CWEN - Earnings call transcript Q4 2021

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Operator

Good day, ladies and gentlemen. Thank you for standing by and welcome to the Clearway Energy Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to your speaker host, Mr. Chris Sotos, President and CEO of Clearway Energy. Please go ahead, sir.

Chris Sotos

you. Thank my call. for and to the thank today’s join first morning taking you time Good

this are Officer; me Group. portion Chad President Joining of morning CEO Craig Plotkin, Investor Manager and for our Relations; will of our be Chief the Clearway presentation. Financial of and available Cornelius, Akil Craig Energy Marsh, Q&A Senior

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

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

reconciliations measures, comparable to the For regarding information most please to and GAAP today’s presentation. our non-GAAP measures refer directly financial

to performance our Turning an for From historic X, we a exceeded standpoint, was Page Clearway year. objectives year Energy. for XXXX and the generation CAFD operational

accretive significant deployed growth will our also We materially our future portfolio portfolio, in natural with growth. in reduced help gas its strides sponsor contracts. new which drive our We approximately development while projects, risk expanding the million $XXX into made

multiple. our announced Clearway sale Finally, very business of the a at attractive Energy thermal

capital history As its flexibility. with a XXXX share and $XXX runway after beyond. visible for are XXXX all of Clearway thermal deployment Clearway with very longest the summary, in with we efforts, million This proceeds enters result of these unprecedented the provides sale. per for well-positioned remaining flexibility for growth In net dividend

with increase basis. of guidance. share closing or $XXX in second generation Clearway with on dividend by per track million, our X% anticipated the of is our CAFD in an CAFD year quarterly well of For our annualized on business sale performed its XXXX, also quarter. thermal The announced an $X.XXXX ahead full

the was of of million primarily the XXXX, now $XXX capital as sale the This also state remaining of law, million. to utilize recent NOLs in where ability a – are change We $XXX suspension to from increasing in California capital company’s and due reversed. amount to a result was prior

taking million into For and commitments, $XXX million forma thermal account our CAFD of for we funded. the $XXX current per growth already pro on out are of share, with track million translating XXXX, capital committed the $X.XX of in $XXX commitments into sale

drop-down of deploy roughly Moving our the sight with and we of being remaining is a $XXX or to of colleagues, minimum line Group to Clearway of capital forward, working million drive per this third million CWEN have share. $XXX And Energy dividend capital CAFD a to working allocated pipeline to capital and would potentially the XX provisions clean ultimately way tax to Energy as of are deployment be on passed. development with view million what gigawatts. a next floor we Clearway their energy through This working dependent $XXX Congress climate that Group’s increased growing

The full to a $XXX of is the $X.XX the be long-term emissions. million capital, ownership through what as per forward the a Clearway renewable of generation of EBITDA remaining goal will for through future deployment well and also as over or and clean platform Clearway majority to third-party is of accretive net zero represents from opportunistic drive our With CAFD CAFD M&A. significant heart on at drop-downs of energy basis. the our contracted announcing XXXX share going sponsor assets in DSG our does a long-term Clearway of everyday growth able

our around gas was it our our thought emissions change long-term holdings. natural we given Board-approved and state climate formally However, to important goal

DPS upper range growth X% of in and leader to a XXXX. achieve the clean transition, through XXXX long-term Clearway X% energy to target beyond is As well-positioned for its the

column remaining drop-down million $XXX at Starting of an remaining capital drop-down, to the into CAFD of as requirement anticipated a our on we third roadmap with per the next the on disposition of the now thermal. thermal Page the side from sale. takes the $X.XX The growth $XXX X% Due next deployment minimum left from X% a growth CAFD from anticipated account provides to sale capital the our sponsor of CAFD for now share to thermal this of have of or an Turning indicates to yield. anticipated X, of as million average $XXX of well utilizing the page sight this CAFD investments. line committed million the resulting the proceeds

with previous As calls, on growth. an always discussed on is accretive Clearway deployment of emphasis capital efficiency on focused

