CWEN.A - Earnings call transcript Q3 2022

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Operator

Good day, and thank you for standing by. Welcome to the Clearway Energy Third Quarter 2022 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Chris Sotos, President and CEO of Clearway Energy, Inc. Please go ahead.

Christopher Sotos

morning. Good you quarter time call. thank Energy join taking third Inc.'s for first to the Clearway We

CEO Group, Joining Director available and and of this for Investor Clearway me morning of Relations; Craig is the Q&A Cornelius, our will sponsor. Craig our Akil portion Marsh, of be Energy presentation. President

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

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

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

X. increased CAFD with nine of X% the dividend CAFD items, year. issues through at target other Segundo's fully million growth to of its our $XXX quarter announced us by upper Unfortunately, keeping Landing having previously revising initiatives Clearway million Walnut objectives now Marsh we'll The along first $XXX from and to dividend to third down contracted an operational El be capacity continues per due Turning our or and Segundo the generated achieve on year. to for advance $XXX El end $XXX to Creek. through XXXX to guidance Clearway the million. its and the the and company XXXX, $X.XXX strategic the in on share annualized million basis, $X.XXXX growth by months of Page

XXXX. drop-down drop-down acquisition, rest with the track Wind commercial projects of quarter operations or the the the closed have as Solar well early announced 'XX Capistrano the of as fourth for in on previously Waiawa We of funded

ever utilizing our $XXX an is yield. I'll Clearway's with million, forma than couple CAFD growth capital more We long-term steady outlook from million in for updating are review Energy X.X from approximate offers to anticipated slides. $XXX Clearway of which of million CAFD transparent also Group outlook assets, the X.X% a latest pro $XXX of gigawatts at

sponsor's As we have drop-down of the $XXX the of development continued first XXXX, of an a Energy, visibility result to leading million half into in anticipating approximate Inc.'s deployment our also Clearway offers of capital. corporate additional additional efforts,

including Our sponsor's of gigawatts, late-stage development pipeline commercial outstanding expected in XX.X X.X years. to projects continues grow, the next at also to operations three feature gigawatts

CAFD deployment drop-down share. than of its for X% you being capacity in execute California of continues the a our the supporting a have result additional thermal target In greater offers, where we That, platform we if the through Clearway continued on did summary, and thermal EPS when and CAFD our XXXX, to of gas with of million As of growth very $X.XX combined assets. $XXX CAFD this range the proceeds to by per XXXX. see X% CAFD stable grow growth in dividend of at share confident per these the contracted assets, the end upper proceeds have level deployed long-term of to generation, At ability outlook.

Slide X to results. Turning color on bit a financial to provide more

CAFD. reporting EBITDA Year-to-date and cash or adjusted For million of available $XXX for and of of million CAFD million $XXX third EBITDA Clearway adjusted quarter, at million. the came $XXX is distribution $XXX in of results

quarter the conventional third negatively outages forced impacted in by were segment. Our results

returned after the initial began and Segundo repairs X, outage we Energy to unit and previously September a late El announced, XX. forced on service at August As in X Center

El Renewables running cash the September. Walnut at unit being of Segundo Majority occurred is Additionally, XXXX outage to components Creek X currently facility The rest while unit Walnut facility conditions at but quarter timing are forced X the less third quarter conditions revenues, to the in force also O&M the the a normal across Creek somewhat impact in for the repaired. late and by In This results. related the fourth the project-level material weaker-than-normal of due was experienced offset lost that outages the results impact in will third quarter. portfolio. related of PXX debt were the renewable fourth expectations segment, service costs to to quarter lower than move

to impact Given outages its the the forced CAFD of revising Conventional $XXX expected the is full company segment, from million in the $XXX guidance year XXXX million.

The thermal sheet, growth on to growth the allocated from to continues have the having available to new be flexibility but company its to excess capital. unprecedented balance the drop-downs, sale execute with remain Regarding proceeds future form corporate are we to expect our interest to debt target to is ratings. to undrawn, line be rate pro with be continue from with credit being and fixed. revolver our metrics they in our nearly insulated Furthermore, continue and XX% completely our forma of volatility visible

the outlook, XXXX In with announced pressures expectations budgetary in forecast. budgetary CAFD and million. these items. various company our Turning pro and an differentials forecast $XXX to updated expectations, explain assumptions forma is pro underlying for of outlook segment, across of prior company's forma provide to to commencing as aggregate, pro account the Slide in our updates cost $XXX result and bases the order The $XX bridge million, previously adjustments various X to it CAFD and inflation, million. CAFD a a updated to portfolio, overview the outlook provide our Renewables of the In moves forma forma portfolio in pro in including results other updating equate variety including outlook CAFD of to we approximately CAFD

