Brookfield Renewable Partners LP Q3 FY2023 earnings call

• Connor Teskey highlighted the successful quarter utilizing a disciplined growth approach, with recent acquisitions including X-Elio, Deriva Energy, and progress on Westinghouse and Origin Energy acquisitions, adding significant incremental FFO and positioning for 10% plus FFO per unit annual growth.
• Jenny Li discussed equity capital investments, including the acquisition of Banks Renewables, partnership with Axis Energy, closing of X-Elio and Deriva Energy acquisitions, progress on Westinghouse and Origin Energy deals, and a global pipeline of nearly 150 gigawatts.
• Wyatt Hartley emphasized strong financial position with $4.4 billion of available liquidity, execution of non-recourse financing, asset recycling generating $1.4 billion in proceeds over 18 months, and starting share repurchases.

Wyatt Hartley noted that Brookfield Renewable generated FFO of $253 million or $1.29 per unit year-to-date, representing a 7% increase compared to the previous year. The business benefits from a highly diversified platform with cash flows from its perpetual hydro portfolio, which is valuable in the current market seeking 24/7 clean power solutions. Additionally, the company has significant growth projects in the pipeline, including expecting to deliver 5 gigawatts of new capacity this year and approximately 15 gigawatts over the next two years, contributing approximately $270 million of additional FFO annually.

• Management expects to deliver 5 gigawatts of new capacity this year and approximately 15 gigawatts over the next two years, contributing ~$270 million of additional FFO annually.
• Brookfield Renewable remains focused on delivering 12% to 15% long-term total returns for investors while remaining disciplined in capital allocation.

• Market environment risks due to higher interest rates and perceived tightening of industry margins impacting share price.
• Regulatory risks related to acquisitions, such as uncertainties with Origin Energy shareholder approval.

Q: Sean Steuart asked about offshore wind prospects and M&A discrepancies between public and private opportunities.

A: Connor Teskey stated they are comfortable with a disciplined approach to offshore wind, seeing reduced basis risk and potential eager sellers, and noted private medium-sized developers with strong pipelines are attractive, while public markets are increasingly attractive.

Q: Robert Hope inquired about access to capital and share buybacks.

A: Connor Teskey mentioned strong financings and up-financing maintaining investment grade metrics, large acquired businesses having access to capital, and share buybacks as a value opportunity when share price declined.

Q: David Quezada asked about Westinghouse and hydro M&A.

A: Connor Teskey discussed Westinghouse's fit with decarbonization drivers and nuclear's role, and hydro M&A is monitored but less active with fewer new builds.

Q: Rupert Merer asked about asset recycling appetite and capital availability.

A: Connor Teskey noted strong appetite for de-risked small to medium assets, robust co-investor demand for transactions like Westinghouse, and progress on Origin Energy deal with ACCC approval and board support.