new battery storage JV projects? /

  A: The earliest possible start of construction is Q4 2026, but the vast majority of construction activity for these projects is scheduled to occur in 2027. No further details on the project timeline were provided.

• Q: What explains the lower tax credit subtraction in the bridge from adjusted EBITDA to free cash flow this quarter, and is this a one-time dynamic? /

  A: This is not a one-time shift. More repowered assets are in the portfolio in 2026 compared to 2025, and tax credits from these new assets are monetized via transferability, unlike older assets that used matured or bought-out tax equity structures that had larger tax credit impacts in prior periods. The underlying economics of repowered assets are meeting previously disclosed expectations.

• Q: With $500 million in cash on hand, is management considering accelerating planned 2027 SEPA buyouts and debt maturity paydowns to this year? /

  A: Much of the current cash balance is project-level working capital and already committed to upcoming 2026 H2 CapEx, so free available cash is limited. SEPA buyouts have specific contracted windows, and management still expects to complete them as currently scheduled in 2027. For maturing 2027 corporate debt, management plans to refinance it in early 2027, but will consider moving the refinancing forward if favorable market windows open.

• Q: What is the current scope of active recontracting efforts, and how do these opportunities arise? /

  A: The majority of XPLR's long-term contracts expire in the early to mid-2030s, so most recontracting discussions will not occur until 1-2 years before expiration. Current active opportunities are limited, and come from both customer requests/RFPs and XPLR's proactive outreach for contract extensions/renegotiations that deliver value. Management declined to disclose current MW volume due to commercial sensitivity.

• Q: What conditions would lead to the renewed $300 million ATM program being tapped, given XPLR's historical aversion to dilution? /

  A: Management confirmed there are no current plans to use the ATM program or issue new equity. The program was only renewed because the prior program was set to expire, and it is prudent to maintain all potential financing options for future needs.