our come The XXXX due less announced for forma of $XX Capistrano based X-year $XX average Because updated is acquisition. the pro on in operations outlook. to our what the expectations source for forma new CAFD of our to CAFD shape back for will the pro pro CAFD of with expectations CAFD XXXX than profiles and previously. have and is in recently outlook flows, reflect outlook million beyond. projects project Wind when disclosed forma timing variance consistent the cash reach XXXX we CAFD bridge This next investments, Moving million

intend to As refinance debt asset. we previously, the announced existing non-recourse of project the we

significant due between is arbitrage and currently, at Capistrano to CAFD year outlook. of our Clearway cash fairway and balances forecasted to no end However, leading needs need believes $XX for to limited negative end a of given suffer refinance to the cash now looks there million currently therefore, XXXX, the XXXX,

forma energy segment As gross recent guidance, above market in bridge the long-term pro conventional XXXX outlook. to the based a reflects final our margins projections CAFD in on pricing XXXX

fully merchant from resource adequacy natural month additional the El in underpins terms facilities into starting $X energy margin for basis. long-term cleaning The analysis, right in from markets revenue expire, contracted initial pro and While Landing, assumption and our market. assets ability in $XX CAFD relative facilities merchant Clearway merchant the Segundo to outlook forma energy three energy generate upside on revenue outlines the be expects agreements of our the table generate pro merchant XXXX and approximately internal kilowatt the forma Marsh three CAFD assumptions that currently Creek our have of through Based per forward outlook. markets power million to after contracts, XXXX, the the dispatching power their gas mid-XXXX, to to in power Walnut are to tolling

pro CAFD. $XXX note Clearway asset-level X% the CAFD represents margin approximately guidance important it's Clearway's outlook and million. the on of a To described in initiating adjustments forma these conventional the merchant pro estimate XXXX close out only guidance is of energy discussion, the that forma bridge, With to basis segment

counterparties, Our slide. overview with forma be outlook pro from underpinned CAFD contracted offers I'll drop-down sponsor. continues an from upside with future to this next assets, long-term which outlook X of the provides contracted the by drop-down flows our Page the to of on creditworthy additional primarily discuss cash latest renewable

with and include these predominantly deployments on side you As Texas California, the Idaho. are in page, utility-scale of can see left assets in projects also wind and the solar

assets We to arbitrage of offtake, the positioned ramp from expected battery the Rosemont is XX-year energy see in an portfolio, capitalize of X.X% capital yield net a day with In output an an and asset, load. significant on also opportunities capacity majority benefits in expansion late its to years. our of well California have investment related corporate total, CAFD which at these storage CX the the that XX of investment estimated of duration average solves a in agreements $XXX on which under million represent strong

long-term our in Page addition, of X.X% the X% as achieved, dividend transparency our upper or share the offers at add of pro our Idaho our into from of the sponsor, of of our a this anticipated half capital our pending the view of offer and on and around at redeployment sponsor and million CAFD will $XXX the deploy targeted from provides selection the CAFD-yielding majority additional into in In per of range utility. that thermal targeted previously, long-term customer X Starting entities sponsor we from a with strong excess as In quality, the further CAFD assuming investment diversification the capital we'll ongoing in our outlook growth deployment, of assets. at a the million for first summary, which corporations, rate. agreements $XXX to offers that yield of XXXX provide drop-down discussed in a forma the $XXX yield. an California these $X.XX update reinforces well latest on X.X% to well-diversified million in current long-serving CAFD of CX proceeds we binding view are our X% with fleet also each offtake

Capistrano With additional acquisition of thermal these undrawn the proceeds needs by fund of available term. drop-downs announced of XXXX previously its Clearway deployed and revolver the required in short have an with Wind, to the sale capital all end

announced year to CAFD the demonstrate in the able growth CAFD we yields. sale, ago, As proceeds high-quality attractive now these in entirety with May, since when an described of received the Clearway we assets share proceeds is utilization we of first investment the at to and per a drive Thermal

to X. Turning Page

Our goals for have not the changed. year

our that still to share guidance Despite the this the able we in We unfortunately at quarter. have the per sale to dividend due increase our occurred the fleet in of growth our year. closed Clearway forced outages the third range during XXXX CAFD must of is setback, adjust thermal, upper conventional

