Clearway Energy, Inc. Q4 FY2024 earnings call

• Signed a binding agreement to acquire Tuolumne, expected to close in Q1, generating ~12% five-year average annual CAFD yield and expanding portfolio in Western states.
• CWEN committed to Phase 1 of the Honeycomb Battery Hybridization program, investing ~$78 million in corporate capital with funding in 2026.
• Repowered or committed to repower 712 MW of wind portfolio, with Cedro Hill repowering achieving COD in late 2024. Mt Storm repowering planned to extend asset life, improve risk profile, and drive CAFD growth.
• Secured new RA contracts at El Segundo (272 MW) and extended PPA at Wildorado, increasing CAFD per share outlook without incremental capital.
• Clearway Group's late-stage pipeline has over $750 million of potential corporate capital investments through 2029 vintages, including 5 GW of projects for data center demand and behind-the-meter projects in development.

Full-year adjusted EBITDA was $1.146 billion and CAFD was $425 million. Fourth quarter adjusted EBITDA was $228 million and CAFD was $40 million. The Flexible Generation segment (formerly Conventional) had solid availability and benefits from energy management activities. The renewable fleet had P50 renewable production expectations at the midpoint of the 2025 CAFD guidance range of $400 million to $440 million. The Flexible Generation segment, being primarily unlevered, provided strong availability and grid reliability in 2024, contributing to exceeding expectations for the segment.

• 2025 CAFD guidance range $400 million to $440 million, aiming for higher end through timely completion of growth investments, closing of Tuolumne acquisition, and focus on Flexible Generation fleet availability/manageability.
• Retained CAFD to be primary capital source for growth, targeting retained CAFD >$220 million accumulated 2025-2027. Excess corporate debt capacity up to $300 million-$400 million based on target leverage midpoint.
• Clearway Group's late-stage pipeline has over $750 million of potential corporate capital investments through 2029 vintages, including at least $250 million in 2026-2027 vintages to support high-end 2027 CAFD per share.

• Policy risks such as tariffs on steel and aluminum, and 30-day pause end in Mexico/Canada, which could impact supply chain and project costs. Potential delays or renegotiations of PPAs due to increased equipment costs from trade policy changes. Impact of political administration changes on project permitting and supply chain dynamics.

Q: Michael Lonegan asked about excess debt capacity and supply chain risks related to tariffs and steel/aluminum duties.

A: Craig Cornelius and Sarah Rubenstein discussed that Clearway has arrangements with suppliers and customers to absorb tariff implications, allowing projects to proceed as planned, and that the company's competency in mitigating policy risk helps projects absorb duty changes while maintaining value for customers.

Q: Julien Dumoulin-Smith asked about M&A opportunities and data center capabilities.

A: Craig Cornelius said Clearway looks for complementary, synergetic assets with strong technology fit, and Clearway Group has 5 GW of projects in development for data center demand across multiple markets, with behind-the-meter projects in early stages.

Q: Noah Kaye asked about data center capabilities and speed to market.

A: Craig Cornelius explained that front-of-the-meter projects are in service territories with load growth, and Clearway's technology mix and relationships with customers give credibility for quick deployment.

Q: Justin Clare asked about data center solutions, contract structuring, and behind-the-meter opportunities.

A: Craig Cornelius stated that energy solutions start with technical feasibility and applicable rules, and behind-the-meter projects are in early stages with evaluation of interconnection cues.

Q: Mark Jarvi asked about 2027 targets and CAFD yields.

A: Craig Cornelius discussed that the company is focused on value optimization, with CAFD yields from investments being compelling but not assuming routine 11%-13% yields, and the pipeline has potential for high-end 2027 CAFD per share.

Q: Angie Storozynski asked about cost of capital, M&A, and GIP partnership.

A: Craig Cornelius mentioned the company's discipline in capital allocation, that Clearway stands out as a buyer for assets, and that GIP, BlackRock, and Total provide strong financial backing for potential M&A opportunities.