Clearway Energy, Inc. Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) reported solid Q2 2024 financial results, including Net Income of $4 million, Adjusted EBITDA of $353 million, and Cash Available for Distribution (CAFD) of $187 million. The company reaffirmed its 2024 CAFD guidance of $395 million and increased its quarterly dividend by 1.7% to $0.4171 per share. Clearway signed agreements to invest in 314 MW of solar plus storage projects and received an offer for a 500 MW solar plus storage project. The company also entered a new Resource Adequacy contract for Marsh Landing and continues to target annual dividend growth in the upper range of 5% to 8% through 2026.

Positive

• Reaffirmed 2024 CAFD guidance of $395 million
• Increased quarterly dividend by 1.7% to $0.4171 per share
• Signed agreement to invest in 314 MW of solar plus storage projects
• Received offer for 500 MW solar plus storage project investment
• Entered new Resource Adequacy contract for Marsh Landing
• Adjusted EBITDA increased to $353 million in Q2 2024 from $316 million in Q2 2023
• CAFD increased to $187 million in Q2 2024 from $137 million in Q2 2023

Negative

• Net Income decreased to $4 million in Q2 2024 from $84 million in Q2 2023
• Total liquidity decreased to $1,065 million from $1,505 million as of December 31, 2023

Insights

Financial Analyst

Clearway Energy's Q2 2024 results present a mixed picture. While the company reported Net Income of $4 million, a significant decrease from $84 million in Q2 2023, other key metrics showed improvement. Adjusted EBITDA increased to $353 million from $316 million and Cash Available for Distribution (CAFD) rose to $187 million from $137 million.

The decrease in Net Income is primarily attributed to non-cash impacts from economic hedges, which shouldn't significantly affect the company's operational performance. The increase in Adjusted EBITDA and CAFD is more indicative of the company's underlying performance, driven by higher renewable production and contribution from growth investments.

Notably, the company has reaffirmed its 2024 CAFD guidance of $395 million, demonstrating confidence in its full-year performance. The 1.7% increase in quarterly dividend to $0.4171 per share is a positive signal for investors, aligning with the company's target of 5-8% annual dividend growth through 2026.

Clearway's liquidity position remains strong at $1,065 million, although it has decreased from year-end 2023 due to growth investments. The company's strategy of investing in renewable projects and securing resource adequacy contracts for its conventional assets appears to be paying off, positioning it well for future growth.

Renewable Energy Expert

Clearway Energy's Q2 2024 results highlight the company's growing strength in the renewable energy sector. The 40% increase in renewable energy generation compared to Q2 2023 is particularly impressive, driven by both new growth investments and improved wind resources at certain facilities.

The company's commitment to invest in 314 MW of solar plus storage projects and the potential 500 MW solar plus storage project offer from Clearway Group, demonstrate a strong pipeline for future growth. These investments are important for maintaining Clearway's competitive edge in the rapidly evolving renewable energy market.

The Luna Valley (200 MW solar) and Daggett 1 (114 MW BESS) projects are significant additions to Clearway's portfolio. With power purchase agreements averaging over 16 years, these projects provide long-term stability to the company's revenue streams. The expected contribution of $14 million in asset CAFD annually from 2026 further strengthens Clearway's financial outlook.

However, investors should note that renewable energy production can be volatile due to weather conditions. While this quarter saw favorable wind resources, future quarters may vary. Clearway's diversified portfolio across solar and wind helps mitigate this risk to some extent.

Energy Market Analyst

Clearway Energy's Q2 2024 results reflect the company's strategic positioning in both conventional and renewable energy markets. The new Resource Adequacy contract for Marsh Landing is a significant development, securing approximately 195 MW of capacity from October 2026 through December 2028. This contract not only provides revenue stability but also demonstrates the continued importance of conventional assets in supporting grid reliability amidst the transition to renewables.

The company's conventional segment showed improved performance, with the Equivalent Availability Factor increasing to 97.1% from 90.1% in Q2 2023. This improvement, coupled with the new Marsh Landing contract, suggests that Clearway is effectively managing its conventional fleet to maximize value in a changing energy landscape.

On the renewables front, Clearway's aggressive expansion into solar plus storage projects is timely. As grid operators increasingly seek flexible, dispatchable clean energy resources, these hybrid projects are likely to command premium values in the market.

The refinancing of the NIMH Solar credit agreement and the new $200 million letter of credit facility for Natural Gas CA Holdco demonstrate Clearway's proactive approach to capital management. These moves should provide additional financial flexibility without materially impacting the company's CAFD expectations.

Overall, Clearway's balanced approach to conventional and renewable assets, coupled with its focus on energy storage, positions it well to navigate the evolving energy market landscape.

• Signed agreement with Clearway Group to commit to invest in 314 MW of solar plus storage projects
• Received offer from Clearway Group to invest in a 500 MW solar plus storage project
• Entered into new Resource Adequacy contract for Marsh Landing
• Reaffirming 2024 financial guidance
• Increasing the quarterly dividend by 1.7% to $0.4171 per share in the third quarter of 2024, or $1.6684 per share annualized
• Continue to target annual dividend per share growth in the upper range of 5% to 8% through 2026

PRINCETON, N.J., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported second quarter 2024 financial results, including Net Income of $4 million, Adjusted EBITDA of $353 million, Cash from Operating Activities of $196 million, and Cash Available for Distribution (CAFD) of $187 million.