to shareholders. proceeds criteria. the continuing CAFD remaining this by If a thermal are and approximately remain cannot we intensities we including our long-term environmental Energy has million per an our footprint. $XXX power of dependent share gigawatts of of million lowest of to growth on $XXX to the or X.X other criteria meeting investments, meet $X.XX means yield. Page commit allocation, provides pound GHG X this the U.S. driven to option one driving CAFD generation. on sector, work We retain greater returns underwriting to net CAFD evaluate sale In of on we focused illustration process, to capital in Clearway accretive to the basis renewable

grows renewables This coming the XX% number for were majority acquisitions. megawatt with third-party of renewable pro increase provides adjusted size pipeline economic forma renewable also the sale. future after XX% the Clearway’s footprint XXXX as CAFD the value, result, renewable electricity development accounting our our our investment vast pro should gigawatt our and of XX% from As thermal of EBITDA well from as as forma a approximately generation. This hours sponsor’s renewable through XX fleet of in of in our in

over fleet we as energy generation. discussed renewable years, essential views gas California’s the its the to Clearway transition for As electricity of

assets demand penetrations during Our reliability grids high for natural predominantly of are that help of electric the with peaking ensure gas periods assets and grid’s high renewables.

maybe load efficient pockets fast are which periods critical California providing characteristics start, renewable has and of its to during electricity Our gas waning. generation being in

Board approved emission mentioned the net-zero climate has XXXX, a agreement. with target the Paris GHG aligned As earlier, I by

opportunity Taken With Chad? clean leader it the a premier transition together, that, Chad. a in turn energy investment I and to over will Clearway space. is in energy

Chad Plotkin

you, quarter had $X.XX of with operationally $XX turning of an And Slide million This EBITDA available finished and CAFD full overall. strong both company cash EBITDA brought fourth million $XXX XXXX Clearway million adjusted excellent $XXX the XXXX year strategically. and to Thank for Chris. million. X, to above The distribution adjusted of in and our $XXX or to results CAFD billion or year guidance

ago. almost year by full impacted results As $XX ice X million were year a approximately from reminder, storm CAFD Yuri

impact, million XXXX. for been $XXX have Excluding approximately CAFD would that

with the business, During leading strong In quarter, both portfolio balanced. conventional segments materially part company’s and non-renewable the was overall. year the in a fourth line of performed the to expectations, our thermal

renewables, solar across offset For volumes. an providing to during the wind the production quarter portfolio lower expectations, above fourth modestly was

quarter level call, reminder the third timing a that third fourth change in payments interest payments results the from impact efforts strategic quarter original were to of to the As versus fourth quarter relative made did the such quarter. project due expectations a in

leverage XXXX thermal of transaction. on capital corporate continued formation the to in with targets implementing the strategic advance execute our financing net and in growth to sheet balance the front, solutions effective management, by temporary through from in On the receiving company liability manage line the proceeds

aggregate, utilized green which bonds, we refinance new million corporate these XXXX in in company outstanding the year, level then for and the the senior debt X.X% in additional $X.X raised the extended capital weighted the new to interest the and notes. XXXX to approximately to During X.XX% costs part growth. in billion on average XXXX Through from $XXX the efforts and raised effective basis a for reduced financings, we maturities cost

fixed. is XXXX. level company’s when debt, consolidated including And has interest its mitigated in the non-recourse exposure Importantly, maturity corporate XX% now as approximately Clearway long-term the debt further project costs the interest of also company’s rate are earliest

November, the to As targets. to a we included was facility leverage leverage pro at instrumental see bank the To of with to these not operating on change that mentioned acquisition outstanding bridge interpreted the facility, an finance the since of due the into when providing the do a repay forma proceeds $XXX be however sale revolving company net facilitate call, loan to million thermal achieved of significant last and growth on for company’s its the growth ability to guidance Upon needed CAFD group growth closing CAFD bridge thermal Through agreed This the relative the meet temporary and to normalized long-term objectives. fund to closing and we should this to when accommodate leverage receive million committed our we loan to the investments, transaction, the to in advance we to want bridge back both as will from under balances commitments higher in $XXX the amendment which a needs. ability remaining Utah interest the required company a credit move XXXX its We to earnings the operate credit November, to emphasize requirement, solution level. more financial capital the ratios expected of of temporarily strategic the outlook. both these and the flexibility solar. its efforts ratios enter efforts, company’s the to in timing

