Clearway Energy, Inc. Q3 FY2025 earnings call

• Clearway is well-positioned for growth, having narrowed 2025 financial guidance to the top half of the original range and setting a 2030 CAFD per share goal of $2.90 to $3.10 with a 7% to 8% CAGR from 2025 midpoint.
• Fleet optimization initiatives continued, with Mt. Storm starting construction, a new PPA advanced for San Juan Mesa, and safe harbor investments made for future repowerings.
• Sponsor-enabled growth program progressed, with all committed investments funded and drop-downs showing excellent performance. Committed or offered drop-downs for 2026 remain on track, and additional sponsor-developed opportunities are emerging.
• Third-party M&A was successful, with the Deriva Solar portfolio acquisition capping a fruitful year, leveraging core strengths in operating solar assets.

For the third quarter, Clearway delivered adjusted EBITDA of $385 million and cash available for distribution (CAFD) of $166 million. Year-to-date, adjusted EBITDA was $980 million and CAFD was $395 million. The Renewables and Storage segment saw wind resources in key regions track close to median expectations, solar benefited from growth investments, and flexible generation performed in line with sensitivities. Clearway narrowed its 2025 CAFD guidance range to $420 million to $440 million and established 2026 CAFD guidance at $470 million to $510 million. CAFD contribution % isn't explicitly broken down by product segment in a way that can be simply stated, but the focus is on overall CAFD performance and segment-related contributions.

• Narrowed 2025 CAFD guidance to $420 million to $440 million.
• Established 2026 CAFD guidance at $470 million to $510 million, incorporating contributions from drop-downs and third-party M&A.
• Set 2030 CAFD per share goal of $2.90 to $3.10, with a 7% to 8% CAGR from 2025 guidance midpoint, built on growth pathways like fleet enhancements, sponsor developments, and third-party M&A.

No specific risks were detailed during the question-and-answer session; however, forward-looking statements and risk factors are noted to be in SEC filings.

Q: On the data center energy complex facilities, do any of those build off of the existing renewable and battery installations or those new development sites?

A: All build off existing operating facilities or renewable and battery sites developed more than 5 years ago.

Q: Your development pipeline is larger than what CWEN needs. In terms of drop-downs and transactions, should we expect CWEN to buy like 50% of future projects or something much lower than 100%?

A: Everything planned for 100% CWEN equity investment through 2027. Later in the decade, capital allocation framework will be evaluated, with selective movement of assets and consideration of complementary funding sources.

Q: Clearway Group's pipeline decreased. Can you talk about what caused that decrease?

A: Pipeline was harmonized, with selective harvesting of assets not essential to executing goals over the next 3-4 years, but overall pipeline is still meaningfully larger than needed for Clearway Energy, Inc.'s goals