Clearway Energy, Inc. Q3 FY2025 earnings call

• Clearway is well-positioned for near- and long-term growth, having narrowed 2025 financial guidance to the top half of the originally set range. - Out to 2027, aims to deliver increased CAFD per share of $2.70 or better. - Established a 2030 CAFD per share target of $2.90 to $3.10 per share, with a 7% to 8% growth CAGR from the 2025 guidance midpoint. - Progressed in fleet optimization initiatives, with Mt. Storm starting construction, a new PPA advanced for San Juan Mesa, and safe harbor investments for future repowerings. - Sponsor-enabled growth program continued, with drop-downs showing excellent performance and committed or planned drop-downs on track. - Completed complementary third-party M&A transactions, including the Deriva Solar portfolio acquisition.

In the Renewables and Storage segment, wind resources in key regions tracked close to median expectations, while solar benefited from the execution and timing of growth investments. Flexible generation also performed in line with sensitivities. 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.

• Narrowed 2025 CAFD guidance to $420 million to $440 million. - Established 2026 CAFD guidance range at $470 million to $510 million. - Set a 2030 CAFD per share goal of $2.90 to $3.10 per share, with a 7% to 8% growth CAGR from the 2025 guidance midpoint.

Q: You flagged development of flexible gas paired with renewables near hyperscaler clusters. Can you give a sense of timing of these opportunities and what returns do these hybrid data center complexes target and how you think of the risk return profile compared to traditional renewables?

A: These projects are part of Clearway Group's future work, not dependent on for hitting current goals. Objective is complementary gas resources with risk-adjusted returns at least as good as other drop-downs.

Q: Repowering appears to be delivering 10% to 12% CAFD yields. Can you give a sense of the timing of contribution and the size of that opportunity as it relates to Mt. Storm, Goat Mountain and San Juan Mesa?

A: Majority of repowering campaign in 2027, CAFD contribution reflected in 2028, PPAs for these projects are attractive.

Q: What are you seeing in terms of the potential for PPA renewals?

A: Potential for extension to enhance cash flow and longevity, mostly contributing to 2030 and beyond as existing fleet is contracted through end of decade.

Q: What are your thoughts on M&A opportunity and funding for incremental investment?

A: Assess M&A investments for accretive returns relative to weighted average cost of capital, use financing sources within means.

Q: How are you thinking about asset dispositions?

A: Selectively dispose of small, non-core assets if beneficial to shareholders, but core asset harvesting to fund growth is not part of plan.

Q: On the data center opportunity with developing natural gas, how soon should we expect updates and what's driving involvement?

A: Updates depend on market, driven by demand from hyperscalers and utilities, complementary to renewable resources.

Q: On data center energy complex facilities, do they build off existing installations?

A: All build off existing operating or development sites.

Q: On the flexible generation portfolio, can you give more details and update on contracting?

A: Confident in meeting range, flexible generation fleet in California has favorable reliability and capacity values.

Q: On drop-downs and transactions, should we expect CWEN to buy 50% or lower?

A: Planned 100% equity investment for projects through 2027, will evaluate pacing development assets with funding capacity later.

Q: On Clearway Group's pipeline decrease, what caused it?

A: Selective harvesting of non-essential assets for executing near-term goals, pipeline still exceeds needs for 2030 goal.