$XXX million. maintain we XXXX, guidance to For CAFD continue of full year

may to of in However, does guidance close, when thermal continue contribution factor earnings and million the thermal full due the CAFD the as in noted last on from estimated the the $XX of transaction company’s business. year call, uncertainty to

full thermal is transaction. normal practice of As will closing we expectations an XXXX transactions, strategic for the update after to the provide our year

$XXX closing I informs you to investments, from turn not outlook, Chris figure we also CAFD a in all fully relative X-year already Lastly, any will company’s back million the which excludes contribution remind call pro CAFD guidance want remarks. to that growth capture the committed also from And averages that, with CAFD for to XXXX thermal. does forma that expected

Chris Sotos

Thank you, Chad.

of financial growing sale upper hedge accretive extend Turning X% strong our are result an capital look focused even degree succession working the we potential of thermal of at a to range passed. of of thermal that gas to flexibility the the our the In our commitments, we the invest multiple, and supports discussed our of as per of Group long-term range drop-down I on XXXX. share the the always XX, per and achievement to provisions of our call, current from created be which near-term our view at DPS dividend Congress our our of clean sensitivities, share goals, strong portfolio our as beginning in natural risk we our a our and upper Energy in high Energy, on the their opportunities sale at deployment a within strong are to business, through can was closing XXXX efforts, of to year reduced rate the end as and the In raise upside as profile thermal growing pipeline exceptionally XXXX an guidance we in and existing sign Clearway a all the assets, growth establishing delivered with late-stage moving long-term XXXX also of tax parallel for create of law, Clearway Page at business. the X% CAFD efficiently manner, and climate with are that energy and CAFD contribution if completed financial under sale these capital

we natural area progress gas in reducing risk of and of our have While work be focus still we significant to a will made XXXX, continuing the in assets do, XXXX. in near-term this profile

the engage raising I proud the Thank assets challenging lines pandemic Operator, work for and achievement safety, hard activity the new is levels environment of. on well for an their M&A, as to another the support as the we third-party enterprise can projects in difficult during please of drop-down questions. this of thank and through you. and reliability of at deliver employees be capital all Texas Clearway the entire construction through open would to weather like operate end, all Finally, work of year high

Operator

coming question Dumoulin-Smith from of Thank line with of you. Julien America. [Operator the first Instructions] Our Bank

Your open. is line

Julien Dumoulin-Smith

me? you Can hear morning. good Hi,

Chris Sotos

can. Yes, we

Julien Dumoulin-Smith

for Excellent. Thank and the the time opportunity.

think then first backdrop impact just let’s as out? level higher high specifically for has if one about start here, as changed there So late the Thank you. pricing Hannon just off, impacts quarter-over-quarter we your of on something peers with your for the and you be itself Group. might here. here especially I you that the and I’d renewable seen business, much well? saw curious, something to that solar, just desirability assets Can don’t be inflationary how that means more you here in we’ve as of compare Armstrong mind, what of rates instance, you of how palatability a available especially Texas large-scale comment Clearway announced filter mean, at – would perhaps for perhaps and

Chris Sotos

second probably back. I’ll to question go Sure. first your then and

currently. for a Hannon in a partner Lighthouse Han’s work think CEG letter agreement asset. And Armstrong, with have So that I we have we good do to that on

I of is long-term view a I of interested are especially kind So and both think us that. the ERCOT think of positive given our portfolio. And solar one, in