close. our future, of back to the the of on all over of of closed proceeds of with contract have deployment the does investing materially, simply and higher. remaining in still sponsor stand at not share a of CAFD assets have the imply Clearway's or should end growth share $X.XX XXXX and for growth portfolio. growth to terms now our drop-down More we to to line and drive Capistrano sight to yields half strong course tenors. in in terms confidence investors will the This ability Clearway provide this the Wind the with we XXXX, increased deployment CAFD that acquisition This per thermal of drop-down In of wait for the

extend support engage look an and We summary, additional open of the gas XXX% further to now sponsor but see to the Operator, ability the to disciplined, on our earning confident as we to Inc. opportunities finally, In continue initial that runway. end Energy to due continue And the Clearway of in market, lines in strong in have long-term its the for adhere ensure standards. and been success. option meet our to contracted are portfolio. we'll its gas of questions. growth 'XX, prudent please focus stage objectives Clearway proud growth, the on capacity through to complete We of future journey our natural continues be it's to part to the

Operator

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

now Your open. line is

Julien Dumoulin-Smith

me? you Can guys hear morning. good Hi,

Christopher Sotos

Yes.

Julien Dumoulin-Smith

Hi, thank much comments. you so all the for

lot a there. through ran guys You

come to quick. I just if a super back of So can things, couple

to specific First of can in 'XX that announcements and deploying about targets through Again, into you're what the the the off, specifically with that on timely just respect that here new a here, outlining time growth period? backs talk existing basis, we job great terms proceeds.

want higher rate a the this you some with as the Now positions incremental in as you in how X.X% talk yield. medium Can just environment bit targets in term, you growth to CAFD this be the about to achieve necessarily of little near achieve term environment that outlined Can there. But you little talk backdrop I it? the the dividend this of targets disclosed not obviously well the here. to sure you else needs make Because lot towards rate obviously, getting against bit to a a stand. higher where about here done you've what

Christopher Sotos

share. anticipated but to $X.XX Not looking other to Sure. have Julien, we question, to do that per execute produce minimize the performed don't as at X, Page the them anything need dropdowns really, and than else

of kind looking to from using that's the Page - proceeds. we're the So cash Thermal X. Obviously,

moves only incremental price numbers the or number. to in interest required wouldn't So would rates deployments would $X.XX. that maybe this stock up hit It any baseline these affect movements to be point, your beyond be

your So I think that question. was

Julien Dumoulin-Smith

Right. rates. of Maybe let a a respect longer duration with this Obviously, little here. to the portfolios Can the it rising about both the hit impact basis. that Maybe to bit directly me ensure side liability more management? talk wanted you other on financed I that's of

Christopher Sotos

our we raising debt Sure. and to Yes, of all if fund other that's and it's maturity, in - don't debt kind the are earliest corporate your anticipate And XXXX these of XXXX. any is acquisitions, our ones question. XXXX

time need raised a before that to bit deal acquisitions. be quite with have have would we of to So debt we corporate any

Julien Dumoulin-Smith

highest of nuances to a back the Excellent. here, And then at come if level. I couple just can the

energy about Obviously, recontracting late that's been the of additional assets. margin. talk sort manifested itself you you've of how got You've Can here?

think proceeds, how to you 'XX on further through higher through here that extensions beyond how thinking you that? relative here about 'XX? your the does clear just 'XX in time that about how levels does potential the and at not retracting provided evolve As that get math And where then walk,

Christopher Sotos

cover A them. questions couple of I'll there, Sure. different hopefully, Julien,

off So have at part one, nonlinear assets because bit different current in the is of XXXX different a come energy margin times. tools the we their obviously

in later the You Creek the in got March. in year you've El got in Walnut earlier Segundo year July,

current term million we If kind we see, what of So per have we're energy what and our guidance XXXX look we between $X.XX of margin we that and on normalized we is in the $XX the environment $X.XX a additional terms have that energy seeing. more what for long in given $X derive margin. to in assuming is basis, the are commodity the share

long being do $X achievable. the So very to term I for us, think that we $X.XX in

$X kind well outearn kind the adjust to today, once we year long in again, is But empirically we'll in perspective, We the to see that revenues energy about, we time. in as we hit $X.XX then how want even familiar, it's though how expect to and from the over of that order feel $X.XX basis. our But first merchant between and 'XX. of sit our margin, in, especially a XXXX, come operate, pretty on everyone's term, in good need where which given year. partial a this operating We machines

Julien Dumoulin-Smith

Got of I Lots right. I'll conservatism in queue. much. there. very got more. All it. back the All get Thank you guys best.

Christopher Sotos

it. Appreciate

Operator

Thank you.

the Oppenheimer. line question from next with Our of Noah comes Kaye

now Your line is open.

