In This Article:
-
Adjusted EBITDA: $252 million for the first quarter.
-
Cash Available for Distribution (CAFD): $77 million for the first quarter.
-
Renewable & Storage Segment Capacity Factors: Solar improved by 4.7% to 25.7%; Wind improved by 2.9% to 33.9%.
-
Flexible Generation Availability: Improved by 3% to 89.3%.
-
2025 CAFD Guidance Range: Reiterated at $400 million to $440 million, targeting the higher end.
-
Retained CAFD (2025-2027): Expected to generate $250 million or more.
-
Excess Debt Capacity: Estimated at approximately $400 million or greater.
-
Corporate Debt-to-EBITDA Ratio Target: 4 to 4.5 times.
-
Interest Rate Hedging: Forward-starting hedges executed for the majority of the $850 million corporate bonds maturing in 2028.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Clearway Energy Inc (NYSE:CWEN) delivered solid first quarter results across all segments, reaffirming its 2025 guidance range.
-
The company made accretive progress in fleet enhancements, sponsor-enabled drop-down investments, and asset-centered third-party M&A.
-
Clearway Energy Inc (NYSE:CWEN) signed a revenue contract with Microsoft for the Mt. Storm repowering project, advancing towards construction in 2025.
-
The company closed the Tuolumne Wind acquisition and signed a binding agreement to acquire an operational solar project in California.
-
Clearway Energy Inc (NYSE:CWEN) mitigated interest rate risk for refinancing its corporate bond maturing in 2028 through opportunistic hedging.
Negative Points
-
The company faces potential challenges with tariff impacts on battery storage projects, which may require cost-sharing or sourcing from non-Chinese suppliers.
-
There is uncertainty regarding the future of the IRA and potential changes in policy that could affect project economics.
-
Clearway Energy Inc (NYSE:CWEN) may need to issue modest amounts of equity through an ATM facility to fund growth, which could dilute existing shareholders.
-
The company is exposed to risks related to permitting and regulatory changes for its repowering projects.
-
Clearway Energy Inc (NYSE:CWEN) must navigate a competitive M&A market, requiring rigorous and selective evaluation of opportunities.
Q & A Highlights
Q: How is Clearway Energy Inc. approaching battery storage in its pipeline, especially considering potential tariff impacts? A: Craig Cornelius, CEO, explained that Clearway is committed to battery storage due to its reliability and revenue generation. The company is confident in managing tariff impacts through strategic planning and collaboration with suppliers and customers. They expect to continue deploying battery projects beyond 2026, leveraging diverse global supply chains to mitigate tariff costs.