CWEN - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to Clearway Energy, Inc.'s Third Quarter 2018 Earnings Call. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the call over to Chris Sotos, President and CEO. Sir, you may begin.

Chris Sotos

Thank you, Chelsea. you for thank today's and morning, to joining everyone call. Good

that quickly begin, risk which SEC today's assumptions may be differ I'd safe Actual we the review in this note as are believe of reasonable filings. like on materially. statements, Before as results forward-looking today's our to that presentation factors date. well to in contain discussion based the Please we harbor will as

GAAP addition, will measures. to non-GAAP In both and we financial refer

measures financial comparable as non-GAAP Clearway reconciliations for to refer our today's of directly regarding information as joined Craig of and the most and available CEO questions. Plotkin, Clearway GAAP to well For President Energy, Inc.; CFO please Group, measures, Cornelius, be by who presentation. I'm Chad will

like he'll who with In get able in with great to our team is Marsh, in forward. helpful research, Relations. know up our add. quickly speed I our introduce communicating investors MLP joined be Akil Investor going in business recently Akil model a in and to be to background addition, his I'd

and of with Page generation X third $XXX CAFD overall adjusted pleased to starting we to the report quarter With financial of and million favorable $XXX Turning million. results, EBITDA update. are

quarter dividend our quarterly we XXXX, increase million of achieving CAFD to of of guidance a Additionally, and of maintaining XX% full a growth of target $X.XXX are in $XXX also our is adjusted XXXX year $XXX fourth the announcing year-over-year. million previously EBITDA. committed share Clearway

have an previously in effect of last that convertible CAFD, guiding made $XXX update of the when takes XXXX, not tendered assumption which we into notes now to account XXXX we're we to forward in October, September. you Looking the million

target our our goals growth also XXXX are X% pro XXXX with supporting $XXX of forma and to million, dividend and our in per line in to beyond. achieve CAFD X% longer-term track We on

This $XXX our our September added foundation you increasing growth that we presented some growth figure due As to development committed Mylan with we early to by facility yield million to growth, of $XXX for agreement committed have and is strong success this in million. under to contract growth a XX%. of XX-year unlevered a power manufacturing system and approximately in CAFD of our combined Puerto a thermal a heat Rico team the to provide

close $XXX Our Carlsbad our targeted facility the acquisition required strong construction purchase term December. end now to January equity be to the Carlsbad of is capital anticipating million end now with due the to NRG for of by amount the increased performance. to at of estimated has The converting

previous of CWEN's X As would take disclosures, was price well This in at terms with known which accretion, indicated were in our effect completed, by NRG projected closing. because adjustment, operational purchase a of and a there ago, certain the number parameters the yield. which affected between CAFD parties reached agreed the this to include adjustments by binding favorable Clearway that September strong prior issuance as months were as now stock

between of the offered an approximately price and CAFD of has $XXX a remaining us to yield Caliente interest subject Agua anticipated million closing $XXX NRG with addition, in acquisition final and documentation. In million XX.X%,

quarter this We first occur the to closing of expect XXXX. acquisition the in of

$XXX we management. committed convertible Page September with as as meant around majority of change of then add figure, million that and notes the which our We by account into CAFD X of raised forma growth we're the Notably, updated in for start a Agua the million taking million growth Caliente illustrated toward in to provided we pro get approximately of Mylan our near-term to GIP are the numbers tendered committed growth growth now into Finally, transparency Clearway. investments, provide the delivering visibility acquisition We interest million plan our financial the to there binding expect mentioned economic XXXX fundamental committed to offer were the is we factored agreements investments. million $XXX of to with $XXX capital outlook at September, $XXX investment occurred price and in our $XXX million with provide to $XXX the NRG's Updating needs on $XX of adjustment. we previously in support then terms. total accretive growth result place. $XXX guidance add investments sheet million purchase committed execute Carlsbad million balance

the fulsome recent in appropriate As detail ATM growth always, to the Page review to maximizing us plan debt more our our will his BB/Ba opportunities. needs. raising overview in in will we targets and of of using equity formation sheet of capital raise provides deck. portion adhere X afforded corporate our in balance an most where flexibility to our Chad program an