Noah Kaye

Thanks so for questions. the much taking

see are it's investment in you you the as So storage, fleet, there's and allocate capital, got to ask, the additional adding want able whether stand-alone your clear terms a being remaining do lot green But it's production, opportunities here given visibility incentives, or IRA, I how downstream. to the of in opportunity? now. storage you've thinking post hydrogen existing about What whether repowering, going

Christopher Sotos

Sure.

use for Wildorado. do a Elbow question, in part fair assets. opportunities of I the us, terms like those have to is young difficult Creek think I book we our and to of before lot be we repowering assets think, about kind relatively one of

of So not in be might gigawatts two as though It's powered most kind not advantageous. we've in the years. degree got the repowering next X

of your from That's of years consistently the our And see zero, go us, our kind back relatively power year contracts, we something us being their to couple ill, going you storage facility, I have much see an because it's of it years. obviously episodic see where to stores sold a nature year fill really of need it's a for majority with vast Obviously, every So is, zero question, for to that's question fleet for then want, kind good XXX a to bit looking and of you add to of might might in repowering. just more power to for it's right? then done It's on time customer and already existing through is then and do for system. we one we little kind existing that young. what think your the which do us the or does

and really dependent that customer the it's wants So if on those - what negotiations.

again, that what fleet, the kind see terms on modifications in and once XX those wouldn't existing works, next the we'll but So some in how expect customer is making of of demand I here change paradigm months.

Noah Kaye

you to announced for think The procure from into ability Okay. Clearway Energy factors do chain. buyers supply this We then That's How good domestic the modules currently And in helpful. question. part pipeline? as needs, of that chain that. to the IRA over there's consortium, of that purchase reasons how about bonus supply your X of sort solar expand another a gigawatts qualifying do understand And to post lot sources the domestic outlook of your Group development content? maybe

Christopher Sotos

Craig, why that? don't you take

Craig Cornelius

value supply Noah. solar we're supply chain we U.S. very wind work the fulfills what assets. chain across with be process be the will engagements for chain announcements investments look for are to we've as work will frame Thanks ultimately are chain, also the wanting back by expect at in the solar, Yes. more the engage what and right framework about policymakers over the influential planning objective to technology And publicly That is I and component in the excitement happening the as into chain will the greenlight question, be maximize around pretty with that treasury mid-decade, last for now. we one domesticate the and we underpin that time that concepts of pleased been And have to as the we're that implications manufacturers X.X types. construction partners and the we're supply those having really wind to guidance start risk here deployment minimize get preparing that of thoughtful going the we solutions formulation years. is that market supply fulfillments that and of we broader have getting for the in informed the mid-decade, that battery suppliers announced. going that and that excited our storage much detailed supply those But each Yes,

Noah Kaye

more. We Okay. helpful. the Thanks questions. forward look to for Very taking

Operator

Thank you.

CIBC. with from Mark Our comes next the question Jarvi of line

Your line is now open.

Mark Jarvi

I just CAFD everyone. Good going on guys X.X%. Previously, Craig, Thanks. to drop-downs. quarter, you were last to on morning, the wanted yield the touch

Now are it's X.X%. Obviously, interest rates moving.

Just terms in update making how about and on the thinking CAFD yields us rates right you're of what's decisions dropdowns. on guiding hurdle in of parameters terms now the you

Christopher Sotos

Sure.

us, with I aware think, where in for capital sponsor, think have I and moved. our they're negotiation the markets well obviously, of

strong So between us, ask and CAFD lot see the people to yield. of sponsor sometimes. about way To other and is a most a be two that the support of empirical linear

is sponsor have for with they for but indicate the I since with Obviously, come recognizes occurred a the So we markets CAFD think they agreement, higher about numbers a them last earnings through very have up should negotiations yield. capital think sponsor us, change support we'll to where that constructive CAFD level and our fair. and different that to from matter, yield where the think our it's due obviously be, in hope assets the that diligence in and like the call binding

on of very the of been working all dependent contract book fairly are feel a our of lot majority weighted of in it as though, offered. - once highlight - win XX X.X% again, about or all it business diligence duration not well, to Is due yields about asset so talked of our longer? and a PPA important through long is a Is the that duration, solar, tenor good yield about We perspective, is independent But CAFD are the and part before yield to duration from process. solar CAFD weighted? the same. more is the subject And that given years. shorter the that CAFD or that's I've also it's also As

Mark Jarvi

sort like is move it bit maybe a a think deciding then of that, number of are bond spread CAFD Like And around little just as you a kind when versus reference guys terms about here. approach? just fair rates what like a yields in of in digging just how and you