I I So has more I additional particular for been think kind necessarily But might question growth of bit of There be, Q-on-Q, of underpinning color. today’s question, big in backdrop one of think view I around don’t in From is Craig, Craig your of going our if is than is. that term, you’ve comparing little there, perspective, probably pricing, at question his don’t is environment. underpins near-term. which there To of the a forward. basis nothing probably obviously, view, change question. working seen Longer PPA other know terms day-to-day work Julien. any I don’t your think in I’ll assets in that’s but the kind our through that think the probably a first the think your there I ask PPA

Craig Cornelius

that picture, the the ever mean been here as think, in X I sure. robust U.S. industry in Yes, remains overall I this it building really terms as in Julien, the of decades demand seen we’ve it we’ve

of IRPs demand as utilities, demand demands to will continued to the it’s markets goals, accelerate, serviceable of coal plans wholesale In being gigawatts be by total, to X we years. that retirements to wholesale a well we whole in of we cost that proposition. across sustainability corporate picture, agreements. current the energy additional today’s serve in XXX able that ability prices the up the and different coming be purchase that certainly when from over tracking and while gigawatts the X amongst decarbonization require – a power desirable providing over reflect integrated And goals worth more just project will that and demand driven and built planned clean that we’re gigawatts structure look to resource value retirements. that So there, serve to that tens at XX here for is are will plan as coal open the company demand across customer virtual to PPAs need signed There U.S.

we’re demand And is have So business to we that price that projects for strong. an worked building with I to economically they new allowing makes accretive. to industry outlook to be customers also meetable while able the that for on serve inflationary that to able have our that even be set in environment be our projects objectives very

Julien Dumoulin-Smith

I if you. clarify mind question, this. it. this – don’t to Thank to if back just Excellent. going me Chris, Got you

it, going this CEG this can take competitive You Started work Is more pertains split? means imagine got as Is you’ve but on this to on that to? am a to bid point? alluded imagine a with said holistically, arrangement that that to Texas the you I what letter you specific some something as at it also curious more on it here? forward in asset. do agreement the how you Just on that project

Chris Sotos

you’re Maybe sure. it, Yes, into reading too Julien. much

both in are where partnership It’s it’s think doing. on what it That’s very what own – as your I not bidding on if saw we would asset. have to Lighthouse to is, similar Haz you question we’re that with a not probably XXX%? we

end much in Lighthouse mode of saw in of to that capital it’s that XXXX you deployed more a I year. this the we partnership in think

Julien Dumoulin-Smith

Got it.

Okay.

a of situation? more So split

Chris Sotos

for it, Sorry, go Chad.

Craig Cornelius

Yes.

complementary of additional is building and portfolio. are this Julien, that add Inc. you storage Craig. is incorporate resource we partner net of assets and opportunities I I we’re in see solar hope the can us. from profiles for a existing just there portfolio to are succession Yes, Sorry, just Clearway profiles that a And what think think it. I both think Energy, Hannon that of will as that the customer ultimately the see with enterprises to to portfolio a time mean, that range referenced as complementary over we and that

Julien Dumoulin-Smith

the and of I wealth you you a be Excellent. see underlying Great. potentially opportunities. point mean doesn’t CEG? – is maybe splitting really here faze you something would here It with that

Craig Cornelius

No.

Julien Dumoulin-Smith

Craig. Excellent. I there. will Thanks, guys. Thank leave you, it

Operator

Holt. Bean Tudor, coming question Colton of from Pickering, next The with the line

Your line is open.

Colton Bean

morning. Good

potential Just million the on $XXX drop.

any with there, the at of role in third-party XXXX? if related weighted a thoughts of $XXX could the Looking And of in that on projects timing service backlog, that million question play M&A upside CEG the and is proceeds? remaining to a commercial

Chris Sotos

kind definitely of through Sure. It’s to quarter first the weighted of Yes. back ‘XX. ‘XX probably

it question is kind going XXXX So definitely beyond. in part of XXXX? Then we’re storm to M&A in your looking in in of no. deployment is, answer yes, It’s is question, at. was our come your online To that more is something general third-party Utah. second It ‘XX with and capital much

at time. look And announce M&A it. all have we we would we the on a when binding third-party something, So agreement