"Following another solid quarter that benefited from our operating fleet's diversification, Clearway remains well positioned to achieve its 2024 financial objectives,” said Craig Cornelius, Clearway Energy, Inc.’s President and Chief Executive Officer. “With the upsized growth investment commitment to the Luna Valley and Daggett 1 projects, we have now committed to deploying all of the excess proceeds received from the sale of our district thermal business and established our path to achieve the financial objectives we had set through 2026. We are also pleased to be continuing our path towards realizing CAFD per share growth contributions from our natural gas assets with the announcement of our latest resource adequacy contract for Marsh Landing. As we look further ahead, we have in view a number of levers for increased long-term CAFD per share growth. Among these are potential future growth investments in the Pine Forest and Honeycomb project complexes and targeted 3rd party M&A opportunities – each of which can be funded accretively with current liquidity and organic cash flow received from our portfolio over time.” 

Adjusted EBITDA and Cash Available for Distribution used in this press release are non-GAAP measures and are explained in greater detail under “Non-GAAP Financial Information” below.

Overview of Financial and Operating Results

Segment Results

Table 1: Net Income/(Loss)

($ millions)		Three Months Ended								Six Months Ended
Segment		6/30/24				6/30/23				6/30/24				6/30/23
Conventional			9				37				25				61
Renewables			38				98				(6	)			50
Corporate			(43	)			(51	)			(61	)			(67	)
Net Income/(Loss)		$	4			$	84			$	(42	)		$	44

Table 2: Adjusted EBITDA

($ millions)		Three Months Ended								Six Months Ended
Segment		6/30/24				6/30/23				6/30/24				6/30/23
Conventional			57				76				108				152
Renewables			306				248				475				399
Corporate			(10	)			(8	)			(19	)			(17	)
Adjusted EBITDA		$	353			$	316			$	564			$	534

Table 3: Cash from Operating Activities and Cash Available for Distribution (CAFD)

		Three Months Ended						Six Months Ended
($ millions)		6/30/24			6/30/23			6/30/24			6/30/23
Cash from Operating Activities		$	196		$	134		$	277		$	209
Cash Available for Distribution (CAFD)		$	187		$	137		$	239		$	133

For the second quarter of 2024, the Company reported Net Income of $4 million, Adjusted EBITDA of $353 million, Cash from Operating Activities of $196 million, and CAFD of $187 million. Net Income decreased versus 2023 primarily due to  non-cash impacts from the mark to market impact of economic hedges. Adjusted EBITDA results in the second quarter were higher than 2023 primarily due to higher renewable production at certain facilities and the contribution of growth investments. CAFD results in the second quarter of 2024 were higher than 2023 primarily due to higher EBITDA and lower debt service in the Conventional fleet coinciding with the expiration of the tolling agreements.

Operational Performance

Table 4: Selected Operating Results¹

(MWh in thousands)		Three Months Ended						Six Months Ended
		6/30/24			6/30/23			6/30/24			6/30/23
Conventional Equivalent Availability Factor		97.1	%		90.1	%		91.7	%		82.3	%
Solar MWh generated/sold		2,613			1,544			4,056			2,410
Wind MWh generated/sold		2,947			2,433			5,466			5,177
Renewables generated/sold2		5,560			3,977			9,522			7,587

In the second quarter of 2024, availability at the Conventional segment was higher than the second quarter of 2023 primarily due to longer planned maintenance in 2023 and strong operational performance in 2024. Generation in the Renewables segment during the second quarter of 2024 was 40% higher than the second quarter of 2023 primarily due to the contribution of growth investments as well as higher wind resource at certain facilities. 

Liquidity and Capital Resources

Table 5: Liquidity

($ millions)		6/30/2024			12/31/2023
Cash and Cash Equivalents:
Clearway Energy, Inc. and Clearway Energy LLC, excluding subsidiaries		$	35		$	410
Subsidiaries			191			125
Restricted Cash:
Operating accounts			169			176
Reserves, including debt service, distributions, performance obligations and other reserves			175			340
Total Cash		$	570		$	1,051
Revolving credit facility availability			495			454
Total Liquidity		$	1,065		$	1,505

Total liquidity as of June 30, 2024, was $1,065 million, which was $440 million lower than as of December 31, 2023, primarily due to the execution of growth investments including payments for Cedar Creek, Victory Pass, Arica and the Rosie BESS assets.

As of June 30, 2024, the Company's liquidity included $344 million of restricted cash. Restricted cash consists primarily of funds to satisfy the requirements of certain debt arrangements and funds held within the Company's projects that are restricted in their use. As of June 30, 2024, these restricted funds were comprised of $169 million designated to fund operating expenses, approximately $42 million designated for current debt service payments, and $89 million of reserves for debt service, performance obligations and other items including capital expenditures. The remaining $44 million is held in distribution reserve accounts.