$XXX At due facility. left the the purchase current between Agua and very to levered a its million anticipate yield slide, with a on On of PPA duration. strong side of show yield and of with between XX% you're ownership CAFD the years $XXX very familiar would solar XX.X%, CAFD remaining we we on asset opportunity, million, a price a of our approximately which the XX

XX%, CAFD the as our our solar solar portfolio. In XX% from continue asset generated assets increase from we approximately addition, up this will to to contribution increase to

the basis. unlevered Rico. the a company in of produce price the oil unlevered changes structure return This we power a fuel construction Mylan. and Clearway, Rico. with on well development side XX-year very any while as be behind-the-meter a and to under Puerto particularly plant parent energy by of a asset pleased the a will potential $XX for risk eliminating CAFD provide with supply, to services as facility XX% the law contract, and Mylan's operation risks tax regarding combined on strong million Mylan focuses are is backed progress around right This yield, in an project the heat It will of announce contract Puerto Thermal contract On The at our new counterparty of slide, facility business.

X. to Turning Page

an In of increased the forward. can and Here's the earnings allowing time anticipate stage at to XXX-megawatt on group Clearway slide, Clearway of portion you have since key the addressing advanced we development with of the calls raw has we grow see Group upper-left update going to some efforts our that the that pipeline the of material their talked, Group portions additional intermediate by last the time. pipeline

last XXX the the megawatts also creating advanced additional Regarding stages XXX activity having approximately projects pipeline, assets of certainty CWEN-eligible compared overall more the development, Group forward. fuel than XXX to were those we added with was of already terms available when of that through going in approximately PPAs to to of awarded M&A megawatts in Clearway CWEN contracted to are for stages spoke, pipeline. megawatts not ROFO growth

growth in Looking leading of is portion CAFD indicator ROFO which that part Discretionary with the portion that further X approximately it and gigawatts, closest to shareholders pipeline, impacts represents significant the later-stage permit that of being I'd X.X the asset the pipeline, for provide at and intermediate assets are designation. control, the completed projects gigawatts as page, visibility design at like along. Currently, the of namely site to that also stands are and applications have to projects system upper-right the a are to near-term approximately The the it projects of power of significant closest of CWEN the highlight process. amount portion opportunities made plant advanced marketing pipeline studies that full complete. is

may frame. intermediate the With these rough advanced you at projects presentation XXXX development, line opportunity can ROFO see Chad or over their lower COD can right beyond Looking in and illustrated come XXXX that, ROFO Clearway to gigawatts I of and particularly Chad. forward, Providing X.X have of projects of see at page, to nearly stages In to that will anticipated a the left of Energy going to pipeline those time of bottom dates. comprise the the time additions growth pipeline. how Plotkin, the certain CFO. page, in the fruition, with the meaningful you the the have projects

Chad Plotkin

X. Slide Chris. turning you, Thank And to

is adjusted the our our These as Renewable the underperformance platform were segment portfolio at third EBITDA the $XXX distribution, insulated the cash $XXX of expectations the company results and diversified available demonstrated and from quarter, For million. of performance segment. for median reporting or of benefit CAFD, at again, Conventional million above the

quarter segment, temporary provided Segundo. an Alta more the production Creek below-expectation across the than balance project revenue Renewables, both Marsh Walnut In outages and For for El in the at wind the our solar to the fleet Landing higher start offset production and offset strong of at assets. Conventional

year full CAFD. $XXX EBITDA track September for guidance the year-to-date. adjusted behind the now With million XX These million to $XXX realized in has for Energy and call keep and Clearway adjusted at $XXX on third on provided million company $XXX the million EBITDA investor of achieve updated CAFD quarter results the us, financial

was does reminder, section operates October during reverse below most full a the sensitivities as the portfolio you of provided in for portfolio On As quarter we energy appendix guidance this of median that the the of expectations. wind review third year. presentation at renewable in realized favorable PXX the year conditions point, to the the the expectations as did balance Renewable across remind assume production