Colton Bean

moving but it’s or question have any potential higher, that early discussions, processes shift drops? whether you know interest CEG Maybe rates in be a related third-party there, valuation days, I seen still with

Chris Sotos

XXX end industry just do point but maybe terms the in XXX long, significant of a move basis where little multiple interest the XX rate I move, is would bit obviously, which say points the I’ve happen. XX-year moved maybe quote morning it’s too no in a the while at X.X been at day to basis points in about too depending I around early. from think basis this both. It’s And the to

either moved drop-down don’t context that to third-party a date from think today. in much or around has that think a I in So pricing view, I my

Colton Bean

on just recontracting in in versus Segundo, get And a know Great. expectations where what in was process peaker done final just that and plants? expected updates able Any we sometime to differences one I to were XXXX. El on sit the you

Chris Sotos

occurred Frankly, of again, of other also by as the them no. process. RFPs as utilities of we we well with Once process continues. happen second peaking to that hedge work And the the facilities, kind kind the quarter. That outside in parties basically investor-owned in

for So development remains on track I’d say no items timing. normal new or the

Colton Bean

Got it. Appreciate time.

Operator

Kaye Noah question line [Operator next Oppenheimer. Instructions] coming Our of the from with

open. line Your is

Noah Kaye

Thanks.

the around development start, one Just environment two maybe actually. just

The change looks overall timing. just hit amount of to the no for is projects XXXX. It like part in around it really COD project first of expected

Just comparing of quarter-over-quarter, shift XXXX. XXXX it out of looks like a bit to

the the part things of give go first them. availability, managing dropping So down. these operationally any just what color is just chain, well, of to timing you’re of can you supply on us through looks really around of like some but terms in you’re having all projects Overall labor

Chris Sotos

that? Yes. Craig, don’t mind, if to closer you you’re

Craig Cornelius

course. cash some I selection been of status that insightful think to logistics been payments X been function other be cost for in that components, be planned we’ve It’s and U.S. manage volumes Energy of directly environment as equipment for both supply Inc. the driven Thanks have to large And we’re lock looking had shareholders then with We’ve equipment a ways or conduit. our ability availability also sponsor been able years Not flows of more Inc. and to the it’s really We’ve we’re freight reflects at availability That’s equipment entire that really than and to this costs customer first vendors of Yes. to lead also inflation planned dividends commitment as and able operating peers and all to we long peers of foremost, think peers. us. we’ve on satisfied cost pace program and shipping Clearway that accelerating reflects factors track. how and certainly of next noticing. freight entity, driven that resilient generally we’ve construction has not that to a we’ve Yes, us were manageable for really, in policy. priority to that more It our think that managing costs I less hedge might what has secure growth providers on with managed been should procuring. well. to our leverage the of the strong Energy, the compared and by that pretty but schedule been meant for – risk satisfied as keep the maintain Clearway and It’s

Noah Kaye

bit just, Very stage. And overall come Okay. XX.X does of second the part the this pipeline to it then what around terms more a you maybe earlier the opportunity and of are back to of from from gigawatts corporates going But just talking experiencing is helpful. others pension the some I sequentially of Is really step something there that sets? ability that in in? obviously, project appetite mean a about and question gigawatts extend earlier drive the development function XX to development is in little

Craig Cornelius

fuel also across mix, And mix And way as is us Yes. the pipeline their plan increasingly touched it really strictly and of continent has diverse for decade. and transition really we investments made the targeting the will Inc, really portfolio that earlier. is customer have. evolved part time, excites of us the make a entities for each type what for demand classes which balance the of certainly mean the it those the of different are a Chad owned real us development starts which out span within build over that allowed on but sizable, really allow plans about fuel will assets this that customers. to Energy, that that’s building Clearway central enhance commercial that to have think for I the the picture, load-serving in industrial and country limited with transition isn’t I to Utilities it

in over it first, time. confidence demand So picture the our just reflects

bigger year, certainly, company. and we each each and a get better Second, quarter as

projects think here that you make to U.S. going example, that for places that for not projects we really constructive lastly, multiple And it. we types viable anticipated the historically soon economically are where them, have deploy places us us integrating that to of the components storage, I are plan viable some is construction. to that ultimately, would been the larger policy in quite economically in not allow capabilities in government projects behind then have environment So, might to as have help can development plan that allow