Potential future sources of liquidity include excess operating cash flow, availability under the revolving credit facility, asset dispositions, and, subject to market conditions, new corporate debt and equity financings.

Growth Investments and Strategic Announcements 

Resource Adequacy Agreement at Marsh Landing

On July 31, 2024, the Company contracted with a load serving entity to sell approximately 195 MW of Marsh Landing’s RA commencing in October 2026 and ending in December 2028. Marsh Landing is now contracted for approximately 99% of its capacity through 2027 at terms providing for higher project level CAFD in 2027 relative to current run-rate expectations.

Pine Forest Offer

On July 19, 2024, Clearway Group offered the Company the opportunity to enter into partnership arrangements to own cash equity interests in a 500 MW solar plus storage project that is expected to reach commercial operations in 2025. The potential corporate capital commitment for the investment is expected to be approximately $155 million. The investment is subject to negotiation both with Clearway Group, and the review and approval by the Company’s Independent Directors.

Luna Valley and Daggett 1 Storage

On June 27, 2024, the Company, through an indirect subsidiary, entered into an agreement to acquire cash equity interests in Luna Valley, a 200 MW solar facility currently under construction in Fresno County, California, and Daggett 1, a 114 MW BESS facility currently under construction in San Bernardino, California, for $143 million in cash consideration, subject to closing adjustments. Upon achieving commercial operations, the projects are underpinned by power purchase agreements with creditworthy counterparties with a weighted average contract duration of over 16 years. The consummation of the transaction is subject to customary closing conditions and certain third-party approvals and is expected in the second half of 2025.  The Company expects the projects to contribute asset CAFD on a five-year average annual basis of approximately $14 million beginning January 1, 2026.

Financing Update

NIMH Solar Refinancing

On June 11, 2024, NIMH Solar LLC refinanced the amended and restated credit agreement, which included the issuance of a $137 million term loan facility, as well as $17 million in letters of credit in support of debt service and facility obligations. The obligations under the financing arrangement are supported by the Company’s interests in the Alpine, Blythe and Roadrunner solar facilities. The Company utilized the proceeds from the term loan and existing sources of liquidity to pay off the existing debt in the amount of $146 million. The refinancing resulted in no material change to the Company's run-rate CAFD expectations for the underlying projects.

Natural Gas CA Holdco LLC LC Facility

On July 25, 2024, the Company, through its indirect subsidiary, Natural Gas CA Holdco LLC, entered into a financing agreement that provides for a $200 million letter of credit facility, which will be utilized to support the collateral needs of the Company’s merchant conventional facilities and will free up capacity on the Company’s corporate revolving credit facility.

Quarterly Dividend  

On August 1, 2024, Clearway Energy, Inc.’s Board of Directors declared a quarterly dividend on Class A and Class C common stock of $0.4171 per share payable on September 16, 2024, to stockholders of record as of September 3, 2024.

Seasonality

Clearway Energy, Inc.’s quarterly operating results are impacted by seasonal factors, as well as weather variability which can impact renewable energy resource throughout the year. Most of the Company's revenues are generated from the months of May through September, as contracted pricing and renewable resources are at their highest levels in the Company’s portfolio. Factors driving the fluctuation in Net Income, Adjusted EBITDA, Cash from Operating Activities, and CAFD include the following:

• Higher summer capacity and energy prices from conventional assets;
• Higher solar insolation during the summer months;
• Higher wind resources during the spring and summer months;
• Renewable energy resource throughout the year
• Debt service payments which are made either quarterly or semi-annually;
• Timing of maintenance capital expenditures and the impact of both unforced and forced outages; and
• Timing of distributions from unconsolidated affiliates

The Company takes into consideration the timing of these factors to ensure sufficient funds are available for distributions and operating activities on a quarterly basis.

Financial Guidance

The Company is reaffirming its 2024 full year CAFD guidance of $395 million. The Company's 2024 financial guidance factors in the contribution of committed growth investments based on current expected closing timelines and estimates for merchant energy gross margin at the conventional fleet. 2024 CAFD guidance does not factor in the timing of when CAFD is realized from new growth investments pursuant to 5-year averages beyond 2024. Financial guidance is based on median renewable energy production estimates for the full year.

Earnings Conference Call

On August 1, 2024, Clearway Energy, Inc. will host a conference call at 8:00 a.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to Clearway Energy, Inc.’s website at http://www.clearwayenergy.com and clicking on “Presentations & Webcasts” under “Investor Relations.”

About Clearway Energy, Inc.