Both senior of formation the notes new million financings million. company at $XXX of economics an used the in quarter, in were improved presentation, raising the capital issuance by on redeployment the its the relative equity made in objectives assumptions progress accretion providing of attractive significant block $XX $XXX During XXXX capital. opportunistic also moderately the and for transaction through million to September this

of change result be both notes XXXX on not and management, to convertible fundamental the The and of $XXX million was September million into As including XXXX October tender must notes, convertible it for notes now assumption $XXX liability tender relates offer factored presentation. make-whole rollout refinanced that concluded process our the XXXX X.

impact next requirements overall are to our our tender we now result, will this XXXX a adjusting year. I discuss factor as momentarily XXXX does formation the expectations and As in remaining converts. plans through it capital CAFD refinancing

to company its payable of meet XX to on dividend growth XX% shareholders target year-over-year with December Lastly, per is share on to the quarterly December record pleased next the X. increase $X.XXX

Now to the down planning to of for the the bring process. refinancings XX other on pursuant This minor rollout includes Slide since impact annual presentation. CAFD our XX a XXXX turn September let's our and updates aforementioned expectations

the driving will adjusted to to XXXX, in value beginning long-term that but given CAFD, company note this please metric no per start, on importance EBITDA of guide longer rather our the investors. I focus share Before to

will as will reconciliation report use we and the G we a no guide it EBITDA, EBITDA schedules. while to to on However, Reg adjusted adjusted longer continue in CAFD to

the slide, On since key call. of investor changes left XX the the we September side summarize the

pro This the side prior right outlook visibility given then forma of outlook. quantify other Furthermore, presentation, we these capital growth drivers cash we expectations, of the guidance the long-term an how is Appendix ensure CAFD pro and was while given put, based important, do known deliver the in when expectations in financial next for the the its slide, to to as realized expected while objectives. not impact the XXXX the XXXX of will forma forma that the after forecasted On section on the portfolio pro Simply outlook provide you evaluating and CAFD CAFD all want into year-over-year in full be target when best deployed. company's XXXX. will ability investments have the provides reflect on timing our committed year's XXXX performance, uplift expected contribution financial changes of the noted across CAFD results flow

million the the $XXX XXXX a convertible in convertible primarily specifics. either previously for was XXXX. by the a on range instrument. of notes higher executed lower $XXX whether coupon a to indicated at Now CAFD refinancing outlook corporate or This bond million We was of maturity based coupon

range execution of of to based guidance end the $XXX on be notes, With our outlook million. the senior or CAFD the will low bridge XXXX the

from effect to tendered debt As the a see from the notes for the include: X.XX% slide, million X.XX% primary a XXXX for the the left a in reduction assumptions in note the required from or of side bond. interest our excluded of on X.XX% you lower that XXXX convertible the executed senior the assumed to guidance debt previously includes XXXX convertible was support assumed XXXX the can September capital and a update. refinancing cost from view or outlook corporate of new the This retired updates of next, $XXX one, corporate prior notes; with midpoint our cost current to CAFD both and using this of financing of note

higher update corporate third of debt The to million. $XXX $XXX a is raised amount new from million

assuming while the expected Mylan we growth change expectations no for committed Next, from commitments. investment CAFD to the contribution prior in add investments timing current

due as portfolio. to $XXX nonrecourse Lastly, observed expectations various in we from an project now forecast on matters, affecting increase investments minor rates debt timing-related and million floating-rate the year's unconsolidated LIBOR approximate distributions such to in updates next the