So, to as and development look very cash I of ahead into cadence these the the operating turn mid-decade, are within about the we am how terms fleet. optimistic going in of flows to activities family construction

Noah Kaye

helpful. Super

sneak a be two-parter have steps greater. remaining taken? if me on Then change. to the again, one due mentioned give some in indication for here sort in here, Let the thermal. proceeds going Chris, the late the of or just possible I that’s tax color Any to think just or kind think real quarter? expectations I There that I at is second mentioned, all you prepared closing But be a the potentially cash guess the towards quarter of remarks really us in no that you bias you are early the on you to treatment can

what just So, – us from perspective? the where rather out you divestiture shake do acquisition a done, once expect to remind leverage has or the

Chris Sotos

like in turn would cheat your really had take we of I first will to over in. way it get no we driving again, it move cash middle but May, sooner, again, are pick kind first to the not size. part be of almost part the for tax. But once would Chad speak. the kind of to to obviously it kind to the flat steer and if to so Sure. of But to of either the then Once we curve, question,

as of also it but transition the part process, So to only not for appropriately. sure also, the make us is occurs counterparties with working other regulatory kind of well

So, strongly in May again, outcome could be the later. very of be kind we the but we it tax kind of will expected quarter, could timeframe, feel mid the as earlier, it Chad, second of terms on take side? expectations, But about. Once

Chad Plotkin

Sure. Yes.

points. – So, let of couple me a

proceeds. estimated or on at I net proceeds think cash the least the first

Chris think our current I as as $X.XX estimate about we spoke indicated, billion now.

reversed this was This $X.X estimated of XXX February. that acting in at that billion. tax by COVID – put periods for the that million the that state a company’s from of XXXX early to happened the abilities the of it point use the in rapidly. Before, at place driven XXXX. $XX was pretty The suspended in period where driver and California of start XXXX was pandemic, to did they was for Bill Senate law have part NOLs And what change

generated of there the So these XXXX, we current as some business going use ‘XX go a NOLs. for that, will Naturally, that given tax the or through for our impact. permitted XXXX thermal sale, realized that by taxes. will the of be are to apportionment are I state leakage. in that. potential gain that me, – activity that we would remind that because business ultimately estimate activity course the to would immediate the estimates at And result is to in looked excuse affect how of be California, But we obviously, reduced number

will the the temporary effectively On thermal currently be borrowings the leverage deal, side, simply put, once sheet close balance off. that on we paid have all we the

a inclusive look reduce And put back million. our at will that where point, of bridge to we would forma of and more place of but that Xx we in little by be. at will X.Xx we range over facility So, the targets, $XXX be on are X.Xx, borrowings we to in Utah bit expect our in the as range for we pro

Noah Kaye

so Thanks Perfect. much.

Operator

of from Sachs. the question with line Goldman Michael Lapides is coming next our And

open. Your line is

Michael Lapides

my guys. Hi, on you a good and Thank taking congrats question for XXXX.

XXXX of since, increased use the related, you whether Just attractiveness it, broader flow thinking about and end to would has of clean M&A.? relative corporate market you everything proceeds sheet and the cash volatility the real clean the – energy balance drop-downs quick, Corporate given the the and how sponsor? call from Board energy move or across in are returns how the pretty much M&A thinking to the of is about your valuations are use M&A in from sponsor of you corporate generate

Chris Sotos

has value think what backdrop changed of have – of that in is the in at think don’t I think the of in value best always risk terms looked company. I we the we Sure. terms terms much for

talked think So, question, But growth will for well. Mt. your broader most as look XXXX. we of M&A, we look And sponsor. corporate third-party, as because always at level project your drop-downs to example, from corporate look in question at to Michael Storm about transparent at we dependable M&A, I we that’s kind our obviously, the about M&A

to available I think those all So, us. are of

I think the return. as risk-adjusted well, where can generate the big part best you is

focus. the that’s so And

So, not I the changed on sure the year really much from am corporate in that perspective if side. it’s our past