Christopher Sotos

your for actually buy at really we the to why about Sure. conversation much From our it for back a in would most at not it are equity. with think, I'm investment Because because make well. good of you really trades equity I to bonds equity is to a set equity. - our But like Clearway, where going it perspective, Obviously, pretend that to versus as generally. me, invest that's investment not in to to have it We more our that. versus to whenever be be question, spread look we answer new to I - versus based yields equity order important versus upon an me, versus compare assets. that's able see you

Mark Jarvi

towards sense. been and here the makes about solar for more adding And bit PTCs, concerned a been Obviously, some just then PTCs negative assets of eligible - or pricing with in for basis That Texas. turning eligible risk. the you're

around outlook. Just risk. updated those the potentially I assets, more then and guys thoughts bit basis a talked you around guess risk basis about risk

impact PTCs just of and the around view for assets. solar your that So

Christopher Sotos

obviously, his perspective. start can then, Craig and Sure, anything I'll fill from in

of out of from the one financial that my lot not little kind really for risk tenant how we for eliminate reason contracts terms of They're they basis, tools The bit in they're are. think settling term. example, traditional at a a should near node. view, that's a component of a the of in I see more hedges, new

is from always we number. add some portfolio. But see I stressed know, we commodity in the the why is we of really to environment. see good basis $XXX of million due risk. think We That's anything really we that to there? our the we Craig, So of that part included don't a seen it lot economic a our in Yes, zero didn't in perspective, have but new number, portfolio, shouldn't think -

Craig Cornelius

sure. Yes,

no drop-down that settlement have revenue the made, on for every has contract been assets of here. First, portfolio the offers

the in So there's kind It's might that no be circumstances we hub-settled of settled the where some that also future place But through, in conjunction going clearly, in not contractual that assets. do with in for electric with to portfolio changes there transformation we putting construct in projects U.S. grids basis the of time. effective hub given contracts we to doing that, mitigants say PPAs. as want potential be over

firstly, risk second, So for been location their capacity pattern merchant the of structure ERCOT, the that them of the in environment the wind eliminates in on and they've Chris' their basis of assets designed, on the both basis to them by settlement the assets in any portfolio now. the exhibit Chris offset existing this right risk point, assets, high-commodity portion fraction very then of to mentioned nature. And a solar for that's

to half and So project exists, next once balance are in the we that offers going year first and pretty to of in completed, the think analysis of fleet way basis intend gigawatt that to a that markets in operating exhibit to the built feel that we've size. things going from Based and that which think a assets make the we're solar a is book we the about portfolio as we good pipeline basis quite like creating the where shape relation overall that merchant able to another the that of I minimal we're price advancing. drop-down relation select the that in And profile we projects, on where that's formation. we can help low-risk set forward, candidly the portfolio whole XX contracts maintain we're the

Mark Jarvi

the both you Thank for Understood. answers.

Operator

Thank you.

Justin from with line question ROTH Clare next the Our Capital of Partners. comes

open. now is line Your

Justin Clare

questions. everyone. our Hi, Yes. for Thanks taking

given off So PTC the could the your here, the location of assets, be ITC. like more looks valuable it just first committed than potentially

level capital now. to Just committed from changes the also any there's any higher the ITC for been ITC any structure that And the if of the availability the the or PTC then from projects, might result changes in this? of there's wondering

So wondering that well? anything just impacted has if as

Christopher Sotos

Yes.

yield is offer. think let I I'll the part that. of kind the is changes of think Craig address all one those CAFD I But important kind in of is part are of encapsulated the that

changes I the as has moves. through to the So the in of IRA think that's being kind result and development different of offer a kind that work made. That's of Craig's encapsulated had team

I necessarily don't wouldn't add? affect know anything changes that we're Craig, those X.X% to the But So targeting.

Craig Cornelius

sure. Yes,

were down, projects we committed drop before So for of most the set to by that the elected helps elsewhere. we've an create value this also most not us PTC. to as for change is existed drop-downs, asset recent of informed from already the offset inflation position to and that Part ITC what it cost that's

the So for years. that in located it some and an provided was of so offset and example, for one that few asset, uplift, cost helped course been last us community, ITC energy inflation that's experienced the over

contractual the we've we've that we that doing, soundly wind to to historically the should of industry so we're type the that in thoughtful we're and with is of assets for will operated what PTC and glad same projects PTC, PTC, features every conjunction and sought do offers that will being with about the there also design more most use think to that projects revenue something do those yield, us on electing to allows the I made also. of the CAFD that's a part will contracts think made recent solar at in same. drop-down sponsor And investable And higher elect that elect how flow were For also of these set be YieldCo. the the cash and convey

election for mean mean flows way, the high in of and for what cash in the what solar work resource PTC environments mean can about and can YieldCo. right growth what the in our put our excited of customers we value when create can in we're for them to So the terms it's it both also it