and XXXX. guidance changes for tender the than earlier pro refinance ability a to and million its table includes CAFD growth growth integration, contribution These the XXXX transition share expected available to factored the company liquidity the available result the for production energy the renewable with CAFD, investments figure We you want keeps the known and our are accounting after costs year-over-year from is flow that NRG to cash do convertible primary portfolio development. additional that This the these forma In at Moving to approximately from a is target of XXXX to to cash X PXX for side to cash the Energy line CAFD the on million the base XXXX is median expectations impact for forma dividend year that and deliver is targets. for $XXX of need materially year the services be or XXXX pro based portfolio per resulting excludes or committed in not The related and redeployment. then the in slide CAFD below to our share outlook. notes to remind the into prior we target and guiding operating per of company's guidance, on its full now in expected. updates, distribution impact thermal projected right bridge Clearway with costs, $XXX however, on realized in from

left base company's called of are the impact to from will as a and when out binding offered the the on the we as now interest to and execute expected investments future continue NRG factoring future update outlook billion Per said, factored provide XX will impact to XXXX. investment turn requirements to permanent the on the of XXXX. recently That recently in close I binding been we Finally, Energy the company's the financing has planning, we side expectations through total guidance financings, this Caliente timing into so of of to an reaching $X.XXX the of through agreements. of that financial financing not to slide, has in slide remaining our prior subject now an Slide Clearway given capital on now agreement, the anticipate and are needs upon Agua

Caliente $XXX With of drop-down, total $XXX described a convertible of Agua the the liability growth management and Chris of the estimated tender of addition needs of XXXX by given this includes million pending addition now the investments an notes. million earlier

with financing balance staying to consistent billion, million $XXX show of needs. and Moving slide $XXX $X.XXX side corporate the and equity million target we right our assumed of with sheet an permanent the of for objectives, debt the structure

through offering, over just company corporate in includes required. equity. million $XXX and XXXX debt, of the raising the million for equity the $XXX the liability management has in and $XXX last senior of million notes financing approximately This million remaining success $XXX the of the issuance primarily With of now XX days

support focused While market convert, current conditions convertible notes, retirement of capital debt on permanent most are is front structure requirements. to the approach the the can always inform to of a capital, as it balance the best corporate the view we will so that of company's place with meeting our relates clearly new this

targets to a this focus We will balance long-term share adhering per sheet while objectives. optimizing with closely CAFD manage our on

intent it program. ATM For the company's on our primarily to lean the needs, is equity

for to continue temporary program, $XXX equity most through through CAFD of meet remains market Further, the And of goal additional exceptions to the be from this maximizing availability need analysis, under with all which to existing share out adequate require program. of as for to to available efficiency our and the million conditions do sources do under needs and is of back And will million through this this capital, provide long the remarks. fulfilled this capital the point ATM and authorized we Chris future when while when remaining equity into generating cash possible $XXX cash corporate with robust per of with revolver. XXXX, we temporary term. anticipate can accretion, that the this excluded call While sources timing existing approach flexibility significant over I'll that, capital closing raised turn be combined with

Chris Sotos

Clearway every and and significant in you, to Thank to and Clearway There transaction leakage commitments to stronger sponsor been its is XX. transition of sponsor work has on energy including by able new other side XXXX, gone with improved add at to the Clearway with transition most XXX the Turn approximately for one Clearway GIP Energy. Inc. Chad. value Energy, and well. prospects. with process year-over-year. each and so we the alignment now to in for out transformative In in has a financial Clearway growth the work to at employees coming was dividend Group, conclusion, XXX Page We're the far, day. increased minimal year its XX% and approximate has importantly, still working Clearway our a another this platform pipeline integration Group increase continued meet all growth employees CAFD but a and

with accretive to a the execution of to basis metric, our that on continue portfolio at CAFD variety yields. on add demonstrate important a most per share, We CAFD investments contracted long-term

equity a maintaining growth, executing the while our the demonstrating we intact, and with have capital NRG ratings formation. on to balance this of transaction and from capital emerged Finally, debt markets access

in platform terms line what can getting open are Operator, forward. execution have While goals please started just accomplish of for questions. realized XXXX, growth this we going toward significant we our in the