Michael Lapides

Meaning of it. lot renewable the more a that peers move lower made publicly-traded move M&A hasn’t companies, lower attractive? the your among corporate Got of valuation

Chris Sotos

not Well, There of that’s really if question, go your a depends. different out Michael, there, get. list XXX it candidates is

it really changes paradigm don’t the them. relative is couple of amongst in months. So, many that math there past over I that XX a think is

Michael Lapides

EBITDA difference, you. are me one you the between you it. especially appendices. Slides slides. am then, pretty and for the Got I EBITDA in at Chad, And and adjusted just Can what’s in ‘XX? different numbers numbers remind two ‘XX the looking remind versus CAFD me and XX Can the the XX those

Chad Plotkin

Yes.

I Yes, looking now. I would just on? if in Is right drop you it’s Michael, EBITDA. what am projected I that at that are Sorry, if is you probably focused slides focused think are adjusted guess, the the

Michael Lapides

it’s look adjusted got Slide XX, of if EBITDA of XX one Slide Bill a like XX. Bill XX, – at them like has EBITDA Well, I

what’s…? Just

Chad Plotkin

a to remind main in of our gas natural I pro three time which there have that, existing period we when is out assets. California you is would that think I we indicated forma outlook, driver the the post of go

order to an mindful when – do unlevered, in consistent you we been sustain revenue the that moving there the and having a that of that’s because on as are those amount need because support we something to don’t to have debt not unlevered project generate we pro that become our the number that principally projects being service. revenue that the of about basis CAFD variables, material drop but have say on of estimates is a would obviously, I EBITDA forma would like basis, would So, in the be we expected point

Michael Lapides

Got it.

remind ‘XX those Okay. speaking agreements you one That And of beyond? those signed last under signed sense. – much makes the for those and timeframe, assets ‘XX what one post of assets. up have how you California you up under in on have I then me percent RA Can guess

Chris Sotos

call of then Sure. There percent with XX% Creek. zero Landing I that, will longer than XXX% It’s and Segundo. El Marsh hedged through, is Walnut it, XXX-megawatt tail XXXX of out

Michael Lapides

appreciate it. Thank it. Much you, Got guys.

Operator

question of William UBS. next the line with from coming Our Grippin is

Your open. line is

William Grippin

everybody. Great. good Thank you and morning

online? Daggett Just that talking guess still noted that the project X, the in actually investing before some are to after press projects think you milestones me, one And I capture one possibly in do is it’s investments brought then in and investing for about broadly, you COD in in Thanks. am certain versus quick that release curious, just earlier-stage you the to investment that project more how I investment subject about higher development. doing is returns?

Chris Sotos

though as not question, first are we no, that’s investing COD. well your before To Sure.

little have obviously, view of general, your first simple wouldn’t. question. bit like a do significantly because equity might little in the for for the COD we owned time, your is just a answer no for in months we the question, second but of looks to what to lock To and credit more construction, But much like. tax basically during a we for where it terms we of asset re-powerings pure development might period start better a have bit You

of in your question think a define So, no. I that’s if of kind development, I terms

is In so or repowering just on in obviously drop-downs there look much place a what construction little own up already and generalization. as that of it is, view general, at we terms a better on have because think we cycle don’t moving for in the the But are may when future, project, proceed forth. so earlier move in bit trying closer asset, of to a financing the maybe to I in we

William Grippin

Got it. Thanks very much.

Operator

the turn I questions time. like to Mr. to this at back would call am over showing further I now no

Sotos any for remarks. closing

Chris Sotos

next Once the quarter. and to to for again, you call thank talking all Take care. look you joining forward

Operator

Ladies concludes you your Thank gentlemen, for your conference that today. and for participation.

disconnect. now may You

Clearway Energy (CWEN.A) 28 Feb 222021 Q4 Earnings call transcript