Justin Clare

Okay. really one And helpful. then Great. That's more.

year? With And year as that your just And Total? you might see attractive - potential is for from the here, about drop-down a next for upside you there talk Total transaction offered potential closed opportunities? you CAFD be to happen next soon then wondering if opportunities could as could if when

Christopher Sotos

to I and kind their of will time some think it working fairly the we Total take through of that, book, book work closed through recently, assets. development

I Craig's through helpful think different earlier lot structuring with up through It's kind To and come Total some a your are YieldCo results to of of that done of has is perspective. working it'll the IRA kind parameters. take a to - their team clarity. Craig's to structuring question, get from time

I too the have it's have. say to to of work platform simple but answer. definitely going too within to the simple come that Total think and there's forward, anything So your is early we if answer to kind to But but question, think, can together we'll this look early what say see see we I is

Justin Clare

guys. Great. Okay. Thanks,

Operator

Thank you.

Our the with comes from Wolfe Research. of question Keith Stanley line next

line is open. now Your

Keith Stanley

Hi. Good morning.

clarify debt issue. for maturity First, I on XXXX El Segundo. guidance, bullet the service to assuming just wanted you're had that I on know CAFD it what

Just guidance interest in asset? dealing for how you're with principal that that for terms payments and of

Christopher Sotos

your to sheet year-end year-end, we're anyway take beg to pardon. to going to the point this due pay - its We're bullet. Sure. that Because down liability looking at was balance that on

at the year. part our that's that us, year-end And so CAFD this for guidance repayment of is of of

Keith Stanley

okay. - in you're So

'XX not guidance, you're that - including part that's you of of the So the within maturity paydown are XXXX? adding or

Christopher Sotos

do it a it's or CAFD prepayment, Because as making a voluntary part it. of decision doesn't to come

part whatever And service in debt XXXX, like a in it sorry. of the - guidance, Because normal would million $XXX there XX have prepayment been of of not in 'XX, the have wouldn't I'm been speak, whole not part obviously, to as it's even in in wasn't arrow, So in 'XX. it's so down 'XX. 'XX.

Keith Stanley

Craig. for question separate Okay.

seeing on flow with country? UFLPA modules comments any into you're the what Just of and

Craig Cornelius

we need of to little kind it. Yes. broader certainly We're terms because inform doing trade and actions order that we've fine the compliance we of of of of bit well to pretty in a with elaborate In view in engaged have policymaking though positioned from of the succession to of broadly, with and something kind U.S., focus UFLPA of the with last unfolded chains deeply in procurement. is had landscape, of just go where business We're anticipation the couple feel our in supply our for in particular, the procuring on about look we course pretty in years. that around, the

And future anticipation all able comply earnings for so chains presented we'll us reflect UFLPA with far, that because today's well. served estimated our The supply be successfully from. in procured material to is drop-downs we the that COD of

we So are we can quite that, supply that there's with comes And product have the of substantiate for holds any from. to to no country reinforce ability to our confirmatory have would to to that hold be a but the it's feel bought extent just today confirmatory of statute. compliance temporary occur, from comfortable come changed. the our modules modules documentation the and we us today, broadly into risk we were we think being with the tender there coming that And that fact in for be in currently just in who pretty would industry the participants their which place because because freely that of manageable border possibility where

a So just successful of there's, grid going effectively to very an government. needs going forward. industry been choices together with and more with where across issue the the well. we're going for we've to the anticipation But Clearway, needs position we've I And as more made, country be needs to shape. will out meet our other needs goals the dramatic. And vantage power and said, of that the enactment just quantities chain enable the the much into for because as figure of they climate supply the But point documentation good for this clear to applicable think requirements choices front a that that, and we to put way am bodies the be to to have get made is think equipment serving enforcement of think, are just government around as UFLPAs I a the are conversation lot of in for and imports standardized. the government are regime quite practicable in on a I in can I function optimistic UFLPA coming more the be U.S. leadership our imports and that that establishment The center

Operator

you. Thank

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

line is now open. Your

Michael Lapides

my taking Thanks for Chris. guys. Hi, question. Hi,

you're guidance. now a probing detail year. Just a part on whether little ask to give of more bit bit early the little XXXX to And for going going next it or I'm in

I'm Can the in EBITDA kind of of And then And to super I'm CAFD, maybe repayment or do maintenance even think items? you're off project for ask. us, the of us please? what CapEx, anything when some to trying XXXX? gave to principal bigger level, lumpier relative you delivering helpful. You about there's CAFD walk if debt from going EBITDA the the at range are we interest? - what What's EBITDA else

Christopher Sotos

have, the do maintenance I for. you're think, has has Michael, We'll around has once in adjusted amortization of of again. Page we EBITDA? EBITDA Sure. XX. million, and kind which of Yes. that I Yes, think the $X,XXX So your the components looking deck question and the principal CapEx, that terms

Michael Lapides

it. Got

Okay.