Operator

Your go question. response Instructions] our line from will question next Azar Bank. the no Deutsche first to And comes [Operator to Abe from of we due

Our next from Bank Dumoulin-Smith of America comes with question the Lynch. Merrill of line Julien

Your line open. is now

Julien Dumoulin-Smith

Hey good morning.

Chris Sotos

Hey Julien.

Julien Dumoulin-Smith

to ensure year-over-year. bit about explicitly little bit XXXX about lever here end the –really, other at lever the of what that exit DPS you opportunities the wanted as with I'm is just future target is rate necessarily and have well a projects embedded I and see XXXX? what perhaps year-end I like to to X% growth little emphasis growth you by at from the to look obviously Can of a contemplated contributions hit get well targets. on – guidance. But X% as different X% I follow ratio litany in in Obviously, payout to drops that the CAFD run you get about the talk you Obviously, you Can trying on again, growth So CAFD ongoing. a as too. contemplated to perhaps priorities talk then that payout to drops you overall. the think up rate And run there's a talk you that XXXX, of might that, kind X%? don't incremental that

Chris Sotos

don't you that? answer why Chad,

Chad Plotkin

X-year good this you're kind of we executed, always small, Julien, I run $XXX Sure. the all million annualized the rate a to there's looking sort avoid portfolio, see, there. profile excluding the the on think we I what and way basis a guess, tend investments guide, of sort we about. CAFD Caliente, on here run obviously, is always a if to variables with because going of and are But of to – them way is, I it presented, we think at number be look we moving would Agua at use growth number we think in that an rate,

can be you to said another Agua obviously, the would me, corporate will then that be. net required million, other excludes that. we that like $XX ignoring and excuse what or Agua financing help Caliente, $XX determine roughly what here, is – the of that fund given Now financing. Obviously, Caliente, We so million, have

would that the additive number. then out So that coming be of to

that, we far that's the as – have. will have view about as we guide from core stuff, of general how – think stay and and sort or think is binding provide we general when our will we'll commitments, outlook guidance philosophy could I

we're that I our looked of think end think your I was, reasonable low it's question and if we sort of X% about relative that. it of thought ratio at down sort on we at of between to and upper rate that targets, payout to run the I to think the the X%, the midpoint assume

the we would other ROFO Thermal, that is the growth portfolio achievable. we So from expect growth cetera. other existing see assets comes to that et think through And or obviously, there's that any the in then,

Julien Dumoulin-Smith

a Right. about do drops elaborate think you And maybe, Sort of you order of the to which can in terms priority, come incrementally commitment? little bit if in you of the on priorities think ROFO were from first here? assets

Chris Sotos

really think what's the I Langford Star, in DG. Mesquite ROFO, and terms is Sure, left of

DG So due the obviously, longer kind I of through with a little bit in XXXX. of probably, to quarter. its every year happens COD mean, course just the Mesquite is

kind of of So much say, would without Yes, year, it's piece. of terms early XXXX be back I'd Star probably Agua of Carlsbad's And then quarter. in Mesquite from DG half kind first the this drop-downs, by XXXX, January. more for

Julien Dumoulin-Smith

Thank you, day. Have very all a great much.