Clearway Energy, Inc. is one of the largest owners of clean energy generation assets in the US. The Company's fleet comprises approximately 9,000 MW of net owned generating capacity in 26 states, including over 6,500 MW of wind, solar, and energy storage assets, and approximately 2,500 MW of environmentally-sound, highly efficient natural gas generation facilities. Through this environmentally-sound diversified and primarily contracted portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income. Clearway Energy, Inc.’s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by its controlling investor, Clearway Energy Group LLC. For more information, visit investor.clearwayenergy.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as “expect,” “estimate,” "target," “anticipate,” “forecast,” “plan,” “outlook,” “believe” and similar terms. Such forward-looking statements include, but are not limited to, statements regarding, the Company’s dividend expectations and its operations, its facilities and its financial results, statements regarding the anticipated consummation of the transactions described above, the anticipated benefits, opportunities, and results with respect to the transactions, including the Company’s future relationship and arrangements with Global Infrastructure Partners, TotalEnergies, and Clearway Energy Group, as well as the Company's Net Income, Adjusted EBITDA, Cash from Operating Activities, Cash Available for Distribution, the Company’s future revenues, income, indebtedness, capital structure, strategy, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although Clearway Energy, Inc. believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, the Company's ability to maintain and grow its quarterly dividend, impacts related to COVID-19 (including any variant of the virus) or any other pandemic, risks relating to the Company's relationships with its sponsors, the failure to identify, execute or successfully implement acquisitions or dispositions (including receipt of third party consents and regulatory approvals), the Company's ability to acquire assets from its sponsors, the Company’s ability to borrow additional funds and access capital markets due to its indebtedness, corporate structure, market conditions or otherwise, hazards customary in the power industry, weather conditions, including wind and solar performance, the Company’s ability to operate its businesses efficiently, manage maintenance capital expenditures and costs effectively, and generate earnings and cash flows from its asset-based businesses in relation to its debt and other obligations, the willingness and ability of counterparties to the Company’s offtake agreements to fulfill their obligations under such agreements, the Company's ability to enter into new contracts as existing contracts expire, changes in government regulations, operating and financial restrictions placed on the Company that are contained in the project-level debt facilities and other agreements of the Company and its subsidiaries, and cyber terrorism and inadequate cybersecurity. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations.

Clearway Energy, Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Cash Available for Distribution are estimates as of today’s date, August 1, 2024, and are based on assumptions believed to be reasonable as of this date. Clearway Energy, Inc. expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause Clearway Energy, Inc.’s actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect Clearway Energy, Inc.’s future results included in Clearway Energy, Inc.’s filings with the Securities and Exchange Commission at www.sec.gov. In addition, Clearway Energy, Inc. makes available free of charge at www.clearwayenergy.com, copies of materials it files with, or furnishes to, the Securities and Exchange Commission.

Contacts:

Investors:	Media:
Akil Marsh	Zadie Oleksiw
investor.relations@clearwayenergy.com	media@clearwayenergy.com
609-608-1500	202-836-5754

CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three months ended June 30,								Six months ended June 30,
(In millions, except per share amounts)		2024				2023				2024				2023
Operating Revenues
Total operating revenues	$	366			$	406			$	629			$	694
Operating Costs and Expenses
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below		117				118				243				226
Depreciation, amortization and accretion		153				128				307				256
General and administrative		9				9				20				19
Transaction and integration costs		3				2				4				2
Total operating costs and expenses		282				257				574				503
Operating Income		84				149				55				191
Other Income (Expense)
Equity in earnings of unconsolidated affiliates		8				3				20				—
Other income, net		12				9				28				17
Loss on debt extinguishment		(2	)			—				(3	)			—
Interest expense		(88	)			(55	)			(145	)			(154	)
Total other expense, net		(70	)			(43	)			(100	)			(137	)
Income (Loss) Before Income Taxes		14				106				(45	)			54
Income tax expense (benefit)		10				22				(3	)			10
Net Income (Loss)		4				84				(42	)			44
Less: Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests		(47	)			46				(91	)			6
Net Income Attributable to Clearway Energy, Inc.	$	51			$	38			$	49			$	38
Earnings Per Share Attributable to Clearway Energy, Inc. Class A and Class C Common Stockholders
Weighted average number of Class A common shares outstanding - basic and diluted		35				35				35				35
Weighted average number of Class C common shares outstanding - basic and diluted		82				82				82				82
Earnings Per Weighted Average Class A and Class C Common Share - Basic and Diluted	$	0.43			$	0.33			$	0.41			$	0.32
Dividends Per Class A Common Share	$	0.4102			$	0.3818			$	0.8135			$	0.7563
Dividends Per Class C Common Share	$	0.4102			$	0.3818			$	0.8135			$	0.7563

CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

	Three months ended June 30,							Six months ended June 30,
(In millions)		2024				2023			2024				2023
Net Income (Loss)	$	4			$	84		$	(42	)		$	44
Other Comprehensive Income
Unrealized gain on derivatives and changes in accumulated OCI, net of income tax benefit, of $—, $1, $—, and $—		1				3			—				—
Other comprehensive income		1				3			—				—
Comprehensive Income (Loss)		5				87			(42	)			44
Less: Comprehensive (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests		(46	)			48			(89	)			6
Comprehensive Income Attributable to Clearway Energy, Inc.	$	51			$	39		$	47			$	38