EBITDA can Just you XXXX bridge XXXX us EBITDA? to though

Christopher Sotos

off not from because in mean, of 'XX, tools plus the the I you combination obviously renewable in And times from tools coming the open you - the have top position gross the rolling roll margin then Yes. energy a different because PPA high-priced off in. the at - 'XX. have different off

to bridge So to that's a little 'XX. 'XX tough

Michael Lapides

fleet? Is is you $XXX-some your Got although assets probably occurring? on it. spread keep across the amortization, bigger eliminates paydown El are back where then comment What Totally And million. that sense. the that entire gas principal makes mostly widely or plans, debt can Segundo, me is California with to it the remind it the

Christopher Sotos

Yes.

for Page look can You on that. XX

point, Agua Segundo that. gas, your you've got part the are of then and California Caliente, El Natural CVSR were a to And some others. So big

XX. all on that's So Page

Michael Lapides

Got it.

Okay.

Finally, in made can the a own equity How drop-down what you cost yields little is? can of cost you bit. of - back capital a And come about calculate share little you how do versus you how to think you your you buyback. further or CAFD guide about comment

Christopher Sotos

Sure.

of draw and and For CAFD obviously I'll lot us, cost a capital distinction transparent. is a between yield, a our weighted which more average

with betas have a of, You're obviously the for and of But for kind cost like yield, to frankly, little bit. it's way CAFD dealing capital.

$X.XX I and the think where between that probably $X.XX. CAFD estimate $X.XX, somewhere we are us our trades currently market

the that but stock price, general, as though in that's yields in So open yielding I look it's of not the somewhere yet, - probably yesterday, at didn't Xs.

example analysis. So that's say, kind look that of trading for how somewhere that's in talk using that we X.X% and that is we I trade can at our I of good we're in versus that investment, view believe when now, you so Xs good the with a you where spread drop-down and we're the depending the investors where basis think a

Michael Lapides

little today. that, new No. don't you debt super And if would with that and disagree I X. be I issue of below and hundreds you hundreds be issuing were helpful. curious HoldCo just Otherwise, to very that's basis which or Would points between cost company. given little your is know, for little of cost of debt, higher a imply feels would compression company don't any unusual very and your rate equity holding I spread the environment

Christopher Sotos

Yes.

probably the Xs depending XXs. line a probably trading I on probably numbers, on you last print are environment. weak the which with in also We're bonds bit high quarter, little our saw a those day in the think asked I and which

interest the of So basis pretty and forward terms debt we that a from on I are yield CAFD and markets equity will close in perspective. trade think

Michael Lapides

that and equity same. of are the cost you your basically what think implies is almost But your debt cost of

Christopher Sotos

Yes.

other. is Although a to be forward $X.XX fair, versus the number the

well think you to don't everyone's question. differently that answer I your apart they're in but as plays way if a different thinking, that's So that know I as

Michael Lapides

Got Much it. Thanks, Chris. appreciated.

Christopher Sotos

Sure.

Operator

you. Thank

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

with Storozynski Please your is open. check mute line Your line your open. button. is now Angie Seaport, now

Angie Storozynski

your contribution in I'm original Capistrano sorry. Do you when guys have included any the from CAFD guidance?

Christopher Sotos

because part year. approximate close, exactly when did have of like we it For - it's only and the would 'XX, know we an no,

and we XXXX For relevered uplift XX had we of the believe forward, it, 'XX because why refinance going XX. waiting it. to in That's there's a I year-end that X until we're delta or have assuming we

Angie Storozynski

for or financial have Okay. guys you the do And for separately any El hedges for Segunda then any 'XX? energy energy margin, hedges

Christopher Sotos

no position. in capacity But the No. Other hedge contract. currently. that toll energy RA open than It's an the exists there's margin no,

Angie Storozynski

of CAFD much the But least project the it now? risen any Holdco level debt how between discussion your of least was to of there lot a and what mentioned debt you the can lastly, then about debt. at of the right for cost so of cost has delta Or capital next you're couple yield? new calculate we And not future goals is at this quarters. finance And issuing cost the that that