Operator

Thank you.

the Storozynski next comes Angie from question with Our Macquarie. of line

open. is line Your

Angie Storozynski

Thank you.

questions. So two

it? for when basically guidance, include I understand I And mean, in Agua Carlsbad. didn't need then have just revolver in it XXXX, a market your include your plans? about that is $XXX but So you based But flexibility given some did needs secondly, capital your for on issue you backstop on the going it conditions you implies GIP that you're it convert. purely financing to your and And why do dependent Caliente one, you million

Chris Sotos

of, need have questions, sources your we because obviously, of liquidity out the to of we we do kind that already market refinancing don't we're we question, majority enough To to as usually That's X at your for pretty we binding second think, the market conditions terms convert it the the completed view so is, the there one to paper But literally of of mentioned yes, good kind two Sure. to. PSA decide handle I'll to to kind received guidance. and kind due on left. don't a I due positive. we'll update first you offer fully just especially, vast – Agua, if that's in the time have

makes you kind think as us our to a of sense it for probably of give to and to will I it. However, fund need equity investors debt in view corporate we issue terms and to what

So once investor those we it's of degrees kind a view done wanted we of of to only ranges guidance and it, would within kind future. to in increase give our we may sit. you, know again, need we within exactly freedom what we raising where community, once as But the capital as

Angie Storozynski

Okay. just picture question. bigger And one

congratulations acquisitions going strong that this said are I adding that understand to for be But such, of assets? like mean, in results farm asset this to no in basically you is be that as that your the wind this have. were plan wind XXXX. have the to risk I sort a very mean, driven So farms? wind what do large I minimize you should which need exposure forward, going one quarter, pretty you by you that's with feel just and, meaningful on you you concentration a happening

Chris Sotos

to have way significant converse. the general. I We wouldn't a exposure Tehachapi. the to say wind argue no in There's do farms

do wind that wind, from think solar but diversify diversify past the from to Tehachapi. than I But kind of away to is however, we'll isn't course couple necessarily perspective, diversify our concentration. think, wind in general probably general, acquisitions from the of seen of away I wind is years kind our more you've of of to view from what away over

Texas when project, in that's Star Mesquite that comes the in So ERCOT. online,

project, though wind solar of And to assets with you've it's from well, then diversify that. as away And obviously, kind a a us also, not correlated look seen in lot even of so Tehachapi. kind

So pipeline. the if region. Craig, on And your forward we add a development don't I significant Tehachapi for origination going your to have from then your do anything view concentration in

Craig Cornelius

looking a it's Tehachapi. good in to question. of Angie, of spent actually time have asset resource and Yes, new at We on lot wind doing a acquisition, correlations development our –

today create fleet generator gigawatt more So and within resource relation that a wind, pipeline we're CWEN customer to we're across within time, both over the across looking segments to developing X.X diversified in and ISOs. pretty intentionally, types for

insight September. over certainly is So in ahead I to – time. in can 'XX the look bring that XXXX over create But think projects down we investor and decomposition or some more update for provided fleet time, XXXX to our call goal the we regional to more the into a diversified CWEN drop we and provide we and forward

Angie Storozynski

Thank you.

Operator

Thank you.

comes of from Our next line question with the Lapides Michael Goldman Sachs.

is line Your open.

Michael Lapides

of advanced much Hey upper-right the right PPA actually hand in guys, now? X.X between main Real intermediate as you're how thanks at looking X.X you what question. or the the have the what for quick. side? And contracts gigawatts, X, pipeline, show If defining taking Slide of I'm my is versus difference those the gigawatts gigawatts X.X

Chris Sotos

you you why don't Craig, if don't walk mind. through that,

Craig Cornelius

bet. Sure, you

a site been required acreage So his remarks. than Preliminary are indicative readied. XX% facility. the of are studies Chris of complete studies our prepared permitting in stage advanced has projects complete. had application build Interconnection an the to feasibility summarized control layout. definitions have We've of for that's projects got more an Intermediate-stage design and base