CLEARWAY ENERGY, INC.
CONSOLIDATED BALANCE SHEETS

(In millions, except shares)	June 30, 2024			December 31, 2023
ASSETS	(Unaudited)
Current Assets
Cash and cash equivalents	$	226		$	535
Restricted cash		344			516
Accounts receivable — trade		255			171
Accounts receivable — affiliates		1			—
Inventory		60			55
Derivative instruments		51			41
Note receivable — affiliate		—			174
Prepayments and other current assets		84			68
Total current assets		1,021			1,560
Property, plant and equipment, net		9,952			9,526
Other Assets
Equity investments in affiliates		321			360
Intangible assets for power purchase agreements, net		2,214			2,303
Other intangible assets, net		71			71
Derivative instruments		117			82
Right-of-use assets, net		597			597
Other non-current assets		224			202
Total other assets		3,544			3,615
Total Assets	$	14,517		$	14,701
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt	$	412		$	558
Accounts payable — trade		86			130
Accounts payable — affiliates		12			31
Derivative instruments		59			51
Accrued interest expense		55			57
Accrued expenses and other current liabilities		77			79
Total current liabilities		701			906
Other Liabilities
Long-term debt		6,797			7,479
Deferred income taxes		35			127
Derivative instruments		336			281
Long-term lease liabilities		626			627
Other non-current liabilities		305			286
Total other liabilities		8,099			8,800
Total Liabilities		8,800			9,706
Redeemable noncontrolling interest in subsidiaries		6			1
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued		—			—
Class A, Class B, Class C and Class D common stock, $0.01 par value; 3,000,000,000 shares authorized (Class A 500,000,000, Class B 500,000,000, Class C 1,000,000,000, Class D 1,000,000,000); 202,143,697 shares issued and outstanding (Class A 34,613,853, Class B 42,738,750, Class C 82,829,344, Class D 41,961,750) at June 30, 2024 and 202,080,794 shares issued and outstanding (Class A 34,613,853, Class B 42,738,750, Class C 82,391,441, Class D 42,336,750) at December 31, 2023		1			1
Additional paid-in capital		1,830			1,732
Retained earnings		314			361
Accumulated other comprehensive income		5			7
Noncontrolling interest		3,561			2,893
Total Stockholders’ Equity		5,711			4,994
Total Liabilities and Stockholders’ Equity	$	14,517		$	14,701

CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six months ended June 30,
(In millions)		2024				2023
Cash Flows from Operating Activities
Net (Loss) Income	$	(42	)		$	44
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in earnings of unconsolidated affiliates		(20	)			—
Distributions from unconsolidated affiliates		15				11
Depreciation, amortization and accretion		307				256
Amortization of financing costs and debt discounts		7				6
Amortization of intangibles		91				94
Loss on debt extinguishment		3				—
Reduction in carrying amount of right-of-use assets		8				8
Changes in deferred income taxes		(1	)			9
Changes in derivative instruments and amortization of accumulated OCI		49				(51	)
Cash used in changes in other working capital:
Changes in prepaid and accrued liabilities for tolling agreements		(16	)			(56	)
Changes in other working capital		(124	)			(112	)
Net Cash Provided by Operating Activities		277				209
Cash Flows from Investing Activities
Acquisition of Drop Down Assets, net of cash acquired		(671	)			(7	)
Capital expenditures		(202	)			(109	)
Return of investment from unconsolidated affiliates		35				10
Decrease in note receivable — affiliate		184				—
Investments in unconsolidated affiliates		—				(10	)
Other		7				—
Net Cash Used in Investing Activities		(647	)			(116	)
Cash Flows from Financing Activities
Contributions from noncontrolling interests, net of distributions		1,399				275
Payments of dividends and distributions		(164	)			(153	)
Tax-related distributions		—				(19	)
Proceeds from the issuance of long-term debt		236				42
Payments of debt issuance costs		(4	)			(8	)
Payments for long-term debt		(1,577	)			(306	)
Other		(1	)			(2	)
Net Cash Used in Financing Activities		(111	)			(171	)
Net Decrease in Cash, Cash Equivalents and Restricted Cash		(481	)			(78	)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		1,051				996
Cash, Cash Equivalents and Restricted Cash at End of Period	$	570			$	918

CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Six Months Ended June 30, 2024
(Unaudited)

(In millions)	Preferred Stock			Common Stock			Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income				Noncontrolling Interest				Total Stockholders’ Equity
Balances at December 31, 2023	$	—		$	1		$	1,732			$	361			$	7			$	2,893			$	4,994
Net loss		—			—			—				(2	)			—				(45	)			(47	)
Unrealized (loss) gain on derivatives and changes in accumulated OCI, net of tax		—			—			—				—				(2	)			1				(1	)
Distributions to CEG, net of contributions, cash		—			—			—				—				—				(1	)			(1	)
Contributions from noncontrolling interests, net of distributions, cash		—			—			—				—				—				215				215
Transfers of assets under common control		—			—			2				—				—				(42	)			(40	)
Non-cash adjustments for change in tax basis		—			—			6				—				—				—				6
Stock-based compensation		—			—			1				—				—				—				1
Common stock dividends and distributions to CEG unit holders		—			—			—				(47	)			—				(34	)			(81	)
Other		—			—			—				(1	)			—				—				(1	)
Balances at March 31, 2024		—			1			1,741				311				5				2,987				5,045
Net income (loss)		—			—			—				51				—				(51	)			—
Unrealized gain on derivatives and changes in accumulated OCI, net of tax		—			—			—				—				—				1				1
Contributions from CEG, net of distributions, cash		—			—			—				—				—				222				222
Contributions from noncontrolling interests, net of distributions, cash		—			—			—				—				—				988				988
Distributions to noncontrolling interests, net of contributions, non-cash		—			—			—				—				—				(1	)			(1	)
Transfers of assets under common control		—			—			5				—				—				(549	)			(544	)
Non-cash adjustments for change in tax basis		—			—			85				—				—				—				85
Stock-based compensation		—			—			(1	)			—				—				—				(1	)
Common stock dividends and distributions to CEG unit holders		—			—			—				(48	)			—				(35	)			(83	)
Other		—			—			—				—				—				(1	)			(1	)
Balances at June 30, 2024	$	—		$	1		$	1,830			$	314			$	5			$	3,561			$	5,711

CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Six Months Ended June 30, 2023
(Unaudited)

(In millions)	Preferred Stock			Common Stock			Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income				Noncontrolling Interest				Total Stockholders’ Equity
Balances at December 31, 2022	$	—		$	1		$	1,761			$	463			$	9			$	1,792			$	4,026
Net loss		—			—			—				—				—				(43	)			(43	)
Unrealized loss on derivatives and changes in accumulated OCI, net of tax		—			—			—				—				(1	)			(2	)			(3	)
Contributions from CEG, net of distributions, cash		—			—			—				—				—				30				30
Contributions from noncontrolling interests, net of distributions, cash		—			—			—				—				—				215				215
Transfers of assets under common control		—			—			(52	)			—				—				46				(6	)
Non-cash adjustments for change in tax basis		—			—			9				—				—				—				9
Stock based compensation		—			—			1				—				—				—				1
Common stock dividends and distributions to CEG unit holders		—			—			—				(44	)			—				(32	)			(76	)
Balances at March 31, 2023		—			1			1,719				419				8				2,006				4,153
Net income		—			—			—				38				—				40				78
Unrealized gain on derivatives and changes in accumulated OCI, net of tax		—			—			—				—				1				2				3
Distributions to CEG, net of contributions, cash		—			—			—				—				—				(4	)			(4	)
Distributions to noncontrolling interests, net of contributions, cash		—			—			—				—				—				(5	)			(5	)
Tax-related distribution		—			—			—				—				—				(19	)			(19	)
Stock based compensation		—			—			(1	)			—				—				—				(1	)
Common stock dividends and distributions to CEG unit holders		—			—			—				(45	)			—				(32	)			(77	)
Other		—			—			—				—				—				(1	)			(1	)
Balances at June 30, 2023	$	—		$	1		$	1,718			$	412			$	9			$	1,987			$	4,127

Appendix Table A-1: Three Months Ended June 30, 2024, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

($ in millions)		Conventional			Renewables			Corporate				Total
Net Income (Loss)		$	9		$	38		$	(43	)		$	4
Plus:
Income Tax Expense			—			—			10				10
Interest Expense, net			7			49			21				77
Depreciation, Amortization, and ARO			27			126			—				153
Contract Amortization			4			42			—				46
Loss on Debt Extinguishment			—			2			—				2
Mark to Market (MtM) Losses on economic hedges			6			37			—				43
Transaction and integration costs			—			—			3				3
Other non-recurring			1			—			—				1
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates			3			12			—				15
Non-Cash Equity Compensation			—			—			(1	)			(1	)
Adjusted EBITDA		$	57		$	306		$	(10	)		$	353

Appendix Table A-2: Three Months Ended June 30, 2023, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

($ in millions)		Conventional				Renewables				Corporate				Total
Net Income (Loss)		$	37			$	98			$	(51	)		$	84
Plus:
Income Tax Expense			—				—				22				22
Interest Expense, net			7				21				18				46
Depreciation, Amortization, and ARO			32				96				—				128
Contract Amortization			5				42				—				47
Mark to Market (MtM) Gains on economic hedges			—				(26	)			—				(26	)
Transaction and integration costs			—				—				2				2
Other non-recurring			(8	)			1				—				(7	)
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates			3				16				—				19
Non-Cash Equity Compensation			—				—				1				1
Adjusted EBITDA		$	76			$	248			$	(8	)		$	316

Appendix Table A-3: Six Months Ended June 30, 2024, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

($ in millions)		Conventional				Renewables				Corporate				Total
Net Income (Loss)		$	25			$	(6	)		$	(61	)		$	(42	)
Plus:
Income Tax Benefit			—				—				(3	)			(3	)
Interest Expense, net			13				63				41				117
Depreciation, Amortization, and ARO			59				248				—				307
Contract Amortization			9				83				—				92
Loss on Debt Extinguishment			—				3				—				3
Mark to Market (MtM) (Gain)/Loss on economic hedges			(5	)			72				—				67
Transaction and Integration costs			—				—				4				4
Other Non-recurring			1				(1	)			—				—
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates			6				13				—				19
Non-Cash Equity Compensation			—				—				—				—
Adjusted EBITDA		$	108			$	475			$	(19	)		$	564

