Clearway Energy, Inc. Q3 FY2024 earnings call

• Completed a solid quarter of execution, on track to meet or exceed 2024 financial objectives. • Achieved best-ever safety key performance indicators in the first three quarters and improved plant availability and conversion efficiency. • Announced a fourth quarter dividend in line with 7% EPS growth in 2024. • Advanced fleet growth by concluding an investment commitment for the Pine Forest solar and storage project and receiving an offer for Phase 1 of the Honeycomb storage projects. • Established 2025 CAFD guidance midpoint at $420 million and dividend target at $1.76 per share. • Reaffirmed dividend per share growth target for 2026 at 6.5% and set 2027 CAFD per share target range of $2.40 to $2.60. • Refreshed capital allocation framework, aiming to fund growth from retained cash flow and maintain a payout ratio of 70% to 80% in 2027.

In the third quarter, Clearway Energy had strong performance with year-to-date CAFD of $385 million. For 2025, CAFD guidance is set with a range of $400 million to $440 million and a midpoint of $420 million. The target for 2027 is CAFD per share of $2.40 to $2.60, representing a solid growth trajectory extension.

• 2025 CAFD guidance: Range of $400 million to $440 million, midpoint $420 million. Dividend target for 2025 is $1.76 per share. • 2026 dividend per share growth target at 6.5%, guidance to be issued next year. • 2027 CAFD per share target: $2.40 to $2.60, reflecting core asset base and accretive growth prospects. • Intends to fund growth from retained cash flow, with a payout ratio in 2027 within 70% to 80%.

• Market conditions and fluctuations could impact financial performance. • Refinancing risks related to $2.1 billion of corporate bonds maturing in 2028, 2031, and 2032. • Uncertainties in the execution of growth investments and their impact on CAFD and dividend targets.

Q: Noah Kaye asked about the process of setting the capital allocation framework.

A: Craig Cornelius said they started by assessing fleet performance and growth prospects, then engaged with investors to incorporate their expectations for growth within means without substantial equity issuance.

Q: Julien Dumoulin-Smith inquired about RA uplift and portfolio improvement.

A: Craig Cornelius explained RA uplift is reflected in current contract pricing and portfolio improvements include modern IT tools, O&M service agreement restructurings, and plant execution.

Q: Steve Fleishman asked about M&A opportunities.

A: Craig Cornelius said they are selectively engaging on complementary assets that fit the capital allocation framework and growth goals.

Q: Justin Clare asked about dividend growth beyond 2027.

A: Craig Cornelius stated dividend per share growth will be based on payout ratio and accretive use of capital, with modest equity issuances planned to be communicative.

Q: Michael Lonegan asked about gas generation assets and data center demand.

A: Craig Cornelius said focus is on renewables paired with storage, but there could be scenarios for other resource types, and Clearway is focused on low-carbon solutions for data centers.

Q: Angie Storozynski asked about firm renewable power contracts and energy storage on gas peakers.

A: Craig Cornelius discussed managing risks and settlement structures, and energy storage on gas peakers is a consideration but with limited interconnection capacity.

Q: Mark Jarvi asked about split of organic drivers vs capital deployment in growth.

A: Craig Cornelius said most growth beyond $2.60 per share will be driven by additional capital commitments, with retained cash flow and debt capacity being key funding sources.