Our vendors and power on developed put to project with initial plan's with projects. progress we're in into a engagement been planning marketing often preliminary equipment and for the what interactions customer

projects those together, the generally X.X general, pipeline for NTP a to we're like. XX So reaching that's during to or what kind of construction next looking of in in the X stages within start XX months looks to of be portion gigawatt years. And that X.X next the

stages, earlier basis. earlier to in you that point. then up that's imagine And So can backing

acreage interconnection stages, earlier general So but we'd readied that you've are in an see years than secured from wind or look site owner XX% for submitted. We've now. start threshold, that example, control being less application for initial negotiation than more to got underway got projects X.X construction, for of

sort it. about that's of way to think So a

this on that our projects, note proven ability it's intermediate-stage to substantial the you of was we – XXXX. and touched if back for of were And by we'd drop-down In intermediate record, around to think at financed, the some in call share down projects the of stage look the track that XXXX in slides end the what terms showed did we eventually XXXX contracted, our I dropped that that interesting of permitted, CWEN in ultimately progress over investor update constructed September. on and started a completed to XXXX into and we'd

that for and you hope entirely. as complete there those projects, I projects And 'XX we drop-downs advanced-stage look So period. intermediate-stage usually think into we be rate will of the reasonable conversion XXXX for

Michael Lapides

kind Got of it. my quick, has And how real up much of on that following X.X today? item, PPAs the gigawatt, roughly roughly of last just

Craig Cornelius

not project intermediate-stage PPA an have a yet. Typically would

So have subset PPAs fraction the those. advanced-stage meaningful on a a of them, of projects

start I think, years, safe it's disclosure our to the it's far, our to PPAs projects intent the the next the not advanced-stage is to on within process PPAs that power thus months. on of sight share got projects But and say into marketing process to a underway in intermediate-stage X.X substantial that that, them those over next that that are construction general if of provide volume. that thought hope X course PPAs been of will around we've line or going XX specific go see with to gigawatts for

Michael Lapides

privately there, competition? you factor of Got There a the to are held of well relative is it. developers What or companies renewable large-cap as independent one. last ones. both just differentiating think lot out as And your lots one do

Craig Cornelius

Sure.

today one in country First, the think, as of with renewable the with our I affiliate owner-operators CWEN. biggest

important to for to it have how long-term want credible trust. their starting a and a is sophisticated who the durable project makes who They to and do contracts, think objectives we to to going contract. that with. want to when business operated often. provider see difference them these those have a they to people They power of counterparty I can sign much customers And see They constructed. know them customers by For get are supply it who's to very are over most they trust, who they a meet want a appreciate

And because number times think operate have that have result that operating of cost the in turbines certain scale other the a The we we often advantages we regions advantages particular, in of as that of have, competitive we we advantage that forma that in staffing shows of XX-year us the way we price PPAs. we of a in sites. that the across terms the the deploy gives multiple up location that over an course pro can or

they also amongst as I lastly, financing we will thing sponsors trust. get better – in lot increasingly, life cases, we that's can have financing a cycle. providers see actually important and think, And We end actually, towards the PTC we think, terms, who and of customer projects choose the relationships. of a more quality choose Because and I incumbent

position a over date of in So not solar them the Mesquite for puts that's to project customers from community the publicly come one greater fleet project long with a been from back Star the relationship started that's And announce a And trust scale. with of PPAs to more operation their seeing CWEN now developed do we'll us business in that customers we're good getting in actually, to us customer time. number at as on today. in a want service repeat

Operator

[Operator next question of the Instructions] comes Oppenheimer. Rusch Our from with Colin line

Your line is open.