Appendix Table A-4: Six Months Ended June 30, 2023, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

($ in millions)		Conventional				Renewables				Corporate				Total
Net Income (Loss)		$	61			$	50			$	(67	)		$	44
Plus:
Income Tax Expense			—				—				10				10
Interest Expense, net			17				83				36				136
Depreciation, Amortization, and ARO			65				191				—				256
Contract Amortization			11				83				—				94
Mark to Market (MtM) (Gain)/Loss on economic hedges			—				(45	)			—				(45	)
Transaction and Integration costs			—				—				2				2
Other Non-recurring			(8	)			5				—				(3	)
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates			6				32				—				38
Non-Cash Equity Compensation			—				—				2				2
Adjusted EBITDA		$	152			$	399			$	(17	)		$	534

Appendix Table A-5: Cash Available for Distribution Reconciliation
The following table summarizes the calculation of Cash Available for Distribution and provides a reconciliation to Cash from Operating Activities:

	Three Months Ended								Six Months Ended
($ in millions)	6/30/24				6/30/23				6/30/24				6/30/23
Adjusted EBITDA	$	353			$	316			$	564			$	534
Cash interest paid		(66	)			(55	)			(156	)			(148	)
Changes in prepaid and accrued liabilities for tolling agreements		(6	)			(17	)			(16	)			(56	)
Adjustments to reflect sale-type leases and payments for lease expenses		2				2				5				3
Pro-rata Adjusted EBITDA from unconsolidated affiliates		(22	)			(21	)			(39	)			(36	)
Distributions from unconsolidated affiliates		6				5				15				11
Changes in working capital and other		(71	)			(96	)			(96	)			(99	)
Cash from Operating Activities		196				134				277				209
Changes in working capital and other		71				96				96				99
Return of investment from unconsolidated affiliates3		3				1				7				10
Net contributions (to)/from non-controlling interest4		(24	)			(10	)			(29	)			(20	)
Maintenance capital expenditures		(2	)			(6	)			(4	)			(13	)
Principal amortization of indebtedness5		(67	)			(78	)			(118	)			(152	)
Cash Available for Distribution before Adjustments	$	177			$	137			$	229			$	133
2024 Net Impact of drop downs from timing of construction debt service		10				—				10				—
Cash Available for Distribution6	$	187			$	137			$	239			$	133

Appendix Table A-6: Six Months Ended June 30, 2024, Sources and Uses of Liquidity
The following table summarizes the sources and uses of liquidity in 2024:

		Six Months Ended
($ in millions)		6/30/24
Sources:
Contributions from noncontrolling interests, net of distributions			1,399
Net cash provided by operating activities			277
Proceeds from issuance of long-term debt			236
Decrease in note receivable — affiliate			184
Return of investments from unconsolidated affiliates			35
Other net cash inflows			2
Uses:
Payments for long-term debt			(1,577	)
Acquisition of Drop Down Assets, net of cash acquired			(671	)
Capital expenditures			(202	)
Payments of dividends and distributions			(164	)
Change in total cash, cash equivalents, and restricted cash		$	(481	)

Appendix Table A-7: Adjusted EBITDA and Cash Available for Distribution Guidance

($ in millions)	2024 Full Year Guidance
Net Income	90
Income Tax Expense	20
Interest Expense, net	330
Depreciation, Amortization, and ARO Expense	680
Adjustment to reflect CWEN share of Adjusted EBITDA in unconsolidated affiliates	50
Non-Cash Equity Compensation	5
Adjusted EBITDA	1,175
Cash interest paid	(310	)
Changes in prepaid and accrued liabilities for tolling agreements	(5	)
Adjustments to reflect sale-type leases and payments for  lease expenses	10
Pro-rata Adjusted EBITDA from unconsolidated affiliates	(85	)
Cash distributions from unconsolidated affiliates7	45
Cash from Operating Activities	830
Net distributions to non-controlling interest8	(100	)
Maintenance capital expenditures	(40	)
Principal amortization of indebtedness9	(295	)
Cash Available for Distribution	395

Appendix Table A-8: Adjusted EBITDA and Cash Available for Distribution Growth Projects

($ in millions)		Luna Valley and Daggett 1 5 Year Ave. 2026-2030
Net Income		3
Interest Expense, net		18
Depreciation, Amortization, and ARO Expense		24
Adjusted EBITDA		45
Cash interest paid		(18	)
Cash from Operating Activities		27
Net distributions (to)/from non-controlling interest		(6	)
Network Upgrade Reimbursements		5
Maintenance capital expenditures		(1	)
Principal amortization of indebtedness		(11	)
Estimated Cash Available for Distribution		14

Non-GAAP Financial Information

EBITDA and Adjusted EBITDA

EBITDA, Adjusted EBITDA, and Cash Available for Distribution (CAFD) are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of non-GAAP financial measures should not be construed as an inference that Clearway Energy’s future results will be unaffected by unusual or non-recurring items.