Christopher Sotos

right? yields I before. are not question, all be So of account costs, CAFD think, we do fair project into to obviously, to after the take those debt, quote cost they your the

So not talk when to we CAFD amortization regrows yield, those minimize that but are. about after a the question, that's costs what

probably what if Craig, have there's probably terms color big under don't on in swap you I But any is SOFR. you're think know the been for underlying of there. a delta seeing it's I credit the us, not what the in spread, more LIBOR fix or to

Craig Cornelius

for some first, I mean we've time drop-downs put think protections we all place interest in seen, I Yes. rate the ago. through we planned 'XX,

those or the of also some in the the the on drop-down a interest long-term put of preservation number set and and fixed for financing we've place offers are previously the benchmark you're seen either debt YieldCo. CAFD we period of contracts on here, economics to half construction that supports protection in next on both we assets first committed cost compression you, in a so spreads. do rate enabling returns just the term in And very that's as that make observable anticipates the made, a the we help observing are on expect we've those year. for so of the in been were sort forward, debt of already - we plan accretive the basis sort yield And is revenue to to is put Angie. type as then The XX-year that for general, looking assets we've to of offers any look of the And what finalize

be going even when need to to for it the debt risen. So is sponsor what And observing do anticipate of value with cost to is contract of at is job we to we the we provide in compelling the as the having we're with revenue debt what contemporaneous we lock signing. can the still customers do now customers, that cost forward market level, us, to power

Angie Storozynski

I some from just at have that back least would Perfect. contribution have asset set that CAFD. wanted your Wind because - of would to go portfolio contributed to that Okay. to assets XXXX this well, expected Capistrano I -

outage of in there other know plant. like any I from is the mean, So mentioned wind doesn't addition some it's of the weakness seem unplanned set that there's farms? I that wind the resource. just you the besides offsets, again, gas I But mean,

Christopher Sotos

quarter, Angie. We for a it own

So millions. single-digit it's

- So third, the reconciling? it small very contributing? thing, a Yes. small not It's closed is it it's whole quarter. number fourth in rounding here the because we're right? Is within a Yes, number it

Angie Storozynski

Okay. I you. understand. Thank

Operator

you. with Thank of Antoine Aurimond [Operator Bank comes from next Our question America. Instructions]

line now open. Your is

Antoine Aurimond

Chris the for and Craig, Hi, update. thanks

Just quickly on the credit side.

your does now a understand to Just well as a on that and needs corporate XXXX, curious wanted whether give capital through at corporate if there I if correctly. more bit you right be your detail reiterate can how us as position no leverage would what's to targets compare level, I

Christopher Sotos

Sure.

So two parts.

now, deploying cash. full not the right I'm just think amount I of

Our X.XX it's forma plus corporate on EBITDA to assuming minus about of corporate debt pro basis, is - about we deploy a some debt that, X.X.

we XXXX little about, of talked far, high through your X.X the cash X probably bit the To within to obviously, us, too 'XX. we've is right? balance it's drop-downs For question, got So you currently. second talked are our end a a about

However, mind, we'd we obviously, et to debt, so cetera. if $.XX the keeping higher, to drive any intend in do issued only

that we the any 'XX. said don't little we've drop-downs we talked think additional that capital a That's What capital. XXXX, far. about just require capital effectuate the So through I need to any is that through don't

Antoine Aurimond

Got it.

XXXX. lastly, in then a And sense. solar there's quite makes at non-recourse sort amount XX, of in assets Slide step-up starting looking That Okay. big for

manage impact potential any and that Just you're to going CAFD curious generation? on how

Christopher Sotos

$XXX to some be of there. intend bullet in that's to million To million, a refinance page. in Yes. million, $XX that's obviously. fair, of step-up the that We'll the There's middle a $XXX the probably

that COD. have of obviously, While buy your we have after we to years of amortized everything kind seven books those a That's one in try cases, examples. some with perm mini

that $XXX look refinance. of So will million some to portion

Antoine Aurimond

much. Okay. Thank so Perfect. you

Christopher Sotos

Sure.

Operator

And I'm closing [technical you. Sotos his no for questions showing further difficulty] remarks. Thank Chris currently

Christopher Sotos

once you. support. for Thank thank again, everyone's I you and appreciate your And time,

So take care.

Operator

Thank call. for conference today's participating. concludes you This

You disconnect. may now

Clearway Energy (CWEN) 2 Nov 222022 Q3 Earnings call transcript