Colin Rusch

Guys, the pipeline of cash planned the for a could I needs XXXX of to have your end couple follow-ups. development? you about then And talk

Chris Sotos

Sure.

pipeline purchases I Craig's I'll the haven't not over pipeline I of On kind neither – negotiate or that. assets. development, On go Chad for know team that's think has let – we a of

that need, So let the capital in going question. terms of I'm address to we Chad

Chad Plotkin

maybe you when need... of Colin, say I I mean, wasn't end followed. XXXX, I I guess, capital the I Yes. think sure

Colin Rusch

so extremely about XXXX are growth. How mean, to you much going the I acquisition clear. through ready just be this pipeline business? talking for put forward I'm into needs cash moving to XXXX Yes, are

Chris Sotos

million the and mean, get I at. on which prices standpoint, piece, very $X frankly, that's, kind wants million Energy Group $X year. Clearway of put in other a Yes, things and we don't than dependent capital a purchase to development sell for any From what done, the to that is between the Thermal Craig

on entity, dependent but So we the $X $X a future purchase answer in to I is of year us. the think for the capital Really, to million it Thermal million have put wouldn't drop side. public prices the on the to that is

Colin Rusch

or then the something evaluating Is certainly helpful. peers liquidating market We've it the That's that quickly up any are portfolio very arbitrage you table? to of could doing on free table? of that's the cash that. on your And some Okay, great. dynamics? the And be how seen

Chris Sotos

selling we I if And an look think definitely mean, price, prices see up market. I at our a strong all we assets to the of asset. available would that are there's consider in

I price. we most time get look mean, terms at sure of opportunities. make speed, the your those once I processes take think you of diligence to But some always again, to typically type robust in question,

Operator

next Pourreza of the Our line Partners. Shar Guggenheim comes question from will

now Your line is open.

Shar Pourreza

you financing converts. or JV we to at about there we ask of saw is finance very something me to to to the guys you, and an sort similar look deal? talked this. opportunity your saw and Is of – do structure So acquisitions and peer But sort similar what BlackRock recent a ATM partnerships let a a there lot with

Chris Sotos

then let Chad. and answer I'll

think opportunities. always I there's

case, have in converts public replace this we're there yes, term, that's in what public XXXX near pretty so think obviously, that of refinancing I you vehicle, However, we, think a the will is that in be in demand do – February, paper. – to the given and a terms

that yes, at not through case would available the I So of term. are time. to look answer your be would funding time we and from type to near question, think in the the expected But JV, opportunities that those

Shar Pourreza

of end through quick just your of And good. X% not the committed on highlight and growth Okay, you okay, just of clarification, – sort Chad, projects. your me CAFD per share let in investments top outlook? a Did growth

Chad Plotkin

No.

outlook number is, I lower of would our of our the question X% probably about we end our X%. think ratio, upper at be the payout the what midpoint of like was that supportive if thought the to to

Operator

comes of with line Bank. Azar Deutsche question Abe the from next Our

Your is now open. line

Abe Azar

talked is Is new Star? Mesquite the Can is XXX-megawatt pipeline any that you the more megawatts, PPAs on hours, don't that you is I about Slide Because battery. any batteries a at the the details X? Or provide list about then on XXX that there. see that something And different?

Chris Sotos

I'll let walk that. Craig, through you

Craig Cornelius

sure. Yes,

for that PPAs that to Mesquite apply already are quantities so those not is And at prospectively, CWEN not ROFO are today. on date, projects list later on Star. so might ROFO project don't placed those CWEN be the for disclosure the the there new this a list, So – are that

storage constructed combined megawatt counted a applies part product the once to of energy be utility facility customer. for for integrated a a hours, As PV system would battery, as with a that that

Abe Azar

is and basically gigawatts right Okay, this X.X clarify, the to inside advanced just now.

Craig Cornelius

Actually, those advanced still quarter and the X within projects intermediate would year. next reaching of are stage the the stage during be progression of first presumably course

Operator

at for questions further back remarks. this call now like no showing I turn to Sotos to would time. closing the Chris I'm

Chris Sotos

for our everyone, talking you you, Thank to forward year-end. you. again look call, Thank to quarter and the attending next for

appreciate care. Take So it.

Operator

thank gentlemen, have This conclude all you participating a and in disconnect. Everyone, Ladies conference. does may day. for program, and the you great today's

Clearway Energy (CWEN) 11 Nov 182018 Q3 Earnings call transcript