EBITDA represents net income before interest (including loss on debt extinguishment), taxes, depreciation and amortization. EBITDA is presented because Clearway Energy considers it an important supplemental measure of its performance and believes debt and equity holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:

• EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
• EBITDA does not reflect changes in, or cash requirements for, working capital needs;
• EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments;
• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
• Other companies in this industry may calculate EBITDA differently than Clearway Energy does, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to use to invest in the growth of Clearway Energy’s business. Clearway Energy compensates for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA only supplementally. See the statements of cash flow included in the financial statements that are a part of this news release.

Adjusted EBITDA is presented as a further supplemental measure of operating performance. Adjusted EBITDA represents EBITDA adjusted for mark-to-market gains or losses, non-cash equity compensation expense, asset write offs and impairments; and factors which we do not consider indicative of future operating performance such as transition and integration related costs. The reader is encouraged to evaluate each adjustment and the reasons Clearway Energy considers it appropriate for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, the reader should be aware that in the future Clearway Energy may incur expenses similar to the adjustments in this news release.

Management believes Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods. This measure is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired.

Additionally, Management believes that investors commonly adjust EBITDA information to eliminate the effect of restructuring and other expenses, which vary widely from company to company and impair comparability. As we define it, Adjusted EBITDA represents EBITDA adjusted for the effects of impairment losses, gains or losses on sales, non-cash equity compensation expense, dispositions or retirements of assets, any mark-to-market gains or losses from accounting for derivatives, adjustments to exclude gains or losses on the repurchase, modification or extinguishment of debt, and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments. We adjust for these items in our Adjusted EBITDA as our management believes that these items would distort their ability to efficiently view and assess our core operating trends.

In summary, our management uses Adjusted EBITDA as a measure of operating performance to assist in comparing performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations, and in communications with our Board of Directors, shareholders, creditors, analysts and investors concerning our financial performance.

Cash Available for Distribution

A non-GAAP measure, Cash Available for Distribution is defined as of June 30, 2024 as Adjusted EBITDA plus cash distributions/return of investment from unconsolidated affiliates, cash receipts from notes receivable, cash distributions from noncontrolling interests, adjustments to reflect sales-type lease cash payments and payments for lease expenses, less cash distributions to noncontrolling interests, maintenance capital expenditures, pro-rata Adjusted EBITDA from unconsolidated affiliates, cash interest paid, income taxes paid, principal amortization of indebtedness, changes in prepaid and accrued capacity payments, and adjusted for development expenses. Management believes CAFD is a relevant supplemental measure of the Company’s ability to earn and distribute cash returns to investors.

We believe CAFD is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of our ability to make quarterly distributions. In addition, CAFD is used by our management team for determining future acquisitions and managing our growth. The GAAP measure most directly comparable to CAFD is cash provided by operating activities.

However, CAFD has limitations as an analytical tool because it does not include changes in operating assets and liabilities and excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results from operations. CAFD is a non-GAAP measure and should not be considered an alternative to cash provided by operating activities or any other performance or liquidity measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs. In addition, our calculations of CAFD are not necessarily comparable to CAFD as calculated by other companies. Investors should not rely on these measures as a substitute for any GAAP measure, including cash provided by operating activities.

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¹ Excludes equity method investments

² Generation sold excludes MWh that are reimbursable for economic curtailment

³  2024 excludes $28 million related to Rosamond Central BESS return of capital at substantial completion funding

⁴  2024 excludes $1,230 million of contributions related to the funding of  Texas Solar Nova 2, Rosamond Central Battery Storage, Victory Pass, Arica & Cedar Creek; 2023 excludes $229 million of contributions related to the funding of Rosamond Central Battery Storage, Waiawa, and Daggett

⁵  2024 excludes $2,545 million for the repayment of bridge loans in connection with Texas Solar Nova 2, Victory Pass, Arica & Cedar Creek and $137 million due to repayment of NIMH balloon; 2023 excludes $130 million for the repayment of construction loans in connection with Waiawa and Daggett, and $24 million for the repayment of balloon at Walnut Creek Holdings;

⁶  Excludes income tax payments related to Thermal sale

⁷ Distribution from unconsolidated affiliates can be classified as Return of Investment on Unconsolidated Affiliates when actuals are reported. This is below cash from operating activities

⁸ Includes tax equity proceeds and distributions to tax equity partners

⁹ 2024 excludes maturities assumed to be refinanced

FAQ

What were Clearway Energy's Q2 2024 financial results?

Clearway Energy reported Net Income of $4 million, Adjusted EBITDA of $353 million, and Cash Available for Distribution (CAFD) of $187 million for Q2 2024.

Has Clearway Energy (CWEN) changed its 2024 CAFD guidance?

No, Clearway Energy reaffirmed its 2024 full year CAFD guidance of $395 million.

What new investments did Clearway Energy announce in Q2 2024?

Clearway signed an agreement to invest in 314 MW of solar plus storage projects and received an offer for a 500 MW solar plus storage project investment.

How much did Clearway Energy (CWEN) increase its dividend in Q2 2024?

Clearway Energy increased its quarterly dividend by 1.7% to $0.4171 per share.

What is Clearway Energy's (CWEN) dividend growth target through 2026?

Clearway Energy targets annual dividend per share growth in the upper range of 5% to 8% through 2026.